DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND, MID-ATLANTIC

9324 VIRGINIA AVENUE

NORFOLK VIRGINIA 23511-3095

J&A No. ML 26-28

CON/123

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

The contracting activity Naval Facilities Engineering Systems Command, Mid-Atlantic (NAVFAC MIDLANT), Resident Officer in Charge of Construction (ROICC), Naval Weapons Station Earle (NWSE), Colts Neck and Leonardo, New Jersey.

2. Description of the Action Being Approved.

Approval is sought to increase the contract maximum not-to-exceed (NTE) amount on Contract N4008523D0022 for Recurring Firm-Fixed Price (FFP) and Non-Recurring Indefinite Delivery/Indefinite Quantity (IDIQ) Genset Maintenance and Repairs at NWSE with contractor National Railway Equipment Co. (NRE) in the amount of $600,000 from $791,838.56 to $1,391,838.56. No additional time is being added to the contract.

3. Description of Supplies/Services.

NAVFAC MIDLANT, ROICC Earle awarded an IDIQ contract for Genset Maintenance and Repairs on 27 February 2023 to National Railway Equipment Co. (NRE) with a 12-month base period and four 12-month option periods, if exercised. This contract provides all labor, equipment, and material to perform periodic recurring maintenance and other as needed non-recurring repairs on the electrical operating systems of two Genset railroad locomotives manufactured by the National Railway Equipment Company (NRE) to support the transportation of ordnance (ammunition) materials and supplies from the Mainside to Portside for ship loading operations and other public works type operations necessary to fulfill the requirements of task orders issued by the contracting officer to provide the services outlined below and described in the contract's Performance Work Statement (PWS) for NWSE locations in Leonardo and Colts Neck, New Jersey

This contract was awarded with the intent and maximum not-to-exceed capacity to provide for recurring and non-recurring Genset Maintenance and Repairs. These recurring and non-recurring services provide the station with the ability to issue pre-priced task orders to support the transportation of ordnance (ammunition) materials and supplies from Mainside to Portside for ship loading operations and other public works type operations at NWSE. Since there has been a substantial increase in the number of ships coming to NWSE and the needs for supply and ordnance transportation during the past three years, more capacity for unexpected task orders was used than planned for when this contract was awarded in fiscal year 2023. As a result, this contract may soon reach its not-to-exceed maximum limit ahead of its projected completion date of 29 February 2028. At present time, this contract cannot support the volume of Genset Maintenance and Repair services that may be required before procurement and award of a new

J&A ML-26-28

contract can be completed. Ship arrivals requiring ordnance and supplies can happen at any time with extremely short turnaround notice and require working locomotives for mission success.

If this additional capacity is not granted, the remaining awards will have to be procured through other means. Procuring these awards on a standalone basis is not in the best interest of the Government in accordance with FAR 6.302-2(b)(2), where delay in award of a contract would result in jeopardizing NWSE’s, the Navy and the Warfighters’ strategic mission. Procuring these projects via standalone procurements would add costs, require more resources and would impact the Department of War's ability to meet mission essential requirements. The work completed under this contract ensures that ships coming into NWSE receive the locomotive service operations and ordnance materials required to successfully perform the Navy’s mission on a timely basis. In the event of failure to acquire these Genset Maintenance and Repair services, station operations would be significantly impacted and would result in mission failure. This agency has determined it is in the best interest of the government to exercise the third (3rd) option period beginning 01 March 2026 of this contract. Under exigent circumstances, completion of the efforts under the current contract is the most practicable option available. NRE can and has performed the work and is familiar with the types of work to be performed, allowing for greater efficiency in cost and performance of the work. Additionally, this contract utilizes negotiated pre-priced line items for pricing task orders.

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

The statutory authority permitting other than full and open competition is Title 10 United States Code Section 3204(a)(2), as implemented by the Revolutionary FAR Overhaul (RFO) 6.103-2 – “Unusual and compelling urgency.”

5. Rationale Justifying Use of Cited Statutory Authority.

NRE is the only viable source for meeting the operational, maintenance, and sustainment mission requirements of NWSE’s Genset locomotive systems at this time. NRE has provided all electronic maintenance and repairs to NWSE’s Genset locomotives since 2013. As the sole owner of the NFORCE Microprocessors, NRE has an intricate knowledge and understanding of the system and asserts intellectual property and software rights to upgrade, modify, enhance, and maintain the application. NRE does not have affiliations or agreements in place with any other vendors for the operation, maintenance, and sustainment for the subject microprocessors.

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

Due to the urgent need for these services, it is not practical or in the best interest of the Government to re-solicit the required services at this time. The incumbent is currently able to mobilize on short-term notice, is intimately familiar with the work to be performed, and is performing satisfactorily at present time. Navy Munitions Command (NMC) purchased two Genset locomotives equipped with NFORCE Microprocessors from the NRE Company via Contract DTRT5712C10056 on 15 August 2012. The locomotives were delivered to NWSE in June of 2013 and included a two-year warranty. During the warranty period NMC coordinated with Base Services and Vehicle Support (BSVE) and NRE for the performance of scheduled maintenance, repairs, and technical support. Prior to the end of the warranty period, it was determined that a follow-on contract was needed to maintain the Genset Locomotives as BSVE did not have the skills or training to maintain, repair, or troubleshoot the NFORCE Microprocessors. Contract N4008516D8486 was awarded sole source to NRE. Contract N4008518D4735 competed under full and open with only NRE submitting a proposal. This current contract, N4008523D0022, was awarded via Sole Source to NRE as they are only contractor capable of providing all of the Genset’s requirements for maintenance and repairs.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government for the services covered by the J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAVFAC MIDLANT 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, NAVFAC MIDLANT will assess whether competition for future requirements is feasible.

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.

Matthew Morrish Date Supervisory FSC Manager ROICC Earle, NAVFAC Mid-Atlantic

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Howard Smith Date Assistant Counsel NAVFAC Mid-Atlantic

CONTRACTING OFFICER CERTIFICATION

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

Joseph Henrius Date Supervisory Contract Specialist ROICC Earle, NAVFAC Mid-Atlantic

APPROVING OFFICIAL (NPGI 6.304)

Upon the basis of the above justification, I hereby approve, as Chief of the Contracting Office, the modification of the proposed procurement described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 3204(a)(2).

Kimberly Kahler Date Chief of the Contracting Office, NAVFAC Mid-Atlantic By direction of the Commanding Officer