HPAC_J&A-FBO.pdf

DEPARTMENT OF THE NAVY

PUGET SOUND NAVAL SHIPYARD

AND INTERMEDIATE MAINTENANCE FACILITY

1400 FARRAGUT AVENUE

BREMERTON WASHINGTON 98314-2090

J&A Number: 19-14JA Code: 440.23 P.R. Number: 90584753

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command Field Procurement Office (FPO) Puget Sound Naval Shipyard and Intermediate Maintenance Facility

(PSNS&IMF).

2. Description of the Action Being Approved

This is a service contract to have the Original Equipment Manufacturer (OEM) completely rebuild compressors per the performance work statement. Compressor(s) will be shipped back to EOM factory for service. When the work is completed, the compressors will be shipped back to PSNS, and placed back into service. American Compressor Company is the only company capable of meeting the requirement in accordance with FAR 6.302-1(b) (1) (i).

3. Description of Supplies/Services

S/31 Maintenance Department is requesting a complete machine overhaul on American Compressor which is part of the OEM manufacturer’s preventive maintenance cycle. This service contract is requested in order to overhaul/refurbish existing machine asset to extend the useful life of this equipment instead of replacing the original asset at a cost to the Federal Government of approximately $292,656.19.

The need for yearly services to these machine continues for all the High Pressure Air Compressors as they need to be overhauled when they reach 5,000 hours for service. At least one compressor will be overhauled each year. The certifying technical and requirements personnel verified the government’s minimum repair need for the next three years.

The period of performance is as follows:

Base Year: June/2019 through May/2020 Option Year One: June/2020 through May 2021 Option Year Two: June/2021 through May 2022

4. Statutory Authority Permitting Other Than Full and Open

Competition

10 U.S.C. 2304(c). Only One Responsible Source and No Other

Supplies or Services Will Satisfy Agency Requirements.

5. Rationale Justifying Use of Cited Statutory Authority

All replacement parts used during the compressor overhaul service must be manufactured per OEM technical specifications to include but not limited to correct machining dimensions; surface finishes, geometric tolerances, and selected manufacturing materials.

Deviation from OEM required specifications would result in premature failure causing damage to equipment, creating a safety hazard with could result in injury to personnel, inability to provide Naval Vessels with an adequate supply of high pressure air, and voiding of diver air certification due to containments.

There are no available aftermarket parts that are interchangeable with this machine. Only direct OEM replacements parts from American Compressor Company shall be used during the compressor overhaul service.

Overhaul service must be provided by the OEM manufacturer to guarantee that the compressor will function within the original designed specification/tolerances and overall performance without any needed modifications to the machine’s existing configuration, overall structure, or complete re-engineering of machine systems/components to try and possibly achieve OEM specifications with non OEM replacement parts.

American Compressor company provided a letter stating that they are the only authorized service agency to perform major repairs and overhauls on Model 55H75 which is the same model PSNS is needing repair for. The only other way of having this action competed is by replacing the original asset, which will be a substantial duplication of cost to the Government. FAR 6.302- 1(a)(2)(ii)(A).

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

Offerors as Practicable

Based on current market research, it has been determined that only the aforementioned source is authorized to repair and rebuilt this type of compressors.

Intent to sole source/source sought will be posted on FBO for 15 days and the result will be incorporated in the market research or if the result shows that there are other company authorized to do the repair, this acquisition approach will be re-evaluated.

7. Determination of Fair and Reasonable Costs

Fair and reasonable determination will be based on historical information. Similar quantities of this requirement have been purchased in the past and cost/ pricing information was received on past procurements. This information should be sufficient to support the fair and reasonable cost determination of this procurement.

8. Actions to Remove Barriers to Competition

Market research is a continuous process. The only way this action could be competed will be by procuring different compressor model because Model 55H75 has one only authorized company to do repair and rebuild.

For the reasons set forth in this J&A, Naval Sea Systems Command Field Procurement Office (FPO) Puget Sound Naval Shipyard has no plans at this time to compete.

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, are complete and accurate to the best of my knowledge and belief.

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

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(a)(12))

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

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

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as Competition Advocate for the Procuring Activity, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C.

2304(c)(1).

(TITLE OF APPROVING OFFICIAL)

Signature Name (Print) Date