Emergency Drydock Repairs and Pier Side Support JOFOC

In accordance with the requirements of the Competition in Contracting Act (41 U.S.C. 253), as implemented by FAR 6.303, the following information is submitted to support an acquisition without full and open competition. Background: On August 10, 2011, Greg Speer, National Oceanic and Atmospheric Administration ( NOAA), Office of Marine and Aviation Operations (OMAO) Port Engineer submitted requisition number NMAN7200-11-03431 to provide emergency drydock repairs to NOAA Ship Rainier's main rudder in the amount of $145K. The requisition included a government estimate, SOW, and CD-492 Justification for Other Than Full and Open Competition. The requisition was requested because, NOAA Ship Rainier was in the process of proceeding into Alaskan waters to conduct hydrographic surveys, but before leaving Puget Sound the ship's main rudder failed, making it impossible for the ship to transit in any restricted navigation areas, such as those in Alaskan waters. As a result of the rudder casualty, it was decided that emergency drydock repairs were necessary to resolve the problem. An IFB was released to the maximum number of bidders practicable on August 11, 2011, with a bid due date of August 15, 2011 at 2:00 PM Pacific. Three amendments to the solicitation were issued: 0001, which provided additional drawings and responses to requests for clarification; 0002, which extended the bid due date and time to August 16, 2011 at 2:00 PM Pacific; and 0003, which revised the period of performance clause and added clauses for electronic bid submission. On August 17, 2011, the low bidder of two bids submitted, Lake Union Drydock Company was selected and notified of contract award in the amount of $185,278.00. On August 18, 2011 at 5:00 AM, NOAA Ship Rainier was successfully drydocked at Lake Union Drydock, however the ship's main emergency switchboard failed during the drydocking evolution. The failure of the ship's main emergency switchboard is considered a category 1 casualty and therefore the ship would be unable to leave Lake Union Drydock after completion of the rudder repairs based on safety concerns and NOAA regulations. Due to the unusual and compelling urgency of the requirement to also fix the ship's main emergency switchboard, it was decided to also sole source a dockside support service requirement to Lake Union Drydock Company as a modification to the contract for emergency drydock repairs. On August 24, 2011 the Contract Specialist, Anthony Buch, submitted a request for quote to Lake Union Drydock Company for emergency dockside support services via e-mail attachment. Lake Union Drydock responded with a quote via email on August 24, 2011 and proposed fixed-price rates for all the services in accordance with their GSA schedule contract number: GS-21F-0152W, with the exception of Alongside Pier (moorage) in the amount of tiny_mce_marker______. The total value of the contractor's quote was tiny_mce_marker________, but after negotiations were conducted the contractor agreed to remove the Alongside Pier cost and the quote was reduced by tiny_mce_marker_______ from tiny_mce_marker________ to $15,836.70. I. Agency and Contracting Activity NOAA Acquisition & Grants Office Western Acquisition Division (WAD) 7600 Sand Point Way NE Seattle, WA 98115 II. Description of Action Being Approved NOAA'S Marine Operations Center-Pacific (MOC-P) is seeking to award a sealed bid other than full and open competition, firm-fixed-price contract for emergency drydock repairs to fix NOAA ship Rainier's rudder which sticks in certain angles and to obtain a sole-source emergency dockside support services modification to the emergency drydock ship repair contract. Delivery of the vessel is to take place 24 days after award of the contract. As authorized under FAR Part 6.302-2, in unusual, compelling, and urgent circumstances, the Justification for Other Than Full and Open Competition may be made and approved after contract award. III. Description of Services Required to Meet the Agency's Needs MOC-P emergency drydock repairs to fix NOAA ship Rainier's main rudder to allow the ship to navigate safely in restricted waters. Thus, the goals of this work are to allow NOAA ship Rainier to transit safely, as scheduled, through narrow and tight passages in Alaskan waters; the ship is currently behind its underway schedule. The following tasks are required for this work: 1. General Requirements for Work & Temporary Services 2. Emergency Drydocking 3. Rudder & Rotary Actuator Overhaul 4. Towing to Shipyard Additionally, after contract award, and while the ship was entering the drydock for emergency repairs, the ship was attempting to switch to emergency power but the switch failed. The failure was determined to have been caused by the main emergency switchboard breaker which failed. Under NOAA's Fleet Safety Standards, this failure is considered a category 1 failure and the ship must be repaired before it can depart safely. As such, it was determined that emergency dockside support service will be required once the rudder repairs are complete. IV. Statutory Authority Permitting Other than Full and Open Competition Pursuant to 41 U.S.C. 253(c) (1), as implemented by FAR 6.302-2, full and open competition is not required when the requirement is considered of unusual and compelling urgency. V. Applicability of Authority The NOAA ship Rainier is currently delayed from its planned scientific availability period and should already be bound for Alaskan waters to conduct hydrographic surveys. The unusual and compelling urgency of the requirement to fix the ship's rudder justifies the need to limit the requirement for full and open competition. If the Government was unable to limit the number of sources from which it solicits bids from, the Government would be seriously injured in its ability to fulfill its mission. Any delay in award of a contract would result in serious financial and other injury to the Government. Emergency dockside services are also required due to the nature of the failure to the main emergency switchboard breaker, which if the ship is operated under those conditions, it could result in extreme damage to life and property if the ship lost power while transiting in the enclosed Lake Union area. VI. Efforts to Obtain Competition To identify potential contractors with expertise and experience for the initial rudder repair, a quick internet search and review of past ship repair contracts was conducted to identify any possible contractors with the required drydock facilities, experience, and personnel necessary to carry out the repairs. As a result of the market research efforts, six potential contractors were identified to participate in a sealed bid solicitation for the required services. This is in accordance with FAR 6.302-2(c)(2) which states that "This statutory authority requires that agencies shall request offers from as many potential sources as is practicable under the circumstances." The following contractors were provided a solicitation for bid: 1. Cascade General 2. Lake Union Drydock Company 3. Vigor Industrial 4. Bay Ship & Yacht 5. Todd Shipyard 6. Federal Marine & Defense Services No other competition was sought for the emergency dockside support services, as the failure of the ship's main emergency switchboard breaker did not become apparent until after contract award. The potential extreme danger of moving the ship any great distance without its main emergency switchboard breaker necessitated the immediate dockside support requirement. VII. Determination of Fair and Reasonable Cost Although it was not possible under the circumstances to provide for full & open competition, the limited competition provided a substantial expectation for competition and provided a competitive environment. This resulted in comparable pricing to other past competitively awarded solicitations for similar work despite the compressed delivery schedule. Two contractors submitted bids under this solicitation: VIGOR Marine of Portland, OR and Lake Union Drydock Company of Seattle, WA. Lake Union Drydock Company was the lowest bidder and was selected for award. Emergency dockside support services were not included in the original limited competition IFB for the rudder repairs, but Lake Union Drydock agreed to modify the contract to incorporate the emergency dockside support services in accordance with their current GSA schedule rates for those items identified in the request for quote for the modification. In accordance with FAR 8.404(d), GSA has already determined prices of supplies and fixed-price services, and rates for services offered at hourly rates, under schedule contracts to be fair and reasonable. Therefore, ordering activities are not required to make a separate determination of fair and reasonable pricing, except for a price evaluation as required by 8.405-2(d). VIII. Market Research To identify potential contractors with expertise and experience, a quick internet search and review of past ship repair contracts was conducted to identify any possible contractors with the required drydock facilities, experience, and personnel necessary to carry out the repairs. As discussed above, a bidders' list of 6 companies was included in the initial IFB competition. Due to the unusual, compelling, urgency of the requirement, and the high possibility of danger associated with moving the vessel without a functioning main emergency switchboard breaker, the decision was made to keep the vessel at Lake Union Drydock, so no market research was conducted for emergency dockside support services. IX. Other Facts Supporting The Use of Other Than Full And Open Competition A form CD-492 (Justification for Other Than Full & Open Competition) was submitted by OMAO, MOC-P and is located in the contract file and the sole-source request was approved by Greg Speer, NOAA ship Rainier Port Engineer and by Capt. Donald W. Haines, NOAA. X. List of Interested Sources: Lake Union Drydock Company and Vigor Marine, LLC submitted bids under solicitation number AB133M-11-RB-0018. No bids were solicited for emergency dockside support services. XI. Steps to Foster Competition Most ship repair requirements are competed, but future requirements that also are of unusual compelling urgency will most likely be limited due to the circumstances, but every effort will be made to identify as many potential bidders possible.