SUPPLY_MARUP_J A_2nd_Extension_FINAL.pdf

MILITARY SEALIFT COMMAND

914 CHARLES MORRIS CT SE

WASHINGTON NAVY YARD DC 20398-5540

IN REPLY REFER TO:

N102-14-C-7508

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), Services and Ship Support Division (N102).

2. Description of the Action Being Approved: Modification P00020 to contract N00033- 14-C-7508 for the Material and Readiness Upgrade (MARUP) of the USNS SUPPLY at BAE Systems Southeast. The modification extends the contract’s period of performance for 124 days from 30 March 2015 – 31 July 2015 and provides for emergent ship repair work.

3. Description of the Supplies/Services: The Government is obligated to pay the Contractor $30,000.00 per day for the extension, for a total price of $5,220,000.00. The Contractor is obligated to continue providing all services described in contract Work Items 010, 011, 012, 013, 016, 018, 019, and 020, which include services for the ship and the MSC on-site management team. In addition to the extension, the modification provides for additional emergent ship repair work in the amount of $1,500,000.00. The emergent repair works consists of critical or emergent safety items that must be performed in a shipyard.

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

10 U.S.C. 2304(c)(1), Unusual and Compelling Urgency, as implemented by FAR 6.302- 2(a).

Rationale Justifying Use of Cited Statutory Authority: The USNS SUPPLY is currently at BAE Systems Southeast undergoing replacement of its Machinery Control System (MCS). L-3 is responsible for the desigen, fabrication, and installation of the MCS under a separate MSC contract. In addition to having performed other ship repair work for MSC, BAE is responsible for supporting L-3’s installation work. Owing to delays experienced by L-3, it was unable to complete installation and testing of the ship’s new MCS before 29 March 2015, the previous end of BAE’s contract. L-3 stated that it requires until 17 July 2015 to complete the installation and, conservatively, two additional weeks for dock and sea trial testing. The Government agrees with this estimate.

Without an operational MCS, the ship cannot operate under its own power. It would have been and remains impractical, costly, and risky to move the ship to another shipyard to permit L-3 to continue its work, as doing so would have required the ship to be towed, which would have left the vessel and its crew more vulnerable to variable sea conditions and security threats. Additionally, changing shipyards would have further delayed L-3’s work. The performance delays have already had an operational impact as the ship has been unavailable for scheduled missions. It is imperative that the MCS installation and testing be completed with as little additional delay as possible. Extending BAE’s contract was the quickest, most practical way to meet the Government’s urgent need for providing shipyard support to L-3.

As a result of the ship remaining at BAE’s facility until the end of July, she was unable to undergo previously scheduled repair work. The work is beyond crew-capable maintenance and repair. For USNS SUPPLY to be mission ready for her long-term deployment, the repair work work must be completed prior to her departure from BAE’s facility. The work includes mission critical work items, emergent safety work recently identified and the correction of deficiencies which could impact completion of L-3’s work under the MCS contract. Failure to correct these deficiencies may result in additional harmful delays and cost to the Government. The only option is to have BAE perform the work at its yard during the extension.

Failure of the USNS SUPPLY to be mission ready would stress other naval resources and compromise the Navy’s replenishment capabilities. After the ship leaves BAE, USNS SUPPLY is not scheduled for another shipyard repair period until its next Regular Overhaul (ROH) in 2-1/2 years. Therefore, it is critical that the ship be in a condition to remain in service without the need for major shipyard work until that time.

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

Under the circumstances, BAE must perform the work covered by this J&A. As discussed above, the ship cannot be moved. It is impractical to have a different prime ship repair contractor use BAE’s facility to perform repair work or attempt to work on the same systems as BAE. Although performance of this modification is restricted to BAE, the opportunity for subcontractors is not hindered.

6. Determination of Fair and Reasonable Cost: The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A is fair and reasonable.

7. Description of Market Research Conducted: Owing to the circumstances underlying this action, no market research was conducted other than obtaining data used to determine price reasonableness.

8. Sources Expressing an Interest in Writing: None.

9. Actions to Remove Barriers to Future Competition: For reasons set forth in Paragraph

5, MSC has no plans at this time to compete the critical and emergent requirements identified. Future repair work for this ship will be competed once the ship is out of the shipyard.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

COMPETITION ADVOCATE APPROVAL

Upon the basis of the above justification, I hereby approve as Competition Advocate, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(2).

Name Date