SSACs- JUSTIFICATION AND APPROVAL FINAL_Redacted.pdf

DEPARTMENT OF

THE NAVY

NO R F O L K N AV AL S H I P Y AR D

P O R T S M OU T H , V IR GI N IA

2 3 7 0 9 - 50 00

J&A Number: FY23-52 Code: NNSY 431

Purchase Request Number: N4215823RC30725

JUSTIFICATION FOR SINGLE SOURCE ACQUISITION

1. Contracting Activity.

The Naval Sea Systems Command (NAVSEA), Norfolk Naval Shipyard (NNSY), Code 400 Contracts Department (C400), Portsmouth, VA.

2. Description of the Action Being Approved.

Award of a single source contract to Curtiss-Wright to perform efforts to assess, repair and test three (3) Dresser Rand Ship’s Service Air Compressors (SSACs).

3. Description of Supplies/Services.

NNSY requires the Technical Representative Services necessary to provide an assessment and perform an Operational Testing for SSAC CAP-12 Ship’s Service Air Compressors (SSACs) #1, #2 and #3. This will take place aboard USS George H.W. Bush (CVN-77) utilizing standard procedures in accordance with NAVSEA TM S6220-AR-MMI-A10. The Contractor shall submit a conditions found report (CFR) identifying discrepant conditions.

The Independent Government Estimate (IGE) of is based on a Class “F” (+/- 40%) Engineering/Planning Department Cost Estimate derived from current Uniform Methods and Standards 5510-971 for the CVN-77 77E project and previous contracts. This procurement is being funded with FY23 Operations and Maintenance, Navy (OM&N) funding.

The estimated period of performance is 5 July 2023 – 20 April 2024.

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

4. Statutory Authority Permitting Other Than Full and Open Competition.

41 U.S.C 1901 as implemented by Federal Acquisition Regulation (FAR) Subpart 13.5 - Simplified Procedures for Certain Commercial Products and Commercial Services

5. Rationale Justifying Use of Cited Statutory Authority.

Curtiss-Wright (CW) is the only known source that is capable of providing the required services for the SSACs. CW acquired the original equipment manufacturer (OEM), Dresser Rand, in 2018, thereby accruing all propriety rights to all Dresser Rand products.

The Contract Specialist submitted a letter from Kelly Halda, Contracts Manager for CW, stating that CW is the only authorized service provider for CAP 12 and CAP 16 Ships Service Air Compressor. CW acquired SGT/ Dresser –Rand in 2018 along with all its products. The Worthington CAP 12 and CAP 16 were a part of that purchase as well. As such, the use of any other repair facility will void the OEM warranty.

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

NNSY has historically awarded contracts for same or similar services to CW. A review of the market research conducted for contracts N4215822PS106, N4215821P0059, N4215821P0015, N4215820P0039, and N4215820P0027 showed that methods such as internet search, Small Business Administration (SBA) Dynamic Small Business Search (DSBS), and sources sought were used. None of the results presented other potential offerors.

In order to validate historical findings and assess the current industry, the contract specialist used several sources of information including a review of previous procurements for the same/similar services, discussions with the requiring activity, and a review of SBA DSBS.

The contract specialist reached out to two small businesses which were found in the search and inquired about their capability to execute the current requirement. Specialist reach out to numerous vendors via phone and email neither Kahlenberg Industries Inc. nor Diamond B Compressor Hydraulics LLC provided a response. The specialist also reached out to Cascade Machinery & Electric Inc., advised interest of this requirement. Cascade advised interest via phone but did not provide any additional interest after initial phone conversation.

For these reasons, additional market research beyond what was conducted is not considered to be practical and is not expected to yield any additional information.

The contracting officer, as required by FAR 5.201, will post a synopsis to the Government Point of Entry (GPE) – SAM.gov (SAM), detailing the intended acquisition strategy.

7. Determination of Fair and Reasonable Cost.

The contracting officer has determined that the anticipated cost to the Government for the supplies/services covered by this justification will be fair and reasonable. The contracting officer intends to determine the proposed price as fair and reasonable by utilizing the techniques detailed within FAR 13.106-3.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NNSY 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, NNSY will assess whether competition for future requirements is feasible.

J&A No. FY23-52