N32252_02088.18_BETA.SAM.pdf

IN REPLY TO:

J&A No.: 02088.18 Code: 410.2 P.R. No.:

N3225320RC12278

Date: 24AUG2020

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

FAR 6.303

1. Contracting activity

Pearl Harbor Naval Shipyard & Intermediate maintenance Facility (PHNS & IMF), Contracts Division Code 400.

2. Description of the action being approved

a. Increase of value on a contract that was awarded on a limited sources basis for emergent repair actions to ’s (

) emergency diesel generator. Diesel generator overhaul includes installation of new upper and lower crankshafts. This requirement was first identified on 14FEB2020.

b. Original J&A 02088 was approved on 28FEB2020 for $2,520,352.

c. Revised J&A 02088.3 was approved on 03APR2020 for $3,367,138.

d. Revised J&A 02088.7 was approved on 15MAY2020 for $4,679,014.

e. Revised J&A 02088.11 was approved on 02JUL2020 for

$5,543,248.65.

f. Revised J&A 02088.14 was approved on 21JUL2020 for

$6,116,744.88.

g. Revised J&A 02088.16 was approved on 13AUG2020 for

$6,555,306.76.

h. This amendment increases the J&A value by $397,566.72, from

$6,555,306.76 to $6,952,873.48.

3. Description of supplies/services

a. Diesel generator overhaul onboard the including replacement of both upper and lower crankshafts.

b. The total estimated dollar value: $6,952,873.48.

(b) (1) (A) (b) (1) (A)

(b) (1) (A)

c. Period of performance: – or until work completed.

d. The basic contract was awarded for $2,470,918.88 with J&A 02088 which was approved up to $2,520,352. After award there was $49,433.12 remaining ceiling for the J&A.

i. RCC 1G two subcontractor representatives 14 day restriction of movement, $49,026

ii. Remaining balance $407.12

e. J&A 02088.3 increased the J&A value to $3,367,138 by adding

$846,379. The following in-scope RCCs were settled under its approved ceiling. These RCCs did not increase the cumulative contract value beyond J&A 02088.3 price of $3,367,138, thus a revised J&A was not required to settle the RCCs:

i. RCC 2G, weld repair and quarantine, $61,932.24

ii. RCC 4G, additional material, $67,410.74

iii. RCC 5G, prime contractor quarantine, $60,688

iv. RCC 7G, additional material, $4,761.16

v. The above RCCs total $194,792.14 that after execution left $651,586.86 remaining on the approved J&A ceiling.

f. J&A 02088.7 increased the J&A value to $4,679,014 an increase of $1,311,876 to the previously remaining $701,426.98 for a combined remaining balance of $1,963,462.86. The following in-scope RCCs were settled under its ceiling.

i. RCC 8G, for additional material, subcontractor machining and welding support, and prime labor, $1,066,850.54

ii. RCC 9G for additional prime labor have been issued to the contractor, $639,475.72

iii. RCCs 8G and 9G extended the contract performance from to .

iv. RCC 11G for additional material, $4,836.89

v. The above RCCs total $1,711,163.15 that after execution left $252,299.71 remaining on the approved J&A ceiling.

g. J&A 02088.11 increased the J&A value to $5,543,248.65. The following in-scope RCC was settled under its ceiling.

i. RCC 10G for additional subcontractor welding support, $347,865.

ii. RCC 12G for additional prime contractor, prime material, and subcontractor machining support, $621,100.06.

iii. The above RCCs total $968,965.06 that after execution left $148,383.42 on the approved J&A ceiling.

h. J&A 02088.14 increased the J&A by $573,496.23 to $6,116,744.88. The following in-scope RCC was settled under its ceiling.

i. RCC 13G for additional prime labor and material and additional subcontractor machinists, $640,834.01.

ii. After execution of RCC 13G, $81,045.64 was left on the approved J&A ceiling.

i. J&A 02066.16 increased the J&A by $438,561.88 to $6,555,306.76. The following in-scope RCC is in the process of being settled under its ceiling.

i. RCC 14G for additional prime labor and material and additional subcontractor machinists, estimated $519,607.52.

j. The current J&A 02088.18 is to increase the J&A by $397,566.72 to account for in-scope growth RCCs that are necessary to complete the basic contract.

i. RCC 3G, prime contractor and subcontractor standby, and subcontractor expedited work schedule, estimated $272,206.72.

ii. RCC 15G for additional prime labor and material, estimated $125,360.

4. Statutory authority permitting other than full and open competition

10 U.S.C. 2304(c)(2). Unusual and Compelling Urgency.

5. Rationale justifying use of cited statutory authority

The Repair and Overhaul identified in Paragraph 3 above is supporting an underway limiting CASREP. The is a forward deployer supporting real world events. If urgency is not applied there will be an impact to the operator’s mission causing a degradation in our Navy’s defense capabilities. The Emergency Diesel Engine is an integral submarine component. Loss of Emergency Diesel Engine capability would degrade and limit operational capability and maneuvers required of a forward deployer.

The customer identified the additional requirement for RCC 3G on 29MAR2020. The contractor submitted a valid proposal for RCC 3G on 14AUG2020. RCC 3G resulted from a stop work order issued by the contracting officer, which necessitated the prime and subcontractor to standby on station until the stop work was lifted. RCC 3G also included costs for additional subcontractor

(b) (1) (A) personnel to expedite the production schedule due to the stop work. RCC 3G includes the costs of additional subcontractor personnel to travel to Oahu and to comply with the state mandated 14 day Restriction of Movement upon arrival in Hawai’i.

RCC 3G is with-in the scope of the base contract. It was not possible to foresee or plan for the stop work order.

The customer identified the additional requirement for RCC 15G on 19AUG2020. RCC 15G results from additional required material that was identified during Government inspections, and from an unforeseen sequence in the project that required the contractor to standby while the Government maintenance team conducted related repairs. The magnitude of work and unknown conditions could only be determined during the execution of work. RCC 15G is with-in the scope of the base contract. It was not possible to foresee or plan for the results of the inspections without incurring significant financial risk by paying for a worst case scenario up front.

6. Description of efforts made to solicit offers from as many sources as practicable

Per PHNSY & IMF Engineering and Planning Department (EPD), Fairbanks-Morse owns the necessary equipment and is experienced in performing the appropriate procedures and services identified in Paragraph 3a. They are currently the only known vendor that has performed this particular repair, are the Original Equipment Manufacturer of Emergency Diesel Engine on the class submarines, and are the only known source capable of meeting this urgent requirement.

A sources sought (ID N32253-20-Q-0024) was posted on the Government Point of Entry (GPE), beta.sam.gov, on 13FEB2020. The posting sought sources “that are interested and capable of providing technical assistance for the reassembly, possible repairs, and testing of an class submarine diesel engine.”

No responses were received.

7. Determination of fair and reasonable cost.

The Contracting Officer will use cost and price analysis, including historical cost estimating relationships from previous diesel engine repair requirements to determine the final price to the Government is fair and reasonable.

8. Actions to remove barriers to future competition

(b) (1) (A)

(b) (1) (A)