J&A_to_SPMYM2-19-Q-0126_Redacted.pdf

Justification for Other Than Full & Open Competition (November 2011)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

38VNE-53117-STU KOI 001 & 38VNE-53118-STU KOI 001

SPMYM2-19-Q-0126

1. Contracting Agencyand Activity: PugetSound NavalShipyard and Intermediate Maintenance Facility (PSNS&IMF), Bremerton WA. USS Nimitz(CVN 68).

2. The action being approved is the acquisition of 1 e a Le ft Hand Dis tilling Unit Fe e dwate r He ate r/After Condenser Unit (Aqua Che m P/N 649-07664-000) and 1 e a Right Hand Distilling Unit Fee dwate r Heater/After Conde nser Unit (Aqua Che m P/N 649-07665-000) on other than a full and open competition basis. This acquisition utilizes the procedures of FAR subpart 13.5 in accordance with 41 U.S.C. 1901.

3. The Le ft Hand Dis tilling Unit Fe e dwate r He ater/Afte r Condenser Unit (Aqua Che m P/N:649-07664-000) 1 e a and Right Hand Dis tilling Unit Fe e dwate r He ate r/Afte r Condenser Unit (Aqua Che m P/N 649-07665-000) 1 ea required to meet the usingactivity’s needs are described as follows:

BRIEF DESCRIPTION NSN/P/N QUANTITY EST. VALUE AMSC

DU FH/AC 649-07664-000 1

DU FH/AC 649-07665-000 1

*If too numerous, attach list of NSNs and AMSC codes

This acquisition:

[X] will not include an option.

[ ] will include a _____ % option for increased quantity. Total estimated dollar value of option quantity is $ [ ] will include an option to extend the termof the contract for a period of ___ exercisable in increments of ____ . Total estimateddollar of alloption periods is $ _____ .

The total estimated dollar value of this acquisition (inclusive of any option) is $

4. The acquisition is restricted to the only source(s) of supply known to have thecapability of furnishing the required supplies/services.Source(s)are:(Include CAGEcode)

Manufacture r: Aqua Che m Inc. (CAGE: 0EXU3) Manufacture r POC: Mike Pyle , PH: (865)540-1939 FAX: (865)766-8368 Mfg Address:

3001 E John Sevier Hwy, Knoxville, TN 37914-6424

5. The statutoryauthority permitting other than fulland open competition is:

[X] 10 U.S.C. 2304(c)(1) - Available fromonly one or a limited number of sources.

6. The use of the authority citedabove is basedon:

The replacement FH/AC units being procure d as a direct form/fit/functional replacement to the e xisting s hipboard ins talle d units . All compone nts /parts of the FH/AC, as we ll as the Dis tilling Plant that it dire ctly s upports , are proprietary to OEM vendor(Aqua Che m Inc.) and cannot be purchas e d from othe r vendors . Othervendorsdo not have acce s s to OEM proprie tary information. Aqua Che m Inc. is the authorize d OEM, and the only manufacture r in the Unite d State s with acce s s to the OEM drawings and proprie tary information re garding the form/fit/function for the FH/AC. Proprietary information include s patents held by Aqua Che m Inc. affecting fit-up, installation, and compatibility, as well as material composition, part dimensions and machine tolerance s . Aqua Che m Inc. is the NAVSEA mandate d provide d for CVN 68 Clas s Distilling Plants , including s upporting e quipment s uch as the

Justification for Other Than Full & Open Competition (November 2011)

FH/AC, as listed in NAVSEA TM S9531-C2-MMA-010. The FH/AC unit is comple x, highly e ngine ere d to provide prope r he ating rate /capacity of incoming s e awate r as we ll as appropriate s upport for the air e je ctor s ys tems of the Dis tilling Plant. Ope ration and function of the Dis tilling Plant re quire s balance be twe e n seawate r flow rate s , he ating s te am as we ll as prope r vacuum in all s tage s to provide safe distille d wate r in a sufficient quantity required to me e t s hip’s wate r ne e ds. The functions provide d by the FH/AC are integral to the de s ign ofthe Distilling Plant and are critical for prope r operation, function and s afety of the Distilling Plant.

Prope r ope ration and function of the Dis tilling Plant is mandate d by NAVSEA for all Aircraft Carrie r operations . It is essential that thereplacement units be procured directly from Aqua Chem to ensure proper operation of the FH/AC as well as the distilling plant.

7. Efforts to ensurethatoffers are solicitedfromas many sources as practicable are:

[X] Other (Explain): Sole s ource is bas ed on proprie tary data only available to OEM.

8. Market Research:

A reque s t was sent to the OEM Representative to determine if the y have authorize d s ource s that have acce s s to proprietary information regarding FH/AC de s ign, orare able to provide a complete unit that matche s the form/fit/ function. Re s ponse from OEM Re pre sentative was, “No, there isn't any approve d s ource s that can provide you with our OEM product. We do not s ub our work for manufacturing to anyone .” A Sources Sought was posted 10-29-2018 with a closing date of 11-7-2018, no responses were received. Market research results have determined the Government's needs can be met by items of a type customarily available in the commercial marketplace.

9. Additionalfacts supportingother than fulland open competitionare:

[X] Based upon the technical certification on file, technical data is not available and cannot be developed to permit full and open competition. The data presently available reflects the minimum needs of the Government.

10. A listing of sources, ifany, indicatingan interest in the acquisitionare: NONE

11. The actions being taken to overcome barriers to competition before anysubsequent acquisitions are made are:

NONE

12. I hereby determine that the anticipatedcost to the Governmentwill be fair and reasonable.

Give n the comple xity and e s sential nature of the FH/AC, the $ per unit price and 365 day ARO le ad time are cons ide re d re as onable . Based on initial inve s tigation into re pair options , the raw material cost (estimated to be well in excess of $120,000.00 for s tarting material alone). Cos t to have other than OEM de s ign and manufacture s imilar unit from s cratch could e as ily fall in the range of double the OEM quote d cos t (not including re quire d docume ntation of non-s tandard compone nt and e ffe ct on inte rchange ability). Bas e d on information available , the governme nt would not atte mpt to de ve lop compe titive s pecifications for the FH/AC.

To do s o would be financially prohibitive .

13. Additionalfacts, ifany, supporting this determination:N/A

APPROVAL

APPROVAL LEVELS OF THE JUSTIFICATION – FAR 6.304

Justification for Other Than Full & Open Competition (November 2011)

[ ] notexceeding $700,000 ContractingOfficer

[ ] over $700,000 to $13,500,000 Competition Advocate

[ ] over $13,500,000to $93,000,000 Head of ContractingActivity(HCA)

TECHNICAL/REQUIREMENTS PERSONNELI certify that the facts and representations under my cognizance which are included in this justification are completeand accurate.

Technical Cognizance:

(Requirements originator)

Mechanical Engineer,C/260.7

10/24/2018

Signed by: S (360)476-0994 Name and Title Signature Phone Date

LEGAL REVIEW

The foregoing J&A has been reviewedfor legalsufficiencyandredactionprior to postingon FedBizOpps.gov..

Date: 2018.11.08 15:21:39 -05'00'

CONTRACTING OFFICER

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief. If not exceeding $700,000, this signature serves as the approval.

Shawn Fernandez Contracting Officer 360-813-9224____ _ ____ ____

Name and Title Signature Phone Date

COMPETITION ADVOCATE

I have reviewed and approve this Justification $700,000 to $13,500,000, or if above $13,500,000, hereby recommends that this Justification be approved:

Name and Title Signature Phone Date

HEAD OF THE CONTRACTING ACTIVITY

I have reviewed and approve this Justification $93,000,000 or below.

X

FERNANDEZ.SHAWN.FREDERICK.11

79718088

Date: 2018.11.08 08:33:08 -08'00'

N.FREDERICK.11797

18088 X FERNANDEZ.SHAW Digitally signed by

X

HOPSON.LILLI

.A.1230127324

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2018.11.15 10:58:19 -05'00'

Justification for Other Than Full & Open Competition (November 2011)

X