FINAL_19-MTE-002_JA_FBO_Redacted.pdf

J&A Number: 0232-19-008-00 Code: 0232 P.R. Number: 19-MTE-002

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center, Philadelphia Division (NSWCPD), Code 0232.

2. Description of Action Being Approved

Award of a Firm-Fixed-Price (FPP) contract on a sole source basis to Cold LLC, 393 Naugatuck Ave, Milford, CT 06460-5402 for CVN Refueling-Complex Overhaul (RCOH) Oxygen and Nitrogen (O2N2) System Support Services.

3. Description of the Supplies or Services

This requirement will provide engineering and technical services required for the overhaul and testing of CVN O2N2 producers, tanks, and distribution system. The current system condition has been assessed by the In-Service Engineering Agent, and a detailed work task list and required parts list has been compiled to perform a Class-B overhaul on the entire O2N2 system. The work will be done at while CVN is in its Refueling-Complex Overhaul (RCOH) availability.

The minimum needs have been verified by the certifying technical and requirements personnel.

This acquisition is to satisfy the requirements of the NSWCPD and does not authorize acquisitions for other requirements.

The Management and Oversight Process for the Acquisition of Services – Streamlined (MOPAS- S) Acquisition Strategy Plan # 0232-19-188-00.1 covers this acquisition.

The total estimated dollar value of this procurement is $848,835 as indicated below.

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

IN REPLY REFER TO:

Estimated Dollar Value

Type Percent

SCN FY18 & FY19 100.00%

The Period of Performance (POP) for this effort will be three (3) years from the date of award.

The estimated period of performance is 1 September 2019 to 30 September 2022.

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1), Only One Responsible Source and No Other Sources and Services Will Satisfy Agency Requirements, as implemented by Federal Acquisition Regulation (FAR) Subpart 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority

GEECO was the original equipment manufacturer (OEM) for the O2N2 producers on CVN-and Cosmodyne was the OEM for the CVN- storage tanks. Both GEECO and Cosmodyne equipment has been phased out as newer technology related to the Navy’s cryogenic systems is introduced on the newer carriers entering the Fleet. As of six (6) years ago, GEECO no longer operates as a business. At the time GEECO ceased business operations, Cold LLC purchased a complete technical data package from GEECO to provide field services on GEECO-manufactured Navy cryogenic systems. As part of obtaining the data rights from GEECO, Cold LLC also obtained the exclusive rights to sell GEECO parts.

Cosmodyne does not provide field services/shipboard work on its equipment, nor does it do business directly with the federal Government. Since the overhaul of the Cosmodyne equipment is integrally related to the overall services Cold LLC is performing under this requirement, the fact the overhaul of Cosmodyne-manufactured equipment is incidental to this entire effort (less than 3% of the Independent Government Cost Estimate), and the fact there are no other known firms capable of working with and/or handling Cosmodyne-manufactured oxygen systems, Cold LLC is the only known firm that can perform all of the required repairs necessary to return the O2N2 producers to satisfactory condition.

Without highly specialized experience with the Navy’s GEECO-manufactured O2N2 producers, the requirements in the statement of work (SOW) would necessitate extensive training and redevelopment. Redeveloped parts would then need to go through qualification testing similar to first article testing. Based on NSWCPD previous experience, the time required to train a senior technician and redevelop existing parts is provided below:

Estimated O2N2 Redevelopment Schedule

Task Duration Equipment Redevelopment & Technician Training

Manufacturing New Part Qualification Testing Total Duration

Estimate Duplicate Training, Development, and Qualification Costs

Task Cost

Senior Technician Training $250,000 Non Recurring Engineering – Equipment redevelopment

$500,000

Manufacturing $750,000 New Part Qualification Testing $750,000 Total Cost $2,250,000

The results in the two tables above show that redevelopment would require approximately $2,250,000 in duplicative costs to the Government in order to develop other sources of support under a competitive effort.

and would require additional resources to test them fully to integrate them, all while the currently delivered GEECO O2N2 equipment would continue to be fielded and utilized in production in the Fleet. A competitive bid would not be able to restore the O2N2 system in time to meet the ship’s mission out of RCOH and the Government would assume the risk that another company would not be able to accomplish the repairs and integrate non-OEM equipment into the existing system.

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

As required by FAR Part 10, a Request for Information/Source Sought N64498-19-R-4025 was posted to Federal Business Opportunities (FEDBIZOPS) on 29 November 2018 with responses due on 13 December 2018. Five (5) contractors replied to the Sources Sought: Cold LLC; East Coast Repair and Fabrication, LLC (ECR); Manta Robotics; Standard Calibrations, Inc. (SCI);

and Auxiliary Systems, Inc. Only Cold LLC was found capable of performing the work, per the Subject Matter Expert (SME), as detailed below.

Cold LLC: Cold LLC's capability statement is technically acceptable. Cold LLC’s capability statement shows that the company has experience working on Navy oxygen and cryogenic systems. Cold LLC’s capability statement demonstrates that the company has personnel who are trained to work on Navy Oxygen systems under MIL-STD-1330D.

ECR:

Auxiliary Systems:

Manta Robotics:

Standard Calibrations (SCI):

Additionally, a synopsis of this procurement was published on the Federal Business Opportunities (FEDBIZOPS) webpage on 7 February 2019.

reviewed the contractor’s website and determined that responded to the synopsis reviewed its capabilities and determined the vendor could not successfully perform any portion of the requirement.

No additional market research was conducted because it is not practicable, for the reasons discussed in Section 5 above, for any contractor other than Cold LLC to provide the required supplies and services.

7. Determination of Fair and Reasonable Costs

The Contracting Officer will make a determination as to whether the costs to the Government for the services covered by this J&A are fair and reasonable, prior to award. The contractor will submit a formal price proposal with certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate. The contractor’s proposal will be reviewed by experienced technical analysts and contract specialists with the aid of necessary field pricing support. The PCO will use cost and pricing analysis as the basis for negotiating a fair and reasonable price. This information is expected to be sufficient to support the fair and reasonable cost determination of this procurement.

8. Actions to Remove Barriers to Competition

The NSWCPD has assessed potential sources through market research analysis, but for reasons set forth in Section 5, including the proprietary nature of this work, unacceptable delays, substantial risks, and duplication of costs to the Government, NSWCPD has no plans to compete contracts for the types of services covered by this justification. Additionally, this specific equipment has been phased out as newer technology related to the Navy’s cryogenic systems is introduced on the newer carriers entering the Fleet. NSWCPD, as part of its enduring mission as Life Cycle Manager, will continue to monitor the marketplace and identify other potential sources of the services identified in this justification, where and when practical. Any sources discovered that can potentially satisfy this specific procurement will be taken into account for any future requirements.

TECHNICAL AND REQUIREMENTS CERTIFICATION - (FAR 6.303-2(c))

I certify that the facts and representations under my cognizance, that are included in this justification and its supporting data, including AP/MOPAS No. 0232-19-008-00.1, except as noted herein, are complete and accurate to the best of my knowledge and belief.

COMBINED TECHNICAL AND REQUIREMENTS COGNIZANCE:

Branch Head, Phone No.

LEGAL SUFFICIENCY REVIEW (NMCAR 5206.303-90)

I have determined that this justification is legally sufficient.

Legal Counsel, CONTRACTING OFFICER CERTIFICATION - FAR 6.303-2(b)(12)

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

Contracting Officer, 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) using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).

CHIEF OF THE CONTRACTING OFFICE

Karen Gutmaker, Chief of the Contracting Office Date