KAISERMod_P00005_2016_J A_Redacted.pdf

MILITARY SEALIFT COMMAND

471 EAST C STREET

NORFOLK, VA 23511-2419

N104-16-C-4008-2

JUSTIFICATION & APPROVAL FOR USE OF OTHER THAN FULL AND OPEN

COMPETITION FOR N32205-16-C-4008

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

(MSC).

2. Description of Action Being Approved: Approval of this justification will result in the increase of CLIN 0002, Additional Government Requirements (AGR) and Other Direct Costs (ODC) limit under contract N32205-16-C-4008 for the Regular Overhaul/Dry- Docking (ROH/DD) of the USNS KAISER for additional material and labor requirements of the contract awarded to Vigor Marine, LLC.

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

The additional ODC and AGR will provide for the issuance of a change order pertaining to the ship’s ROH/DD. 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 KAISER.

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 work item below represents the work to be covered by this J&A:

a) RFP 052, Main Engine Connecting Rod Nuts

b) RFP 060, Main Engine Piston Replacement

c) RFP 061, Fuel Injection Pumps and Rocker Arm Repairs

d) RFP 063, Gooseneck Vent Repairs

This action has been funded with fiscal year 2017 Maintenance and Repair appropriated funding which has been provided by MSC Norfolk.

4. Statutory Authority Permitting Other Than Full and Open Competition: 10 U.S.C.

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

5. Rationale Justifying 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) 052, Work Item 201 covers the replacement of Main Engine Piston Connecting Rod Nuts that were discovered to be in the need of replacement during the Main Engine 72,000 hour overhaul that is being performed during the current drydocking availability. RFP 060, Work Item 201 covers the replacement of Main Engine Pistons that were discovered to need replacing during the Main Engine 72,000 hour overhaul. RFP 061, Work Item 201 covers the replacement of the Main Engine Fuel Injectors and repairs to the Rocker Arms during the Main Engine 72,000 hour overhaul.

RFP 063, Work Item 104, covers the replacing of several Gooseneck Vents that were discovered to be corroded and in the need of replacing during the current drydocking availability. These work items are both a safety and regulatory issue and could potentially affect the mission of the vessel if not corrected.

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

Contract N32205-16-C-4008 was awarded in a competitive environment, on a lowest price technically acceptable basis to Vigor Marine, LLC. Due to the exclusivity of this availability and the nature of these requirements, multiple RFPs will be submitted to VIGOR MARINE, LLC for additional work as applicable. Competition is restricted to VIGOR MARINE, LLC as the Contractor. Additionally, due to several of the Work Items requiring Original Equipment Manufacturers (OEM), the opportunity for subcontractors is limited. Delays are unacceptable; as it would delay the ship’s return to service and could have significant impact on the Navy. The USNS KAISER (T-AO 187) 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 VIGOR MARINE, LLC’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. Actions to Remove Barriers to Future Competition: In this case, the limitation on competition is a result of 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 sources. For future ROH/DD availabilities, a conscious effort will be made to identify additional sources, if available, to the maximum extent possible.