Ser 400-014 Justification and Approval Redacted.pdf

J&A No. PL-2179 Ser 400/014

21 JUNE 23

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

The Naval Sea Systems Command Contracting Division (Code 410), Portsmouth Naval Shipyard (PNS), Kittery, ME.

2. Description of the Action Being Approved.

The Navy intends to award a sole source contract to Moran Towing Corporation, New Canaan, CT (CAGE 00TG5) to acquire routine and emergency tug and towing services for PNS from August 15, 2023 to February 1, 2024, pending award of a follow-on long-term contract for these services using competitive procedures by the Military Sealift Command (MSC), located in Norfolk, Virginia.

3. Description of Supplies/Services.

Portsmouth Naval Shipyard has a requirement for two tractor-like tugs to provide routine and emergency tug and towing services.

The Tugs will operate within the geographical region of Portsmouth, NH, Kittery, ME and surrounding waters to include the following:

(1) Portsmouth Naval Shipyard

(2) The Piscataqua River defined by a virtual boundary on the upstream portion of the river in the general vicinity of the Simplex Wire & Cable Company in Newington, NH down to the boundary provided by the mouth of the river.

(3) A specific point in the Atlantic Ocean within a 12 NM radius from the mouth of the Piscataqua River.

Within this geographical region, the Tugs may be ordered to any berth, dock, anchorage, wharf, place, open roadstead, submarine

DEPARTMENT OF THE NAVY

PORTSMOUTH NAVAL SHIPYARD

PORTSMOUTH NH 03804-5000

IN REPLY REFER TO:

5. Rationale Justifying Use of Cited Statutory Authority.

An agency need not provide for full and open competition when supplies or services are available from only one responsible source with unique capabilities. (FAR 6.302-1(a)(2) and (b)((1)(ii)).

The Navy has determined that Moran Towing Corporation is the only source currently capable of performing these unique services on a temporary basis.

The Navy currently acquires Continuous Tugboat Services for PNS under Contract No. N39040-18-C-0128 with Alpha Marine Services, L.L.C. PNS awarded that contract on July 13, 2018 with a five-year period of performance that expires on August 15, 2023. The Navy awarded that contract using competitive procedures, but only received two offers: Alpha Marine and Moran Towing. While conducting market research for that contract, the Navy contacted two other potential vendors; one, located in Maine, failed to respond and the other, located in Louisiana, did not meet the Navy’s requirements. Ultimately, neither submitted an offer.

The MSC is responsible for awarding the follow-on contract. In early 2023, MSC notified PNS that it did not anticipate awarding the follow-on contract until mid-November 2023, at the earliest, or January 1, 2024, at the latest, due to unforeseen circumstances. As a result, PNS conducted market research for the temporary contract; while doing so, the incumbent, Alpha Marine Services, notified the Navy that it could not commit to supporting that effort due to other contractual commitments and maintenance requirements affecting its tugs. PNS’s market research identified two other potential vendors:

41 North Offshore LLC (Cage 7JEH6), New Bedford, MA 02740 Smith Marine, Inc. (Cage 3PGW9), Marblehead, MA 01945

The Navy contacted both vendors to assess their capabilities and availability to support this requirement. North Offshore LLC stated that they did not have tugs that meet the performance requirements of this service. Smith Marine, Inc. stated that were unable to support the request due to scheduled work and tug availability.

In March 2023, MSC posted a sources sought notice for the follow-on contract; only one vendor, Moran Towing, responded.

PNS evaluated that response and determined that Moran Towing had possess the capabilities to meet the requirements of the Statement of Work (SOW). At the closing of the sources sought notice only one (1) company, Moran Towing Corporation, identified an interest in the requirement. A review of the documentation submitted by Moran Towing Corporation was reviewed by the Portsmouth Naval Shipyard Ship Pilot to asses Moran Towing Corporation’s capability to meet the requirements of the SOW. The Ship Pilot identified that Moran Towing Corporation possess the capability to meet the requirements of the SOW. As a result of only receiving one (1) response from the sources sought notice, MSC will continue to issue any sources sought notice or pre solicitation notices to ensure adequate notice and detail regarding the need for tug towing services at Portsmouth Naval Shipyard.

The current SOW has locality limitations as the response time for the tug towing services is one (1) hour. The one (1) hour response timeframe is not a removable requirement of this contract action as it is directly connected to PNS maintaining its nuclear license. The tug towing services are utilized in the event of an emergency situation resulting in the need to tow a nuclear submarine out of dry dock or away from PNS.

As the incumbent, Alpha Marine Services, LLC is capable of continuing to provide towing services to PNS, therefore initial efforts were made to establish a bridge contract to ensure continuity of tug towing services. On May 22, 2023 the point of contact for Alpha Marine Services, LLC indicated that providing support for two (2) tugs until February 1, 2024 would not be achievable as Alpha Marine Services, LLC had already committed tugs to another contract after the conclusion of N3904018C1028. As a result, the Government determined that only a partial bridge contract would not satisfy the need for tug towing services until February 1, 2024. As a result, the Government determined that a stand-alone contract for the full period of performance of August 15, 2023 to February 1, 2024 would be the most efficient and feasible approach. Based on the market research conducted by the Government, responses to the sources sought notice posted by MSC, and information provided by Alpha Marine Services, LLC, the Government determined that only Moran Towing Corporation has the capability to provide the required towing services that not only meet the tug specifications required, but also can begin tug services immediately upon contract award as they have a permanent mooring point located in Portsmouth, NH.

Two small businesses were identified during Market Research and both businesses were contact and sent the performance work statement of this requirement to see if they were able to perform the service required. North Offshore LLC stated that they did not have tugs that meet the performance requirements of this service. Smith Marine, Inc. stated that were unable to support the request due to scheduled work and tug availability.

In accordance with (IAW) FAR 6.305(c) notice of this justification and the Government’s intended contract action will be made available via http://www.sam.gov in accordance with (IAW) FAR 6.305(d).

7. Determination of Fair and Reasonable Cost.

The Contracting Officer anticipates the cost to the Government for the services covered by this J&A will be fair and reasonable. The Contracting Officer will use price analysis, including historical cost estimating relationships, from previous procurements, to determine that final price is fair and reasonable prior to award.

8. Actions to Remove Barriers to Future Competition.

This requirement is for a highly specified services that must be performed within a limited geographical area due to the response time for emergency requirements. These performance requirements limit competition, but cannot be eliminated because they are essential to the Navy’s ability to execute its mission in a safe manner. To maximize competition and identify as many qualified sources as possible, PNS reached out to other agencies, port authorities and other bases who contract similar requirements.

Those market research efforts are summarized above and demonstrate the existence of a small pool of qualified vendors.

Continued issuance of public notices regarding any future similar requirements in addition to continued research of active and available companies that provide tug towing services will ensure the Government can identify any changes in an increase or decrease of future competition.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

Signature Name (Printed) Phone No. Date

Requirements Cognizance:

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

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

APPROVAL BLOCK (Approving Official)

Upon the basis of the above justification, I hereby approve, as the Competition Advocate for the Procuring Activity, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(f).

COMPETITION ADVOCATE, CHIEF OF THE CONTRACTING OFFICE (CCO):

Signature: Date: