N00024_42954.pdf

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVE SE

WASHINGTON NAVY YARD DC 20376-0001

IN REPLY REFER TO

J&A Number: 42,954 Code: 02434

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Fleet Support Contracts Division

(SEA 024)

2. Description of the Action Being Approved

This Justification and Approval (J&A) provides authority to increase the contract ceiling on the Emergency Ship Salvage Material (ESSM) indefinite-delivery-indefinite-quantity (IDIQ) contract N00024-19-D-4323 with Global PCCI (GPC), 2465 Campus Drive, Suite 100, Irvine, CA 92612, by $30,000,000, from $250,000,000 to $280,000,000, without providing for full and open competition. GPC will be awarded a Cost-Plus-Award-Fee (CPAF) contract modification for additional contract ceiling to continue performing ESSM support services for the Office of the Director of Ocean Engineering, Supervisor of Salvage and Diving (SUPSALV).

The current ordering period of the contract ends 17 July 2024, and is not being extended as part of this ceiling increase.

3. Description of Supplies/Services system, which is a managed network of facilities and emergency response equipment stockpiles pre-positioned to support and augment the Navy Fleet capability in the areas of salvage, diving, pollution response, and underwater ship husbandry (UWSH).

ESSM resources, including equipment and personnel, are also utilized by other agencies and activities (e.g., U.S. Coast Guard, Environmental Protection Agency, Federal Emergency Management Agency, Military Sealift Command, and U.S. Army Corps of Engineers) in support of pollution abatement, UWSH, depot level equipment maintenance, diving, salvage, and deep ocean search and recovery operations. GPC is the current contract holder for the operations and management of the ESSM system.

J&A Number: 42,954

The current contract ordering period began on 16 January 2019, and is scheduled to end on 17 July 2024, after the Government exercised an extension under the contract clause 52.217-8, Option to Extend Services. However, the remaining ceiling on the IDIQ contract is inadequate to cover the anticipated and potential requirements to be ordered prior to the end of the ordering period. Therefore, this additional contract ceiling value will provide adequate coverage for GPC to continue performance of the ESSM support services until the follow-on contract is competitively awarded in May 2024. However, the additional contract ceiling must last until the end of the ordering period on 17 July 2024, as the projected May 2024 award date does not encompass possible schedule setbacks, such as delays resulting from a bid protest. This coverage through 17 July 2024 will ensure the Navy Fleet experiences no gap in services if an ESSM-related event were to take place.

Due to the emergent nature of the work performed under this contract, it is impossible to predict with certainty the cost estimates, budget and funding requirements for the additional ceiling value. Furthermore, the delivery orders placed under this contract are customer-funded and therefore no appropriation/color of money has been identified in advance. However, based on the average annual costs experienced over the duration of the contract thus far, an increase of $30M would ensure ample ceiling to cover contingencies and any potential costs associated with an ESSM-related event of national significance. The awarded ceiling of this contract was $250M and has averaged $50M expenditure per 12-month period thus far after five years.

Based on this expenditure rate, $30M will be sufficient to cover the remaining seven months of the contract.

4. Statutory Authority Permitting Other Than Full and Open

Competition

The statutory authority permitting other than full and open competition for this action is 10 U.S.C. 3204(a)(1), Only one responsible source and no other type of supplies or services will satisfy agency requirements, as implemented in Federal Acquisition Regulation (FAR) 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority

FAR 6.302-1(a)(2)(iii)(B) allows an agency to restrict competition when it is likely that an award to any other source would result in unacceptable delays in fulfilling the only GPC has the capability to accomplish the SUPSALV support mission, as described in paragraph (3) above, within the required schedule until the award of the competitive follow-on contract. The current contract (N00024-19-D-4323) with GPC was competitively awarded. This proposed contract action will provide required services until the completion of the full and open competition for ESSM under Solicitation No.

N00024-23-R-4304 which is scheduled to award in May 2024.

The timeline to award the competitive action is aggressive and cannot be expedited with the current resources available. Further, no other company has sufficient time to obtain the necessary experience, knowledge, and

ESSM

requirements.

The Navy estimates that allowing for a full and open competition for the proposed contract action would take at least twelve months, leaving a gap in services from when the ceiling on the current contract is fully expended and the award of the new contract. A gap in services would leave the U.S. Navy with an inability to perform the activities requiring use of the ESSM system and failure to maintain the government-owned equipment would be detrimental to the viability of the program. Therefore, GPC is the only source

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

A sources sought notice for the follow-on competition was issued on 26 October 2022 per DFARS PGI 206.302-1.

Additionally, the solicitation period for the follow-on competition ended on 7 December 2023 and the pool of interested offerors is already identified for these services. It is not practicable to perform an additional sources sought for this ceiling increase. Furthermore, approval of this J&A constitutes waiver of the sources sought requirement per DFARS PGI 206.302-1(d).

In accordance with FAR Subpart 5.202(a)(11), a synopsis is not required for this modification. No additional market research will be conducted because it is not practicable, for the reasons discussed in Paragraph 5 above, for any company other than GPC to provide the required services period.

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 the J&A will be fair and reasonable.

8. Actions to Remove Barriers to Competition

There are no known barriers to competition. The follow-on full and open competition for the effort covered by this contract modification is scheduled for award by May 2024.

This contract action is required to continue the operationally essential services as shown in Paragraph 3 until the effective date of the follow-on competitive procurement.