JandA_N0002419D4323P00022_REDACTED.pdf

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVE SE

WASHINGTON NAVY YARD DC 20376-0001

IN REPLY REFER TO

J&A Number: 43,025

Code: 02434

PR No.: N0002425FR00065

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Fleet Support Contracts Division

(SEA 024).

2. Description of the Action Being Approved

Award of a modification on a sole-source basis to existing

Emergency Ship Salvage Material (ESSM) indefinite-delivery-indefinite-quantity (IDIQ) contract N00024-19-D-4323 with

Global PCCI (GPC) to increase the contract ceiling by

$38,000,000, from $280,000,000 to $318,000,000. The current ordering period of the contract ends 17 July 2025 and is not being extended as part of this ceiling increase.

3. Description of Supplies/Services

The Office of the Director of Ocean Engineering, Supervisor of Salvage and Diving (SUPSALV) maintains the U.S. Navy’s

ESSM system, which is a managed network of facilities and emergency response equipment stockpiles pre-positioned worldwide to support and augment the Navy Fleet capability in the areas of salvage, diving, pollution response, and underwater ship husbandry (UWSH). ESSM resources, including equipment and personnel, are also utilized by other agencies and activities (e.g., U.S. Coast Guard, Environmental

Protection Agency, Federal Emergency Management Agency, Military Sealift Command, and U.S. Army Corps of Engineers) in support of pollution abatement, UWSH, depot level equipment maintenance, diving, salvage, and deep ocean search and recovery operations. GPC is the incumbent contractor for operations and management of the ESSM system.

The current contract ordering period began on 16 January

2019 and is scheduled to end on 17 July 2025. However, the approximately $2,900,000 of ceiling remaining on the contract is inadequate to cover the anticipated and

J&A Number: 43,025 potential requirements to be ordered prior to the end of the ordering period. Therefore, $38,000,000 in additional contract ceiling is necessary to provide coverage for continued performance of the ESSM support services until the follow-on contract is competitively awarded in and support transitions fully to the new contractor. Due to infrastructure and technology resource limitations, there is significant uncertainty and complexity associated with the transition from GPC to the successful offeror of the competitive follow-on contract, and the process cannot begin until the successful offeror is identified at contract award and could take upwards of six months to complete. The emergent and operational requirements associated with the

ESSM program requires that SUPSALV maintain the ability to continue placing orders under the current contract through the remainder of the ordering period. As such, adequate ceiling is necessary to enable continued ordering to meet these requirements. This will ensure the Navy Fleet experiences no gap in services and maintains SUPSALV’s capability to respond to ESSM-related events.

Due to the emergent nature of the work performed under this contract, it is impossible to predict with certainty the cost estimates, budget and funding requirements for the additional ceiling value described in this justification.

However, based on the average annual costs experienced over the duration of the contract thus far, an increase of

$38,000,000 would ensure ample ceiling to cover potential costs associated with an ESSM-related event of national significance. Specifically, actual expenditures on the current contract have averaged $50 million per 12-month period since contract award. This average expenditure rate supports an increase of $38 million to cover the remaining nine months of the contract.

Estimated Dollar Value

Appropriation FY25 Total

TBD* $38,000,000

*The orders placed under this contract are customer-funded, so the appropriations cannot be identified in advance.

Orders placed under the current contract have been funded using Operations and Maintenance; Other Procurement, Navy;

Research, Development, Test, and Evaluation; and

Shipbuilding and Conversion, Navy.

4. Statutory Authority Permitting Other Than Full and Open

Competition

The statutory authority permitting other than full and open competition for this action is 10 U.S.C. 3204(a)(1), Only one responsible source and no other type of supplies or services will satisfy agency requirements, as implemented in

Federal Acquisition Regulation (FAR) 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority

NAVSEA awarded the contract under which this modification will be executed (N00024-19-D-4323) to GPC on a competitive basis in January 2019. GPC was the sole contractor to submit a proposal in response to the solicitation. Contracting for the ESSM requirements described in this justification with any source other than GPC would result in unacceptable delays in fulfilling the Navy’s requirements. FAR 6.302-

1(a)(2)(iii)(B) allows an agency to restrict competition when it is likely that an award to any other source would result in unacceptable delays in fulfilling the agency’s requirements. In this case, only GPC has the capability to accomplish the SUPSALV support mission, as described in paragraph (3) above, within the required schedule until the award of the competitive follow-on contract in and the full transition of work to the successful offeror.

The timeline to award the follow-on competitive contract is aggressive and cannot be expedited with the current resources available. Further, no other company has sufficient time to obtain the necessary experience, knowledge, and qualifications to meet the Government’s needs without causing unacceptable delays in fulfilling the Navy’s

ESSM requirements.

The Navy estimates that allowing for a full and open competition for the proposed ceiling increase would take at least twelve months, leaving a gap in services from when the ceiling on the current contract is fully expended and the award of the new contract in and full transition to the successful offeror. A gap in services would leave the U.S. Navy with an inability to perform the activities requiring use of the ESSM system and failure to maintain the government-owned equipment would be detrimental to the viability of the program. Therefore, GPC is the only source that can meet Navy’s requirement.

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

Offerors as Practicable

NAVSEA issued a sources sought notice for the follow-on ESSM competition on 26 October 2022. Additionally, the solicitation for the follow-on contract was conducted as a full and open competition. The solicitation period for the follow-on competition ended on 7 December 2023 and the pool of offerors is already identified for these services and currently undergoing source selection. It is not practicable to perform an additional source sought for this ceiling increase. Approval of this justification constitutes waiver of the DFARS PGI 206.302-1(d) requirement to post a sources sought notice.

In accordance with FAR 5.202(a)(11), a synopsis is not required for this proposed contract action because it is a modification to an existing contract that was previously synopsized in sufficient detail to comply with the requirements of FAR 5.207. No additional market research will be conducted because it is not practicable, for the reasons discussed in paragraph (5) above, for any company other than GPC to provide the required services through the remainder of the current contract’s ordering period.

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 justification will be fair and reasonable.

8. Actions to Remove Barriers to Competition

There are no known barriers to competition. The Navy is currently conducting a full and open competition for award of the follow-on ESSM contract.