JA_for_USNS_COMFORT_MTA_Growth_1.doc

MILITARY SEALIFT COMMAND NORFOLK

SP64 471 EAST C STREET

NORFOLK, VA 23511-2419

N104-16-C-4401 March 17, 2016

JUSTIFICATION AND APPROVAL (J&A) FOR OTHER THAN FULL AND OPEN COMPETITION N32205-16-C-4401

1. Contracting Activity: Department of the Navy, Military Sealift Command (MSC) - Norfolk.

2. Description of the Action Being Approved: Award of a contract on a sole source basis for approval of this justification will result in an increase to the total dollar value for Additional Growth Requirements (AGR) and Other Direct Costs (ODC) by $450,000 under contract N32205-16-C-4401 for the Mid-Term Availability, of the USNS COMFORT (T-AH 20) for “additional requirements” per sections H-3 and H-4 of the contract awarded to Marine Hydraulics International, Inc.

3. Description of Supplies/Services: MSC requires an increase to AGR and ODC for additional Government requirements for the maintenance and repair work associated with the safety, mission, habitability and medical needs of the USNS COMFORT. ODC costs will cover all contract growth, including equipment rental, subcontractors and material and the AGR cost will cover any additional labor hours associated under this contract.

MSC has identified four (4) primary work items which require excessive increases in production hour’s requirements on board the USNS COMFORT (T-AH 20). The place of performance is Marine Hydraulics International, Inc. in Norfolk, VA. The period of performance is 1 March 2016 to 15 April 2016. The Overhaul Management Team (OMT) has determined these work items to be of critical importance to the overhaul of the vessel:

a. WI 103 – Mooring Roller Chocks Repairs

b. WI 302 – Switch Board Cleaning

c. WI 602 – Refurbish Heads and Showers in Crews Berthing

d. WI 701 – Space Modification Therefore, all Condition Found Reports (CFRs) and associated Request for Proposals (RFPs) related to these work items are essential to being completed while the ship is in this current availability to make the ship habitable and mission-ready.

This action will be funded with fiscal year 2016 Operation and Maintenance Funds in the amount of $450,000 which has been provided to MSC Norfolk.

4. Statutory Authority: This contractual action is executed under the authority of 10 U.S.C 2304 (c) (2) as implemented by FAR 6.302-2 Unusual and compelling urgency.

5. Rationale Supporting Use of Authority Cited Above: The additional AGR hours and ODC will provide for the issuance of multiple change orders pertaining to the following work items, which require significant increases in scope of work, the magnitude of which was not initially anticipated for the 2016 Mid-Term Availability of the USNS COMFORT (T-AH 20) at Marine Hydraulics International, Inc.

For WI 103, Mooring Roller Chocks Repairs, after initial inspection of the roller chocks and foundations on both the bow and stern, several additional areas outside the work specification were found to be in a deteriorated state and/or containing lead paint. This condition was not discovered until open and inspect of this work item. Proper operation of these roller chocks are essential to safetly anchor the vessel. ABS considers these repairs crucial and requires approval prior to sailing. A significant number of AGR hours and ODC are required to make these repairs as costly and labor intensive steel work on the foundation and lead abatement on the chocks are to be conducted. Failure to complete these repairs during this availability would result in a “no-sail.”

For WI 302, Switch Board Cleaning, after initial inspection of the Main and Auxiliary Switchboard, CG-835 was issued to install a DC control voltage to allow the existing reverse power relay flag circuits to properly indicate the receipt of an “OPEN” breaker signal due to reverse power on Ship Service Turbo Generator (SSTG), Auxiliary Diesel Generator (ADG), Diesel Generator No. 1 (DG1), Diesel Generator No. 2 (DG2), and Diesel Generator No. 3 (DG3). The US Coast Guard considers this repair crucial and requires approval prior to sailing. A significant number of AGR hours and ODC are required to make these repairs. Failure to complete these repairs during this availability would result in a “no-sail.”

For WIs 602 and 701, Refurbish Heads and Showers in Crews Berthing and Space Modifications, respectively, after initial inspection of the heads and showers it was discovered that there were multiple areas of decking, pipes, and overhead panels that showed excessive damage beyond normal refurbishment and as a result require replacement. A significant number of AGR hours and ODC are required to make these repairs. Failure to complete these replacements during this availability would result in inadequate habitability conditions for the inhabitants.

Although these work items 103, 302, 602, and 701 were identified in the initial package, the growth to these work items could not have been anticipated until the ship was moored at Marine Hydraulics International, Inc. and the overhaul had begun. Total growth during shipyard availability cannot normally be predicted until all systems have been opened and inspected. Most MSC vessels have regularly scheduled VRR’s (Voyage Repair Requests), Mid-Term Availabilities (MTA) or ROH/DD’s (Regular Overhaul/Dry Dockings) during the course of a calendar year.

This items identified above were identified by ABS and/or USCG as major issues preventing deployment of the USNS COMFORT. Therefore failure to immediately rectify these issues would result in a no sail status thereby causing the USNS COMFORT to fail to meet mission.

6. Description of Efforts Made to Solicit Offers from as Many Potential Sources as Practical: The contract N32205-16-C-4401 was awarded in a competitive environment, on a lowest priced, technically acceptable basis to Marine Hydraulics International, Inc. Due to the exclusivity of this availability and the urgency of these requirements, multiple RFPs were submitted to Marine Hydraulics International, Inc. adding the additional repairs as needed for each work item. While competition is restricted to Marine Hydraulics International, Inc. as the Contractor, the opportunity for subcontractors is not hindered, and given the large scale of growth associated with these repairs, it is anticipated that multiple subcontractors will be needed to fulfill the necessary labor and parts requirements in order to meet the scheduled timeline. Given that the vessel is only in the shipyard until 15 April 2016 and must be in a shipyard environment to accomplish this work, there is not sufficient time to allow for competitively soliciting this work. The repairs are required so the USNS COMFORT can meet its mission and would have a significant impact if these repairs are delayed. Delays are unacceptable and would have a significant impact for the Navy. Notice of this justification will be publicized on FEDBIZOPPS in accordance with FAR 5.2.

7. Contracting Officer’s Determination of Fair and Reasonable Price: 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 pursuant to Federal Acquisition Regulations (FAR) Part 15.404-1.

8. Actions to Remove Barriers to Future Competition: In this case the limitation on competition is a result of emergent work that could not be identified during Contract development. The combination between the urgency of this requirement and the narrow timeframe associated with the shipyard environment are circumstances that, in this case did not allow for a formal competitive procurement. For future MTAs, a conscious effort will be made to identify urgent requirements whose execution relies on the MTAs status for performance so as to provide for inclusion within the work package to be completed.