JustificationApproval_ShipRepair_NewWork USNS SUPPLY FY26 ROH Redacted.pdf

J&A No. N10426C1231P00006

CLASS JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Department of the Navy, Military Sealift Command (MSC) Norfolk

2. Description of the Action Being Approved: Award modifications under contract N3220526C1231, for the Regular Overhaul and Dry Docking of the USNS SUPPLY (T-AOE 6), to Detyens Shipyards LLC, incorporating work items needed to comply with regulatory requirements and extend the period of performance. The contract was awarded for $31,378,288.00 on the basis of adequate competition.

3. Description of Supply Services: To accomplish the work items detailed in the enclosure, which are needed to comply with regulatory requirements of the U.S. Navy, U.S. Coast Guard, and American Bureau of Shipping. The total estimated dollar value for all such work items is $xxx, which will be funded utilizing fiscal year 2026 Operations and Maintenance, Navy (O&M,N) funds. The authority to act under this Class J&A expires one year after the date on which it is approved by the Competition Advocate.

4. Statutory Authority Permitting Other Than Full and Open Competition: 10 U.S.C 3204(a)(2) Unusual and compelling urgency.

5. Rationale Justifying Use of Cited Authority

a. The contracting activity competitively awarded the contract consisting of 156 work items on March 18, 2026, with a period of performance of May 4, 2026 through October 16, 2026 and subsequently extended to January 24, 2027.

b. Inspectors from the U.S. Coast Guard and/or American Bureau of Shipping along with the vessel’s crew and ashore personnel conducted inspections from May 8, 2026, through August 24, 2026, and identified deficiencies requiring repair prior to the vessel’s departure from the shipyard to comply with Safety Management System objectives, attain Operational Availability, and maintain vessel configuration.

c. Competitively soliciting for these work items is not feasible as it would delay returning to a mission-ready posture since award of a procurement package of this magnitude will require a procurement action lead time of 381 days plus the time to accomplish repairs. The vessel’s per diem rate is $274,000.00 per day, which is the estimated losses to the Government for each day of delay. Additionally, given the vessel’s current status with interferences removed, 3 of 5 ships service generators undergoing a 40,000 hour overhaul, navigation and steering equipment disassembled for repair, staging installed, and equipment open for inspection, this is the most cost effective opportunity for maintenance and repairs.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable: The presolicitation notice was posted on the Government Point of Entry website (sam.gov) on July 17, 2025, and the award notice was posted on MARCH 13, 2026. For reasons set forth in Paragraph 5, this particular requirement is not presently a candidate for full and open competition.

7. Determination of Fair and Reasonable Cost: The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable IAW FAR 15.404-1(b).

8. Actions to Removed Barriers to Future Competition: The Government expects to obtain a technical data package or develop a performance specification that will support competition for future acquisitions of the same or similar items.