Scrubbers_JA_redacted.pdf

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US Navy LA Class Submarine Scrubbers & Burners Repair
Solicitation number
N3225326C0003
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This is a Justification and Approval (J&A) document for a sole source contract award by the Department of the Navy.

The Naval Sea Systems Command at Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility (PHNSY & IMF) seeks to award a sole source contract to Cepeda for repair actions on 759 Jefferson City's No. 1 & No. 2 CO2 scrubbers and No. 1 & No. 2 CO&H2 burners. The scope of work includes removal, refurbishment, and re-installation of these systems, identified as mandatory by the Engineering and Planning Department. The estimated contract value is $565,000.00 with funding from FY26 Operations & Maintenance. The period of performance runs from September 17, 2026 through November 30, 2027. The statutory authority cited for sole source justification is 10 U.S.C. 3204(a)(1), establishing that only one responsible source exists and no other supplies or services will satisfy agency requirements.

The justification cites Cepeda as the Original Equipment Manufacturer (OEM) of the CO2 scrubber and CO&H2 burner systems deployed on 688 Los Angeles Class submarines. Cepeda owns all proprietary drawings, procedures, and specialized equipment necessary for the work and has not authorized any third-party entities to perform these services. A sources sought notice posted on SAM.gov on July 8, 2026 for five days received one response but no capability statement was submitted, preventing further evaluation. A similar previous contract (N32253-25-C-0004) was also awarded on a sole source basis. The Contracting Officer will determine fair and reasonable pricing based on cost and price analyses per FAR 15.404-1 and 15.404-2. The J&A has been certified by technical, legal, and contracting personnel as accurate and complete.

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NMCARS Change 26-03 Annex 1 C400 Version Updated 4/15/2026

10 U.S.C. 3204(a)(5), Authorized or required by statute.

10 U.S.C. 3204(a)(6), National Security.

5. Rationale Justifying Use of Cited Statutory Authority

Per Engineering Planning Department (EPD), Cepeda is the Original Equipment Manufacturer (OEM) of the CO2 scrubber and CO&H2 burner systems deployed on 688 Los Angeles Class submarines. Cepeda has designed, manufactured, tested, serviced, and refurbished the CO2 scrubber and CO&H2 burner systems. Cepeda owns the drawings, and proprietary procedures and equipment necessary to complete the required removal, refurbishment and re-installation of the units. Cepeda has not shared their drawings or proprietary equipment and procedures with any entity, including the Government. Because Cepeda does not share any of the drawings, proprietary equipment or procedures necessary to complete this work, they do not certify or authorize any third-party companies/personnel to work on the scrubbers and burners system. As a result, no other sources are capable to accomplishing this requirement as no one else has the necessary procedures, drawings, and equipment.

Cepeda is the only responsible source fully capable of satisfying the agency’s requirements.

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

A sources sought was posted on Sam.gov on 08 July 2026 for five (5) days that included a draft work specification and requested that interested parties submit a capabilities statement explaining how they would complete and their qualification to complete the requirement. The sources sought notice received a response from one company expressing interest, but the company did not submit a capability statement, therefore the interested party could not be further evaluated for capability to be able to perform this requirement.

The previous and most recent award Contract N32253-25-C-0004, for a similar requirement that also involved scrubber work was solicited as sole source.

7. Determination of Fair and Reasonable Cost

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services 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 and cost analyses in accordance with Revolutionary FAR Overhaul (RFO) 15.404-1 Proposal Analysis Techniques and RFO 15.404-2 – Cost Analysis.

NMCARS Change 26-03 Annex 1 C400 Version Updated 4/15/2026

8. Actions to Remove Barriers to Future Competition

For the reasons set forth in Paragraph 5, PHNSY & IMF C400 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, PHNSY & IMF will assess whether competition for future requirements is feasible.

File details come from the government source that posted it. Updated .