JA_MTS-711_MRC_003_(Final_Redacted).pdf

IN REPLY REFER TO:

CJ&A Number: 17/06 Code: 432

PR Number: N42158-17-R-0004 8 May 2017

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

Norfolk Naval Shipyard (NNSY), C400 Contracting Department.

2. Description of the Action Being Approved

NNSY C400 Contracting Department intends to conduct a limited source procurement using other than full and open competition for which the Government intends to solicit and negotiate with only Huntington Ingalls Industries-Newport News Shipbuilding (HII-NNS), Oceaneering International, INC. (OII), and General Dynamics Electric Boat (GDEB). This action is necessary for contracting the hull structural survey In Accordance With (IAW) Unrestricted Operations Maintenance Requirement Card (URO/MRC) 003 on the USS San Francisco (SSN 711) while undergoing conversion as no other suppliers will satisfy agency requirements. HII-NNS, OII, and GDEB are the only companies capable of providing the support in accordance with the qualifications section of MTS MRC 003 Rev E, Conduct Hull Structural Survey; contractors who are listed in NAVSEA NOTE 5000 or have other specific authorization from NAVSEA are considered qualified. The prime contractor for this award shall possess the above required qualifications to perform inspections and evaluations; subcontracting for these skills will not be allowed. Authority to act under this Class Justification & Approval (CJ&A) expires upon contract award or on 30 March 2018, whichever date occurs earliest.

DEPARTMENT OF THE NAVY

NORFOLK NAV AL SHIPYARD

PORTSMOUTH, VIRGINIA 23709-5000

3. Description of Supplies/Services

The proposed acquisition is a cost reimbursement contract to be awarded to GDEB, HII-NNS, or OII. The scope of work is to accomplish a hull structural survey IAW Unrestricted URO/MRC- 003, as well as non-MRC items and Unscheduled Visual Inspections (UVI). Accomplishment of URO/MRC-003 is required by the Conversion Work Package (CWP) during the transition of USS San Francisco (SSN-711) from an active submarine to a Moored Training Ship (MTS).

NAVSEA requires this work to be accomplished only by entities with the unique experience and NAVSEA qualifications for performance of URO/MRC-003 IAW NAVSEA NOTE 5000 or other specific authorization from NAVSEA. HII-NNS and GDEB are both approved by NAVSEA NOTE 5000 to perform the requirement and OII was approved by NAVSEA letter 9110 Serial 05U37/522 of 27 Jan 17; Request for Clarification of Qualifications to Perform Unrestricted Operation (URO) Maintenance Requirement Card (MRC) 003, Structural Inspections During the Upcoming Moored Training Ship (MTS) Conversion of the USS SAN FRANCISCO (SSN 711). Due to a shortage of production, inspection, and engineering personnel, NNSY requires contractor support in order to complete the required hull structural survey IAW URO/MRC-003. Additionally the contractor that provides the hull structural survey shall be required to perform all repairs deemed required by the survey results.

The total government estimated value of the contract is.

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. 2304(c) (1), from only one responsible source or only from a limited number of responsible sources and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

The procurement of the supplies and ancillary services described above using other than full and open competition is appropriate in accordance with FAR 6.302-l(b)(1)(ii): there are only three qualified sources with the unique capabilities to satisfy these requirements.

Contractors:

General Dynamics Electric Boat Corporation (GDEB) 75 Eastern Point Road Groton, CT 06340-4989

Huntington Ingalls Industries (HII) Newport News Shipbuilding (NNS) 4101 Washington Avenue Newport News, VA 23607

Oceaneering International, INC. (OII) Marine Services Division 2155 Steppingstone Square, Chesapeake, VA 23320

No other sources are capable of performing this work; these are the only three companies with the required NAVSEA approved qualifications, detailed knowledge of and familiarity with these vessels needed to perform the hull survey IAW URO/MRC-003. Once converted, the MTS SAN FRANCISCO (MTS 711) will support the training pipeline of the nation’s nuclear officers and sailors and will fill critical gaps in the current training schedule. The completion of this conversion will have a direct impact on the Navy’s ability to fill key nuclear billets in carrier and submarine fleets.

HII-NNS, OII, and GDEB are the only private entities authorized to perform this hull survey IAW NAVSEA NOTE 5000 or NAVSEA letter 9110 Ser. 05U37/522 of 27 Jan 17; Request for Clarification of Qualifications to Perform Unrestricted Operation (URO) Maintenance Requirement Card (MRC) 003, Structural Inspections During the Upcoming Moored Training Ship (MTS) Conversion of the USS SAN FRANCISCO (SSN 711).

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

Market research was conducted to ascertain if the requirement meets the FAR definition of a commercial service. In accordance with FAR Part 10, a determination has been made that the required services are not of a type offered and sold competitively in substantial quantities in the commercial marketplace. Other than full and open competition will be utilized in accordance with FAR 6.301, which limits the number of responsible sources that will satisfy agency requirements. This requirement will be sourced to Oceaneering International, INC, General Dynamics Electric Boat, or Huntington Ingalls-Newport news Shipbuilding using a lowest price technically acceptable source selection process.

Based on a response to the Sources Sought Notice, which was posted to the Federal Business Opportunities (FEDBIZOPPs) website on 29 March 2017 and the specific NAVSEA requirements of paragraph 3 there is not a reasonable expectation of obtaining two or more responsible small businesses that can fulfill the requirements of this effort.

7. Determination of Fair and Reasonable Costs

In accordance with FAR 15.402, the Contracting Officer must ensure all supplies and services are procured at a fair and reasonable price. A fair and reasonable determination will be conducted at award of the contract. In a competitive environment, fair and reasonable price will be determined via competition. In addition, analysis of proposals will be performed by Technical Analysts and Contract Specialists, with the assistance of the C400 Contracting Department, C200 Division Head and the Defense Contract Audit Agency auditors. Industrial Repair Division C430 will use cost and price analysis to determine that the final price is fair and reasonable.

8. Actions to Remove Barriers to Competition

For the reasons set forth in paragraph 5, the Norfolk Naval Shipyard Command has no plans at this time to compete future contracts for the types of services covered by this document. HII- NNS, OII, and GDEB are the only companies capable of performing the work. If another potential source emerges, the Naval Sea Systems Command will assess whether further competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2 (b))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, including Acquisition Plan 17-06a, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

Signature Name (Print) and Title Code Phone No. Date

REQUIREMENTS COGNIZANCE

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303-90)

I have determined this justification is legally sufficient.

CERTITCATION (FAR 6.303-2b (12)) I certify that this justification is accurate and complete to the best of my knowledge and belief.

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as Senior Procurement Executive of the Navy the solicitation of the proposed procurement described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c) (1).

Signature Name (Print) and Title Code Phone Date