LSJ_Final_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL RESEARCH LABORATORY

4555 OVERLOOK AVE SW

WASHINGTON, DC 20375-5320

Justification for Other than Full and Open Competition Under Simplified Procedures For Certain Commercial Items In

Accordance With Federal Acquisition Regulation (FAR) 13.5

PURCHASE REQUEST NO. 34-

0020-21

J&A NO: J&A13.501-21ZL14

Estimated Cost: No Cost

On the basis of the following, I, as the Contracting Officer, hereby approve the use of a sole source proposed contractual action pursuant to the authority of :

41 U.S.C. 1901 41 U.S.C. 1903

1. The U.S. Department of Navy; Naval Research Laboratory (NRL) Contracting Division proposes to modify contract N00173-16-D-6002 on a sole source basis with Air Product & Chemicals, Inc. , under simplified procedures for certain commercial items included in FAR subpart 13.5.

2. The nature and/or description of the action being approved, i.e., sole source under procedures for certain commercial items in accordance with FAR 13.5.

This justification seeks approval to extend the ordering period for the single award Indefinite Delivery Indefinite Quantity (IDIQ) Contract N00173-16-D-6002 by six months, from 30 September 2021 to 31 March 2022. The Contractor for Contract N00173-16-D-6002 is Air Product & Chemicals, Inc. of Allentown, PA, 18195-1526. The contract was awarded on 29 September 2016 with a maximum ordering ceiling of $5,009,000.00. The awarded ordering period for the contract is from 01 October 2016 to 30 September 2021. The ordering ceiling will remain unchanged.

3. A description of the supplies and/or services required, including the delivery schedule and/or the period of performance (inclusive of all option periods), and the estimated dollar value of the acquisition.

Contract N00173-16-D-6002 is for supply of liquid nitrogen and nitrogen tank rentals in support of laboratory operations at the NRL. The contract included the lease of Air Products nitrogen tanks with a capacity of 500 to 6,000 gallons located on the outside of various NRL buildings and the bulk delivery of type II, grade B, Class I nitrogen. NRL divisions use large quantities of liquid nitrogen to operate a wide variety of highly specialized scientific instruments to accomplish NRL’s mission objectives. The proposed extension of the ordering period via a contract modification is to ensure availability of liquid nitrogen to support laboratory operations while the NRL Contracts Division works to issue a replacement contract.

The proposed contact modification is for extension of the ordering period without increase to the current established contract ceiling.

4. The statutory authority permitting sole source.

41 U.S.C. 1901 41 U.S.C. 1903

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring use of the authority.

A modification to the contract is required to prevent a break in essential supplies, while allowing time for the NRL Contracts Division to award a replacement contract. The proposed extension is a stopgap solution to ensure NRL receives the essential liquid nitrogen to sustain its operations while allowing time to properly re-compete and award a replacement contract. The projected award date for the replacement contract is March 2022 according the current acquisition milestones. Air Products & Chemicals, Inc. is the only vendor in this situation that can continue supply of the essential liquid nitrogen and tank rental to support operations at NRL without disruptions under the current contract vehicle. Disruption of nitrogen supply will damage these instruments and jeopardize critical projects, potentially costing millions of dollars to NRL and its sponsors.

It is unrealistic that a short-term contract can be awarded before the expiration of the current ordering period on a full and open competition basis. Therefore, extending the contract on a sole source basis is the most practical means of fulfilling the need for the essential supplies. Additionally, it is unrealistic to spend time and effort to conduct a concurrent full and open competition for the short duration support, while efforts to re-compete a replacement contract is on the way. This will create substantial duplication of contracting efforts, which is not expected to be recovered through competition. Modification of the current contract is the economic and efficient way to maintain the critical supplies required by the NRL.

6. A description of efforts made to ensure offers/quotes are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized in FEDBIZOPPS (as required by FAR 5.2) and, if not, which exception under 5.202 applies.

The proposed modification is to extend the ordering period to ensure availability of essential supplies while allowing time to compete and award a replacement contract. No other potential sources for this interim stopgap requirement was solicited given that there is an ongoing effort to re-compete the replacement contract. NRL Contracts will publicize in the GPE of the intent to modify/extend Contract N00173-16-D- 6002 on a sole source basis.

7. The anticipated dollar value of the proposed acquisition, including options if applicable, and a determination by the contracting officer that the anticipated cost to the government will be fair and reasonable.

The proposed ordering period extension is at no increase to the initial awarded contract ordering ceiling of $5,009,000.00. Prior to execution of the contract modification, the Contractor will be provided opportunity to adjust the unit price for the liquid nitrogen and the monthly rental rates for the storage tanks.

NRL Contracts will conduct price analysis to determine fair and reasonableness before execution of the contract modification.

The Contracting Officer determines that the anticipated prices will be fair and reasonable based on price analysis.