ExceptiontoFORedacted.pdf

Control Number 14-010

JUSTIFICATION AND APPROVAL

FOR AN EXCEPTION TO FAIR OPPORTUNITY UNDER FAR 16.505

Program/Equipment: Technical and Administrative Support Services for the Norfolk Ship Support Activity (NSSA). NSSA’s projects and programs include support for all shipboard/land-based Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) Systems, C4ISR Support Systems, and Hull, Mechanical and, Electrical (HM&E) Systems.

Authority: 10 U.S.C. § 2304c and FAR 16.505(b)(2)(i)(A). Amount: $5.34M

Prepared By:

Raymond Cox Date: 20 November 2013 Financial Analyst, NSSA Phone: 215-897-3413 Email: raymond.j.cox@navy.mil

Procuring Contracting Officer: Date Reviewed: 20 Nov 2013 Lane M. Gary Phone: 443-861-4922 Email: lane.m.gary.civ@mail.mil

Technical Representative: Date Reviewed: 20 Nov 2013 Financial Analyst, NSSA Phone: 215-897-3413 Email: raymond.j.cox@navy.mil

Requirements Representative:

Dale Morse Date Reviewed: 20 Nov 2013 Maintenance Requirements & Policy Manager Phone: 757-836-3376

Commander Naval Surface Forces, US Atlantic Fleet

Email: dale.morse@navy.mil

Management Representative:

William R. Hutsenpiller Date Reviewed: 20 Nov 2013 Director, Financial Management and Support Phone: 757-396-1960

NSSA

Email: william.r.hutsenpiller.civ@navy.mil

Reviews: I have reviewed this justification and find it adequate to support an exception to fair opportunity under FAR 16.505 for a short term task order.

Director, Financial Management and Support William R. Hutsenpiller Phone: 757-396-1960 Signature:

Date: 20 November 2013

Legal Counsel:

Mellany V. Alio Phone: 443-861-5270

Signature: Date: 20 November 2013

JUSTIFICATION AND APPROVAL

FOR AN EXCEPTION TO FAIR OPPORTUNITY UNDER FAR16.505

1. Contracting Activity: Army Contracting Command Aberdeen Proving Ground (ACC-APG)

ATTN: CCAP-CCB

6001 Combat Drive Aberdeen Proving Ground, MD 21005-1846

2. Description of Action: The proposed action is a non-competitive interim (“bridge”) task order issued against the Rapid Response Third Generation (R2-3G) Indefinite Delivery/Indefinite Quantity (ID/IQ) contract W15P7T-10-D-D413 with a period of performance consisting of a 30 day base period with three 30 day option periods for a total estimated amount of $5.34M, including the options. The anticipated award date of this bridge action to CACI is no later than 26 November 2013.

The Government received a Government Accountability Office (GAO) protest from CACI Technologies (CACI) in response to the award of Task Order 0015 to DRS Corporation under Contract W15P7T-10-D-D416 for the services described in Section 3 of this document. Task order 0015 was awarded after a competition as Request for Task Execution Plan (RTEP) 0607 on the R2-3G ID/IQ. CACI was the incumbent for these services under Task Order 0008 of Contract W15P7T-10-D-D413 which expired at the end of September 2013. Work under the DRS Task Order 0015 was immediately stopped due to the post-award protest, which was received on 21 October 2013.

This proposed action will be a Cost-Plus-Fixed-Fee (CPFF) type of task order utilizing Fiscal Year (FY) 2013 Operations and Maintenance (O&M) funds in the total amount of $1,345,500.00. The funding will come from Task Order 0015 of Contract W15P7T-10- D-D416 (currently under protest) and will fund the first 30 days (base period) of the bridge task order pursuant to 31 USC 1558. If the Government determines that options will be exercised, additional funding will be de-obligated from Task Order 0015 and used on the bridge task order. Task Order 0015 currently has approximately $19.7M in FY 2013 funding. The R2 project office has given this bridge action an RTEP number 0715 for control purposes.

3. Description of Supplies/Services:

The NSSA is purchasing technical services, program management, industrial support, and administrative support services, including urgently needed Engineering and Combat Systems Readiness Assessment Teams (ERAT/CSRAT), Deck Maintenance Assist Teams (DMAT), and Maintenance University support for Naval Surface Force vessels.

Engineering and Combat Systems Readiness Assessment Teams The contractor will provide the necessary support to the ERATs/CSRATs, which provide material support and service to 74 Atlantic Fleet surface ships. The teams will deliver shipboard technical expertise and training consistent with the Commander, Naval Surface Forces, Atlantic (CNSL) mission to provide trained Sailors and crews to support the Fleet Commander’s deployment priorities. This includes practical exercises to improve propulsion, electrical, auxiliary, damage control, and weapons systems understanding, operation, and sustained self-assessment. Further, these teams will provide tailored and defined training and mentoring to shipboard Sailors in Engineering and Combat Systems Program Management and Administration. ERATs and CSRATs also will conduct space inspections for safety and damage control equipment, and weapon systems operability assessments. ERATs also will provide support for ship Engineering Light-Off Examinations and Board of Inspection and Survey engineering assessments.

Maintenance University The contractor will provide the necessary engineering support services to the Maintenance University (MU) to ensure a broad spectrum of critical, real-time maintenance training at multiple locations across the country to Surface Warfare Officer and Enlisted personnel. The MU provides a critical element in training all levels of the shipboard chain of command from Work Center Supervisors through Commanding Officers. The teams provide the ship and her chain of command with immediate feedback, training to correct deficiencies, assistance in conducting repairs, and guidance on operations, maintenance, and negotiating the various assessments and inspections. The contractor will provide both classroom and shipboard technical expertise and subject matter expert led training consistent with CNSL’s mission to provide trained Sailors and crews to support the Atlantic and Pacific Fleet Commander’s deployment priorities. The contractor will further provide the ship with administrative, material assessment, and hands-on technical training essential to the tiered approach improving surface force maintenance practices. This includes practical exercises to improve preventative maintenance, corrective maintenance and sustained self-assessment procedures.

Master Assessment Index The contractor will provide the necessary resources to support and maintain the Master Assessment Index (MAI) for ship assessment scheduling, building of agendas for Total Ship Readiness Assessments, and analyzing their effectiveness and outcomes. The MAI combines resources from a number of companies and the Government to provide the only data tool that interfaces and combines the information from over seven separate, detailed databases to build a targeted assessment visit agenda. The average throughput is 12-15 ship assessment events per week. Its impact reaches to both coasts and is equally important to the Regional Maintenance Centers as it is to the Type Commanders, since it serves to prioritize and focus those organizations’ efforts, ensuring that the most important items are actually assessed, avoiding wasted effort and cost across the board. The contractor will provide in conjunction with the MAI process, the requisite planning, preparation, information and products necessary to conduct onboard material condition assessments on shipboard propulsion, auxiliary, electrical and combat systems for over 140 ships assigned to the Naval Surface Force.

This includes applying the MAI process and sub-processes as the primary tool connecting the various assessment databases and creating all of the assessment tasking.

Maintenance Assist Teams The contractor will provide Maintenance Assist Teams (MATs) to perform comprehensive material and maintenance assist visits to Atlantic Fleet surface ships.

The MATs will conduct required shipboard repairs, maintenance, system operational testing and training with the ship’s forces in nine functional areas to effectively maintain the vessel’s material condition and operational readiness.

4. Authority Cited: 10 U.S.C. § 2304c as implemented by FAR 16.505(b)(2)(i)(A): “The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.”

5. Reasons for Authority Cited: The proposed contractor for this interim task order is CACI Technologies Incorporated, 14370 Newbrook Drive, Chantilly, VA, 20151-2218.

CACI has been providing critical support for the required effort since September 2012 through the previous task order 0008; contract W15P7T-10-D-D413. There is no other vendor with the expertise and experience that can start this effort immediately without causing unacceptable delays. Based on historical knowledge with R2-3G task order competitions, a minimum of 90 days is required to compete and award a task order when fair opportunity procedures are used. Furthermore, although market research showed that competition may be available, the previous acquisition of RTEP 0607 took over five months to compete and award. Additionally, there were only two proposals received-one from CACI and one from DRS. It should be noted that any additional proposals received would have contributed more time to the award timeline.

Considering the urgent need for service to NSSA that providing a fair opportunity would result in unacceptable delays. An extended gap in this support, even for the anticipated short period of time, will degrade and adversely affect the operational capabilities and mission readiness of the U.S. Atlantic Fleet. The adverse impact caused by a disruption to the scheduled work will extend well into the next Fiscal Year because of the significant backlog created by the shortfall of needed assessments, repairs, maintenance and hands-on experience that will take time to correct.

The Commander, United States Fleet Forces Command’s (USFFC’s) primary mission is to train, certify and provide combat-ready Navy forces to Combatant Commanders that are capable of conducting prompt, sustained naval, joint, and combined operations in support of U.S. national interests. In carrying out its mission, USFFC is responsible for ensuring the combat readiness and material condition of hundreds of surface ships, boats, craft and associated Navy forces of the U.S. Atlantic Fleet. Any extended delay in the performance of the subject task order would necessarily degrade the Navy’s ability to timely and effectively overhaul, repair, modernize and extend the service life of its vessels and their associated systems. This would adversely affect the operational capabilities and mission readiness of the Atlantic Fleet. Further, it could have a particularly detrimental effect on short fused crisis response operations in support of

Ballistic Missile Defense and Expeditionary Strike Group operations, and related combat missions.

For example, earlier this year four Norfolk-based destroyers were immediately dispatched to the Mediterranean Sea to execute a possible missile strike on Syria.

Expeditionary Strike Groups, which are the amphibious element of the Navy’s seaborne force structure tasked with transporting Marines to designated landing areas ashore, have played a vital role in Humanitarian Assistance/Disaster Relief (HA/DR) missions.

Landing craft that are assigned to individual ships within the strike groups further provide the strike group it’s capability to move Marines, cargo, and vehicles from ships at sea to beaches ashore. Not having these ships and their combatant craft in a fully functional and operational condition when scheduled would adversely impact the Navy’s capability to effectively conduct such missions like Operation Restore Hope in the wake of the devastating earthquake in Haiti in 2010; the Tohoku earthquake and tsunami in Japan in 2011; and, again during disaster relief efforts in New York and New Jersey in the wake of Hurricane Sandy in 2012.

Impact to the ERATs/CSRATs:

Without ERAT/CSRAT support, there will be an immediate negative impact to current training and material readiness efforts to Atlantic Fleet ships. The teams provide the ship and her chain of command with immediate feedback, training to correct deficiencies, assistance in conducting repairs, and guidance on operations, maintenance, and negotiating the various assessments and inspections. Without contractor assistance, the following support tasks will not be performed:

• Assistance with material assessment and training

• Operations, maintenance, and repair training to ships’ crews

• Preparing for assessments and inspections

• Management program training

• Assistance for new construction ships preparing for Final Contract Trials/Inspection

• Preparation of maintenance-ready job tasks/maintenance work orders to assist the ship’s Port Engineer in project planning and repair prioritizations

With an average 3% turnover in a ship’s crew per month (~33% per year), coupled with a decrease in initial accession schools training for Sailors, ERAT and CSRAT provide a stable foundation of knowledge and proficiency. The team members are former-Sailors with additional qualification and experience who understand the requirements to operate and maintain a ship. Their presence provides Commanding Officers and senior ship personnel with a group of highly qualified experts to interact with the crew, providing the right training at the right time and enhance operator and maintainer proficiencies.

In any given year a minimum of 25 ships may deploy. 15 ships were scheduled for ERAT/CSRAT visits during the October/November timeframe. Below is a sampling of the types of current impacts:

• USS ARLINGTON-Final Contract Trials (FCT): Preparing the crew for FCT by identifying material deficiencies, teaching the crew how to conduct material checks, assisting in orchestration and providing an assessment and training resources. Failure of the FCT would delay delivery of the ship to the Navy.

• USS IWO JIMA-Pre Light Off Assessment (LOA): Preparing the crew for LOA after a nine-month shipyard docking availability. Failure at LOA may cause the ship to remain in the shipyard longer, increasing the cost of the maintenance period. IWO is scheduled for a homeport reassignment to Mayport, FL after this availability, and a failed LOA could also be costly in terms of her schedule.

• USS ARLEIGH BURKE and USS ELROD-Material Inspection: Preparing the ship for an INSURV inspection and follow-on deployment. The metrics clearly demonstrate that ships’ performances improve significantly with ERAT/CSRAT support. A degraded INSURV causes re-work and a delay of schedule.

The timing and content of ERAT/CSRAT is intentionally placed at the most critical points of a ship’s critical milestones and has a direct effect on the Fleet Readiness Plan cycle, which is designed to deliver a ship to an Operational Commander for tasking. Due to the number of ships currently in the Atlantic Fleet inventory, there is no slack in the timelines for achieving the readiness goals and for deploying on time. Any delay, for any reason, creates a cascading set of problems that can take years to correct. ERATs and CSRATs are the principal tools to enable the Navy to reduce the risks to safety and ship employment imperatives.

Impact to the MU:

Without MU support, there is an immediate negative impact to current training and material readiness efforts to Atlantic Fleet ships, to the Regional Maintenance Centers, and to Surface Warfare Officer’s School. With an approximate throughput of 10,000 students per year, the impacts to the Surface Force are significant in scope and will potentially affect ship readiness both long and short term. Many of the training opportunities lost in the near future will be very difficult to recoup due to the real-time currency of the training as it relates to the ship’s schedules and Surface Warfare Officer training pipelines. Without contractor assistance, the following support tasks will be adversely impacted and/or not be performed:

Waterfront training for deploying ships. Three Battle Groups (GHW BUSH Carrier Strike Group, BATAANB ARG, and BONHOMME RICHARD Expeditionary Strike Group) as well as 12 Independent Deployers for a total of 18 ships will deploy in the next 3 months and be at sea for up to 9 months. Two ships will forward deployed to Rota, Spain and miss any opportunity for this training in the near future. Over 800 quotas are planned in Japan for the BONHOMME RICHARD ESG in December – these will all be lost since they deploy soon thereafter. With the currently scheduled MU courses for November through January, a total of 82 sessions, the lost quotas for these ships is significant and will impact deployed readiness, the ability to build quality work packages for the post-deployment shipyard period, and could result in significant cost due to re-planning or improper maintenance.

Pipeline Training for Surface Warfare Officers. There are three sessions planned in the next 90 days for a total of 120 Division Officers and 75 Department Heads that, if not executed, will result in a total of 32 ships receiving officers in their new assignments without critical training in maintenance programs. This pipeline training, of which MU represents about 10% of the total training and over 75% of the maintenance related training, was re-instituted in the past two years to address key shortfalls in maintenance proficiency and performance. The impact on these ships and crews would be immediate, long-lasting, and irreversible as these officers only attend each level of training once in their careers.

Shore Training for Port Engineers, Maintenance Planners, and Project Managers. There are two sessions of a 1-week course that would be missed, resulting in 15-20 new Port Engineers not receiving initial maintenance training.

Since they are already in their jobs, this training could be recovered but in the interim they may have reduced effectiveness for the 20 ships they serve thus directly impacting deployment readiness.

Impact to the MAI:

MAI provides CNSL and the Commander, Naval Surface Forces, Pacific (CNSP) ship assessment scheduling building agendas for Total Ship Readiness Assessments and analyzing their effectiveness and outcomes. MAI combines resources from a number of companies and the Government to provide the only data tool that interfaces and combines the information from over seven separate, detailed databases to build a targeted assessment visit agenda. The average throughput is 12-15 ship assessment vents per week. Its impact reaches to both coasts and is equally important to the Regional Maintenance Centers as it is to the Type Commander, since it serves to prioritize and focus their efforts, ensuring that the most important items are actually assessed, avoiding wasted effort and cost across the board. The MAI process provides the requisite planning and preparation information and products necessary to conduct onboard material condition assessments on shipboard propulsion, auxiliary, electrical and combat systems for over 140 ships assigned to the Naval Surface Force. This includes applying the MAI process and sub-processes as the primary tool connecting the various assessment databases and creating all of the assessment tasking. Without contractor assistance, the following support tasks will be adversely impacted and/or not be performed:

Primary: There are a total of 68 Total Ship Readiness Assessment events scheduled for 50 ships in the coming months. The normal number of maintenance items in a typical TSRA is between 200 and 400 individual pieces of equipment. The contractor team represents 50% of the total TSRA planning team and 100% of the configuration control/Quality Assurance team. The loss of this portion of the group will result in 50% degradation in the quality of the ship assessment and will impact 20 Chief of Naval Operation (CNO) directed major ship repair availabilities.

Secondary: This would have a secondary effect on the 90+ ship material assessment events during the first quarter of Calendar Year 2014 since they would be using incomplete data, resulting in wasted time, missed assessments and millions of dollars of increased costs.

Finally, the loss of MAI likely will cause the loss or severe degradation of material assessments on over 100 ships and result in ship repair/maintenance and modernization delays and increased costs to the Government. It also likely will affect the operational readiness of two deploying battle groups.

Impact to the MATs:

Without the subject matter expertise of the contract personnel, there is a negative impact to the current level of training, repair, and maintenance experience provided to Navy Surface Forces as part of the initiative to improve material readiness. These personnel have specific skill sets that contribute greatly to this effort. Without contractor assistance, the following would be limited and degraded.

• The ability to provide much needed repairs and training to Ship Crews.

• The ability to provide support to ships deployed and preparing for significant events.

• Assistance with maintenance support.

• Difficulty meeting scheduled visit start and end dates as scheduled.

For example during the period of 23 thru 25 October 2013 there was a loss of 216 Man Hours and 27 Man Days in support of Maintenance Assist Team Visits scheduled onboard 12 Surface Force Units.

6. Efforts to Obtain Competition: Market research was conducted on 25 March 2013, details of which are in Section 8 of this justification.

7. Actions to Increase Competition: The follow-on acquisition (R23G 0607) was competitively procured utilizing the Rapid Response Third Generation (R2-3G) multiple award contract vehicle. Task Order 0015 was awarded to DRS Corporation at the end of fiscal year 2013. However, due to receipt of a postaward GAO protest, a stop work was issued on 22 October 2013. NSSA continues to seek contracting strategies to improve efficiency in the processes and services, reduce cost to the Government, and provide the greatest opportunity for competition.

8. Market Research: Market research was conducted by the Army Contracting Command on 25 March 2013 by surveying current R2-3G Contract holders, and requesting comments about the Performance Work Statement of the follow-on requirement (R23G-0607), and if the contractor planned on bidding this requirement.

For this particular requirement, out of 18 R23G contract holders, two (2) contractors (BAH, CACI) stated they planned to bid this requirement when released; one (1) (DRS) indicated maybe; four (4) indicated no bid, and eleven (11) did not respond. The Government anticipated receiving two or more responses from the 18 companies participating in this follow-on requirement utilizing the R2-3G multiple award contract vehicle. This vehicle was determined to be the best source of meeting the required effort in the timeline needed to ensure adequate support for the technical and industrial services required by the NSSA. However, because NSSA needs for the services that are the subject of this Justification & Approval are so urgent, providing a fair opportunity would result in unacceptable delays; accordingly, an exception to competition is being sought.

9. Interested Sources: This proposed action will not be synopsized on the Federal Business Opportunities Page in accordance with FAR 5.202(a)(6). In accordance with FAR 16.505(b)(2)(ii)(D), the justification shall be made publically available at the Government Wide Point of Entry (GPE) http://www.fedbizopps.gov.

10. Other Facts:

a. Procurement History:

Contract Number Contractor Award Date

Extent Competed/Authority

W15P7T-10-D- D416 Task Order

DRS 27-Sep-13 Competed under R23G

( Under Protest)

W15P7T-10-D- D413 Task Order

CACI 18-Aug-12 Competed under R23G

b. Acquisition Data Availability: The Government possesses a Performance Based

Work Statement suitable for full and open competition.

c. Subcontracting Competition: FAR 52.244-5, Competition in Subcontracting, is included in Contract Number W15P7T-10-D-D413 and will be applied to the proposed action.

11. Technical Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Dale Morse Date: 20 November 2013 Maintenance Reqmts & Policy Manager Signature:

12. Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

William R. Hutsenpiller Date: 20 November 2013 Director, Financial Management & Support

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated price to the Government for this contract action is fair and reasonable, based on an Independent Government Cost Estimate, cost/price analysis, including the utilization of existing rates on the base R23G contracts which were evaluated and awarded through full and open competition. Additionally, certified cost or pricing data will be obtained.

Lane M. Gary Date: 20 November 2013 Procuring Contracting Officer

14. Contracting Officer Certification: The requirement herein described is a valid requirement of the activity named in paragraph 1 of this justification. The technical and requirements information contained in the justification represent the minimum needs of the Government. The only way to satisfy this requirement is by limiting completion as described herein. I certify that this justification is accurate and complete to the best of my knowledge and belief.

Lane M. Gary Date: 20 November 2013 Procuring Contracting Officer

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of technical and administrative support services in support of the Norfolk Ship Support Activity for an estimated amount of $5.34M. This action is authorized for an exception to fair opportunity pursuant to the authority of FAR 16.505(b)(2)(i)(A), subject to the availability of funds, and provided that the services described herein have otherwise been authorized for acquisition. If the proposed contract action is not completed within 180 days from the below date, this Justification and Approval shall be returned to the Competition Advocate for revalidation. Additionally, if any changes to the requirements, basis for the justification, market conditions or increases in the estimated value of the proposed action occur at any time, the Contracting Officer shall document these changes in a memorandum and obtain review/concurrence from the Special Advocate for Competition.

Date: _________________ Signature: _____________________________

Cynthia A. Jackson Special Advocate for Competition