TAGOS -8 JA - Redacted.pdf

N62387-15-C-2505

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), Special Missions Program, N103D/PM2.

2. Description of the Action Being Approved.

Award of an extension to contract N62387-15-C-2505, on a sole source basis for the

Operation & Maintenance (O&M) of the TAGOS and T-AGM Vessels to the incumbent contractor, Crowley Government Solutions (CGS).

The purpose of this J&A is to obtain approval to execute an extension of services provided under FAR 52.217-8, Option to Extend Services, for continued performance of the current

TAGOS and T-AGM contract. The clause was included in the contract at time of award.

Though not evaluated separately, the FAR 52.217-8 option rates are the same rates as those in option period four, which were evaluated at the time of award of the current contract and found to be fair and reasonable. The proposed action permits up to six (6) months of service under the clause.

3. Description of the Supplies/Services.

The Commander, Military Sealift Command (COMSC) and Special Missions Program

Manager (PM2) require the continuation of services for the operation and maintenance of seven Government owned ships. In order to meet these requirements, the Ship Operations

& Chartering Division (Code N103) will issue an operation and maintenance solicitation on or about 21 July 2020.

The purpose of this extension is to extend the current contract for operation and maintenance of five (5) T-AGOS and two (2) T-AGM ocean surveillance ships. Contract performance under N62387-15-C-2505 is scheduled to end on 21 January 2020. The contractor will continue to provide personnel, operational and technical support (ashore and afloat), equipment, tools, provisions and supplies to operate this fleet of seven United

States Naval Ships (USNS). The T-AGOS fleet is comprised of public vessels USNS

VICTORIOUS, USNS LOYAL, USNS EFFECTIVE, USNS IMPECCABLE and USNS

ABLE, which are Government owned ships under the operational and administrative command of the COMSC, who also exercises Type Commander (TYCOM) functions, and supports the Navy’s critical mission of Surveillance Towed Array Sensor System

(SURTASS) operations. The T-AGM fleet is comprised of public vessels USNS

INVINCIBLE and USNS LORENZEN, which are Government owned ships under the operational and administrative command of the COMSC, who also exercises TYCOM functions, and supports the U.S. Air Force (USAF)’s mission-critical Dual Band Radar

(DBR) efforts in monitoring worldwide missile launches.

The requirement is for the Contractor to continue to operate and maintain the

Government-owned TAGOS/T-AGM fleet.

The grand total estimated value of this contract extension is $35,791,047.72. (Total Per

Diem = $20,771,541.72 and Total Reimbursable =$15,019,506.00). In accordance with

FAR clause 52.217-8, the current period fixed rates are to be used for the extension of the contract. Therefore, the daily rates for the current option period four were used to develop the fixed portion of the estimate. The reimbursable portion was developed based on the current contractor’s estimate for the upcoming FY 2020.

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

This justification is prepared under the provisions of 10 U.S.C. § 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(iii) (Only One Responsible Source and No Other

Supplies or Services Will Satisfy Agency Requirements).

FAR 6.302-1(a)(2)(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.

This J&A executes an extension of services provided under FAR 52.217-8, Option to

Extend Services, for continued performance of the current TAGOS and T-AGM contract.

A FAR 52.217-8 option only requires a J&A for execution if the rates were not evaluated at the time of contract award (see FAR 17.207(f)), as is the case here. However, the clause was still included at the time of award, and therefore the Government is justified in its execution of the clause. For this and the following reasons, this J&A uses FAR 6.302-1, only one available source, as its justification.

In accordance with FAR 6.302-1(a)(2)(iii)(B) and 10 U.S.C. § 2304(d)(1)(B), 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 unacceptable delays in fulfilling the agency’s requirements.

CGS is the only source able to provide continuity of service during the FAR 52.217-8 option period. As detailed in Section 3, supra, the vessels operated under this contract perform critical missions and any break in service presents an unacceptable risk to mission readiness, increases operational risk and poses an increased danger to the safety and security of the vessel and crew. MSC has ascertained, through previous procurements, that multi-ship fleets performing such specialized missions will likely have longer transition phases. While other contractors may have general ship operating experience, they do not have the ability to meet the transition functions and phase-in requirements for this contract within the necessary timeframe.

These requirements were developed, with input from industry, to ensure a smooth transition from one ship operator to another, minimize operational risk, and maximize safety and security of the vessel and its crew. The transition and phase-in requirements for the incoming contractor include recruitment of key shipboard personnel with TOP

SECRET security clearances, accomplishment of MSC-required crew training, recruitment of specially qualified key shoreside personnel, participation in ship inventories (30 days prior to turnover), crew familiarization (beginning 14 days prior to the departure of the incumbent Contractor’s crew) and other common ship turn-over procedures. There is not sufficient time in the schedule to duplicate this effort with an interim contract.

In addition, the current TAGOS contract requires the prime contractor to have an active

TOP SECRET facilities clearance. This requirement is in place due to operational requirements of the sponsor. CGS is the only operating company with an active TOP

SECRET facilities clearance. Thus, an interim award to any source other than the incumbent would not be possible and would compromise the mission.

In an effort to increase fairness in future competition(s), MSC has spent considerable time refining its solicitation and requirements for the upcoming planned follow-on procurement. Outdated vague contract language and changing operational requirements created a situation where there was an unfair competitive advantage to the incumbent that would result in decreased competition overall or have created the appearance of a de facto sole source procurement. As a result, MSC is finalizing a highly refined and updated solicitation package that should provide a more accurate representation of the

Government’s requirements and allow for more precise proposals and pricing from competitors other than the incumbent. This process may still result in an overall acquisition delay and require an additional sole source award in order to maintain the mission-critical vessels while providing for fair and even competition requirements.

Regardless, time is not sufficient to solicit proposals for a short-term contract to cover the end of the current contract and the award of the follow-on contract. The time needed to synopsize, issue the solicitation, receive and evaluate proposals and make award is not available, thus, exercising the FAR 52.217-8 option is in the best interest of the government. Thus, an interim award to any source other than the incumbent would unacceptably delay or entirely compromise the mission. Additionally, award to a contractor other than CGS will result in substantial duplication of costs because crew familiarization and ship turnover costs will be incurred if an interim award is made.

Furthermore, a new contractor competing for a short-term 6-month contract with little to no turnover creates a high-risk and high-cost scenario. The cost to the Government will likely not be recovered by attempts to compete the extension of this contract, and the mission risk would be too high.

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

For the reasons outlined in Section 5, supra, CGS is the only source capable of providing the required service without unacceptable delays in fulfilling the Government’s requirements for this extension period. MSC is developing a follow-on procurement to allow for increased competition (see Section 8, infra).

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the services covered by this J&A will be fair and reasonable based in accordance with FAR

15.504-1(b)(2)(iv), comparison of proposed prices with prices obtained through market research for the same or similar items. Furthermore, as stated in Section 3, supra, of this

J&A document, the FAR 52.217-8 option rates are the same as the rates as the option period four rates of the current TAGOS/T-AGM O&M contract. The option period four rates were found to be fair and reasonable by the Contracting Officer at the time of contract award.

As stated in paragraph three (3) above, under clause 52.217-8, the current period fixed rates are to be used for the extension of the contract. The Contracting Officer found the current period rates to be fair and reasonable when the current option was exercised.

8. Actions to Remove Barriers to Future Competition.

In an effort to increase fairness in future competition(s), MSC has spent considerable time refining its solicitation package and requirements for the upcoming planned follow-on procurement. Outdated vague language and changing operational requirements created a situation where there was an unfair competitive advantage to the incumbent that would result in decreased competition overall or have created the appearance of a de facto sole source procurement. MSC communicated with industry during this period to get industry feedback. As a result, MSC is finalizing a highly refined and updated solicitation package that should provide a more accurate representation of the Government’s requirements and allow for more precise proposals and pricing from competitors other than the incumbent. This process may still result in an overall acquisition delay and require an additional sole source award in order to maintain the mission-critical vessels while providing for fair and even competition requirements.

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/Requirements 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.

CHIEF OF THE CONTRACTING OFFICE RECOMMENDATION

Upon the basis of the above justification, I hereby approve, as Director of N10, the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(6).

HEAD OF THE CONTRACTING ACTIVITY RECOMMENDATION

Upon the basis of the above justification, I hereby approve, as Head of the Contracting Activity, the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(6).