JA Signed_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVE, SE

WASHINGTON NAVY YARD, DC 20376-0001 IN REPLY TO

J&A Number: 42,694

Code: SEA 0244

P.R. Number: N0002419FR93037

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command (NAVSEA), Fleet Support Contracts Division (SEA 024).

2. Description of the Action Being Approved

This action authorizes contracting without providing for full and open competition with

Marine Hydraulics International (MHI), 543 East Indian River Road, Norfolk, VA 23523 for the completion of the FY21 Selected Restricted Availability (SRA) on the USS OAK

HILL (LSD 51) home-ported in Norfolk, VA.

3. Description of Supplies/Services

The proposed action is limited to the procurement of the repair, maintenance and modernization requirements included in the USS OAK HILL’s Chief of Naval

Operations (CNO) SRA scheduled to begin in February 2021 and complete approximately eighteen (18) months later in August 2022. The scope of this procurement includes all labor, supervision, facilities, equipment, production, testing and quality assurance necessary to prepare for and accomplish the USS OAK HILL

(LSD 51) FY21 SRA.

The total estimated value of this procurement is This value is based on MHI’s competitively proposed price in response to Request for Proposal N00024-20-R-4463 to complete the USS OAK HILL (LSD 51) FY21 SRA work package and includes a historically informed estimate of the availability’s likely growth and new work requirements. The estimated funding profile is shown in the table below.

Funding Type FY21($M)

MAINTENANCE

MODERNIZATION

Total

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

J&A Number: 42,694

4. Statutory Authority Permitting Other Than Full and Open Competition

The statutory authority permitting other than full and open competition for this effort is 10

U.S.C. 2304(c)(3) to maintain a facility, producer, manufacturer, or other supplier available for furnishing property or services in case of a national emergency or to achieve industrial mobilization.

5. Rationale Justifying Use of Cited Statutory Authority

In accordance with the requirements of 10 U.S.C.2304(c)(3), full and open competition need not be provided for when it is necessary to award the contract to a particular source in order to maintain a facility, producer, manufacturer, or other supplier available for furnishing supplies or services in case of a national emergency or to achieve industrial mobilization.

Historically MHI has completed approximately of the complex availability requirements in the Norfolk homeport. It is in the Navy’s best interest to award the proposed contract to MHI on a sole source basis in order to:

Ensure MHI remains in business; both to provide the US Navy capacity necessary to complete its on-going ship repair requirements and to ensure its availability in the event of a national emergency, and

Prevent the loss or degradation of MHI’s workforce employees' skills needed by

MHI to complete the US Navy’s future ship repair requirements.

MHI Workload Forecast

The chart above illustrates MHI’s awarded and forecasted workload in the Norfolk homeport area from FY20 through FY23. The chart reflects availabilities already awarded to MHI, except for the dark green area within the red circle, which is the USS OAK HILL

(LSD 51) FY21 SRA.

As demonstrated by the chart above, MHI has averaged in its recent historical workload. MHI would maintain approximately

While there are future availabilities that MHI could win through on-going and future source selections (see below), Therefore, MHI completing the USS OAK HILL (LSD 51) FY21 SRA will help ensure a vital supplier remains in business and available in order to provide surface combatant maintenance, modernization and repair surge and industrial mobilization requirements in the event of a national emergency and help to maintain MHI’s competitive position for future ship maintenance, modernization and repair competitions, all of which are in the Government’s best interest.

Near Term Source Selections available USS J.E WILLIAMS (DDG 95) & USS MAHAN (DDG 72) SRA Horizontal Grouping (POP: Mar 21 to Jun 22);

USS PHILIPPINE SEA (CG 58) & USS LABOON (DDG 58) SRA Vertical Grouping (POP:

PHILIPPINE SEA Aug 21 to Apr 22 & LABOON Aug 21 to May 22);

USS CARTER HALL (LSD 50) PMA (POP: Dec 21 to Dec 22);

USS THOMAS HUDNER (DDG 116) SRA (POP: Jan 22 to July 22);

USS SAN ANTONIO (LPD 17) SRA (POP: Feb 22 to May 23);

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

In accordance with FAR 5.202(a) (10), a synopsis was not published on beta.sam.gov under FAR 5.201 because the contracting officer has determined that the proposed contract action is made under the conditions described in FAR 6.302-3.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by this J&A will be fair and reasonable based upon the competitively priced proposal submitted by MHI.

8. Actions to Remove Barriers to Competition

The Navy is committed to monitoring and evaluating the ship repair industrial base and may utilize similar industrial mobilization actions in the future if needed to ensure a healthy and competitive industrial base. Awarding a sole source contract to MHI will help balance sources of supply to compete for future requirements in the Norfolk Homeport.

The Navy will continue to conduct competitive acquisitions for surface ship maintenance, modernization and repair on future availabilities to the maximum extent possible.

OTT.

Oak Hill FY21 PMS IM JA_signature page APPROVED by SEA 024_printed