JA 26-0085 SANITIZED.pdf

CUI

YOK#:

Justification for an Exception to Fair Opportunity (Above SAT)

1. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY: This is a Justification for an Exception to Fair Opportunity. The requiring activity is Ship Repair Facility Detachment Singapore (SRF Det SG); the contracting activity is NAVSUP Fleet Logistics Center (FLC) Yokosuka Site Singapore, Contracting Dept. Code 257.

2. NATURE/DESCRIPTION OF CONTRACT ACTION: This is a sole source action to be awarded as a new task order to the single awardee identified below. This action is an exception to the fair opportunity process and will be issued against the following multiple award contract (MAC) number:

N0002425D4219 – Epsilon Systems Solutions, INC

The placement of a firm, fixed price order is anticipated. Total estimate value: $679,310.00

3. DESCRIPTION OF REQUIRED SUPPLIES/SERVICES: The proposed acquisition is to provide essential maintenance for the USS TULSA (LCS-16) SSP SING 040-26. Specifically, the requirement is for accomplishment of the Number One and Number Two Main Propulsion Diesel Engine (MPDE) 8,000 Hour Maintenance. Both engines are currently operating above 12,500 hours and risk catastrophic failure if this maintenance is not accomplished immediately. This maintenance is urgently required to ensure the operational readiness and safety of the vessel.

4. EXCEPTION TO FAIR OPPORTUNITY RATIONALE AND/OR DEMONSTRATION OF

CONTRACTOR’S UNIQUE QUALIFICATIONS:

FAR 16.507-6(b)(1) The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

FAR 16.507-6(b)(2) Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

FAR 16.507-6(b)(3) The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

FAR 16.507-6(b)(4) It is necessary to place an order to satisfy a minimum guarantee.

FAR 16.507-6(b)(5) For orders exceeding the SAT, a statute expressly authorizes or requires that the purchase be made from a specified source.

FAR 16.507-6(b)(6) For DoD, NASA, and the Coast Guard, the order satisfies one of the exceptions permitting the use of other than full and open competition listed in part 6.103 (10 U.S.C. 3406(c)(5)).

Note: 10 U.S.C. 3406(c)(5) provides an exception to the requirement for giving all multiple-award contract holders a "fair opportunity to be considered" for a task or delivery order.

Specifically, it allows an agency head to bypass the fair opportunity process if the order satisfies one of the exceptions to full and open competition listed in 10 U.S.C. 3204(a).

5. RATIONALE JUSTIFYING USE OF CITED STATUTORY AUTHORITY. The overhauls for USS TULSA's NR 1 and NR 2 MPDEs are urgently required to prevent catastrophic engine failure and ensure crew safety. Both engines are currently operating well beyond their maximum recommended operational thresholds (operating above 12,500 hours vs. the required 8,000-hour overhaul interval), making the threat of immediate, catastrophic engine failure extremely high.

Epsilon is the only contractor capable of performing this work within the required operational window due to a unique combination of active contracts, localized footprint, and established logistics pipelines:

Active Availabilities & Localized Footprint: Epsilon is already awarded the USS TULSA (TUL) Planned Maintenance Availability (PMAV) and currently has the required, fully operational management team and infrastructure pre-positioned in Singapore to support this effort.

Pre-Existing OEM Contractual Relationship: Epsilon maintains an active, pre-existing contractual relationship with the Original Equipment Manufacturer (OEM). This formal partnership is critical because it enables:

Immediate Tooling Mobilization: The pre-arranged agreement allows Epsilon to bypass lengthy logistics and customs delays to immediately ship and clear specialized, proprietary OEM overhaul tools directly to the Singapore work site.

Rapid PCP Development & Approval: Epsilon and the OEM are already aligned, allowing them to collaboratively develop, finalize, and secure approval for the highly complex, proprietary Process Control Procedures (PCPs) required for MPDE overhauls in a fraction of the time a non-aligned contractor would require.

Compressed Period of Performance (POP): Due to the urgent operational schedule of the vessel, there is zero margin for delay. Introducing an alternative vendor would require starting the OEM negotiation, PCP development, international tool transit, and technician mobilization from scratch.

Transitioning this urgent requirement to any other contractor at this stage would cause an immediate service gap and unacceptable delays, resulting in a direct mission failure. Any delay in these overhauls poses an immediate, serious risk to the vessel's deployment capabilities and national security missions.

DETERMINATION OF FAIR AND REASONABLE COST: The Littoral Combat Ships (LCS) Class Sustainment Execution Contract West Coast Part III (SEC West Pt. III) Indefinite Delivery Indefinite Quantity-Multiple Award Contracts (IDIQ-MACs) has already established a fully burdened Ship Repair Labor and Material rate for the ship repair services. However, the FLC Yokosuka Site Singapore Contracting Officer will still use the procedures in FAR 15.4 to ensure that the order represents a fair and reasonable cost to meet the Government's needs.

DESCRIPTION OF EFFORTS MADE TO SOLICIT OFFERS FROM AS MANY OFFERORS

AS PROCTICABLE: Market research and a review of the operational timeline were conducted. Notably, this specific overhaul work was previously solicited under full and open competition under the SEC West (SEC W) contract, which resulted in a "no-bid" outcome from potential sources.

This lack of market response confirms that no other multiple-award contract (MAC) holders or commercial entities are capable of, or willing to, execute these requirements under the current operational parameters. Due to the urgent need for maintenance, the critical constraints associated with the POP start, PCP development, and OEM technician mobilization, Epsilon is verified as the only viable source capable of meeting this timeline without causing unacceptable operational delays. To avoid mission failure, other sources will not be solicited for this urgent, short-term requirement.

ANY OTHER SUPPORTING FACTS: This procurement uses a MAC and will be solicited and awarded in accordance with FAR Subpart 16.5.

ACTIONS TAKEN TO REMOVE BARRIERS TO COMPETITION: The Government has taken deliberate actions to maximize competition to the greatest extent practicable, given the overriding and non-negotiable requirement for continuous, uninterrupted MPDE maintenance support from personnel already pre-positioned and integrated into the ship's active availability.

The primary barrier to full and open competition is the Government’s critical need to retain the incumbent Epsilon management team and their established OEM technical pipeline. Removing these specialized personnel and introducing a new subcontractor to handle the MPDE overhauls would cause an immediate service gap, resulting in unacceptable mission degradation, unapproved PCP development delays, and severe operational setbacks. This barrier is, therefore, essential to mission success and cannot be removed for this short-term action.

To remove this barrier for future requirements, the Government is limiting this justification to six months, during which a competitive follow-on requirement for subsequent maintenance cycles will be prepared and solicited. The Government will continue to monitor the market for capable sources.

10. CONTRACTING POINT OF CONTACT: The point of contact at FLCY Site Singapore is , Code 257 , at commercial ( 65 6750-2829 ) or by e-mail at cony.w.ng.ln@us.navy.mil.

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:

Terrence M Burns 9815-6024 14 AUG 2026

Signature Name (Printed) Phone No. Date

Requirements Cognizance

Signature Name(Printed) Phone No. Date

(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 justification, 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.

Signature Name (Printed) Phone No. Date

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 justification value is from SAT to $900K, the Contracting Officer’s signature below also represents approval of the Justification.

Signature Name(Printed) Phone No. Date

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.

BURNS.TERRENC

E.M.1255644960

Digitally signed by

BURNS.TERRENCE.M.1255644960

Date: 2026.08.14 12:31:44 +08'00'

LYNCH.BRIAN.L.1547386384 Digitally signed by LYNCH.BRIAN.L.1547386384 Date: 2026.08.14 14:07:32 +08'00'

NG.CONY.W.1274907823 Digitally signed by NG.CONY.W.1274907823 Date: 2026.08.26 16:13:20 +08'00'

3204(a)(x)(provide appropriate citation). To the extent that the justification value is from $900K to $20M, the Competition Advocate’s signature below also represents approval of the justification.

See next page for Approval blocks for requirements in excess of $20M. Only if the justification has a value of over $20M but less than $150M, 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 justification has a value in excess of $150M, 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 justification valued at less than $150M. Include the only appropriate “APPROVAL” signature block for justification valued in excess of $150M. Lastly, get all of the signatures on one page.