SOLE SOURCE SAT MEMORANDUM - Redacted.pdf

For Official Use Only – See FAR 2.01 and 3.104

Last Updated: January 2020

MEMORANDUM TO THE RECORD

(This is only applicable to acquisitions under the Simplified Acquisition Threshold. Acquisition using FAR Subpart 13.5 shall follow the special documentation requirements at FAR 13.501.)

Subj: USE OF OTHER THAN FULL AND OPEN COMPETITION FOR AN

ACQUISITION UNDER THE SIMPLIFIED ACQUISITION THRESHOLD

I. BACKGROUND:

1. FAR 13.106-1(b)(1)(i) states for purchases not exceeding the simplified acquisition threshold, Contracting Officers may solicit from one source if the Contracting Officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand-name or industrial mobilization).

2. As required by FAR 13.106-3(b)(3)(i), this memorandum explains the absence of competition for this acquisition, as only one source will be solicited for this requirement (or for a portion of the requirement) and the requirement is not expected to exceed the simplified acquisition threshold.

II. DESCRIPTION OF ITEM OR SERVICE:

The contemplated action for approval is the award of a sole source contract with CEPEDA Associates Inc, to perform testing and evaluation of CO2 Removal Units, Scrubber No. 1, Scrubber No. 2, and Scrubber No. 3, CO/H2 removal units, Burner No. 1 and Burner No. 2 in accordance with SUBMEPP Standardized Test Procedure 51560-001 and 51560-002. Technical grooming on each unit by the OEM. Perform inspections and operational testing on Air High Pressure Dehydrator (AHPD) in accordance with OEM standards.

III.

THE DETERMINATION FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

IS BASED ON THE FOLLOWING (select all that apply):

A. X ONLY ONE RESPONSIBLE SOURCE (select all that apply):

1. _X_ RESTRICTIVE RIGHTS. The source has established proprietary rights, limited rights in data, patent rights, copyrights or secret processes in the item or service required.

Pursuant to FAR 6.302-1, the requirement described above has been determined to be achievable by only one source. CEPEDA Associates Inc, is the only source with proprietary design drawings and specifications required to perform tests on the CO2 Scrubber plants, CO/H2 burner plants, and Air High Pressure Dehydrator.(AHPD). CEPEDA has the technical expertise to provide necessary technical direction and repair oversight.

Last Updated: January 2020

2. _X_ EXCLUSIVE LICENSING AGREEMENTS. The item or service is only available from the Original Equipment Manufacturer (OEM), or there is only one authorized distributor or technical representative for the OEM.

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 Inc, the Original Equipment Manufacturer (OEM) of the CO/H2 Burners, CO2 Removal Plants, have the knowledge and technical capability required to inspect and restore the CO/H2 Burners, and CO2 Removal Plants and Air High Pressure Dehydrator (AHPD) to OEM specifications for maximum reliability.

3. ___ OTHER REASONS.

B. ___ BRAND NAME.

C. _X_UNUSUAL AND COMPELLING URGENCY. The supplies or services are of such unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals.

Urgent requirements are supplies or services that will result in a work stoppage, or are mission critical and the routine processing time would result in injury to the Government. The determination that the procurement for the above item/service is an urgent and compelling requirement is based on the following:

1. Date on which the requirement was first identified: 03/17/2025, and 11/07/2025 Project requested notes provided to preparer on 11/07/2025, with email sent to the project for line item/cross project tracking clarification, project requested for addition of AHPD work needed by contractor.

2. Required delivery date/period of performance: 12/15/2025 to 02/03/2026.

3. Explanation of why delivery/commencement of services by the date mentioned above is required: The Puget Sound Naval Shipyard and Intermediate Maintenance Facility (PSNS&IMF), in support of a , as part of ship repair and maintenance, requires accurate and timely repair of CO2 Removal Units, Scrubber No. 1, Scrubber No. 2, Scrubber No. 3, 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 assessments of CO2 Removal Units, Scrubber No. 1, Scrubber No. 2, Scrubber No. 3, and CO/H2 removal units, Burner No. 1 and Burner No. 2 and only OEM service representatives are authorized to perform the applicable

Last Updated: January 2020 procedures. The Air High Pressure Dehydrator (AHPD), and only OEM service representatives are authorized to perform the applicable procedures.

The requirement is “critical path” to the Ship’s repair and maintenance effort, with a required award date of 15 DEC 2025, with execution to performed over fourteen days. Failure to achieve this award date will negatively and significantly impact Ship’s readiness, Fleet mission and Shipyard productivity. The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

4. If appropriate, include any additional pertinent information. None.