REDACTED JUSTIFICATION - MSC Worldwide Paint Bridge Two.pdf

J&A No. N10225D4035

JUSTIFICATION AND APPROVAL

FOR USE OF 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 Paint Program to PPG Architectural Finishes, Inc.

3. Description of Supplies/Services:

For many years, the MSC Fleet-wide Paint Program has had a continuing requirement for paints, coatings, solvents, preservation products, and associated engineering/technical services on a worldwide basis in support of MSC’s Engineering Division (N7), for MSC ships and GOGO (Government Owned Government Operated) or GOCO (Government Owned Contractor Operated) ships designated by MSC. Since June 14, 2019, these mission critical requirements have been fulfilled by PPG Architectural Finishes, Inc, under Contract N3220519D7002. The ordering period under the current Contract, a bridge, expires on June 13, 2025. The second bridge contract would provide continuous support for MSC ships and GOGO or GOCO ships designated by MSC on a worldwide basis within specific time frames, which will enable a follow-on contract to be competitively awarded. The total estimated value of this requirement is $XXXXXX and will be funded at the task order level using FY25/FY26 Navy Working

Capital Funds (NWCF). The estimated Period of Performance for the second bridge contract is a six (6) month Base

Period from 14 June 2025 to 13 December 2025 and a six (6) month Option Period from 14 December 2025 to 13

June 2026.

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 as implemented by FAR 6.302-1(a)(ii) and (iii).

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 capable of fulfilling the

Command’s continuing need for the subject mission critical supplies and services worldwide from 14 June 2025 until the follow-on contract is competitively awarded and that contractor has completed a phase-in period. The current bridge contract, Contract N3220524D0035, will expire on 13 June 2025. In order to mitigate the risk of a lapse in supply or services, 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 properly evaluate competitive proposals and execute the longer-term follow-on contract action.

MSC vessels perform missions that are critical to worldwide operations. MSC requires the delivery of paint, coatings, solvents, preservation products and associated services on a worldwide basis for the foreseeable future;

therefore the U.S. Government cannot afford a break in supplies and services; nor can the void created be met, filled, or substituted with any other contractor that is not the incumbent. If those paint supplies and services are not provided in a competent, rapid, and timely manner, ships will become unavailable for tasking, which in turn will cause mission failure. That mission failure would be a serious injury to the Government caused by an unacceptable delay in fulfilling the agency’s requirements. The incumbent Contractor has the corporate knowledge and adequate personnel strategically placed throughout the world to ensure continuity of the required logistical support and is the only contractor who can competently provide the products and services in the time required by the Government to prevent mission failure. Additionally, the incumbent contractor has access to its own corporate infrastructure and to the Government infrastructure required to perform the required logistical operations worldwide. Thus, the incumbent is the only contractor who can provide the supplies and services on a worldwide basis needed by the

Government to avoid unacceptable delay in fulfilling the mission

The Government needs a second bridge contract due to unanticipated and significant delays experienced by the

Government during internal reviews and unanticipated and significant delays arising during the proposal evaluation process for the re-compete procurement. These delays were unforeseen as the Worldwide Paint Program was historically procured through a Lowest Price Technically Acceptable (LPTA) source selection process and not a

Tradeoff process. The Tradeoff process—and the time required to thoroughly and accurately evaluate and trade off aspects of competitive proposals coupled with the time required for a thorough and accurate internal peer reviews for this complicated Worldwide requirement—delayed the re-compete award. Moreover, given the current circumstances, insufficient time exists to re-compete and award a new contract in sufficient time to allow for the required phase in period to allow a new contractor to transition, obtain the required security clearances for a new contractor, and hire or transfer personnel in order to fulfill the required services. The inability to perform those functions would cause a lapse in the receipt of critical products services which in turn, would cause an unacceptable delay in securing vital paint, solvents and preservation products for both MSC’s and the Navy’s fleets, and the lack of paint supplies will cause a failure to fulfill mission requirements, and reduce the life of the vessel or potentially allow damage to vessels. Therefore, a bridge contract is required. The critical natural of the products and services being delivered within specific time constraints along with the ever-changing mission requirements ensure the safety and security of U.S. personnel and government vessels at sea, as well as homeland.

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 an additional competition, the Government requires a second bridge contract to allow MSC adequate time to evaluate and execute the follow-on contract action.

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

This bridge contract covered by this Justification and Approval (J&A) is the result of insufficient time to award the re-compete of an existing contract prior to its expiration, due to multiple unforeseen revisions to the requirement and acquisition approach and due to multiple and unforeseen delays during the evaluation of proposals. Executing a stand-alone, sole source requirement for this second bridge contract will ensure the Government does not incur unacceptable delays in executing its mission. The second bridge contract, covered by this J&A, is the result of additional evaluation time being required to award the re-compete of an existing contract prior to its expiration, due to unanticipated and lengthy internal 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 10

February 2025, and closed on 14 February 2025, with only one response received. However, the response did not provide any information as to capability of executing the requirement prior to the expiration of the current contract.

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 product supply availability and compatibility 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 Paint 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 cost to the Government of the supplies and associated services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition:

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.

As this is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(S-70)(i), the prior J&A was provided to the approval authority for review. Approval of this J&A signifies the approval authority has made the determination required by

DFARS PGI 206.304(a)(S-70)(ii).”