JA YOK26-0026 (Redacted).pdf

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Justification & Approval
Solicitation number
YOK26-0026
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About this file

This is a Justification and Approval (J&A) document for a sole-source contract award by the Department of the Navy.

The contracting activity, NAVSUP Fleet Logistics Center (FLC) Yokosuka, seeks to award a firm-fixed-price service/repair contract to Sumitomo Heavy Industries, Ltd. (SHI) for preservation work of the Forward Uptake and Intake Space onboard a naval vessel. The work is identified under Technical Group Item (TGI) 38K4212355-A01 DL001 and will be performed as a follow-on to existing contract N62649826FA029. The contract uses FY26 Operation and Maintenance, Navy (O&MN) funding. The statutory authority cited is 10 U.S.C. 3204(a)(1), permitting procurement from a single source or limited sources. The Contracting Officer determined the preservation work to be an out-of-scope change to the original requirement, and awarding to another contractor would result in substantial cost duplication. SHI, the incumbent contractor already mobilized at the vessel's location, is uniquely positioned to perform the work efficiently while maintaining critical path schedule requirements and minimizing demobilization costs. A sources-sought notice was posted on SAM.gov on March 13, 2026, for 15 days ending March 28, 2026, which generated no responses from competing shipyards. The Contracting Officer will determine fair and reasonable pricing prior to award. Future solicitations for similar services will be issued competitively on a full and open basis, with the Government conducting market surveys to identify qualified vendors and build a source list.

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DEPARTMENT OF THE NAVY

NAVSUP FLEET LOGISTICS CENTER YOKOSUKA

PSC 473 BOX 11

FPO AP 96349

J & A Number: YOK26-0026

JUSTIFICATION AND APPROVAL FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

Dollar Estimate:

Inclusive of Options Period of

Performance:

Type of Funds FY26 O&MN

Contract Type FIRM-FIXED PRICE FOR SERVICE/REPAIR

1. Contracting Activity

NAVSUP Fleet Logistics Center (FLC) Yokosuka

2. Description of the Action Being Approved

Award of a contract on a sole source basis to Sumitomo Heavy Industries, Ltd. (SHI) to accomplish ship repair services in support of the ongoing contract # N62649826FA029 -Forward Uptake Preservation Works in support of onboard .

3. Description of Supplies/Services

The Contractor shall accomplish preservation work of Forward Uptake and Intake Space onboard under TGI 38K4212355-A01 DL001. The total estimated dollar value of this acquisition is using with FY26 Operation and Maintenance, Navy (O&MN) funding. Period of Performance (POP) is – .

Estimated Dollar Value

FY23 FY24 FY25 FY26 FY27 Total

RDT&E N/A N/A N/A N/A N/A N/A

OPN N/A N/A N/A N/A N/A N/A

O&MN N/A N/A N/A N/A

Total N/A N/A N/A N/A

4. Statutory Authority Permitting Other Than Full and Open Competition10

☒ 10 U.S.C. 3204(a)(1), One source or limited sources ☐ 10 U.S.C. 3204(a)(2), Unusual and compelling urgency

☐ 10 U.S.C. 3204(a)(3), Industrial mobilization; engineering, developmental, research capability; or expert services ☐ 10 U.S.C. 3204(a)(4), International agreement ☐ 10 U.S.C. 3204(a))(5), Authorized or required by statute ☐ 10 U.S.C. 3204(a)(6), National security

CUI/SOURCE SELECTION INFORMATION- SEE FAR 2.101 and

CUI/SOURCE SELECTION INFORMATION - SEE FAR 2.101 and 3.104

5. Rationale Justifying Use of Cited Statutory Authority

Pursuant to FAR 6.103-1(c)(2), this authority is appropriate when a procurement is deemed to be available only from a single source as a follow-on contract for the continued development of the major components. Previously awarded contract was to support a onboard at

. Preservation work of Forward Uptake and Intake Space was not part of the original requirement, and the Contracting Officer determined it to be an out-of-scope change.

Awarding a contract for additional work to another contractor would result in a substantial duplication of costs that is not expected to be recovered through competition. Currently, is located at where SHI, the incumbent contractor, will perform repairs tasked under the existing contract. The subject preservation work of TGI 38K4212355-A01 DL001 was identified during preparation of performance of the work tasked in the original TGI 38K4212355-A01, which shares the same space and location. Therefore, SHI, the sole offeror of the original contract, will already be mobilized and setup in the area where this work will be performed. If this work were to be awarded to another contractor, there would be additional costs as SHI would have to “demobilize” some of their temporary services to make room for a new contractor.

Moreover, additional work controls would be required if the contract is awarded to a new contractor, causing time delays to get the new contractor mobilized in this area. Most importantly, as TGI 38K4212355-A01 is one of the critical path jobs of this , it will increase the time needed to complete the work and jeopardize the availability scheduled completion. Therefore, continuing with SHI leverages their project familiarity, avoids costly delays inherent in contractor transitions, and ensures efficient repairs through access to proprietary documentation and parts. Considering the vessel's operational demands and SHI's logistical advantages, a sole-source award offers the most expedient and cost-effective path to accomplishing the subject effort.

The incumbent contractor, SHI, is uniquely positioned to perform this required preservation work, utilizing their specialized knowledge, combined with their active management of other requirements on the vessel, allows for the efficient and coordinated execution of these repairs. Awarding this contract to any source other than the incumbent, SHI, would result in unacceptable delays and a substantial duplication of cost. SHI can commence work immediately, integrating the new requirement with the ongoing to ensure all critical path items remain on schedule and the ship has a timely return to service.

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

The solicitation for original contract# N62649826FA029 was competitively posted to in SAM. gov, the Government Point of Entry (GPE), and solicited to MSRA/ABR holders within Kanto-region of Japan that are technically certified to perform the requirements. SHI was the sole offeror that has expressed interest in bidding the original contract of N6264926FA029.

Additionally, a Sources Sought was posted IAW with DFARS PGI 206.302-1(d), on SAM.gov on 13 March 2026, for a period of fifteen (15) days with a response due of 28 March 2026. The notice was issued to conduct market research and identify interested shipyards capable of bidding on the specified effort. However, the Government received no responses from potential shipyards regarding this opportunity.

7. Determination of Fair and Reasonable Cost

The Contracting Officer will determine that cost to the Government of the services covered by this J&A are fair and reasonable prior to making contract award.

8. Actions to Remove Barriers to Future Competition

The Government will conduct a comprehensive market survey to identify potential vendors capable of providing similar services. This survey will help assess the feasibility of full and open competition for future requirements and build a list of qualified sources. Lastly, future solicitations will be issued on a competitive basis in accordance with FAR 6.101(b)(2)-Competitive proposals. To achieve full and open competition to the maximum extent practicable, the solicitations will be posted in the Government Point of Entry (GPE) to give responsible vendors, MSRA/ABR and non-MSRA/ABR holders an opportunity to submit a proposal.

9. Contracting Point of Contact

CERTIFICATIONS AND APPROVAL

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.

Technical Cognizance:

Signature Name (Printed) Phone No. Date

Requirements Cognizance

(Note that this page includes certification that the acquisition planning documents are complete and accurate. If a single individual has cognizance over both technical and requirements information included in the J&A, use of only one signature line is encouraged "Technical Cognizance:" and “Requirements Cognizance:" above the signature lines may also be deleted.)

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. To the extent that the J&A value is from SAT to $10M, the Contracting Officer’s signature below also represents approval of the J&A.

CONTRACTING ACTIVITY COMPETITION ADVOCATE REVIEW

Upon the basis of the above justification, I hereby approve, as Competition Advocate, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C.

3204(a)(x)(provide appropriate citation). To the extent that the J&A value is from $10M to $100M, the Competition Advocate’s signature below also represents approval of the J&A.

N/A

See next page for Approval blocks for requirements in excess of $100M. Only if the J&A has a value of over $100M but less than $500M, include the following signature block:

HEAD OF PROCURING ACTIVITY

APPROVAL

Upon the basis of the above justification, I hereby approve, as Head of the Procuring Activity, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 3204(a)(x)(provide appropriate citation).

Only if the J&A has a value in excess of $500M, include the following signature block:

SENIOR PROCUREMENT EXECUTIVE

APPROVAL

Upon the basis of the above justification, I hereby approve, as Senior Procurement Executive of the Navy, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C.

3204(a)(x)(provide appropriate citation).

NOTES: All italicized verbiage should be deleted from the signature page. Remove all of the “APPROVAL” signature blocks for J&As valued at less than $500M. Include the only appropriate “APPROVAL” signature block for J&As valued in excess of $500M. Lastly, get all of the signatures on one page.

File details come from the government source that posted it. Updated .