Justification_for_Exception_to_Fair_Opportunity_034C_0003_Redacted.pdf

Control #: 161034

PR #: 1300546372

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

1. Contracting Activity

The Naval Sea Systems Command, Naval Undersea Warfare Center Division Newport (NUWCDIVNPT), Contracts Department, Code 02, Newport, RI.

2. Nature and/or Description of Action Being Approved

NUWCDIVNPT Code 40 requests award of a task order for performance of an Ordnance Alteration (ORDALT) installation aboard the USS Jefferson City (SSN 759). The required task order is a Submarine Safety (SUBSAFE) installation effort within scope of Multiple Award Indefinite Delivery/Indefinite Quantity (ID/IQ) Contract N66604-10-D-034A/B/C.

NUWCDIVNPT Code 40 requests this task order be awarded directly to Oceaneering International, Incorporated (OII) under Contract N66604-10-D-034C.

3. Description of Supplies/Services (including the estimated value)

Estimated Dollar Value Funds Type Estimate

OPN

ORDALTs 18000 and 18009 are critical Safety of Ship alterations which install components that provide the ship’s force with positive indications of a muzzle door linkage failure at the Torpedo Tube Control Panel (TTCP)/Tube Control Panel (TCP), Torpedo Room Valve Position Indicator Panel (TRVPIP), and Ballast Control Panel (BCP). This modification to SSN 759 makes use of existing electrical interlocks that provide blocking functions for Unlock Breech, Flood/Drain Valve Open, Vent, and Equalization Valve mechanisms. The anticipated Period of Performance for this non-severable task order is 1 April 2016 – 31 December 2016.

4. Identification of the Exception to Fair Opportunity

FAR 16.505(b)(2)(i)(B): Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

5. Supporting Rationale

OII is currently tasked by the Naval Surface Warfare Center, Carderock (NSWCCD-C/436), under Contract Number N65540-13-D-0003, to perform SUBSAFE work on the USS Jefferson City (SSN 759). This ongoing work, which began in November 2015, is being performed under Delivery Order (DO) 0022, for the performance of Task 1/700 Series of the NAVSEA Availability Work Package, which consists of SUBSAFE repairs and testing of Torpedo Tubes on the SSN 759.

Since the current ORDALT requirement to be performed under NUWCDIVNPT Code 40’s Task Order (N66604-10-D-034C-0003) is associated with the SSN 759 Torpedo Tubes, it must be performed concurrently with the ongoing efforts under N65540-13-D-0003-0022. The ORDALTs under these two efforts must be integrated since they share the same work boundaries, systems, and components.

As a Submarine Safety (SUBSAFE) installation effort, the work shall be accomplished by a SUBSAFE Qualified Activity, per NAVSEA Note 5000, and shall be executed in accordance with the Submarine Safety Requirements Manual (SSRM) which is NAVSEA 0924-062-0010. In accordance with the strict SUBSAFE requirements documented in SSRM NAVSEA 0924-062- 0010, no two separate activities, either contractor or Government, are authorized to simultaneously execute work on the same system boundary and systems, due to criticality of the systems.

SUBSAFE work execution, accountability, and certification protocols are rigid, and do not allow for split roles and responsibilities of personnel from multiple activities during the performance of SUBSAFE tasking. As such, per the guidelines provided in the SSRM, OII is the only SUBSAFE-certified activity that may be contracted for the performance of ORDALTs 18000 and 18009 while ongoing work is being performed within the system boundary.

Further, delaying NUWCDIVNPT Code 40’s required ORDALT installations such that it occurs after ongoing work is completed is not possible since it will delay the submarine work schedule and likely the entire Submarine Availability. As a result of any potential delay, the Naval Supervising Activity (Pearl Harbor Naval Shipyard - C1200) will not allow the ORDALTs in the Submarines work package and the ORDALT installation will be cancelled. Any cancelled Safety of Ship installs, or even deferred, will require SEA 05 Commanding Office approval, since these installs are top fleet priorities.

6. Determination of Fair and Reasonable Costs

The Contracting Officer will make a determination of fair and reasonable pricing for this order using the proposal analysis techniques at 15.404-1. The determination of fair and reasonable pricing for this requirement will be documented in the Business Clearance Memorandum that will be included in the task order file.

7. Other Supporting Facts

In November 2015, NUWCDIVNPT Code 40 was tasked by NAVSEA 05Z45 (SEA05), due to the unexpected inability of both the Pearl Harbor Naval Shipyard and NSWC Philadelphia to directly execute this effort, as had been planned per previous SEA05 program milestones. As the designated Alteration Installation Team (AI) Manager and on-site Installation Coordinator are both members of NUWCDVNPT Code 40, and since Code 40 retained an ID/IQ contract for SUBSAFE services with OII since 1 October 2010, SEA05 requested the additional support of Code 40 with the completion of ORDALTs 18000 and 18009, in preparation for the modified hardware installation aboard SSN 759.

SSRM regulations strictly prohibit the performance of concurrent SUBSAFE services by separate activities. So while NUWCDIVNPT has a Multiple Award ID/IQ Contract in place with two SUBSAFE-authorized contractors, OII (N66604-10-D-034C) and Electric Boat (N66604-10-D- 034A) (note that Huntington Ingall’s Contract N66604-10-D-034B expired on 04 August 2015), competing this requirement is not supported by the following reasons:

a. Award of NUWCDIVNPT’s requirement to EB will mandate that current SUBSAFE tasking be complete before the transfer of systems/system boundaries can take place, which detrimentally impacts the potential for program milestone recovery; and

b. Per N65540-13-D-0003, OII has previous history with the performance of these ORDALT on four other hulls, with tasking for a fifth hull planned for commencement in early 2016. EB has no previous history for the performance of these ORDALTs.

Failure to award this task order to OII for the performance of ORDALTs 18000 and 18009 will be perilous to Fleet operational readiness and pose significant risk to Safety of Ship for SSN 759.

8. Actions to Remove Barriers to Competition

There are no actions being taken to overcome barriers to competition due to the unique nature of this requirement relative to SUBSAFE requirements as detailed above. However, future requirements unrelated to this ORDALT 18000 and 18009 installation effort will continue to be competed amongst the active Multiple Award ID/IQ Contract Holders.