Attachment_3_17-T-0065_HAKI_J&A_Redacted.pdf

Memorandum

DEPARTMENT OF THE NAVY

PORTSMOUTH NAVAL SHIPYARD

PORTSMOUTH, NH 038045000

4200 IN REPLY REFER TO:

Ser 270/053 5 Dec 16

PL-1762

From: Division Head, Electrical/Electronic Engineering Division (Code 270)

To: Contracting Officer, Contracting Division (Code 410)

Subj: JUSTIFICATION AND APPROVAL FOR SOLE SOURCE

1. Identification of Agency and Contracting Activity:

a. Requiring Activity:

Commander Portsmouth Naval Shipyard Material support Division, Code 245 Portsmouth, NH 03804-5000

b. Contracting Activity:

Commander Portsmouth Naval Shipyard Contracting Division, Code 410 Portsmouth, NH 03804-5000

2. Description of the Action Being Approved: This is a sole-source action submitted for approval to issue a Firm Fixed Price Commercial Request for Quotation. There is only one (1) source of the required equipment in the North American commercial market. Safway Services, Inc. is the exclusive North American contracting partner and sole distributor of Haki brand products including the required Hakitec 750 Trak temporary roofing system component parts.

3. Description of Supplies/Services: This requirement is for a firm fixed contract for the rental of Hakitec 750 Trak temporary roofing system components (modular scaffolding) . These component parts are compatible with existing Shipyard inventory, and are re ired to com lete the roof 'n support of the

• ittery, with an Option estimated cost at Portsmouth Naval Shipyard in •• is 21 March 2017 through 20 March 2018, from March 2018 through 05 May 18. The •• • . --Base Period, including freight, for this the estimated cost including the Option

•• The Independent Government Estimate was prepared base on istorical contract pricing for similar items, and Safway Services, Inc.'s current commercial catalog pricing. This requirement will be funded using the appropriate fiscal year's Operations & Maintenance, Navy funding .

Subj: JUSTIFICATION AND APPROVAL FOR SOLE SOURCE

4. Statutory Authority Permitting: The statutory authority permitting other than full and open competition is 10 U.S.C.

2304(c) (1) or 41 U.S.C. 3304(a) (1), as implemented by Federal Acquisition Regulation (FAR)6.302-l(b) (1) (i) and FAR 13.501(a) (2) (i), the compatible supplies required are unique to Haki, and are available from only one source. Safway Services, Inc. is the Haki manufacturer's exclusive North American contracting partner and authorized distributor of Hakitec 750 Trak Temporary Roofing System component parts. No other manufacturer's model will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority: In accordance with FAR 6.302-1, only one source is capable of providing materials that meet the requirement. The HAKI equipment is needed to complete the required roof arrangement for an EOH. The Hakitec 750 Trak Temporary Roof System component parts to be leased are compatible with existing· shipyard inventory, some of which are currently in place onboard the ship due to some of the Removable Submarine Cover (RSC) Enclosures previously removed for delivery for refurbishment.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable: This will not be a competitive solicitation.

Safway Services, Inc. is the only vendor capable of providing the Hakitec 750 Trak rental equipment. ·

On 11/22/2016, the Contract Specialist conducted market research via a source sought notice posted to https://www.fbo.gov/. The notice sought vendors with the capability to provide Hakitec 750 Trak rental equipment. No responses were received in response to this posting.

Further market research was conducted by contacting representatives at Brand Energy & Infrastructure Services (BEIS) which used to be a branch of Harsco, the only other vendor that has submitted quotes for HAKITEC 750 TRAK Temporary Roof System Component parts. In an email dated 11/30/2016 a representative from BEIS identified that they do not currently have the required Haki 750 Trak Temporary Roof System components in the Continental United States.

Notice of this justification and Government's intended modification of the aforementioned contract will be provided on https://www.fbo.gov/ in accordance with FAR 6.305.

7. Determination of Fair and Reasonable Cost: A determination of fair and reasonable price will be based on price analysis by the Procuring Contracting Officer of the contractor's offer and/or a comparison of previous pricing history, historical contract analysis, published price list of same or similar items, or any other reasonable basis, in accordance with FAR 13.106-3.

8. Any Other Supporting Facts: The purpose of this rental is to replace the RSC's scheduled for refurbishment. The HAKITEC 750 Trak

Temporary Roof System component parts are to be installed in the same location as the removed RSC's in order to continue work on the exterior of the ship in a controlled atmosphere. The HAKI equipment is needed to complete the required roof arrangement for an EOH. The HAKITEC 750 Trak Temporary Roof System brand component parts to be leased are compatible with existing shipyard inventory.

9. Actions to Remove Barriers to Future Competition: Market research was conducted through the publication of a Sources Sought Notice posted to the Government Point of Entry on FedBizOpps. The Sources sought announcement was published for market research purposes to help identify qualified sources under North American Industry Classification System code 532490 (Other Commercial and Industrial Machinery and Equipment Rental and Leasing) that may have been capable of providing the required Hakitec 750 Trak Temporary Roofing System component parts. The only company that submitted a response was Safway Services, Inc. Additional market research included internet searches, discussions with the requiring activity, a review of prior contract history, and email and telephone correspondence with potential suppliers. As a result of this updated market research, it was discovered that in October of 2013, Haki appointed Safway Services, Inc. as its exclusive contracting partner, and its North American Distributor. As such, Safway Services, Inc. is able to offer favorable pricing to the Government for the rentals of Haki products because there is no middleman. If this requirement were to be solicited for competitive quotes, it would be awarded to the lowest priced, technically acceptable Offerer. Due to the exclusivity of the Haki-Safway partnership, any other offers would be greater than Safway's due to the fact that competitors would have no other choice but to source the Haki equipment from Safway, then add markup costs and profit.

10. Contracting Points of Contact:

Contracting Officer: Andrea Panagoulias, (207) 438-2133

Contract Specialist: Anthony Barker (207) 438-1946

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:

Requirements Cognizance:

Signature Phone #

LEGAL SUFFICIENCY REVIEW

11/17/16 Date

I have determined this Justification is legally sufficient.

CONTRACTING ACTIVITY COMPETITION ADVOCATE REVIEW

PL-1762

To the extent that the J&A/LSJ value is between $650K and $12.5M, the Competition Advocate's signature below also represents approval of the

J&A/LSJ.

_Signature Name (Printed)

Phone # 1z/13/iro Date