JA_N00253-13-P-0277.pdf

J&A Number: 13044 Code: 211 P.R. Number: 1300328787

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

I. Contracting Activity

The Naval Sea Systems Command, Naval Undersea Warfare Center, Division Keyport, W A (NUWC Keyport) Contracts Division, Code 18, intends to procure the following services under circumstances other than full and open competition.

2. Description of the Action Being Approved

This is request for approval to issue a sole source modification to Dakota Creek Industries, Inc (DCII) on contract N00253-13-P-0277 in the amount of$171,437.00, in accordance with Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source.

3. Description of Supplies/Services

N00253-13-P-0277 was awarded as a firm fixed price services contract to DCII on 20 May 2013 for dry docking services for the IX-536 Barge. The total award value was $492,709.00.

The IX-536 Barge is currently located at the DCII dry dock facility and is undergoing maintenance. DCII submitted two Condition Found Reports (CFRs) for work that exceeded the scope of the Performance Work Statement. The total value of the CFRs is $171,437.00.

The IX-536 crew and NUWC Keyport personnel could not have foreseen these necessary repairs.

Condition found report (CFR) 003: Upon initial deck preparation per the Performance Work Statement (PWS), severe steel loss was discovered on the main deck. Additionally areas of severe pitting and washed out weld seams were identified. Ultrasonic inspections were taken to confirm the severe loss of steel. The estimate to repair this area includes at a total cost of $78,246.00 for scaffolding, welding, and painting. The estimate also includes an , at a total cost of $3,590.00. Material costs are estimated at $9,123.00 for steel, paint, and consumables (weld wire, weld tips, etc), which brings the total cost for the additional work to $90,959.00.

CFR 004: DCII began preparation to water blast I pressure wash the hull per the PWS and found that the old coatings were flaking off in sheets. It was determined that there was no feasible way to feather in spot prepped areas. The entire hull must be sandblasted to ensure a sound coating. This requires 18,225 square feet be blasted to SP-6, which is significantly greater than the estimate provided in the PWS. DCII will also need to perform a final clean and apply 2 full coats of AC to the entire hull. The estimate to complete this effort includes at a cost of $78,660.00. The estimate also includes an at a total cost of$3,590.00. Material costs estimated at $12,580.00 for paint and consumables. DCII applied a credit of from the original proposal for blasting and painting, which brings the total cost for the additional work to $80,478.00.

The Government technical representative, , with 30 years of experience, has determined that this work meets the Government's minimum need for the safety and operational readiness of the IX-536.

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C 2304(c)(l). Only One Responsible Source, as implemented by FAR 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority

The IX-536 Barge is currently located at the DCII dry dock facility and is undergoing maintenance. Its last docking was in 2005, and was focused on modifications that changed the barge from a YD (Floating Crane Yard) class floating crane to the current configuration as a testing platform. This is the first docking for the IX under the Major Range and Test Facility Base (MRTFB) funding stream and is focused on addressing long-standing preservation and structural integrity issues. The barge has not been out of the water since the 2005 docking. Two emergent items were revealed once the barge entered the shipyard:

A. Reduction in metal thickness of deck plating: The main deck of the IX barge supports the weight of heavy test fixtures, ordnance, and other equipment used in acoustic tests in open water. The deck must be at full strength to withstand the weight of large equipment and testing apparatus (the next test event for the IX will involve

). The lack of proper deck plating thickness is also a potential safety hazard to personnel due to the unknown integrity of the compromised metal.

In short, the barge is unsafe for operations until the plating is replaced.

B. Failing hull paint: Once out of the water during the current shipyard availability, it was revealed the underwater portion of the hull paint was peeling to bare metal. Pre-yard inspections of the hull did not reveal this problem, and it was thought the existing paint would be salvageable to some exte"ht. Only after dry-docking the barge was the degraded state of the paint fully observable. Attempts were made to salvage the existing paint job, but the degradation affected almost all paint below the waterline. Failure to sandblast and repaint the hull would lead to serious and rapid corrosion of the hull plating from the saltwater enviromnent, resulting in loss of the asset for testing and great expense to the government to repair hull damage.

Docking a vessel as large as the IX runs approximately ust for the transport, docking, undock, and return ofthe vessel. This investment has already been made for this docking, and would have to be repeated at extra cost to the government. Additionally, failure to paint the hull properly before refloating the barge would result in immediate hull corrosion and loss of metal volume, requiring replacement of metal at the next docking at even greater expense.

The reduced metal thickness was not a known problem until identified in the yard inspection.

Since the normal mission of the barge includes placing heavy equipment and other items on the main deck, the suspect metal strength means the barge will have to remain out of commission (OOC) until the deck is repaired. To do otherwise would place personnel and equipment in an unacceptably unsafe environment. The board of Inspection and Survey (INSURV) recently inspected the IX and assigned a grade of unfit for service due to several discrepancies, most of which are being addressed in this docking. Failure to properly preserve the hull and leaving a known deficiency such as reduced deck plate thickness will result again in an "unfit" finding which will require the barge to be placed OOC until the discrepancies are resolved. The barge is currently scheduled for reinspection in December, 2013, and was supposed to have all issues resolved so that it can receive a satisfactory finding and be cleared for operations. This will have direct and significant impact on currently scheduled operations. Planning for the current docking period was very complex due to existing range event requirements for the barge. using the barge and the current docking period was chosen so that it would be completed prior to event start.

Given the length of time required to write, solicit, and award contracts of this size, the risk to already scheduled operations would be unacceptably high.

DCII has the available dry dock space and capabilities to complete the work requirements.

The IX-536 is currently undergoing overhaul and maintenance. The current period of performance for the IX-536 is to be delivered 30 September 2013. DCII will be able to complete this additional work prior to 30 September 2013.

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

Based on the situation described above, in section five (5), no other offerors will be solicited.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined this modification as fair and reasonable.

8. Actions to Remove Barriers to Competition

In order to remove barriers to competition, when procuring vessel maintenance and dry dock overhaul work a risk assessment is completed by the technical team in Code 20 and the vessel crew. In the risk assessment the technical personnel and the vessel crew identizy all potential known work and potential risk areas. These risks are then prioritized based on knowledge of the vessel, the history of the vessels maintenance, and budget to build in options. These options are included in the performance work specification to maximize full and open competition and reduce the risk of having to procure other than full and open competition for anticipated risks. This practice will be continued in the future to maximize competition to the NUWC Keyport's fullest potential.

TECHNICAUREQUIREMENTS CERTIFICATION (FAR 6.303-2(b))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting data, including Acquisition Plan No. , except as noted herein, are complete and accurate to the best of my knowledge and belief.

a/,s- )...CI~

REQUIREMENTS COGNIZANCE:

~( l'd \) Phone No. Date

LEGAL SUFFICIENCY REVIEW (NMCAG 5206.303(90))

is legally sufficient.

CONTRACTING 0 CER CERTIFICATION (FAR 6.303-2(a)(12))

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

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as Co,.tractillg Off~eer the solicitation of the proposed procurement(s) using of other than full and open competition, pursuant to the authority of 41 U.S.C 253 (c)(2).

(TITLE OF APPROVING OFFICIAL)

Contracting Officer, Code 182 Phone No.