N00024_41000_NECO.PDF

DEPARTMENT OF ThE NAVY

NAVAL SEA SYS EMS COMMAND

1333 ISAAC HULL AVE. SE

WASHINGTON NAVY YARD. DC 20376-0001

J&A Number: 41,000 Code: SEA P.R. Number: N00024-14-NR-93005

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

Contracting Activity

The Naval Sea Systems Command (NAVSEA),

2. Description of the Action Being Approved

Contracting without providing for full and open competition with BAE Systems Norfolk Ship Repair, 750 West Berkley Avenue, Norfolk, VA 23523 for the Execution Planning and Accomplishment of the USS MAHAN (DDG 72) Docking Selected Restricted Availability (DSRA) home-ported in Norfolk, VA. BAE will be awarded a modification to the existing Multi-Ship, Multi-Option (MSMO) contract N00024-l0-C-4308 to complete the Planning and Execution of the DDG 72 DSRA.

3. Description of Supplies/Services

The modification to the existing MSMO contract will provide for the completion of both the Execution Planning and Accomplishment of the DSRA for DDG 72.

In accordance with Joint Fleet Maintenance Manual (JFMM) milestones, the Execution Planning of a CNO Availability typically begins at A 360 prior to the start of the availability. Therefore, as the DSRA is scheduled to begin . the Navy needs to begin the Execution Planning of the DSRA for DDG 72 on or about md continue planning until . The Execution Planning requirements include performance of Production Engineering Support, Production Planning, Procurement, Manning & Production Analysis, and Production Work Integration necessary to prepare for the CNO Availability. The period of performance for Accomplishment of the DSRA for DDG 72 is currently projected to commence and continue until . Accomplishing the DSRA requirement involves all the necessary management, technical analysis, procurement, production, testing and quality assurance necessary to prepare for and accomplish the repair and alteration of DDG 72.

Specific Non-Docking requirements being addressed during this DSRA include:

Inspection and preservation of Anchor Chains, Floodable Void & Cofferdam Assessments, CHT Tank Assessments, Plumbing Drain Tank Assessments, Removal and replacement of number I and number 2 Main Lube Oil Cooler Tube Bundles, JP-5

J&A Number: 41,000

Storage and Service Tank Assessments, Replace AN/SPS-67 Radar Antenna and Pedestal, TACAN Mast foundation Inspection, Advanced Galley alteration, Redundant Tank Level Indicators in SSTG Head Tanks alteration, and H2S Detectors alteration.

Execution Planning of these requirements include performance of Production Engineering Support, Production Planning, Procurement, Manning & Production Analysis, Production Work Integration, and includes, but is not limited to, the following: conducting ship checks, conducting assessments, preparing AWR’s, and developing specifications for CNO availability modernization, repair and new work items. Accomplishing the Non-Docking requirements includes all the necessary management, technical analysis, procurement, production, testing and quality assurance necessary to prepare for and accomplish the repair and alteration of DDG 72.

Specific Docking requirements being addressed in this DSRA include: Dry-Docking of U.S. Naval Vessel, Port and Starboard rudder repairs, Sonar Dome Rubber Window repair, Underwater Hull Penetration repairs, Blast and Paint Underwater Hull, Propeller Strut and Bear ng repair, Controllable Pitch Propeller repair, Potable Water Tank repair/preservation, Compensated Fuel Oil tank repair/preservation, and Bow Strengthening Modification alteration.

Execution Planning of these requirements includes performance of Production Engineering Support, Production Planning, Procurement, Manning & Production Analysis, Production Work Integration, and further includes, but is not limited to, the following: conducting ship checks, conducting assessments, preparing Automated Work Requests (AWRs), and developing specifications for CNO availability modernization, repair and new work items.

Accomplishing the DSRA requirement includes all the necessary management, technical analysis, procurement, production, testing and quality assurance necessary to prepare for and accomplish the repair and alteration of DDG 72.

Both the Execution Planning and Accomplishment of the DDG 72 DSRA require substantial resources, technical knowledge and experience to complete.

The estimated total value of this procurement is , including for the Execution Planning, which commences in FY14, and for the Industrial Production, which commences in FY15. This estimate was based on the OPNAV SHIP Maintenance Model website and Program Office Modernization Requirements. The funding profile is FY14 and FY15 as shown in the table below.

FY14 FY15 TOTAL

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

4. 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.

5. Rationale Justifying Use of Cited Statutory Authority

FAR 6.302-1(a)(2)(ii)(B) allows an agency to restrict competition when supplies are deemed to be available only from the original source in the case of a modification to the existing contract for the continued provision of highly specialized equipment, when it is likely that an award to any other source would result in unacceptable delays in fulfilling the agency’s requirements.

Presently, there are two MSMO contracts in the Norfolk, VA homeport area to complete maintenance, modernization and repair on DDG-51 class ships: the DDG-5 1 Docking MSMO contract (N00024-l0-C-4308) with BAB, and the DDG-51 Non- Docking MSMO contract (N00024-l0-C-4405) with Marine Hydraulics International (MIII). Both of these contracts include option CLINs to complete specifically solicited planning and execution efforts for specific DDG-5 1 class ships in the Norfolk, VA homeport area. The ships in the Norfolk homeport were divided between the two contracts based on the Government’s forecast of whether a ship would require a docking availability during the contract’s period of performance. DDG-51 class ships that were expected to require a docking availability during the contract period were included in the DDG-51 Docking MSMO contract. Accordingly, the DDG-51 Docking MSMO contract includes specifically solicited planning and execution to complete both Docking and Non-Docking availabilities for these ships. DDG-5 I class ships that were not expected to require a docking availability during the contract period were included in the DDG-5 1 Non-Docking MSMO contract. Accordingly, the DDG-5 1 Non-Docking MSMO contract includes specifically solicited planning and execution to complete only Non-Docking availabilities for these ships.

At the time the solicitation for the DDG-5 I Docking MSMO contract was created, the DDG 72 was not expected to require a docking availability. Therefore, it is one of the named vessels under MHI’s Non-Docking MSMO contract. Unfortunately, all of the execution planning and accomplishment CLINs under MHI’s contract are either completed, in-progress, or already claimed for other availabilities. MHI does not have any named or TBD execution planning or accomplishment CLINs available to complete the planning efforts for the DDG 72, Further, the DDG 72 availability is scheduled to begin after 30 September 2014, which is the latest option exercise date for Execution Planning and Accomplishment for TBD CLINs on both MHI’s Non-Docking MSMO contract and BAE’s DDG-51 Docking MSMO contract.

In order to meet Joint Fleet Maintenance Manual planning milestones, Execution Planning for the DDG 72 DSRA is required to commence one year prior to the start of the availability, or . As noted above, BAE, as the holder of DDG-5 1

Docking MSMO contract, has been the sole provider of execution planning and accomplishment of DDG 51 Docking Availabilities in the homeport. Such contemporary experience places BAE in a unique situation to address the execution planning and accomplishment of the DSRA requirements. While MHI has experience performing execution planning and accomplishment of non-docking requirements on DDG-5 1 class ships, it does not have recent experience in the execution planning and accomplishment of complex Docking Availabilities. Furthermore, while other contractors (such as Huntington Ingalls Industries and NASSCO Norfolk), have experience performing Dry- Docking Availabilities, they do not have recent experience performing the execution planning and accomplishment of complex Docking Availabilities on DDG-5 1 class ships.

The expertise required by another contractor during this availability could not approach the same level of expertise that BAE has cumulatively acquired in the management of all aspects of the DDG-5 1 Docking availabilities.

Given the fact that BAE has been the DDG-5 1 Class Dry-Docking MSMO contractor in Norfolk for the past 10 years, it is uniquely positioned with the necessary personnel, infrastructure, equipment and technical expertise to meet the docking and non-docking requirements for the DDG 72 DSRA without causing any undue delay in the schedule to return the vessel to mission-ready status. Furthermore, it is important to note that BAE has TED CLINs available to complete both the Execution Planning and Accomplishment of a DDG-5 1 class Non-Docking SRA. Therefore, the scope increase authorized by this J&A is limited and does not extend beyond the intended scope of the originally solicited DDG-5 1 Docking MSMO contract. Instead, this J&A authorizes the contacting officer to revise the TBD SRA Execution Planning and Accomplishment CLINs to complete a DSRA on a vessel previously covered under the MHI Non-Docking contract. Further, while the DDG 72’s Execution Planning would commence within the latest option exercise date on the DDG-5 1 Docking MSMO contract, the Accomplishment of the CNO Availability begins after the latest option exercise date. Therefore, this J&A also authorizes the extension of the latest option exercise date for the TBD Accomplishment CLIN from 30 September 2014 to the start of the DDG 72 Availability, currently scheduled for

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

The proposed contract action was originally synopsized on the FEDBIZOPS website on 14 February 2014 in accordance with FAR Subpart 5.2. Flowever, this solicitation number was already in use by another program. Therefore, the original synopsis was deleted under solicitation number N00024-14-R-4402 and was reposted on 20 February 2014 under solicitation number N00024-14-R-4403. No responses have been received to date. Any responses received will be evaluated prior to award of the modification.

No additional market research will be conducted because it is not practicable for the reasons stated in paragraph 5 above, for any company other than BAB to provide the required services in a timely manner.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Competition

Historically, the DDG-5 1 Execution Planning and Accomplishment requirements are competed as part of the MSMO Spiral II contracting strategy. NAVSEA is in the process of evolving its surface ship maintenance and modernization contracting strategy, and the execution planning and accomplishment requirements are expected to continue being competitively solicited and awarded for future DDG-5 1 class ships. However, the requirement to plan the DDG 72 DSRA is unique in that it falls in an isolated gap in coverage between the current and evolved competitive contract strategies. Therefore, there are no barriers to competition that NAVSEA has to remove.

NAVSEA will continue to conduct competitive acquisitions for future contracts to replace expiring contracts.

CERTIFICATIONS AND APPROVAL

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

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning documents, including Acquisition Plan No.

09-6766, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Upon the basis of the above justification, I hereby approve, as Designee of the Head of the Procuring Activity, the solicitation of the proposed procurement described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).

(DIW~EbR OF CONTRACTS, SEAO2)

MR. JEROME PUNDERSON ________

Name (Print)

COMBINDED TECHNICAL AND REQUIREMENTS COGNIZANCE:

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

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

I certWv that this instifirstion i~ ~inriir~te ~d_comniete to the best of my knowledae ~inH belief.

APPROVAL BLOCK (FAR 6.304 for Approving Official)

D’te /