NAVSUPFLCY 4280-1 (Rev.12-19) REDACT.pdf

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JUSTIFICATION & APPROVAL
Solicitation number
YOK_25-0034
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This document is a Justification and Approval (J&A) for a sole-source contract modification with Sumitomo Heavy Industries, Ltd. (SHI) for ship repair services on the YT-804 vessel. The specific repairs include a Fi Fi Pump Coupling Replacement and Z-drive Spare Unit Overhaul under existing contract N6264924F0714, with work to be completed by 30 June 2025 using Fiscal Year 2025 Operation and Maintenance, Navy (O&MN) funding.

The J&A justifies the sole-source award based on SHI's unique positioning due to specialized system knowledge, existing contract, and manufacturer relationship. The government determined these additional repairs were necessary to operate the vessel functionally and safely, and that continuing with SHI would avoid costly delays and ensure efficient repairs. To promote future competition, CFAY (Contract Field Activity Yokosuka) will develop a comprehensive technical data package, conduct market research, and issue future solicitations on a competitive basis to identify potential vendors for similar services.

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NAVSUPFLCYINST 4280.1K

SOURCE SELECTION INFORMATION- SEE FAR 2.101 and 3.104

NAVSUPFLCY 4280/1 (Rev.12-19) Enclosure (1)

J & A Number: YOK 25-0034

(CLASS) JUSTIFICATION AND APPROVAL FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

Dollar Estimate:

Inclusive of Options

Period of Performance: -

Type of Funds O&MN Funds (FY25) Contract Type Firm Fixed Price (FFP)

1. Contracting Activity

NAVSUP Fleet Logistics Center (FLC) Yokosuka

2. Description of the Action Being Approved

Award of a contract on a sole source basis to Sumitomo Heavy Industries, Ltd. (SHI) to accomplish ship repair serv 4924F0714 for YT-804 Overhaul which is currently carried out at

3. Description of Supplies/Services

The Contractor shall accomplish following repairs under the existing contract # N6264924F0714 onboard YT-804:

(1) Fi Fi Pump Coupling Replacement per CFR#41- While performing para 3.10.15 - Fi Fi Pump Repair and Clutch Replacement, SHI identified that the new shaft exhibits rotational play within the coupling hub and identified severe wear and deformation on the component. Given the extensive shaft damage, the technical assessment has determined that replacing the coupling is mandatory to sustain the operational integrity of Fi Fi pump.

(2) Z-drive Spare Unit Overhaul per CFR# 44-While performing para 3.11.9 Z-Drive Repairs, SHI discovered that various defects found on the existing Z-drive unit on STBD side. The defects identified has led to a malfunction of the unit and it is beyond the repair. Engineering evaluation as concluded that Z-drive unit required replacing to the new one. However, procuring the new unit might cause the significant delays to the contract completion as the unit is considered Long Lead Time Material. Due to timeline of the contract milestones, CFAY, the requiring activity of this contract, has provide direction to SHI to use the alternative unit, and conduct overhaul. CFR#44 tasks SHI to conduct maintenance and overhaul to the alternative unit, ensuring the unit to be fully operational.

The repairs listed above shall be accomplished by 30 June 2025. The total estimated dollar value of this acquisition is utilizing Fiscal Year 2025 (FY25) Operation and Maintenance, Navy (O&MN) funding.

Estimated Dollar Value

FY21 FY22 FY23 FY24 FY25 Total

RDT&E N/A N/A N/A N/A N/A N/A

OPN N/A N/A N/A N/A N/A N/A

O&MN N/A N/A N/A N/A

Total N/A N/A N/A N/A N/A N/A

4. Statutory Authority Permitting Other Than Full and Open Competition10

U.S.C. 3204(a)(1), One source or limited sources 10 U.S.C. 3204(a)(2), Unusual and compelling urgency 10 U.S.C. 3204(a)(3), Industrial mobilization; engineering, developmental, research capability; or expert services 10 U.S.C. 3204(a)(4), International agreement 10 U.S.C. 3204(a)(5), Authorized or required by statute 10 U.S.C. 3204(a)(6), National security

SOURCESELECTIONINFORMATION- SEE FAR 2.101 and 3.104

NAVSUPFLCY 4280/1 (Rev.12-19) 2 Enclosure (1)

5. Rationale Justifying Use of Cited Statutory Authority

The original scope was not intended for accomplishing these repairs and the defects found were not foreseen or anticipated until the contract is performed. The Government has determined that these repairs must be completed to operate YT-804 functionally and safely in order to assist ships movement in a timely manner. YT-804 is currently docked at for conducting overhaul tasked under the existing contract of N6264924F0714. SHl is uniquely positioned to complete the FIFI system and Z-drive unit maintenance on the Y T804 due to their specialized system knowledge, existing overhaul contract, and established manufacturer relationship. Continuing with SHI leverages their project familiarity, avoids costly delays inherent in contractor transitions, and ensures efficient repairs through access to proprietary documentation and parts. Considering the vessel's operational demands and SHI's logistical advantages, a sole-source award offers the most expedient and cost-effective path to restoring both systems.

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

Prior to the award of ongoing contract# N6264924F0714 awarded to SHI, the solicitation was competitively solicited to MSRA/ABR holders within Kanto-region of Japan that are technically certified to perform the subject overhaul requirement onboard YT-804. As a result, SHI was the sole offeror that has expressed interest in bidding the original contract. Market research and synopsizing the specific repairs covered in this J&A, were not conducted because YT- 804 is currently docked at for conducting overhaul tasked under the existing contract of N6264924F0714.

SHI is uniquely positioned to complete the FIFI system and Z-drive unit maintenance on YT804 due to their specialized system knowledge and established manufacturer relationship. Continuing with SHI leverages their project familiarity, avoids costly delays inherent in contractor transitions, and ensures efficient repairs through access to proprietary documentation and parts. Considering the vessel's operational demands and SHI's logistical advantages, a sole-source award offers the most expedient and cost-effective path to restoring both systems.

7. Determination of Fair and Reasonable Cost

The Contracting Officer has determined the anticipated cost to the Government of the services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition

CFAY will develop comprehensive technical data package (TDP) for the Z-drive system and other critical components of the YT-804 class tugs. This TDP will include detailed specifications, drawings, and maintenance procedures. This will enable other qualified vendors to understand the system and compete for future maintenance and repair contracts. Concurrent with the TDP acquisition, CFAY will develop specifications for the maintenance and repair of the Z-drive system and other key components. These specifications will focus on the desired outcomes and performance requirements, rather than specific design solutions, allowing for greater flexibility and broader competition. CFAY will also conduct a comprehensive market survey to identify potential vendors capable of providing similar services. This survey will help assess the feasibility of full and open competition for future requirements and build a list of qualified sources. Lastly, future solicitations will be issued on a competitive basis in accordance with FAR 6.102(b), competitive proposals. To achieve full and open competition to the maximum extent practicable, the solicitations will be posted in the Government Point of Entry (GPE) to give responsible vendors, MSRA/ABR and non-MSRA/ABR holders an opportunity to submit a proposal.

9. Contracting Point of Contact

NAVSUPFLCY 4280/1 (Rev.12-19) 3 Enclosure (1)

J&A Number:

CERTIFICATIONS AND APPROVAL

TECHNICAL/ REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

Signature

Requirements Cognizance

Name(Printed) Phone No. Date

Signature Name(Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Signature Name (Printed) Phone No. Date

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief. To the extent that the J&A value is between SAT and $700K, the Contracting Officer’s signature below also represents approval of the J&A.

Signature Name(Printed) Phone No. Date

CONTRACTING ACTIVITY COMPETITION ADVOCATE REVIEW

Upon the basis of the above justification, I hereby approve, as Competition Advocate, 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.

3204(a)(x)(provide appropriate citation). To the extent that the J&A value is between $700K and $13.5M, the Competition Advocate’s signature below also represents approval of the J&A.

N/A Signature Name(Printed) Phone No. Date

NAVSUPFLCY 4280/1 (Rev.12-19) 4 Enclosure (1)

HEAD OF PROCURING ACTIVITY

APPROVAL

Upon the basis of the above justification, I hereby approve, as Head of 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. 3204(a)(x)(provide appropriate citation).

SENIOR PROCUREMENT EXECUTIVE

APPROVAL

Upon the basis of the above justification, I hereby approve, as Senior Procurement Executive of the Navy, 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. 3204(a)(x)(provide appropriate citation).

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