N3904026PSE3182 Justification and Approval_Redacted.pdf

Navy Marine Corps Acquisition Regulation Supplement AUGUST 2026 (Change 26-04)

ANNEX 1 – JUSTIFICATION AND APPROVAL

J&A No. PL-2701

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Portfolio Acquisition Executive – Industrial Operations, Portsmouth Naval Shipyard (PNS), C400 Contracting and Logistics Department.

2. Description of the Action Being Approved.

Award of a sole source firm fixed price services contract to CEPEDA Associates in support of Availability .

3. Description of Supplies/Services.

The contractor shall provide services to repair and test both CO2 Scrubbers and both CO- H2 Burners on the for Portsmouth Naval Shipyard (PNS) in accordance with NAVSEA technical requirements. This effort is estimated to be completed in two phases with an option for the contractor to return, upon request, to aid in operational monitoring and additional deficiency adjudication. Phase 1 is the shipboard ripout, repair, and reinstallation/reassembly of CO2 Scrubbers, and CO-H2 burners and associated units/components. Phase 2 is the shipboard testing of CO2 Scrubbers and CO- H2 Burner units. The estimated value of these services is . The Independent Government Estimate (IGE) is based off historical contracts for similar work.

4. Statutory Authority Permitting Other Than Full and Open Competition.

The statutory authority permitting other than full and open competition for this effort is 10 U.S.C. 3204(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

CEPEDA Associates is the Original Equipment Manufacturer (OEM) and owns the proprietary data – including drawings, material specifications/measurements, and processes required to repair the equipment listed above. Said data is not provided to another vendor nor available to the Government. CEPEDA furthermore does not train third parties in the maintenance or overhaul practices at their facility or onboard submarines in the fleet. This is stated in an OEM letter provided by CEPEDA on 10/5/26.

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

A sources sought was posted to SAM.gov on 10/5/26 with a closing date of 10/7/26 to assess if there are any other interested parties. No responses were received in response to this notice.

A review of recent and relevant historical contracts was performed on contracts N3904026C0002, N3904026P0019, and N3904026P3066; market research was performed for these contracts between 4/28/25 and 10/25/25. Market research concluded on all three historical contracts that CEPEDA remains the OEM manufacturer with the sole source rights to repairing and testing this equipment.

No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than CEPEDA to provide the required services.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer anticipates the costs to the Government for the supplies/services covered by this J&A will be fair and reasonable. The Procuring Contract Officer will determine if the quote received from the vendor is fair and reasonable based on historical contract price analysis, published price lists of same or similar items, and by any other reasonable means, in accordance with FAR 12.204, prior to award.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, PNS has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, PNS will assess whether competition for future requirements is feasible.

J&A No. PL-2701

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:

Signature Name (Printed) Date

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.

Upon the basis of the above justification, I hereby approve, as Chief of the Contracting Office, 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. 3204(a)(1).

Heather Hall, Chief of the Contracting Office Date