Memo_to_Limit_Sources_Redacted.pdf

1 Ver 2.0 (01 July 2018)

Date: 4 June 2019

MEMORANDUM

Subj: USE OF OTHER THAN FULL AND OPEN COMPETITION FOR AN ACQUISITION UNDER

THE SIMPLIFIED ACQUISITION THRESHOLD

Ref: (a) PR Number(s): FCB19-046

I. BACKGROUND:

1. In considering the references, FAR 13.106-1(b)(1)(i) states for purchases not exceeding the simplified acquisition threshold, Contacting Officers may solicit from one source if the Contracting Officer determines that, under the circumstances of the contract action, only one source is reasonably available (e.g., urgency, exclusive licensing, brand-name, or industrial mobilization).

2. As required by FAR 13.106-3(b)(3)(i), this memorandum explains the absence of competitionfor this acquisition because only one source will be solicited for this requirement (or for a portion of the requirement) and the requirement is not expected to exceed the simplified acquisitionthreshold.

II. DESCRIPTION OF ITEM OR SERVICE:

1. Provide a description of the item or service required, to include

a) the name of the required source or brand name

NAV SYSTEM INC

b) the required delivery date/period of performance and

20 JUL – 20 OCT 2019

c) its intended use.

MK27 GYROCOMPASS UPGRADE

2. List the source(s) or known vendor(s) who are able to provide the above described item or service.

Nav Systems Inc.

425 Network Station, Suite 10 Chesapeake, VA 23320

III. THE DETERMINATION FOR USE OF OTHER THAN FULL AND OPEN COMPETITION IS BASED

ON THE FOLLOWING (select all that apply):

A. X Only one responsible source (select all that apply):

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1. RESTRICTIVE RIGHTS: the source has established proprietary rights, limited rights in data, patent rights, copyrights, or secret processes in the item or service.

a. Explain what is subject to the restrictive rights.

b. If drawings are included, who is identified as “owning” the drawings.

2. EXCLUSIVE LICENSING AGREEMENTS: The item or service is only available from the Original Equipment Manufacturer (OEM), or there is ONLY ONE authorized distributor ortechnical representative for the OEM.

a. Identify the OEM and explain the circumstances surrounding why the item or serviceis only available from the OEM.

b. Identify the distributor / authorized technical representative for the item or service.

Provide evidence of the exclusive licensing agreement as an attachment to this document.

(NOTE: If there is more than one distributor / authorized technical representative, then use Part B – Brand Name.)

3. X OTHER REASON:

a. CRITICAL SHIP EQUIPMENT: The required item is critical ship equipment, the failure of which poses a hazard to the ship, the crew or theenvironment.

i. SMS Procedure Number:

b. STANDARDIZATION / BRAND NAME: Per MSCs standardization initiative, only the specified make/model of the equipment/parts will satisfy the Government’s needs for additional units or replacement items.

i. Identify Make / Model Number(s):

ii. Identify other vessels with this Make / Model:

c. FORM, FIT, AND FUNCTION: Item is direct replacement parts / components for existing equipment and must be compatible in terms of form, fit, and function with existing equipment / configurations.

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i. Identify Make / Model of existing equipment:

ii. Describe how the equipment must be compatible with the existing configuration.

d. _X OTHER:

This requirement is a follow-on contract for the continued provision of highly specialized services and it is likely that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the agency's requirements.

The OEM owns the technical data. This is a business proprietary design with limited authorized users. In order to meet ships operational commitments, the MK27 Gyro Upgrade must be accomplished properly. Only a few qualified field representatives possess the required drawings, tools, additional materials/parts to accomplish this work task.

MSC does not have manufacturing and technical information required to evaluate and determine whether non-OEM service providers and replacement parts offered are equivalent to the OEM components and replacement parts.

The MK27 Gyrocompass Upgrade requires proprietary software, technical drawings and additional parts needed.

Of the limited qualified field representatives, NAV SYSTEM INC is the only source that has the required knowledge of existing system configuration and modification needed to complete the MK27 Gyro upgrade on time. MK27 Gyro upgrade is part of the USS FRANK CABLE March 2019 Midterm Availability (MTA) under Contract N32205-17-D-4904 Delivery Order N4044619F0046. This requirement was removed from the MTA work item as the remaining work is required up to October 2019 timeframe, which is long after the MTA contract performance period ends in June 2019. As part of the MTA, NAV SYSTEM spent numerous hours determining proper electrical connections via redline drawing changes. Awarding this service order to any other source other than NAV SYSTEM will cause unreasonable delay and cost as another source will be required to carry out the service order without any prior preparation or knowledge.

4. UNUSUAL AND COMPELLING URGENCY: The supplies or services are of such unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits. Urgent requirements are supplies or services that will result in work stoppage, or are mission critical and the routine processing time would

4 Ver 2.0 (01 July 2018) injure the Government. The determination that the procurement for the above is an urgent and compelling requirement is based on the following:

a. Date on which the requirement was identified:

b. Required delivery date / Period of Performance:

c. If the difference between a. and b. is more than one week, explain the delay insubmitting the requirement.

d. Estimated production lead time:

e. Explanation of why delivery / commencement of services by the date required is needed:

(explain the impact to the mission, any special circumstances or conditions, etc.)

f. CASREP Number:

IV. ANTICIPATED DOLLAR VALUE OF PROCURMENT: $86,750.00