Redacted- JA NO. N10225R4141 LO BRIDGE 2.pdf

J&A NO. N10225R4141

JUSTIFICATION AND APPROVAL (J&A)

FOR OTHER THAN FULL AND OPEN

COMPETITION

1. Contracting Activity: Department of the Navy, Military Sealift Command (MSC) Ship Support and Services Division (N102).

2. Description of the Action Being Approved: The action is a Justification and Approval

(J&A) to award a second bridge contract on a sole source basis for MSC Worldwide Lubrication Program to ExxonMobil Marine Limited.

3. Description of the Supplies/Services: MSC requires Lubricant and Engineering Support

Services in support of MSC’s Engineering Division (N7). The bridge contract would provide continuous lubricant products and services on a worldwide basis within specific time constraints defined by the contract. The Contractor provides products and services for MSC and USS Naval ships and any other Government owned or Government chartered vessels designated by MSC. Services under the scope of this contract include engineering support services (e.g. shipboard, technical, and training service calls). The total estimated value of the bridge is estimated at XXX and will be funded at the task order level using FY25 and FY 26 Navy Working Capital Funds (NWCF). The estimated Period of Performance for the second bridge contract is a six (6) month Base Period from 27 October 2024 to 26 April 2025 and a six (6) month Option Period from 27 April 2025 to 26 October 2025.

4. Statutory Authority Permitting Other than Full and Open Competition: 10 U.S.C.

3204(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Rationale Justifying Use of Cited Authority: The above statutory authority permitting other than full and open competition applies to the subject bridge, contract action due to the fact that the current contract holder is the only responsible source able to fulfill the Command’s continuing need for the subject mission critical supplies and services beginning 27 October 2024. The incumbent contractor of Contract N3220519D7000, which was competitively awarded, provides for MSC’s Worldwide Lubrication Program that has acquired lubricants and associated services for decades under commodity contracts that provide required oils and greases. The current bridge contract, Contract Number N3220523D4033, will expire on 26 October 2024. In order to mitigate the risk of a lapse in supply or schedule, which in turn would cause an unacceptable delay in fulfilling MSC’s mission, a second sole source “bridge” contract is required to allow MSC adequate time to execute the longer-term follow- on contract action. The award of the follow-on contract action will exceed one year from the requirement generation to contract award with an anticipated award date of 27 October 2025.

The Government requires a second bridge contract due to unanticipated and significant delays experienced by the Government during internal and external reviews and unanticipated and significant delays arising during the proposal evaluation process for the re-compete procurement. These delays were unforeseen as the Worldwide Lubrication Program has historically been procured through a Lowest Price Technically Acceptable (LPTA) source selection process and not a Tradeoff source selection process. The Tradeoff source selection process and the time required to thoroughly and accurately evaluate competitive proposals and the time required for a thorough and accurate internal and external peer reviews has delayed the re-compete award.

In order to mitigate the risk of the delay in fulfilling the agency's requirements, and in order to avoid duplicative costs that will not be recuperated by competition, the Government requires a second bridge contract to allow MSC adequate time to evaluate and execute the follow-on contract action. Additionally, N7 did not forecast the lubricants change out while transitioning from one service provider to another. A lubricants change out involves substituting all lubricants fleet wide when a supplier change occurs. This change out is required to prevent chemical incompatibility, maintain fluid integrity management, and optimize the integrity of the ships systems to prevent system contamination due to increased machinery wear. A lubricants change out for all systems will cost an estimated XXX, which will far exceed any savings recuperated by the Government through competition for the period of 27 October 2024 to 26 October 2025, the anticipated length of the bridge contract. Lastly, a second bridge is required to prevent a lapse in services which, in turn, would cause an unacceptable delay in securing vital lubricant oils or both MSC's and the Navy's fleets, and the lack of lubricant oils will cause a failure to fulfill mission requirements. Therefore, a second bridge contract is required.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practical: The second bridge contract, covered by this (J&A), is the result of additional evaluation time required to award the re-compete of an existing contract prior to its expiration, due to unanticipated and lengthy internal and external reviews and the unanticipated and extensive time required for thorough and accurate evaluations of complicated proposals received.

Executing a stand-alone, sole source requirement for this bridge contract will ensure the Government does not incur unacceptable delays in executing its mission.

In accordance with DFARS PGI 206.302-1, a Request for Information notice was posted to SAM.gov on 19 August 2024, and closed on 23 August 2024, with a few responses received. However, none of the responses were determined capable of executing the requirement prior to the expiration of the current contract is not a feasible course of action due to the anticipated need to enter discussions, the required start date of the contract, and the time needed for a phase-in period.

This J&A is solely in support of a short-term bridge duration consisting of a six (6) month Base Period, and a six (6) month Option Period, which is required to prevent a lapse in mission critical supplies and services, which would in turn cause an unacceptable delay in fulfilling MSC’s mission. Efforts were not made to solicit offers from multiple sources for this action due to the limited timeframe to get a bridge awarded, and the amount of time, costs, and physical engine part replacement efforts required to transition to a new contractor.

However, the follow-on requirement will be actively evaluating multiple offerors during the additional time afforded by this bridge action. The Government intends to post a notice for this J&A at the Government Point of Entry, SAM.gov website, to notify industry that Worldwide Lubrication Program will continue as a sole source effort during this current time period.

7. Determination of Fair and Reasonable Cost: The Contracting Officer has determined the anticipated costs to the Government for the supplies and services covered by this J&A, will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition:

This J&A is solely in support of a short-term bridge action. It is anticipated that future requirements will be awarded on a competitive basis.

The contracting officer has retained and reviewed the previous sole source award for this requirement, Contract N3220523D4033, and the previous J&A is referenced herein and available in the file for the approving official as required by DFARS 206.303-2(b)(i)(B). In the previous J&A, MSC stated “It is anticipated that future requirements will be awarded on a competitive basis.” In accordance with the previous J&A, an active and competitive source selection remains ongoing, and that method (competition) will be used to satisfy the next award and future awards of this requirement.