JA ROCON Bridge 2.0 15C5301 SAM_Redacted.pdf

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Department of the Navy, Military Sealift Command (MSC), Surge Program Contracting Support Branch, N105B/PM5.

2. Description of the Action Being Approved.

Award of a bridge to contract to N62387-15-C-5301 to incumbent contractor, Crowley Government Services, Inc., (CGS) for the operation and maintenance (O&M) of three Government-owned, Roll-On/Roll-Off (ROCON) ships (USNS OBREGON, USNS PLESS, and USNS KOCAK). The requested bridge contract covers the time needed to prepare and deliver the three ROCON ships to the Maritime Administration (MARAD), as explained in section 3 of this document. The extension will include the following periods:

Period Days Extension Type 01 OCT 2021 to 30 JUN 2022 273 Bridge 01JUL 2022 to 31 JUL 2022 31 Bridge Option

Total Days 304

The period of performance will consist of a 273-day Bridge Period, and a 31-day Bridge Option period which will only be exercised if required.

3. Description of the Supplies/Services.

Contract N62387-15-C-5301 provides for the O&M of three Government-owned, Roll- On/Roll-Off (ROCON) ships (USNS OBREGON, USNS PLESS, and USNS KOCAK) and is currently under a one-year bridge extension which expires 30 September 2021. At the time the bridge was executed, MSC planned to retain the ROCON ships. However, after the first bridge was executed, the Office of Secretary of Defense directed MSC to turn over the ships to MARAD in a non-retention status and placement in the National Defense Reserve Fleet (NDRF). The turnover schedule is as follows:

The total estimated dollar value for the fixed-price daily operating hire of this extension is $ . FY22 funds will be used for this requirement.

Ship Date of Turnover to MARAD KOCAK 31-Jan-22 OBREGON 14-Apr-22 PLESS 30-Jun-22

J&A N105-15-C-5301-0001

4. Statutory Authority Permitting Other Than Full and Open Competition.

This justification is prepared under the provisions of 10 U.S.C. § 2304(c)(1), One source or limited sources, as implemented by FAR 6.302-1 (Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements).

5. Rationale Justifying Use of Cited Statutory Authority.

Contract N62387-15-C-5301 is currently in a bridge period which expires on 30 September 2021. On 06 November 2020, MSC made CGS aware of the decision to retire the three remaining ROCON ships. Furthermore, MSC instructed CGS to prepare the ships for placement in the NDRF in a non-retention status. CGS developed a work package to ensure the three ships meet all MARAD requirements. However, due to a lack of FY21 funding, the work package could not be executed under the first bridge contract and had to be postponed until FY22.

The previous contract bridge extension, executed under FAR 6.302-1, intended to allow the development of a follow-on procurement for an O&M contract for the ROCON ships to remove any barriers to competition. In the course of developing that follow-on procurement, MSC determined that it no longer had a need to operate these ships. MSC completed this original action to remove barriers to competition. However, the need to economically transfer the ships to MARAD has ended the requirement for MSC to O&M these three vessels and execute a follow-on contract.

MSC, however, must award a bridge contract to ensure the continuity of service necessary to maintain the ships and prepare them for turn over to MARAD and placement in the NDRF. A bridge contract also avoids substantial duplication of cost and avoids potential adverse impact to the turn over timeline. Turning over the ships to another contractor would involve substantial duplication of costs to MSC. Having a new contractor become involved mid-stream could jeopardize the turnover timeline. It is estimated that the cost to inventory each ship before turnover to a new contract is approximately $ . Additionally, MSC would incur a substantial duplication of costs due to crew familiarization, ship turnover, and Restriction of Movement (ROM) COVID-19 mitigation costs if an interim award is made to anyone other than the incumbent. Finally, once the ships are placed in the NDRF, the daily costs to maintain the ships will significantly decrease. As shown in the table below, the daily costs for MARAD to maintain each ship is between $ and $ per day per ship less expense than MSC’s cost to operate & maintain.

Therefore, each additional day the ships must remain under MSC control while a new contractor is taking over the operation of the ships would result in the MSC paying a significantly higher daily cost.

Ship MSC Daily Cost to Operate MARAD Daily Cost to Operate Difference

KOCAK $ $ $

OBREGON $ $ $

PLESS $ $ $

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

Pursuant to DFARS PGI 206.302-1(d), the contracting officer shall post a request for information or a sources sought notice, and shall include the results of this inquiry in the justification required by FAR 6.303. The requirement to post a synopsis may be waived by the Head of the Contracting Activity or designee. The requirement to post a synopsis has been waived by the Head of the Contracting Activity or designee.

For the reasons outlined in Section 5, CGS is the only source capable of providing the required service without causing a substantial duplication of cost to the government.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in section 5, MSC is turning the ships over to MARAD and placement in the NDRF. MSC will no longer have a requirement to operate and maintain these vessels.

CERTIFICATIONS AND APPROVAL

PM5 TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief

DIRECTOR, CONTRACTS AND BUSINESS MANAGEMENT, MILITARY SEALIFT

COMMAND

Upon the basis of the above justification, I hereby approve, as Director, Contacts and Business Management, the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).