Manufacture and test of three (3) 4.75" Anchor Swivels

DEPARTMENT OF THE NAVY N O R F O L K N AV A L S H I P Y A R D P O R T S M O U T H , V I R G I N I A 2 3 7 0 9 - 5 0 0 0 J&A Number: FY23-10 Code: NNSY 431 Purchase Request Number: N4215823RC30595 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 Lister Chain and Forge for the procurement of 3 Anchor Swivels to support the USS HARRY S. TRUMAN (CVN 75). 3. Description of Supplies/Services CVN 75 Project Team requires the manufacture of three (3) 4.75'carrier anchor swivels to support CVN-75 safe anchorage. The Independent Government Estimate (IGE) for this requirement is $300,000.00. This procurement is being funded with FY23 Operations and Maintenance, Navy (O&M, N) funding. Cost breakdown is as follows; Labor=600 mandays @ $500.00/ manday = $250,000/00. Material = $50,000.00 Total = $300,000.00 The estimated period of performance is 17 March 2023 - 30 June 2023. The Government's minimum needs have been verified by the certifying technical and requirements personnel. 4. Statutory Authority Permitting a Single Source Acquisition 41 U.S.C 1901 as implemented by Federal Acquisition Regulation (FAR)Subpart 13.5 - Simplified Procedures for Certain Commercial Items. 5. Rationale Justifying Use of Cited Statutory Authority Lister Chain and Forge is the OEM (Original Equipment Manufacturer) for all US Navy 4.75 anchor chain. There is no other known source that is capable of handling or Manufacturing such a large chain and anchor swivel. Additionally, Lister Chain & Forge is the only source for destructive test and certification, and Lister routinely maintains Mil- Spec material on hand to facilitate the fabrication of anchor swivels of this size and remain compliant to the requirements of NAVSEA Drawing 803-6397253 Chapter 581. As a manufacturer of U.S. Navy approved anchor chain swivel shackle assemblies (and other chain parts), Lister Chain & Forge is certified in their operation, testing & repair. Use of any other non-certified company would be leaving the vessel in peril during safe anchorage. NNSY does have the capability to do minor repairs but not to manufacture the complete units and do a full test. 6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable Market Research was conducted in January 2023 prior to issuing the solicitation (N4215823Q0011) for anchor swivel repair. The market research revealed that there were three previous contracts (N0024417P0608, N3220519P6549, N001821P0413) awarded between 2017 to 2021 that were executed for smaller diameter swivels at a much higher cost to the Government. The table below shows the previous contracts with a price range of $22,345.00 to $77,390.00. Contract Number Award Date Price Contractor Summary of Service N0024417P0608 Sep 5, 2017 $77,390.00 Lister Chain & Forge 3 forged U.S. Navy swivel N3220519P6549 July 9, 2019 $57,676.00 Lister Chain & Forge 1-7/8 outboard swivel assy (complete) includes: (3EA) detachables, (1EA) bending shackle, (!EA) forged swivel, (1EA) studded end link, 1-7/8 stud link anchor chain common links N001821P0413 July 28, 2021 $22,345.00 Ocean Products Research, Inc. Grade 3 Swivel for 3-1/2 diameter anchor chain Code 400 previously attempted to solicit the repair of two (2) 4.75 anchor swivels in January 2023 via Request for Quote (RFQ) N4215823Q0011 and received no offers aside from Lister Chain & Forge. The Specialist reached out to Ocean Products Research, Inc. (OPR) to see if OPR might be interested in this work. OPR's POC stated OPR might be interested; however, OPR later declined once it was realized that the required swivel size was 4.75. Subsequently, contract N4215823P0014 was awarded to Lister Chain & Forge. 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 Costs 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 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. WOODLEY.COURTNE Digitally signed by Y.TABITHA.14740266 WOODLEY.COURTNEY.TABITHA.1 474026619 19 Date: 2023.03.17 11:32:46 -04'00' Courtney Woodley 17 March 2023 CERTIFICATIONS AND APPROVAL TECHNICAL/REQUIREMENTS CERTIFICATION I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, except as noted herein, are complete and accurate to the best of my knowledge and belief. TECHNICAL/REQUIREMENTS COGNIZANCE: Signature Name (Print) Date LEGAL SUFFICIENCY REVIEW I have determined this justification is legally sufficient. JAMES.WILLIAM.RYAN.128519 6473 Digitally signed by JAMES.WILLIAM.RYAN.1285196473 Date: 2023.03.17 12:12:38 -04'00' Signature Name (Print) Date CONTRACTING OFFICER CERTIFICATION/APPROVAL I certify that this justification is accurate and complete to the best of my knowledge and belief. Upon the basis of the above justification, I hereby approve the solicitation of the proposed procurement described herein. Signature Name (Print) Date