Justification and Approval.pdf

DEPARTMENT OF THE NAVY

PORTSMOUTH NAVAL SHIPYARD

PORTSMOUTH, NH 03804-5000 IN REPLY REFER TO

J&A Number: PL-1992

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

2.

3 .

4.

The Naval Sea Systems Command Field Procurement Office, Portsmouth Naval Shipyard (N39040), Kittery ME.

Description of the Action Being Approved

Award of a firm-fixed price contract to Northrop Grumman Marine Systems on a sole source basis for acquisition of long lead time replacement material necessary for the repair of the #1 and #2 Ships Service Turbine Generators (SSTGs) on the at Portsmouth Naval Shipyard (PNSY).

Description of Supplies/Services

This proposed contract provides for the Original Equipment Manufacturer (OEM) to provide replacement material for the inboard and outboard thrust bearing stators and axial sensor and wirewall modifications during the Depot Modernization Period (DMP) at PSNY.

The total estimated value of this acquisition is with FY20 Operations & Maintenance (OM&N) funds. The Required Delivery Date is . The material will be funded with FY20 OM&N funds/

Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c) (1) Only one responsible source and no other supplies or services will satisfy agency requirements as implemented by Federal Acquisition Regulation (FAR) 6.302-l(a) (2).

SOUCE SELECTION INFORMATION - SEE FAR 2 . 101 AND 3 . 104

5.

6.

J&A Number: PL-1882

Rationale Justifying Use of Cited Statutory Authority

Use of FAR 6.302-1 is appropriate when supplies or services are available from only one reasonable source that will satisfy agency requirements. This authority permits limiting the number of sources solicited and to not use full and open competition for this requirement.

Northrup Grumman Marine Systems is the OEM and owns the proprietary equipment, proprietary drawings, and is experienced in supplying the replacement material as stated in Paragraph 2 above. They are the only known vendor that can both provide the material required for the repair/modifications and satisfy the appropriate procedures.

The material requested is proprietary material designed for form, fit, and function with existing material currently installed on the submarine.

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

The OEM has provided virtually identical materials for SSTG repair under PNSY sole source contracts for the

Pearl Harbor Naval Shipyard (PHNSY) conducted initial market research, via internet, in , seeking vendors with the capability of repairing both the SSTG #1 Turbine High Pressure (THP) Bearing and the Thrust Bearing Housing onboard a Virginia Class Submarine. Northrop Grumman Marine Systems responded to the notice, posted by PHNSY, stating that they own the proprietary drawings and equipment required to complete the repairs. Thereafter, PNSY conducted similar market research seeking vendors capable of performing SSTG repairs and providing required parts. Said research was conducted in for the , in for the , in for , and in for the .

On February 26, 2020, the Contract Specialist conducted market research for the current requirement by posting a sources sought notice to https://beta.sam.gov . The notice sought vendors with the capability of providing the materials required to repair the SSTG #1 and SSTG #2 onboard a Virginia Class Submarine. No responses were received.

Notice of this justification will be provided on https://beta.sam.gov in accordance with FAR 6.305.

SOUCE SELECTION INFORMATION - SEE FAR 2 . 101 AND 3.104

J&A Number: PL-1882

7. Determination of Fair and Reasonable Costs

The Contracting Officer anticipates the cost to the Government for the items covered by this J&A will be fair and reasonable.

The Contracting Officer will use cost analysis, including historical price estimating relationships from previous procurements, to determine that the final price to the Government is fair and reasonable. Assistance from the Defense Contract Audit Agency (DCAA) and the Defense Contract Management Agency (DCMA) may be utilized to analyze, evaluate, and negotiate based upon detailed cost and/or pricing data at the conclusion of negotiations. As the Government will utilize a similar statement of work that is currently being used for the ongoing negotiation, the Government anticipates that Northrup Grumman will propose a similar price in response to the requirement.

8. Actions to Remove Barriers to Competition

Barriers should be reviewed at the time ships are built, i.e., whether component(s) being installed shipboard will remain proprietary to the OEM.

SOUCE SELECTION INFORMATION - SEE FAR 2 . 101 AND 3 .104

T

Si

LEGAL SUFFI

CONT CTI G

j

PPROV .L 6. 0

Chi 0 h

CATO S A. D

F

J&.A N mb r: PL-1882

6. 30 - (c)) r my cognizance, o ng

XC pt S o my

2 , 4 207-

5206.303(90)) c ion i leg l y u~ ic'ent

C TIO (FAR 6. 03-2(

~ca· ion i accu e 1· f.

0 pproving Of ic

- S E n

.o

) (12)) com let to the

Io IYfmzcll V) z o .!ll:S9 Da.t.

, i:ove, s ol c' t t on h r that 10 u.s.c.

. 3.10