Redacted Sole Source JA.pdf

SSJ No.: 24-21JA

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FEDERAL

ACQUISITION REGULATION (FAR) 13.5

On the basis of the following justification, I hereby approve the use of a sole source proposed contractual action pursuant to the authority of 10 U.S.C. 3204(a)(2).

Procurement Request Number: N4523A24RC02R81

1. Agency and Contracting Activity

Naval Sea Systems Command contracting activity Northwest Regional Maintenance Center/Puget Sound Naval Shipyard and Intermediate Maintenance Facility (PSNS & IMF), Bremerton, WA proposes to enter into a sole source contract with Cepeda Associates Inc.

(CEPEDA) using simplified procedures for certain commercial items included in FAR subpart 13.5.

2. The nature and/or description of the action being approved.

The contemplated action for approval is the award of a sole source contract with CEPEDA to perform corrective items documented by this OEM vendor from the results of Pre Availability Tests 51560-001 performed on CO2 Removal Units, Scrubber No. 1, Scrubber No. 2, and from the results of Pre Availability Tests 51560-002 performed on CO/H2 Removal Units (38CTB- 02203-T03), Burner No. 1 and Burner No. 2.

3. A description of the supplies and/or services required, including the delivery schedule and/or the period of performance (inclusive of all option periods), and the estimated dollar value of the acquisition.

PSNS & IMF, in support of the USS Connecticut (SSN 22), as part of ship repair and maintenance, requires accurate and timely repair of CO2 Removal Units, Scrubber No. 1, Scrubber No. 2, and CO/H2 removal units, Burner No. 1 and Burner No. 2. Proprietary and capability constraints require that the OEM, and only the OEM perform the required action. As such, only OEM service representatives may provide accurate assessment of CO2 Removal Units, Scrubber No. 1, Scrubber No. 2, and CO/H2 removal units, Burner No. 1 and Burner No.

2 and only OEM service representatives are authorized to perform the applicable procedures.

The Period of Performance (POP) for this action is 1 March 2024 - 30 May 2024. The Government's minimum needs have been verified by the certifying technical and requirements personnel.

Requirement Base Work Package

Type of Funds

O&MN

Cost Labor/Material

4. The statutory authority permitting sole source.

10 U.S.C 3204(a)(2): The agency's need for the property or services is of such an unusual and compelling urgency that the United States would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals.

The Requirement Generator attempted to refine the requirement with CEPEDA in September 2023, however, this effort was significantly delayed due to CEPEDA 's teams supporting other Navy platforms in Norway and San Diego. A final requirement package was not able to be established until 29 January 2024. The requirement is "critical path" to the Ship's repair and maintenance effort, with a required award date of 1 March 2024, with execution to be performed over twelve weeks. Failure to achieve this award date will negatively and significantly impact Ship's readiness, Fleet mission, and Shipyard productivity.

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring use of the authority.

Pursuant to FAR 6.302-1, the requirement described above has been determined to be achievable by only one source. CEPEDA is the only source with proprietary design drawings and specifications required to perform the required corrective actions on the CO2 Scrubber plants, CO/H2 burner plants. CEPEDA has the technical expertise to perform required repairs, technical direction and testing. All components and parts are proprietary to CEPEDA and cannot be purchased from other vendors. CEPEDA is the NAVSEA authorized provider for submarine CO2 Scrubber and CO2/H2 Burner plants. These complex and highly engineered units are mandated by NA VSEA for submarine applications. All parts must be OEM provided to ensure proper operation of the units.

The Technical Warrant Holder, NAVSEA 05Z, maintains the Navy's technical authority for submarine life support and ventilation equipment. This includes technical approval of design alterations and adjudication of technical deficiencies. NSWCPD CODE 416 is the In Service Engineering Agent (ISEA) for the CO/H2 Burner and CO2 Removal Plant (Scrubber) maintaining technical authority as designated by the NAVSEA 05 Technical Warrant Holder.

Based on knowledge and expertise, NSWCPD CODE 416 ISEA concurs that no companies other than CEPEDA Associates, the Original Equipment Manufacturer (OEM) of the CO/H2 Burners, and CO2 Removal Plants, have the knowledge and technical capability required to inspect and restore the CO/H2 Burners, and CO2 Removal Plants, to OEM specifications for maximum reliability.

6. A description of efforts made to ensure offers/quotes are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized in FEDBIZOPPS (as required by FAR 5.2) and, if not, which exception under 5.202 applies.

Due to unusual and compelling urgency, in accordance with FAR 5.202(a)(2), this requirement will be not synopsized on sam.gov.

7. The anticipated dollar value of the proposed acquisition, including options if applicable, and a determination by the contracting officer that the anticipated cost to the government will be fair and reasonable.

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

8. A description of the market research conducted and the results or the reason market research was not conducted.

Previous market research determined that CEPEDA, as the OEM, is the only source available to complete the requirements of this contract. Similar historical contracts N4523A22P0803, N4523A22P0807, and N4523A23P0802 were awarded to CEPEDA through sole source justifications. No other source has shown any interest or capabilities in performing this requirement.

9. A statement of any actions the agency will take to remove or overcome any future barriers to competition.

For the reasons set forth in Paragraph 5, PSNS&IMF has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, PSNS&IMF will assess whether competition for future requirements is feasible.

Certification Requirements Generator:

I certify that the facts and representations under my cognizance that are included in this justification and that form a basis for this justification are complete and accurate.

Cl0l.13 Shipbuilding Specialist

Legal Review:

I reviewed this justification and find it to be legally sufficient.

C107 Associate Counsel

Contracting Officer:

Date

Date

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Nick Crowell, C421 Contracting Officer Date nicholas.a.crowell Cross-Out