JnA_18-006_Synopsis.docx

J&A 18-006DEPARTMENT OF THE NAVY

FLEET LOGISTICS CENTER, NORFOLK

700 ROBBINS AVENUE, BLDG 2B

PHILADELPHIA, PA 19111-5083

IN REPLY REFER TO:

JUSTIFICATION AND APPROVAL FOR USE OF SOLE SOURCE

1. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY. This is a Sole Source Justification. The requiring activity is the Naval Foundry & Propeller Center Philadelphia (NFPC). The contracting activity is the NAVSUP Fleet Logistics Center Norfolk, Philadelphia Office.

2. DESCRIPTION OF THE ACTION BEING APPROVED. Award of a firm fixed price service contract on a sole source basis to provide maintenance services to milling machines at the Naval Foundry & Propeller Center (NFPC) Philadelphia. The suggested vendor is Starrag USA (CAGE 42FD7) of Hebron KY, a large business. The placement of a firm, fixed price order is anticipated. This requirement is a follow-on purchase order to order N00189-16-P-Z212 previously issued for these maintenance services.

3. DESCRIPTION OF SUPPLIES/SERVICES. The Naval Foundry & Propeller Center (NFPC) Philadelphia intends to acquire highly specialized maintenance services for two large high speed, high precision milling machines used for intricate and precise cutting and finishing machine parts. The services include the implementation of preventative evaluation/assessment and maintenance described in the Performance Work Statement (PWS). These services are severable. The contract will consist of three periodic visits per year on a twelve month period. The base period will comprise two visits through 30 September 2018. Each visit will have a duration lasting ten days plus travel time. The estimated cost of this procurement is based on three visits per year priced per visit which includes other direct costs and travel to be applied in a separate CLIN. The contractor will commit to only one option that will be funded with OM&N funds for the subsequent fiscal year. A summary of the projected contract is provided as follows:

Funds

OM&N 2018

OM&N 2019

5 total visits

4. STATUTORY AUTHORITY PERMITTING SOLE SOURCE. The statutory authority for the use of other than full and open competition is 41 USC 1901(e)(2) - a sole source acquisition under the authority of Simplified Procedures for Certain Commercial Items, as implemented by FAR 13.501(a).

5. RATIONALE JUSTIFYING USE OF CITED STATUTORY AUTHORITY.

Market research conducted by NFPC indicated there are no other known manufacturers that can provide these services. Starrag-Heckert Inc. is the Original Equipment Manufacturer (OEM) of these machines. They have exclusive proprietary rights to the original technical documentation, mechanical prints and drawings, specific replacement parts and components, as well as the only personnel certified and cleared by the OEM to perform maintenance and repairs on these machines. A sources sought/request for information synopsis was published in NECO/FBO.gov

JUSTIFICATION AND APPROVAL FOR USE OF SOLE SOURCE J&A 18-006

in November 2017 to explore the possibility of breaking this requirement for competition. No responses were received.

These machines are commercially available to factories and metal workshops in the private sector. NFPC estimates that servicing and repairing these machines may extend their end life.

The machines to be serviced under this requirement are an integral part of NFPC’s production of machine parts and components for the Navy’s marine surface and submarine vessels. They provide the intricate and highly precise cuts for parts and components and their production will cease if the machines are not working properly. This will bring the whole NFPC production process to a standstill until they are repaired. Delays for the production and delivery of essential parts and components to Navy vessels may hinder critical operations.

Previously, every instance that a machine malfunctioned a service call to repair it required that a new purchase order be negotiated with a PALT of thirty days or more. This created a downtime that the Navy cannot afford and could seriously impact Navy operations. A contract to periodically maintain the machines identifies and addresses issues early and reduces the chances of the machines malfunctioning or breaking down at critical moments. Purchase order N00189-16-P-Z212 was previously issued for these maintenance services.

6. DESCRIPTION OF EFFORTS MADE TO SOLICIT OFFERS FROM AS MANY OFFERORS AS PRACTICABLE. The authority to contract without providing for full and open competition is supported by this justification and approval and the basis for not providing for maximum practicable competition is documented in the file and justified under FAR 13.501(a) when the acquisition is awarded using simplified acquisition procedures for certain commercial items and services. The documentation or justification will be posted in NECO/FBO.gov per FAR 5.102(a)(6).

7. 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 will be fair and reasonable.

8. ACTIONS TO REMOVE BARRIERS TO FUTURE COMPETITION. All future requirements will be handled on a case-by-case basis.

9. CONTRACTING POINT OF CONTACT

The points of contact at NAVSUP Fleet Logistics Center Norfolk Contracting Department, Philadelphia Office are:

Luis Aymerich, Contract Specialist, luis.aymerich@navy.mil, (215) 697-9616

SOURCE SELECTION INFORMATION – SEE FAR 2.101 and 3.104 image1.jpeg