Zetec_-_J A.docx

DEPARTMENT OF THE NAVY

NORFOLK NAVAL SHIPYARD

PORTSMOUTH, VIRGINIA 23709-5000

IN REPLY REFER TO:

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

(SOLE SOURCE)

1. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY:

a. Agency Name: Norfolk Naval Shipyard Code 261; Building 32-2 Portsmouth, Virginia 23709-5000

2. NATURE/DESCRIPTION OF CONTRACT ACTION:

This requirement is a non-competitive action submitted for approval to award a one-time Firm Fixed Priced (FFP) contract for the procurement of 100% Eddy Current inspections and data analysis of the USS Truman (CVN-75) pursuant to FAR 13.5 Test Program for Certain Commercial Items based upon the determination of only one responsible source.

Fiscal Year 2016 OM&N funding will be provided in the estimated procurement value of $388,027.00. A firm fixed price (FFP) contract is anticipated.

3. DESCRIPTION OF REQUIRED SUPPLIES/SERVICES:

As mentioned above, the proposed acquisition is to obtain 100% Eddy Current Inspection and data analysis of various USS Truman onboard equipment. In addition, the contractor shall provide the following to support this requirement:

· Provide array acquisition oversight to ensure quality data is obtained during the CVN-75 FY16 availability:

· Provide guidance on differentiating between good array data verses bad array data

· Flag tubes that are of special interest during the acquisition process

· Provide array analysis oversight and approve analysis techniques during CVN-75 FY16 availability:

· Ensure correct evaluation and reporting of Volumetric (VOL) defects in the tube sheet/void areas

· Ensure correct evaluation and reporting of Single Axial Indications (SAI) defects in the free span portion of the condenser tubing

· Ensure correct evaluation of co-located (coincident) ID/OD defects

The requested period of performance is September 12, 2016 to November 4, 2016.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

Section 4202 of the Clinger-Cohen Act of 1996, a sole source acquisition under the authority of the “Test Program for Certain Commercial Items”, as implemented by FAR 13.501(a).

5. DETERMINATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS OR NATURE OF ACQUISITION:

Through in-depth market analysis conducted under prior contract number N00189-15-P-N193 dated 12 August 2015 it has been determined that Zetec Inc. is the only source that can currently meet all of the Government’s technical parameters for this highly specialized and critical inspection service.

Zetec is uniquely qualified to provide the required Eddy Current inspections based on the following:

· Zetec Inc. holds all of the certifications required by NAVSEA technical publication/Manual T9074-AT-GIB-010/2032

· Zetec Inc’s personnel possess the required expertise as well as security clearances necessary to access the restricted machinery spaces and review the associated controlled data while meeting the Government’s performance standards and compressed production schedule.

· Zetec Inc. employs a NAVSEA approved procedure for non-routine Eddy Current inspections and maintains the equipment recognized by NAVSEA as being essential for acquiring the detailed data/readings.

This acquisition will ensure that the USS Truman avail event will continue as planned. Failure to procure the required services would force the Norfolk Naval Shipyard (NNSY) and the USS Truman to extend the duration of repairs, which would severely delay mission readiness and subsequently increase costs associated with this event. Additionally, without proprietary knowledge of the systems being inspected, the USS Truman and NNSY would not be able to obtain the required information for data analysis and would directly impact the Navy’s mission.

6. GPE ANNOUNCEMENT/POTENTIAL SOURCES:

In accordance with FAR 5.202(a) (2), this requirement will not be advertised with a separate synopsis and solicitation due to the urgency of this procurement. Rather, a combined synopsis/solicitation will be posted on the Government-wide point of entry as intent to negotiate on a sole source basis to Zetec, Inc.

7. DETERMINATION OF FAIR AND REASONABLE COST/PRICE:

A determination of fair and reasonableness price will be based on the Procuring Contracting Officer’s price analysis of the contractor’s quote and/or a comparison of previous pricing history or published price list of same or similar items in accordance with FAR 13-106-3.

8. DESCRIPTION OF MARKET SURVEY:

NNSY, Code 410, conducted extensive research of the commercial industrial market which included telephonic and written communication with potential service contractors. A draft copy of the Performance Work Statement and associated references were provided for review in order to facilitate the contractor’s understanding of this highly specialized non-routine inspection.

The results of these queries indicate that Zetec, Inc. is the only source capable of providing the required services.

Services performed by Zetec, Inc. under contract number N00189-15-P-N193 are directly related in that both prior and current procurements require services bringing the vessels into 100% Eddy Current compliance as mandated by NAVSEA. Market research conducted for the prior contract resulted in the determination by NAVSEA 05/08, NNSY Code 261, and the Contracting Officer, that Zetec, Inc. was the only source capable of providing services which comply with the requirements set forth in NAVSEA Technical Publications T9074-AT-GIB-010/2032 “Eddy Current Inspection of Heat Exchanger Tubing on Ships of the United States Navy” and T9074-AS-GIB-010/271 “Requirements for Non-Destructive Testing Methods”.

9. OTHER SUPPORTING FACTS:

Due to recent in-service failures, the integrity of the USS Truman (CVN-75) forward and aft TG condensers have been compromised. As a result, NAVSEA 08 has mandated a 100% Eddy Current of both of the turbine generator plants (approximately 23,000 tubes to include inspection of the void space and rolled tube sheet areas). Norfolk Naval Shipyard does not currently possess the necessary in-house resources to perform these services.

Due to the compressed ship’s availability schedule, an aggressive period of performance of 12 Sep 2016 to 04 Nov 2016 has been requested. As detailed in the Impact statement, the cost of delay associated with additional docking time beyond the requested RDD is $300,000.00 per day.

10. LIST OF INTERESTED SOURCES:

Zetec, Inc. 8226 Bracken Place SE, suite 100l, Snoqualmie, WA 98065

11. ACTIONS TAKEN TO REMOVE BARRIERS TO COMPETITION:

A listing of potential service contractor’s capable of developing suitably approved procedures will be presented for NAVSEA consideration for participation in future inspection requirements of similar nature.

12. STATEMENT OF DELIVERY REQUIREMENTS:

The resultant contract will require the contractor to provide differential array guidance starting 9/12/2016.

13. TOTAL ESTIMATED DOLLAR VALUE OF THE ACQUISITION COVERED BY THIS J&A:

The total estimated dollar value of this acquisition is $388,027.00.

14. TECHNICAL POINT OF CONTACT:

Jeremy Johnson Code 135/NNSY

(757) 396-5495

15. CONTRACT POINT OF CONTACT:

Jewel Anderson Code 412/NNSY

(757) 396-8413

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.

Requirements Cognizance:

Signature/Name: Ronald Neal, NNSY Code 261 Phone No. (757) 396-3164 Date

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief. To the extent that the J&A/LSJ value is between $150K and $650K, the Contracting Officer’s signature below also represents approval of the J&A/LSJ.

Signature/Name: Greg Finke, NNSY Code 410 Phone No. (757) 396-8037 Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Signature/Name: Gil Teal, Phone No. (757) 396-8627 Date

CONTRACTING ACTIVITY COMPETITION ADVOCATE REVIEW

To the extent that the J&A/LSJ value is between $700K and $12.5M, the Competition Advocate’s signature below also represents approval of the J&A/LSJ.

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