Justification_Approval_For_Use_of_Other_Than_Full_and_Open_Competition.pdf

DEPARTMENT OF THE NAVY

PUGET SOUND NAVAL SHIPYARD

AND INTERMEDIATE MAINTENANCE FACILITY

1400 FARRAGUT AVENUE

BREMERTON WASHINGTON 98314-5001

JUSTIFICATION AND APPROVAL

J&A Number: 15-0009 Code: 44 1

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1 . Contracting Activity

The Na v al Sea Systems Command Puge t Sound Naval Shipyar d & Intermediate Maintenance Faci lity (PSNS & IMF), Bremerton, Washington

2 . Description of the Action Being Approved

Award of a single, two year indefini t e deliv ery indefinite quant ity (IDIQ) cost plus fixed fee (CPFF) contract on a sole source basis for supplemental nuclear trade support and discrete work packages. This contractual action is required to sustain both the USS NIMIT Z (CVN 68) and the CARL VINSON (CVN 70 ) nuclear-powered aircraft carrier modernization and repair and to allow for quick resolution of issues.

This IDIQ will be awarded to Hunt i ngton Ingalls Incorporated, Newport News Shipbuilding (HIINC-NNS), located at 4101 Washington Avenue in Newport News , VA . Authori ty for the use of other than full and open competition for supplies and serv ices is via class justification and approval (CJ&A) #20,883(E), 10 U. S.C . 2304(c) (1), approved on 08 May 2013 .

3 . Descrip tion of Supplies / Services

The proposed IDIQ, which complements other contract actions, will allow delivery orders to be placed for multiple labor categories to supplement PSNS & IMF's l abor force to accomplish time critical work on theses CVNs . This requirement entails personnel that are uniquely trained, qualified, and authorized to perform nuclear carrier maintenance. These nuclear related efforts include technical and engineering support, maintenance , repairs, corrective measures, testing and performance evaluations and modernization and alteration efforts. The proposed IDIQ will allow a r apid response to requests from our customer(s) . In accordance wi th the FAR 6.303 - 2 (b), the certifying technical and requirements personnel have v erified that the proposed IDIQ represent the government's minimum needs .

The IDIQ will be established for a two year period beginning June 2015 with an estimated completion date of June 2017 (FY15 - FY1 7 ). The

NCH 53.6 - 2 (MAR 2013)

J&A Number: 15-0009 estimated cost of this acquisition is $75M utilizing OM&N funding. The single authorized ordering activity is PSNS & IMF.

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 3304 (c) (1) as implemented by FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

5 . Rationale Justifying Use of Cited Statutory Authority

The work to be performed in the delivery orders under this IDIQ requires a detailed knowledge and familiarity with specialized and critical technical details, configurations and performance characteristics of nuclear powered aircraft carriers. HIINC-NNS, as the only builder of u.s. Navy nuclear powered aircraft carriers, is the only contractor with the detailed knowledge of and familiarity with these vessels needed to perform the efforts anticipated to be ordered under this IDIQ. HIINC NNS is the only commercial contractor capable of performing design, overhaul, repair, maintenance and modernization for operational CVN carriers . It maintains a repository for as built data for all CVN carriers and a staff of highly trained personnel with extensive specialized experience in the engineering support and maintenance of nuclear powered aircraft carriers. Therefore, HIINC-NNS is the only responsible source able to satisfy the agency's requirements.

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

It is not practicable to conduct market research for any company other than HIINC-NNS to provide the required supplies and services due to HIINC-NNS being the only commercial contractor in the United States capable of performing design, overhaul, repair, maintenance and modernization pertaining to nuclear efforts for operational CVN carriers. The same work requiring qualifications for nuclear efforts was synopsized on 21 February 2013 in the Federal Business Opportunity Website (FEDBIZOPS) and Navy Electronic Commerce Online (NECO) indicating that a similar award would be made in accordance with FAR

5.201 on a sole source basis to HIINC-NNS . No responses to the synopsis were received. This lack of response coupled with the reasons identified in paragraph 5 above led to the class justification and approval (CJ&A) #20,883(E): 10 U. S.C . 2304(c) (1), Huntington Ingalls Incorporated (HII) is the only responsible source and no other supplies or services will satisfy agency requirements. Nothing has changed this fact.

7. Determination of Fair and Reasonable Costs

IAW FAR 6.303-2(a) (7) The Contracting Officer has determined that the anticipated cost to the Government for the supplies /services covered by the J&A will be fair and reasonable. This determination will be based

J&A Number: 15-0009 on the f act that significant, identical efforts have been purchased from HIINC - NNS in the past and final cost / pricing information was received on those past procurements . IAW FAR 15.404(c) (2) (iii) (B)Comparison of previously proposed prices and previous Government and commercial contract prices wi th current proposed prices for like items is an acceptable method for determining fair and reasonableness.

8. Actions to Remove Barriers to Competition

Per CJ&A #20 , 883 (E), HIINC-NNS is the only respons i ble source and no other supplies or serv ices will satisfy agency requirements. Therefore, PSNS & IMF 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, PSNS & IMF will assess whether competition for future requirements is feasible.