LARAMIE Mod 02 JA Redacted.pdf

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USNS LARAMIE ROH/DD FY 26
Solicitation number
N3220526C1226P00002
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This is a Class Justification and Approval (J&A) document authorizing contract modifications for ship repair work outside of full and open competition.

The Department of the Navy's Military Sealift Command (MSC) Norfolk seeks to award modifications to contract N3220526C1226 to Alabama Shipyard (ASY) for the Regular Overhaul Drydocking Availability of the USNS LARAMIE (T-AO 203). The original contract, competitively awarded on February 26, 2026, for $18,205,703.00, consisted of 122 work items with a performance period of April 20, 2026 through July 29, 2026 (revised to April 23, 2026 through August 1, 2026). The modifications incorporate additional work items identified by the U.S. Coast Guard and American Bureau of Shipping to comply with regulatory requirements, Safety Management System objectives, and maintain vessel operational availability. These deficiencies were discovered after the ship repair work commenced and are not included in the original contract. The justification for sole-source award relies on 10 U.S.C. 3204(a)(2) for unusual and compelling urgency, as the short shipyard availability window and contractor labor constraints require immediate contract modifications. Competitive solicitation would cause serious injury to the Government due to unacceptable delays; a separate acquisition would require 381 days of lead time plus repair duration, resulting in estimated losses of $80,073,627.00 (based on a per diem rate of $210,167.00 per day) plus mission capability losses. The Government expects to develop a technical data package or performance specification supporting future competition and will fund the work using fiscal year 2026 Operations and Maintenance, Navy (O&M,N) funds.

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Text version

J&A No. N10426C1226P00002

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 N3220526C1226, for the Regular Overhaul Drydocking Availability of the USNS LARAMIE (T-AO 203), to Alabama Shipyard (ASY), incorporating work items needed to comply with regulatory requirements. The contract was awarded for $18,205,703.00 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 , 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 as implemented by FAR 6.103-2.

5. Rationale Justifying Use of Cited Authority

a. The contracting activity competitively awarded the contract consisting of 122 work items on February 26, 2026, with a period of performance of April 20, 2026 through July 29, 2026. Revised period of performance is now April 23, 2026 through August 01, 2026.

b. The U.S. Coast Guard and/or American Bureau of Shipping along with the vessel’s crew and ashore personnel identified deficiencies requiring repair prior to the vessel’s departure to comply with Safety Management System objectives, attain Operational Availability, and maintaining vessel configuration.

The work required to repair the deficiencies is not in the current ship repair contract as the deficiencies were unknown before the ship repair work began.

c. An unusual and compelling urgency to secure the work to repair these deficiencies exists because the shipyard period described above is short and because the ship repair contractor needs time to either secure or contract for the labor to complete that new work. Thus, this work must be added to the contract immediately or it will not be able to be done during this shipyard availability period. Additionally, competitively soliciting these additional work items will cause serious injury to the Government because a separate competitive acquisition for the work items would cause an unacceptable and costly delay in returning the USNS LARAMIE to a mission-ready status. That delay would occur because the award of a procurement package of the magnitude to complete those work items by themselves will require an additional availability contract, which procurement action has a lead time of 381 days plus the time to accomplish repairs. The vessel’s per diem rate is $210,167.00 per day, which figure is the estimated losses to the Government for each day of delay. 381 days of delay would thus result in a financial loss of use of the vessel worth $80,073,627.00, and that financial loss does not account for the mission capability loss that the Government would also experience from the ship’s non-availability. Additionally, given the vessel’s current status with interferences removed, staging installed, and equipment open for inspection, this is the most cost-effective opportunity for maintenance and repairs; and that work would have to be re-done in any separate acquisition. Therefore, the anticipated delay will cause a serious injury to the Government.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable: The pre-solicitation notice was posted on the Government Point of Entry website (sam.gov) on September 23, 2025, and the award notice was posted on February 26, 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)(5).

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.

CERTIFICATION AND APPROVALS

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

Signature/Date Name (Printed) Phone No.

SMITH.TEANA.D.1276503479 Digitally signed by SMITH.TEANA.D.1276503479 Date: 2026.04.29 17:03:12 -05'00'

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