HST_BRIDGE_JA_Final_Redacted.pdf

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), Sealift Program Office, PM8.

2. Description of the Action Being Approved.

Award of an extension to contract N00033-13-C-5303, on a sole source basis to the incumbent contractor, Seaward Services, Inc. (Seaward), for a period of twelve-months (05 July 2018 to 04 July 2019).

3. Description of the Supplies/Services.

Under this J&A, The contractor shall continue to provide personnel, operational and technical support (ashore and afloat), equipment, tools, provisions and supplies to operate the Government-owned vessel.

The USNS GUAM supports the III Marine Expeditionary Force (III MEF) in the Far East which includes performing Theater Security Cooperation Program (TSCP) functions, conducting military exercises and conducting Humanitarian Assistance/Disaster Relief (HA/DR) support. The USNS GUAM is critical for the continued operations of III MEF mission as this vessel is the only vessel directly supporting these missions.

The HST-2 is currently in a unique situation as it is the only Government vessel leased from MSC to a private company (Bay Ferries). The lease with Bay Ferries includes a 48-hour return clause that would require an expedited transition from Bay Ferries back to MSC. This 48-hour return clause is in place in case MSC decides that the HST-2 is needed for a military mission, TSCP functions, or HA/DR support.

Approval is requested for a twelve-month extension for the period 05 July 2018 – 04 July 2019. This extension is needed to cover the remainder of time left for the competitive follow-on procurement to be completed and to allow for an orderly, realistically-paced turnover, which includes familiarization, inspection and inventories.

The total estimated fixed value of this contract extension is The current period rates and historical rate escalation were used to develop the estimate.

N103-13-C-5303

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. § 2304(c)(1) and 41 U.S.C § 3304(a)(1), as implemented by FAR 6.302-1.

FAR 6.302-1(iii) states:

For DoD, NASA, and the Coast Guard, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in-

(A) Substantial duplication of cost to the Government that is not expected to be recovered through competition, or

(B) Unacceptable delays in fulfilling the agency’s requirements. (See 10 U.S.C.

2304(d)(1)(B).)

5. Rationale Justifying Use of Cited Statutory Authority.

The GUAM contract vessels are highly specialized open ocean high speed vessels with a one of a kind aluminum hull frame. This one of a kind frame requires that all licensed mariners obtain an endorsement on their license to operate either vessel. Earning these endorsements requires a complex training program. Among other things, the U.S. Coast Guard (USCG) must certify the training program curriculum. This training program will require that the curriculum be certificated by the U.S. Coast Guard (USCG). All curriculums require a certified classroom (typically aboard the vessel) and a practical demonstration of seamanship and operational skill utilizing the vessel itself under observation by a qualified instructor (QI). Seaward is the only holder of an approved curriculum. Achievement of USCG curriculum approval typically takes up to 10 weeks after it has been developed and received by USCG. Seaward’s current curriculum includes 96 hours of classroom instruction and 40 hours of hands on underway execution.

Additionally, QI’s are also only certified to be a QI for the specific hull. At this time there are only three (3) QIs for the USNS GUAM and all are employed by Seaward.

Based on the extensive time required to develop the mandatory training program curriculum, have it approved, and actually complete training for license endorsements, Seaward is the only responsible source that could operate either the USNS GUAM or HST-2 beginning 05 July 2018.

The USNS GUAM is further specialized as the vessel has received a comprehensive conversion over the last five years. The incumbent (Seaward) was the operating company during the USNS GUAM’s conversion and during the vessel’s only open ocean transit from Norfolk, VA, to Japan. Therefore, Seaward has intimate knowledge of the vessel’s systems and conversion history that will be critical to successfully operate the USNS GUAM during her first year in operation after the conversion. The first year of operation is considered a critical milestone when it comes to the long term operation of a new or comprehensively converted vessel. This is because the first year is the time when the operating company (OPCO) will uncover unforeseen weaknesses throughout the vessel’s hull frame, engineering and mechanical systems. The incumbent (Seaward) has the historical knowledge of this specialized conversion that would allow it to rapidly address any issues and determine whether the issue is truly a significant discrepancy that could lead to increased risk of loss of life, vessel or mission.

For the reasons stated in this section, Seaward is the only company capable of operating and maintaining USNS GUAM without causing unacceptable delays in fulfilling the agency’s requirements.

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

For the reasons outlined in Section 5, Seaward is the only Contractor that can provide the services. A follow-on procurement is being developed to allow for competition.

7. Determination of Fair and Reasonable Cost.

Before award of the bridge action, the Contracting Officer will determine that the cost to the Government of the services covered by this J&A is fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

Performance under a competitively awarded contract is expected to begin no later than the end of the requested bridge period, 04 July 2019. The bridge allows sufficient time to ensure additional OPCOs have the ability to receive USCG curriculum approval.