N105A25R4148_OPDS.pdf

J&A N105A-25-R-4148 OPDS

CUI

Controlled by: Department of the Navy Controlled by: MSC Ship Operations and Maintenance Support Branch (N105) CUI Category: PROCURE Distribution/Dissemination Control: FED ONLY POC: Kurt Oberg, kurt.j.oberg.civ@us.navy.mil, (564) 230-3410

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), Prepositioning and Seabasing Program Office PM3/N105A.

2. Description of the Action Being Approved:

Award of a sole source contract for Offshore Petroleum Discharge System (OPDS) vessel Operation and Maintenance (O&M) on an other-than full-and-open-competition basis to the incumbent contractor, TOTE Services, LLC. (Tote). The period of performance will be for 27 months, consisting of a twelve-month firm period beginning 01 August 2025 through 31 July 2026, one (1) twelve-month option period beginning 01 August 2026 through 31 July 2027 and one (1) three-month option period beginning 01 August 2027 to 31 October 2027. The requested 27-months is intended to cover the time needed to get to vessel deactivation in FY27.

3. Description of Supplies/Services:

The predecessor contract (N3220518C3002) provides for the Operation and Maintenance (O&M) of two Offshore Petroleum Discharge System (OPDS) vessels United States Naval Ship (USNS) WHEELER and USNS FAST TEMPO. These Government-Owned, Contractor- Operated (GOCO) vessels are employed in the worldwide support of MSC’s Prepositioning and Seabasing Program Office (PM3). The vessels are designed to deploy, operate and redeploy a system capable of delivering fuel from a tanker or fuel barge to the high water mark of a designated beach from up to eight miles offshore.

Under this J&A, the incumbent contractor shall provide for the same personnel billet fills, operational and technical support (ashore and afloat), equipment, tools, provisions, and supplies for the stated period of performance to operate the Government-owned vessels as provided in the current contract.

The total estimated cost of this sole-source action is $49,617,145.55, which consists of $21,063,363.36 in daily operating hire rate and $28,553,782.19 in pass-through expenses.

Pricing for this sole-source contract includes the same services as priced in the current contract.

The estimate is broken out as follows:

Estimated Dollar Value

Period O&M Funding Total Amount Base Period (12-Month) $5,590,542.41 (FY25) $27,952,712.06 (FY26) $33,543,254.47 Option Period 1 (12-Month) $2,054,449.65 (FY26) $10,272,248.25 (FY27) $12,326,697.90 Option Period 2 (3-Month) $2,498,128.79 (FY27) $1,249,064.39 (FY28) $3,747,193.18 Total $49,617,145.55

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

This justification is prepared under the authority of 41 U.S.C. 3304(a)(1), as implemented by FAR 6.302-1(a)(2), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Rationale Justifying Use of Cited Statutory Authority:

In accordance with FAR 6.302-1(a)(iii), full and open competition need not be provided for 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.

The vessels operated under this contract perform a mission that is critical to national security.

This contract must be awarded to prevent a break in these highly specialized services. Tote has been the operating contractor on the OPDS since the USNS WHEELER was purchased by MSC in 2012. Tote’s experience and knowledge will permit MSC to continue to support the U.S.

military efficiently.

The very distinct and specialized missions conducted by the OPDS vessels need to be continuously available to respond to real-world contingencies that include both military operations and humanitarian support. Therefore, MSC must award a sole source contract to ensure the continuity of service necessary for the critical national security missions. Due to the critical nature and need to fulfill OPDS missions, MSC meets the requirements to limit full and open competition of this sole-source contract by way of FAR 6.302-1 (Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements). As stated, the incumbent contractor, Tote, is the only source that can perform the mission without unacceptable delays in fulfilling the agency’s requirements. Transition from Tote to another operating contractor would make the vessels unavailable for an extended period of time since a new company would have to start up the effort, hire and train key and other shoreside billets, recruit mariners and train them to contract standards, get mariners to the vessel and allow for a familiarization period to get contract personnel up to speed. While this is going on, MSC would have to provide for the safety and security of the vessels. If this effort were awarded to a non-incumbent operating company, with a near vessel deactivation, certain significant duplication of costs would occur, which the government could not recover through competition.

The OPDS vessels will continue these missions until deactivated and replaced by a Joint Petroleum Over the Shore (JPOT) vessel. On 18 June 2025, an email from the Office of the Chief of Naval Operations (OPNAV) expressed a desire to deactivate the OPDS vessels in FY27.

With receipt of this email from OPNAV and as resource constrained as MSC N105 is, it would not be prudent to expend limited resources to concurrently work a short-term bridge contract and a longer-term competitive follow-on contract for OPDS if the vessels are planned to be deactivated in FY27.

While MSC acknowledges that other firms could potentially provide the services, the intent of FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements is met because none other could immediately perform all of the services provided by the incumbent causing unacceptable delay or worse, compromising the mission.

MSC would also incur a substantial duplication of costs due required training, crew familiarization, and ship turnover, if an interim award were made to anyone other than the incumbent. MSC has ascertained, through previous procurements, performing specialized missions will likely have longer transition phases mainly due to the delivery transition and turnover requirements set forth in the current contract’s Performance Work Statement (PWS).

Therefore, upon review, MSC has determined that executing a sole-source contract under FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, is the only reasonable course of action to avoid unacceptable delays and avoid substantial duplication of cost to the Government.

6. Description of Efforts Made to Solicit Offers from as Many Potential Sources as Practicable:

For the reasons outlined in Section 5, Tote is the only source capable of providing the required service without unacceptable delays in fulfilling the Government’s requirements for this contract period. This proposed contract action will be publicized as required per FAR subpart 5.201.

7. Determination of Fair and Reasonable Cost:

Before award of the sole-source action, the Contracting Officer will determine the rates to be fair and reasonable at the time of award.

8. Actions to Remove Barriers to Future Competition:

As detailed above, a competitive long-term OPDS O&M services contract will not be necessary since the sponsor intends to deactivate the vessels in FY27.

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) Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Signature Name (Printed) Date

CONTRACTING OFFICER CERTIFICATION

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

Signature Name (Printed) Date

HEAD OF CONTRACTING ACTIVITY, MILITARY SEALIFT COMMAND

Upon the basis of the above justification, I hereby approve as the Head of Contracting Activity, the solicitation of the proposed procurement(s) described herein using other than full and open competition.

Signature Name (Printed) Date

CALDWELL.LORA

.LEE.1228640855

Digitally signed by

CALDWELL.LORA.LEE.1228640

Date: 2025.07.18 16:25:19 -04'00'

TRICKETT.TRACY

.RANI.1283080036

Digitally signed by

TRICKETT.TRACY.RANI.128308

Date: 2025.07.18 16:27:11 -04'00'

OBERG.KURT

.J.1400101570

Digitally signed by

OBERG.KURT.J.1400101570

Date: 2025.07.18 16:30:02 -04'00'

SOBECK.PHILIP.E

DWARD.103195768

Digitally signed by

SOBECK.PHILIP.EDWARD.1031

957687 Date: 2025.07.20 10:08:20 -04'00' Philip Sobeck

Kurt Oberg

Tracy Trickett

Lora Caldwell