REDACTED JA_N0002419D4323P00027_Redacted.pdf

This is a Justification and Approval document for a contract action using other than full and open competition authority. The Department of the Navy's Naval Sea Systems Command (NAVSEA) seeks to increase the ordering ceiling on an existing Emergency Ship Salvage Material (ESSM) indefinite-delivery-indefinite-quantity (IDIQ) contract with Global PCCI (GPC) by $50,000,000, from $366,800,000 to $416,800,000. The contract is a cost-plus-award-fee and cost-plus-fixed-fee modification for additional 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 runs through November 17, 2026, and the ceiling increase is not being extended as part of this action.

SUPSALV maintains the U.S. Navy's ESSM system, a managed network of facilities and emergency response equipment stockpiles supporting salvage, diving, pollution response, and underwater ship husbandry operations. The services are also utilized by the U.S. Coast Guard, Environmental Protection Agency, Federal Emergency Management Agency, Military Sealift Command, and U.S. Army Corps of Engineers. GPC is the current contract holder and sole source for this action, justified under 10 U.S.C. 3204(a)(1) due to the emergent nature of the work, GPC's unique capability to perform SUPSALV support, and the impracticality of conducting full and open competition without causing unacceptable delays. A follow-on ESSM contract was awarded via full and open competition in December 2024 and July 2025. The estimated cost of the $50,000,000 ceiling increase is based on average monthly expenditures of $5.3 million over the previous six months, ensuring sufficient funds to cover contingencies and potential costs for the remaining nine months of the contract. The Contracting Officer determined the anticipated cost to be fair and reasonable. Approval was signed on February 27, 2026.