SURTASS_J&A_Redacted.pdf

J&A N103-19-C-3516 HOS RED ROCK Bridge

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), Service Support Program, 03B/PM2.

2. Description of the Action Being Approved.

Modification to extend contract N32205-19-C-3516 on a sole source basis for the time charter of the HOS RED ROCK to the incumbent contractor Hornbeck Offshore Operators, LLC (HOO).

The purpose of this J&A is to obtain approval to execute a bridge extension of services for continued performance of the current contract. This contract action extends OSV's time charter for up to . The total length of the contract at that point will not have exceeded 59 months.

3. Description of the Supplies/Services.

Contract N32205-19-C-3516 provides for one US flagged or foreign flagged (to be reflagged U.S.) vessel required to tow an acoustic array in support of U.S. Navy Operations. The vessel operates on the East Coast of the United States, subject to missions worldwide.

The total estimated fixed value of this contract extension is $5,490,000.00.

Estimated Dollar Value

Contract performance under N00033-14-C-2003 is currently under a FAR 52.217-8 Option to Extend Services extension that will end on 14 Jul 2019. The Agency is taking steps to award a competitively competed follow-on contract for the HOS RED ROCK and is currently in the planning phase.

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 states:

"When the supplies or services required by the agency are available from only one responsible source, or, for DOD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for."

5. Rationale Justifying Use of Cited Statutory Authority.

In accordance with FAR 6.302-1 "When there is a reasonable basis to conclude that the agency's minimum needs can only be satisfied by -- (ii) For DOD, NASA, and the Coast Guard, unique supplies or services available from only one or a limited number of sources or from only one or a limited number of suppliers with unique capabilities."

The HOS RED ROCK is currently laden with required Government furnished equipment

(GFE) including the twenty-foot equivalent units (TEU) to accomplish the Surveillance Towed Array Sensor System (SURTASS) mission. The vessel has been modified to include a Ship Interface Template System (SITS) installation to allow the TEUs to be installed on the vessel. The vessel has also had 6 platforms installed for mounting acoustic equipment. The American Bureau of Shipping (ABS) has certified this vessel specific configuration and installation. Removal of all GFE from the HOS RED ROCK to be sent to a replacement vessel, if this requirement was competitively competed, would require a new SITS installation plan and additional certification from ABS, thus requiring more transition time. However, the vessel's current mission will not allow for this transition time, therefore any competition of the mission at this time will have unacceptable delays in fulfilling the agency's requirements.

The HOS RED ROCK is equipped with a unique configuration that is not easily available of the commercial market, and would require offerors a substantial amount of time to complete vessel modification to meet the contract requirement. The HOS RED ROCK can tow the acoustic system on any heading in Sea State 4 at 5 knots and on best heading in Sea State 5 at 5knots; the ability of the vessel to tow the acoustic array in these sea states makes the vessel unique in the commercial market. The vessel also meets a required radiated noise standard that is not common for commercial vessels.

These factors combined make the HOS RED ROCK a unique service platform available from only one source with unique capabilities and, therefore, the only responsible source to meet the SURTASS mission for PM2.

An availability of only one responsible source precludes full and open competition for this contract extension. Further, delay in issuance of this contract extension would result in serious financial and operational injury to the Government as noted above. The current contractor, (HOO), is the only source able to provide the required continuity of the mission critical service, without disruption, and at a reasonable rate, during the short period between the current contract's expiration and the delivery of a new vessel.

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

No additional efforts were made to solicit offers for the extension period covered by this J&A since MSC has begun efforts to procure a long-term follow on contract, estimated to begin in January of 2020.

As provided in paragraph five above, given the special modifications done to the vessel and the operational need of the vessel, HOO is the only source capable of providing the required service without unacceptable delays in fulfilling the Government's requirements for this extension period.

7. Determination of Fair and Reasonable Cost.

An informal analysis of prices or examination of the market indicates that the option price is the more advantageous offer. There has been no significant change in the market situation or to MSC's requirement that would cause a change in the prices negotiated under the contract. The analysis entailed examining the response of a recent market survey issued for this requirement under Market Survey PM2CSM0001 issued on 10 April 2019. Two responses were received; offered a vessel with a daily rate of and offered a vessel, but did not provide a charter hire rate.

Neither offeror was found to be technically capable of completing the requirement by the required lay days by the PM2 Project Officer. In addition to the fact that reprocurement efforts for the follow-on contract are already underway, the contracting officer has taken into consideration many factors (the competitive environment in which the contract was negotiated, the lengthy negotiations required to reach agreement, and the vessel modifications that were necessary to enable the ship to fulfill the Government's requirements) to support the determination that exercising the option is the most advantageous method for meeting the Government's needs within the timeframe required.

8. Actions to Remove Barriers to Future Competition.

MSC is taking steps to award a competitively competed follow-on contract for the HOS

RED ROCK and is currently in the planning phase. MSC published a Request for Information for a long-term charter on 16 May 2019 date to assist in determining timelines and if the January timeframe for award is realistic. Market responses are anticipated to assist MSC in determining the transition time necessary for vessel modification and conversion, as well as additional ABS certification timelines for awardee. Furthermore, MSC's previous charter limited vessels to a single-deck configuration. The market responses will allow MSC to determine if additional deck configurations are technically feasible. This will allow MSC to plan for contractual requirements that maximize competition within the marketplace rather than limit it.

No. 03-19-C-3516 HOS RED ROCK Bridge

Without the bridge contract and industry-provided timelines and solutions, the future award would be absolutely limited to a single-deck configuration and thereby limit competition.

N103-19-C-3516 HOS RED ROCK Bridge

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. I certify that the supporting data that forms the basis for this justification is complete and accurate.

Technical/Requirements Cognizance.

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient. See attached legal memo for comments.

CONTRACTING OFFICER CERTIFICATION

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

DIRECTOR, CONTRACTS AND BUSNESS MANAGEMENT, MILITARY SEALIFT

COMMAND

Upon the basis of the following justification, I, hereby approve, as Competition Advocate, Military Sealift Command, the contract action described herein using other than full and open completion, pursuant to the authority of 10 U.S.C. 2304(c)(1):