J A.pdf

DEPARTMENT OF THE NAVY

COMMANDER

MILITARY SEALIFT FLEET SUPPORT COMMAND

471 C STREET, BLDG AP-64

NORFOLK, VA 23511

JUSTIFICATION AND APPROVAL (J&A) FOR OF OTHER THAN FULL AND OPEN

COMPETITION

Upon the basis of the following justification, I, Diane Krueger, as Competition Advocate, hereby approve the execution of the contractual action described below using other than full and open competition, pursuant to the authority cited herein.

1. Contracting Activity: Department'of the Navy, Military Sealift Fleet Support Command (MSFSC), in support of Sealift Logistics Command Atlantic (SEALOGLANT), Charleston, South Carolina.

2. Description of Action Being Approved: The action submitted for approval is the acquisition of harbor pilot services under other than full and open competition, FAR 13.106-1(b} (1}&(2), only one source in the Charleston, South Carolina area is authorized by statute to perform the required services and will satisfy the agency's requirements. An indefinite delivery-requirements type contract with firm fixed price CLINs is anticipated. Award of a sole source contract to Charleston Branch Pilots Association will allow uninterrupted service and operational support to the vessels utilizing the port in Charleston, South Carolina at the end of the current period of performance.

Charleston Branch Pilots Association has performed these services satisfactorily for the preceding ten (10) years.

3. Description of Supplies/Services: The instant acquisition is for harbor pilot services in the Charleston, South Carolina port area for MSFSC (USNS) and United States Navy (USN) vessels. The contractor will provide the piloting services to support the vessels in the port of Charleston, South Carolina allowing vessels safe passage in and around the port area. The period of performance will be from 1 January 2011 to 31 Dec 2015 with four I-year option periods included in the contract.

The total estimated price of the procurement is $922,326.61. The current contract has an actual obligated value of $852,327.00.

Contracted piloting services are established at published pricing and subject to state regulation.

4. Statutory Authority: 10 U.S.C. 2304(c} (I), One source or limited sources.

The authority permitting other than full and open competition under simplified acquisition procedures is implemented by Federal Regulations (FAR}13.501(a) (I) (i) and (ii) under the test program for commercial items, section 4202 of the Clinger-Cohen Act of 1996. Authority is also established through 46 United States Code (USC) 8501, 8502, and 8503.

46 USC 8501 mandates Maritime pilotage and asserts the individual States shall regulate pilotage except where the federal government does so. 46

USC 8502 states where the federal government (United States Coast Guard) shall regulate pilotage.

46 USC 8503 provides that if the states do not regulate pilotage, the federal government may do so. In accordance with South Carolina statute 46 USC 8503 is not applicable. South Carolina regulates pilotage under Title 54, Chapter 15 of the South Carolina Code. Section 54-15-270 ' requires all vessels that are not required to take federal pilots, must take state licensed pilots. Chapter 136 if the South Carolina Code regulates pilotage. The majority of the state licensed pilots in the Charleston area are associated with the Charleston Branch Pilots Association. According to the South Carolina Department of State Licensure which oversees the regulation of pilotage by the Commissioners of Pilotage, there are no other organizations offering federal pilotage services in the Charleston, South Carolina area.

5. Rationale Supporting Use of Cited Statutory Authority Above: MSFSC is responsible for supporting harbor pilot services for MSFSC vessels and United States Navy (USN) vessels entering the Charleston, South Carolina port area. The piloting services are limited to licensed pilots in the appropriate area of operations and Charleston Branch Pilots Association is the only licensed agency for federal licensed pilotage. As stated above, the statutory authority for pilotage is established by United States Code and the State of South Carolina Code.

The incumbent contractor, Charleston Branch Pilots Association, has been integral in maintaining the pilotage services within the Charleston port area and is the only vendor authorized to perform these services at this time. Charleston Branch Pilots Association has satisfactorily provided these services for Military Sealift Fleet Support Command for the past ten (10) years. Market research revealed there are other piloting companies in the Charleston area but authorization to pilot specific vessels is regulated under Law.

Though pilotage for public vessels is not required, it is authorized and encouraged as an added insurance against accidents and mishaps. If the ships personnel are unfamiliar with the area in which they are piloting the ship then there is the potential for safety issues with docking.

Unfamiliarity with the port can cause unforeseen damage to the ship and injury to its personnel, as well as external source damage (i.e. other ships, the dock, or personnel in the port area). In the event of an accident, the potential for damage is increased exponentially which in turn increases the financial burden for the command. The safety precaution of the utilization of the services of a state licensed pilot greatly minimizes the risk. The added insurance of a state licensed pilot is a preferred alternative utilized by vessels entering the port of Charleston, South Carolina.

It is in the government's best interest to negotiate and award a sole source contract to Charleston Branch pilots Association.

For these reasons, it is determined the incumbent, Charleston Branch Pilots Association, is the only contractor with the capability to execute required pilotage and tug services within the Charleston, South Carolina port area.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practical: Market research and a small business dynamic search was conducted and established that though there are piloting companies in the Charleston area, authorization to pilot specific vessels is regulated by Law. A synopsis of this action will be published in accordance with FAR subpart 13.105 and the solicitation will be posted on the Federal Business Opportunities (FBO) website.

7. Deter.mination of Fair and Reasonable Cost: The Contracting Officer will determine the price is fair and reasonable pursuant to Federal Acquisition Regulations (FAR) Part 13.106-3(a) (2) (ii).

8. Actions to Remove Barriers to Future Competition: Future requirements for these services will be advertised on the FBO website and the solicitation will be posted on the FBO website. Updates to the regulatory guidance will be noted in any future acquisition.

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['dCBRICAL AJID UQOIUIIJD1'1'S CBRTIPICATIOII RBQ17IRID BY PAR 6.303·1 (b) certify that the facts and representations under my cognizance which are included in this justification and its supporting Acquisition Plan No N/A which form a basis for this justification are complete and accurat~

TECHNICAL/REQUIREMENTS COGNIZANCE

Signed:

DI£ClORt6"~ Name/Title/Code/Phone/Date

RBVIBWBD BY COtJlf8BL FOR LBGAL 8UJ'PICDlCY AS RBQVXRBD BY JlllCARS 5206.303-90

Signed:

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Name/Title Code Phone Date

ICOJITBC'l"IltG OPPIC3R e-RTIPICATIOR UQUXUD BY PAR 6.303-2 (a) (12)

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

CONTRACTING~FFICER

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I COMPETITION ADVOCATE APPROVAL REQUIRED BY FAR 13.501(a) (2) (ii)

COMPETITIION ADVOCATE

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