REDACTED _JnA-RevB _16-C-4006-P00007.PDF

MILITARY SEALIFT COMMAND

471 EAST C STREET

NORFOLK, VA 23511-2419

N104-16-C-4006

JUSTIFICATION & APPROVAL FOR USE OF OTHER THAN FULL AND OPEN

COMPETITION FOR N32205-16-C-4006

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

2. Descriution of Action Being Airnroved: Approval of this justification will result in the increase of CL1N 0002, Additional Government Requirements (AGR) and Other Direct Costs (ODC) limit under contract N32205-16-C-4006 for the Mid-Term Availability (MTA) of the USNS JOHN LENTHALL for additional material and labor requirements of the contract awarded to Detyens Shipyards, Inc.

The available ODC and AGR price of CL1N 0002 will be increased by to

The additional ODC and AGR will provide for the issuance of multiple change orders pertaining to the ship’s MTA. All work to be performed under this increase in ODC and AGR has been evaluated by the Overhaul Management Team (OMT) and determined to be classified primarily by one or more of the following work categories:

a) Safety

b) Mission

c) Regulatory

The OMT has determined these categories to be of equal importance; therefore, all Condition Found Reports (CFRs) and associated Request for Proposals (RFPs) related to these categories of work are critical to being completed while the ship is in this current availability to make the ship mission ready.

3. Description of Supplies/Services: MSC requires an increase to direct production hours and material for Additional Government Requirements for the maintenance and repair work associated with the safety, mission and propulsion needs of the USNS JOHN LENTHALL. The list below represents the work to be covered by this J&A:

AGR cost and ODC cost (CLIN 0002) will cover all contract growth, including equipment rental, subcontractors and material. The list below represents the work to be covered by this J&A:

a) RFP 085, WI 0510 — AC Condenser, Flush and Repair, Auxiliary Machinery

b) RFP 089, WI 0517 — Replacement of 150 Gauges, Auxiliary Machinery

c) RFP 091, WI 0501— SSDG No. #4, Push Rod Housings & Gaskets & Water Jumper

Kits, Auxiliary Machinery

d) RFP 105, WI 0510— Rebuild No. #1 A/C Compressor, Chiller & Condenser Auxiliary

Machinery

e) RFP 109, WI 1008 — Air Tank Weld Repair, IJNREP Gear

f) Work Item 022 - Dock and Sea Trails Unknown Growth, General Requirements

These actions have been funded with fiscal year 2016 Maintenance and Repair appropriated funding which has been provided by MSC Norfolk.

4. Statutory Authority Permittin2 Other Than Full and Oøen Comnetition: 10 U.S.C.

2304(c)(2), Unusual and Compelling Urgency, as implemented by FAR 6.302-2(a).

5. Rationale Justifvin~ Use of Cited Statutory Authority: Total growth during shipyard availability cannot normally be predicted until all systems have been opened and inspected. Most MSC vessels have regularly scheduled Mid-Term Availabilities (MTAs) or Regular Overhaul & Dry-dockings (ROH/DDs) during the course of a calendar year. Request For Proposal (RFP) 085, WI 0510 covers the Flush and Repair of the AC Condensers. During operational tests ofNo. #1 A/C Plant the unit lost all refrigerant charge. Further investigation determined two (2) tubes were damaged and deteriorated as per Condition Reports (CR) 136 & 137. RFP 089, WI 0517 covers the procurement and installation of 150 Gauges. A total of 1,149 gauges total were tested however 150 of those gauges were rejected arid beyond repair. Cost to replace and install the rejected gauges was not included in the original proposal. RFP 091, WI 0501 covers the procurement and installation of eighteen (18) Push-Rod Housings, (18) Gaskets, (18) Water Jumper Kits and one and (1) Vibration Damper all which are associated with the Ships Service Diesel Generator (SSDG). During the 24,000 hour three (3) year inspection required per work item paragraph 7.1.1, it was determined the parts listed above needed to be replaced due to normal wear and tear. No condition report has been received to date, however the work was discovered during an “Open and Inspect”, the results of which resulted in the issuance of the RFP. RFP 105, WI 0510 covers the rebuild of the No. #1 A/C Compressor Chiller & Condenser. This RFP was issued due to the first attempt of corrective action from RFP 085 noted above not being enough to for the system to pass inspection. Condition Report (CR) 145 revealed that two (2) tubes identified in RFP 085 were ruptured and needed to be replaced, a large amount of salt-water had migrated into the Freon side of the system which can cause catastrophic failure of the system and equipment. In addition a large amount of deterioration was found on the condenser tube sheets, therefore the systems Original Equipment Manufacturer (OEM) recommended a rebuild of the system. RFP 109, WI 1008 covers a weld repair on the Air Tank for the Station No. #4 Inhaul/Outhaul Winch. The condition report has not yet been received however the damage was discovered during a “Check-Point” inspection. Work Item 022 describes the requirements for Dock and Sea Trails; potential unknown growth work is always expected during this time in normal shipyard availabilities. In the case of the USNS JOHN LENTHALL, it’s even more suspected due the normal forty-three (43) day availability being extended for twelve (12) days and many of the vital ships systems have been shut-down, electrically disconnected, removed, reinstalled, connected and brought back online. The work items identified above are both a safety and regulatory issues and could potentially affect the mission of the vessel if not corrected.

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

Contract N32205-l 6-C-4006 was awarded in a competitive environment, on a lowest price technically acceptable basis to Detyens Shipyards Inc. Due to the exclusivity of this availability and the nature of these requirements, multiple RFPs were submitted to DSI for additional work as applicable. Competition is restricted to DSI as the Contractor. Additionally, due to several of the Work Items requiring Original Equipment Manufacturers (OEM), the opportunity for subcontractors is limited. The ship has already been delayed twelve (12) days due to an unexpected Reserve Feed Water Tank repair and additional delays are unacceptable; as it would delay the ship’s return to service a second time and could have more of a significant impact on the Navy and Air Force. The USNS JOHN LENTHALL (T-AO 189) could not deploy and be mission-ready without these critical repairs and installations.

7. Determination of Fair and Reasonable Cost: The Contracting Officer has determined that anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable. The requirements will be negotiated based on existing rates provided under the Additional Government Requirements CLIN of the contract, which was competitively awarded.

All of DSI’s proposed prices will be compared to the IGE. Additionally, the Contracting Officer will determine that all RFPs settled are fair and reasonable in accordance with FAR PART 15.

8. 11~ to eBarriers t~j nrc titjon:Jn this case, the limitation on competition is a result of OEM required technical representatives to perform the repairs. Additionally, 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 as a means to try and identify other OEM representatives. For future MTA availabilities, a conscious effort will be made to identify additional OEM sources, if available, to the maximum extent possible.

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 COGNIZANCE:

Signature Name (Printed) PH.No.

09-19-2016

Date

LEGAL SUFFICIENCY REVIEW:

CONTRACTING OFFICER CERTIFICATION:

120 Sep 16 Date

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

Signaturcj Name (Printed) PH. No.

Signature 20Sept16

Name (Printed) PH No. Date