OEM IDIQ - Justification.pdf

CUI

DEPARTMENT OF THE NAVY

MID-ATLANTIC REGIONAL MAINTENANCE CENTER

9727 AVIONICS LOOP

NORFOLK VA 23511-2124

MARMC Code 411

P.R. Number: TBD

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

Mid-Atlantic Regional Maintenance Center (MARMC), Norfolk, Virginia, Contracting Department (Code 400).

2. Description of the Action Being Approved

Award an Indefinite Delivery, Indefinite Quantity (IDIQ) contract on a sole source basis to Vestdavit, Inc. located at 170 W Dayton

St. Edmonds, WA 98020, as the Original Equipment Manufacturer

(OEM) for the global engineering and technical support of the

Littoral Combat Ship (LCS) Freedom class ship Davit Rescue Boat systems.

3. Description of Supplies/Services

This contract action will provide all OEM technical support, emergent repairs, material, and training of the Vestdavit, Inc.

Davit Rescue Boat systems on the LCS Freedom class ships.

The period of performance shall consist of five (5) 12-month ordering periods. The Government’s minimum requirements have been verified by the certifying technical personnel.

4. Statutory Authority Permitting Other Than Full and Open

Competition

10 U.S.C. 2304(c)(1), only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

10 U.S.C. 2304(c)(1), as implemented in FAR 6.302-1, provides that full and open competition is not required when only one source or a limited number of responsible sources is available to satisfy agency requirements.

Vestdavit, Inc. Davit Rescue Boat systems are essential to the operational effectiveness and safety of all ships including LCS 1

Freedom class ships. Without these systems operating properly, these ships will not be available for deployment. Therefore, a short-notice available repair pipeline with complete ready-for-issue material is essential in order to meet fleet requirements.

While there are currently Indefinite Delivery, Indefinite

Quantity Multiple Award Contracts (IDIQ-MACs) for LCS maintenance and modernization providing life-cycle support using the shipyard as the prime contractor and the OEM as a subcontractor, there continues to be a need for a direct contract vehicle to the OEM for specific engineering support, equipment and components that would provide greater accountability, flexibility and responsiveness for time sensitive repairs.

Cited in a recent Government Accountability Office report on LCS unplanned work (GAO-21-172), Navy officials “have seen… issues with delays stemming from contractor-OEM negotiations” and “the

Navy… [does] not consistently have access to technical information necessary to maintain many systems and therefore need

OEM support.” In an attempt to remedy both issues, the government is seeking direct support contracts for emergent repair (labor and material) and training with identified critical system OEMs.

Establishing support contracts directly with the OEM is estimated to reduce emergent repair response (remote or on-site) from approximately 21 days to 5 days, by eliminating the shipyard as the intermediary and setting emergent response requirements not currently stated in the life-cycle support contracts. This contract structure will incorporate negotiated labor and material prices, resulting in faster estimates and analyses to support execution and increasing fidelity of costs. This will significantly reduce processing time between CASREP notification and OEM support.

Vestdavit, Inc. is the original designer, developer, and manufacturer of the Davit Rescue Boat systems on LCS Freedom class ships, and thus maintains the in-depth technical knowledge and detailed design and operation information, which includes drawings, procedures, specifications, and replacement parts required for repair, refurbishment, maintenance, and training of these systems.

Only Vestdavit, Inc. possesses the expertise and complete technical data necessary to provide the full scope of repairs and training of the boat davit systems. Obtaining support directly from the OEM with access to its replacement components and parts for the boat davit systems is required for repair and refurbishment and maintenance and will allow for the continuation of the highest possible reliability and effectiveness.

The ISEA provided examples of inadequate technical detail available, such as, current technical documentation does not contain specific steps for verifying frequency converter drive settings. This information must be determined with the OEM on site. Also, the davit system frequency converter cannot be repaired or replaced must have the OEM’s programming in order to work properly.

Communications during market research with the Vestdavit, Inc.

OEM representative, confirmed technical documentation provided to the Navy allows for basic repair and maintenance, and does not include the level of detail required for the full scope of repairs.

The support provided by the OEM is vital to ensuring timely and expert technical response to critical equipment failures and providing necessary training required to support future maintenance/repair strategies. Vestdavit, Inc. support is required to expeditiously remedy issues and to support critical ship schedules and deployments. For the reasons discussed above, only Vestdavit, Inc. can provide the necessary support.

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

Offerors as Practicable

A waiver of the request for information and/or sources sought notice requirement set forth under DFARs PGI 206.302-1 was approved on 09 September 2021.

Based on the market research conducted and for the reasons discussed in paragraph 5 above, it is not practicable for any company other than Vestdavit, Inc. to provide the required supplies and support.

7. Determination of Fair and Reasonable Costs

The Contracting Officer will ensure the anticipated cost to the

Government for the support covered by this J&A will be fair and reasonable. The Contracting Officer's determination of fair and reasonable price will be based on price analyses in accordance with FAR 15.404-1 Proposal Analysis Techniques, and certified cost and pricing information provided by Vestdavit, Inc.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, Mid-Atlantic Regional

Maintenance Center (MARMC) has no plans at this time to compete future contracts for the type of support covered by this document. If another potential source emerges, MARMC will assess whether competition for future requirements is feasible.

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