Justification and Approval.pdf

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Scrubber and Burner Equipment Repair
Solicitation number
N3904021R0010
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This justification and approval document authorizes a sole-source contract award to CEPEDA Associates for repair services to CO/H2 scrubbers and burners equipment onboard a Los Angeles-class submarine. The repairs include refurbishing and replacing various components, and will be performed according to original equipment manufacturer specifications and Navy technical manuals by CEPEDA as the OEM. A sources sought notice did not identify any other qualified vendors. The contracting office anticipates costs will be determined fair and reasonable through analysis including historical data. The justification cites FAR 6.302-1 for limiting competition due to CEPEDA owning necessary proprietary data as the original manufacturer. A pre-solicitation notice provides details on the planned solicitation for these repair services to be issued on or around January 7, 2021, with questions to be addressed to the named contracting officer.

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DEPARTMENT OF THE NAVY

PORTSMOUTH NAVAL SHIPYARD

PORTSMOUTH, NH 03804-5000 IN REPLY REFER TO:

Deana J&A Number: PL-2032 Serial 410/030 P.R. Number: N3904021RC10145

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

The Contracting Activity is the Contracting Division (Code 410), Portsmouth Naval Shipyard (PNS), Kittery, ME. The requiring activity is Portsmouth Naval Shipyard, Kittery, ME.

2. Description of the Action Being Approved

Award of a sole source, firm-fixed price contract to CEPEDA Associates, Scrubbers and Burners CO/H2 Repair

3. Description of Supplies/Services

The proposed contract provides for the Original Equipment Manufacturer (OEM) to provide services to accomplish repairs to the CO2 Removal Plants. Contractor shall remove existing CO2 Removal Plant equipment installed shipboard. Contractor shall disassemble and reassemble as required to facilitate offloading. Work will be in accordance with Scrubber Technical Manual NAVSEA S9515-AK-MMO-010 and Burner Technical Manual NAVSEA S9515-AS-MMM-010. Shipboard testing shall be in accordance with HM&E Test 532-5208 CO/H2 Burner (Mark IV-E).

Operational Test Shop repair accomplished at CEPEDA Associates in Louisville, Kentucky, shall be in accordance with SUBMEPP Refurbishment Instruction No. 5320-12-0656. The following repairs shall be accomplished based on inspections accomplished by CEPEDA Associates in May 2019 and the repair recommendations by SUBMEPP:

Scrubbers:

(a) Install refurbished boiler assembly.

(b) Install new heat exchangers.

(c) Install new level sensors.

(d) Install new level control cables.

(e) Install refurbished control panels.

(f) Install refurbished float valve.

(g) Install refurbished 5hp motor and pulley.

(h) Install refurbished 3hp motor and MEA pump.

(i) Install new flex hoses.

J&A Number: PL-2032

(j) Install new RTD’s

(k) Install new absorber packing.

(l) Install new machinery mounts MEA and comp bed.

(m) Install new V-12 & V-30.

Burners:

(a) Install refurbished control panels.

(b) Install refurbished bypass ducts.

(c) Install refurbished heater boxes.

(d) Install refurbished fan housing.

(e) Install refurbished fan motors.

(f) Install refurbished filer boxes.

(g) Install instrument brackets.

(h) Install D/P sensing lines.

4. Statutory Authority Permitting Other Than Full and Open Competition

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1 (Only one responsible source and no other supplies or services will satisfy agency requirements).

5. 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 by not soliciting this requirement on a full and open competition basis.

CEPEDA Associates is the Original Equipment Manufacturer (OEM) and owns the proprietary data – including drawings, material specifications/measurements, and processes -required to repair the CO/H2 Scrubbers and Burners System.

Said data, which is neither possessed by another vendor nor available to the Government, is critical to ensuring that the system is repaired in accordance with the Statement of Work.

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

Pursuant to FAR 5.201, a Sources Sought Notice was posted on the Government-wide Point of Entry (GPE) beta.SAM.gov on

11 December 2020. Said notice, which sought vendors with the capability to repair the CO/H2 Scurbbers and Burners Systems aboard a Los-Angeles Class submarine, prescribed the following: “This sources sought notice is a market research tool being utilized to identify potential and eligible firms capable of providing these services prior to determining the method of acquisition and issuance of a Request for Proposal (RFP). As such, all interested parties are encouraged to respond. Information received will be considered solely for the purpose of determining whether or not to conduct a competitive procurement. A determination by the Government not to compete this proposed contract based upon responses to this notice is solely within the discretion of the Government.” The Sources Sought Notice garnered responses from two vendors, however, neither vendor was able to provide proper documentation showing they were authorized to perform the requested services.

7. Determination of Fair and Reasonable Costs

The Contracting Officer anticipates that 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 cost 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.

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.

Contracting Point of Contact

Nathan Westman, Contract Specialist Email: nathan.westman@navy.mil

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(c))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data and Acquisition Strategy except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficie t.

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(b)(12))

I certify that this justification is accurate and complete to the best of my knowledge and belief.

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as 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. 2304(c)(__).

COMPETITION ADVOCATE, CHIEF OF THE CONTRACTING OFFICE

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