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SOLE SOURCE JUSTIFICATION MEMORANDUM FOR A SEAMLESS PRESSURE VESSEL ASSEMBLY (PR 1300875359) Identification of the agency and the contracting activity, and specific identification of the document as a... SOLE SOURCE JUSTIFICATION MEMORANDUM FOR A SEAMLESS PRESSURE VESSEL ASSEMBLY (PR 1300875359) Identification of the agency and the contracting activity, and specific identification of the document as a “Sole Source Justification.” This is a sole source justification. Contracting activity is NSWC-PCD, Code 024, 110 Vernon Ave., Panama City, FL, 32407. Nature and/or description of the action being approved. This action will award a firm fixed price order to CP Industries, 2214 Walnut Street, McKeesport, PA 15132-7098. A description of the supplies or services required to meet the agency’s needs (including the estimated value). The vendor shall provide one (1) two-vessel assembly. Vessel Spec: Seamless pressure vessel to ASME UPV Code Section VIII, Division 1, Appendix 22, Safety Factor 3 to 1 for dry gas, non-corrosive service. Design temperature -20 F to +200 F. Vessel material is SA372 Grade J, Class 70. Vessel Size shall be 16" OD x 1.25” Min wall x 9' 6" Long. Design Pressure of 6000 psi Assembly water volume of 14 cu.ft. Vessels will be supplied in a vertical assembly with ¾” SAE outlet plug openings both ends. No OD neck threads. Vessels will not be final shear wave UT inspected or certified for hydrogen or CNG service and will be so marked. Vessels will be painted with a coat of primer and a finish coat of white urethane enamel (2 coats enamel). An approval drawing will be submitted upon receipt of an order. Reference drawing 8X15407. (Drawing Proprietary to CPI). This acquisition will be conducted using simplified acquisition procedures with a total estimated value greater than $25,000. The Government's minimum needs have been verified by the certifying technical and requirements personnel. This memo does not authorize acquisition for other requirements. This purchase will be funded with FY20 Navy Working Capital funding. Identification of the justification rationale and, if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service. 10 U.S.C. 2304(c) - Only one responsible source and no other supplies or services will satisfy agency requirements, FAR 6.302-1. The Hydrospace Laboratory has a current need to replace the existing pressure vessel assembly. The tanks have rusted and are no longer usable. The design of these tanks is proprietary to CP Industries reference drawing number 8X15407 (Drawing Proprietary to CPI). If another vendor were to be selected, they would be required to develop pressure vessels that would integrate into the existing system, resulting in unacceptable delays. As such, the government does not expect significant savings through competition and it is more advantageous to the Government to award on a sole source basis to CP Industries for the two- vessel assembly. A determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 13.106-1(b). The Contracting Officer has determined that the order represents the best value and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government’s needs. A description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted. For the reasons specified in paragraph 4 above, CP Industries is the only source that can meet the Government’s needs. This requirement will be synopsized in the government point of entry beta.sam.gov because it is estimated greater than $25,000.00. Any other facts supporting the justification. None. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made. As stated in paragraph 4 above, CP Industries is the only source that can meet this requirement. Section C – Specifications Minimum Requirements for Access to Controlled Unclassified Information (CUI): Prior to access contractor personnel requiring access to DON controlled unclassified information (CUI) or "user level access to DON or DoD networks and information systems system security and network defense systems or to system resources providing visual access and/or ability to input delete or otherwise manipulate sensitive information without controls to identify and deny sensitive information" contractors must have clearance eligibility or submit an Electronic Questionnaire for Investigation Processing (SF 86) to NSWC PCD Security for processing and subsequent adjudication by the DOD Consolidated Adjudications Facility. Minimum Protection Requirements for Controlled Unclassified Information: Security classification guides (OPNAVINST 5513 series) and unclassified limited documents (e.g. FOUO Distribution Statement Controlled) are not authorized for public release and therefore cannot be posted on a publicly accessible webserver or transmitted over the Internet unless appropriately encrypted. Controlled Unclassified Information (CUI): Controlled unclassified information (CUI) is official information that requires the application of controls and protective measures for a variety of reasons and has not been approved for public release to include technical information proprietary data information requiring protection under the Privacy Act of 1974 and Government-developed privileged information involving the award of contracts. CUI is a categorical designation that refers to unclassified information that does not meet the standards for National Security Classification under Executive Order 13526 but is (a) pertinent to the national interest of the United States or to the important interests of entities outside the Federal Government and (b) under law or policy requires protection from unauthorized disclosure special handling safeguards or prescribed limits on exchange or dissemination. For Official use Only (FOUO) is a document designation not a classification. This designation is used by Department of Defense (DoD) and a number of other federal agencies to identify information or material which although unclassified disclosure to the public of the information would reasonably be expected to cause a foreseeable harm to an interest protected by one or more provisions of the FOIA. This includes information that qualifies for protection pursuant to the provisions of the Privacy Act of 1974 as amended. FOUO must be marked controlled and safeguarded in accordance with DoD 5200.01 Vol. 4 DoD Information Security Program: Controlled Unclassified Information (CUI) February 24 2012 Security of Unclassified DoD Information on Non-DoD Information Systems (DoD 8582.01) DoD policy: adequate security be provided for all unclassified DoD information on non-DoD information systems. Appropriate requirements shall be incorporated into all contracts grants and other legal agreements with non-DoD entities. Information Safeguards are applicable to unclassified DoD information in the possession or control of non-DoD entities on non-DoD information systems to the extent provided by the applicable contract grant or other legal agreement with the DoD. Information Safeguards Unclassified DoD information that has not been cleared for public release may be disseminated by the contractor grantee or awardee to the extent required to further the contract grant or agreement objectives provided that the information is disseminated within the scope of assigned duties and with a clear expectation that confidentiality will be preserved. Examples include: a. Non-public information provided to a contractor (e.g. with a request for proposal) b. Information developed during the course of a contract grant or other legal agreement (e.g. draft documents reports or briefings and deliverables) c. Privileged information contained in transactions (e.g. privileged contract information program schedules contract-related event tracking) It is recognized that adequate security will vary depending on the nature and sensitivity of the information on any given non-DoD information system. However all unclassified DoD information in the possession or control of non-DoD entities on non-DoD information systems shall minimally be safeguarded as follows: a. Do not process unclassified DoD information on publically available computers (e.g. those available for use by the general public in kiosks or hotel business centers) b. Protect unclassified DoD information by at least one physical or electronic barrier (e.g. locked container or room logical authentication or logon procedure) when not under direct individual control of an authorized user. c. At a minimum overwrite media that have been used to process unclassified DoD information before external release or disposal. d. Encrypt all information that has been identified as CUI when it is stored on mobile computing devices such as laptops and personal digital assistants compact disks or authorized removable storage media such as thumb drives and compact disks using the best encryption technology available to the contractor or teaming partner. e. Limit transfer of unclassified DoD information to subcontractors or teaming partners with a need to know and obtain a commitment from them to protect the information they receive to at least the same level of protection as that specified in the contract or other written agreement. f. Transmit e-mail text messages and similar communications containing unclassified DoD information using technology and processes that provide the best level of privacy available given facilities conditions and environment. Examples of recommended technologies or processes include closed networks virtual private networks public key-enabled encryption and transport layer security (TLS) g. Encrypt organizational wireless connections and use encrypted wireless connections where available when traveling. If encrypted wireless is not available encrypt document files (e.g. spreadsheet and word processing files) using at least application-provided password protected level encryption. h. Transmit voice and fax transmissions only when there is a reasonable assurance that access is limited to authorized recipients. i. Do not post unclassified DoD information to website pages that are publicly available or have access limited only by domain or Internet protocol restriction. Such information may be posted to website pages that control access by user identification and password user certificates or other technical means and provide protection via use of TLS or other equivalent technologies during transmission. Access control may be provided by the intranet (vice the website itself or the application it hosts) j. Provide protection against computer network intrusions and data exfiltration minimally including: (1) Current and regularly updated malware protection services e.g. anti-virus anti-spyware. (2) Monitoring and control of both inbound and outbound network traffic (e.g. at the external boundary sub-networks individual hosts) including blocking unauthorized ingress egress and exfiltration through technologies such as firewalls and router policies intrusion prevention or detection services and host-based security services. (3) Prompt application of security-relevant software patches service packs and hot fixes. k. Comply with other current Federal and DoD information protection and reporting requirements for specified categories of information (e.g. medical proprietary critical program information (CPI) personally identifiable information export controlled) as specified in contracts grants and other legal agreements. l. Report loss or unauthorized disclosure of unclassified DoD information in accordance with contract grant or other legal agreement requirements and mechanisms. m. Do not use external IT services (e.g. e-mail content hosting database document processing) unless they provide at least the same level of protection as that specified in the contract or other written agreement. Operations Security Operations Security (OPSEC) is concerned with the protection of critical information: facts about intentions capabilities operations or activities that are needed by adversaries or competitors to bring about failure or unacceptable consequences of mission accomplishment. Critical information includes information regarding: - Operations missions and exercises test schedules or locations; - Location/movement of sensitive information equipment or facilities; - Force structure and readiness (e.g. recall rosters); - Capabilities vulnerabilities limitations security weaknesses; - Intrusions/attacks of DoD networks or information systems; - Network (and system) user IDs and passwords; - Movements of key personnel or visitors (itineraries agendas etc.); and - Security classification of equipment systems operations etc. The contractor subcontractors and their personnel shall employ the following countermeasures to mitigate the susceptibility of critical information to exploitation when applicable: - Practice OPSEC and facilitate OPSEC awareness; - Immediately retrieve documents from printers assessable by the public; - Shred sensitive and Controlled Unclassified Information (CUI) documents when no longer needed; - Protect information from personnel without a need-to-know; - When promulgating information limit details to that essential for legitimacy; - During testing and evaluation practice OPSEC methodologies of staging out of sight desensitization or speed of execution whenever possible. Section F - Deliveries or performance F.O.B. 52.247-34 FOB Destination, Section G 252.232-7003 Electronic Submission of Payment Requests and Receiving Reports (Dec 2018) 252.232-7006 Wide Area Workflow Payment Instructions Section I – Contract Clauses 52.203-12 Limitation on Payments to Influence Certain Federal Transactions (Oct 2010) 52.204-25 Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment. 52.204-13 System for Award Management Maintenance (Oct 2018) 52.204-19 Incorporation by Reference of Representations and Certifications (Dec 2014) 52.209-6 Protecting the Government’s Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment (Oct 2015) 52.212-4 Contract Terms and Conditions -- Commercial Items (May 2015) 52.212-5 Contract Terms and Conditions Required to Implement Statutes or Executive Orders -- Commercial Items Preselected: 52.203-19 Prohibition on Requiring Certain Internal Confidentiality Agreements or Statement (Jan 2017) 52.209-10 Prohibition on Contracting with Inverted Domestic Corporations (Nov 2015) 52.233-3 Protest After Award (Aug 1996) 52.233-4 Applicable Law for Breach of Contract Claim (Oct 2004) Required: 52.222-50 Combatting Trafficking in Persons (Mar 2015) 52.223-18 Encouraging Contractor Policies to Ban Text Messaging While Driving (Aug 2011) 52.232-33 Payment by Electronic Funds Transfer--System for Award Management JUL 2013 52.232-39 Unenforceability of Unauthorized Obligations (Jun 2013) 52.232-40 Providing Accelerated Payments to Small Business Subcontractors (Dec 2013) 52.243-1 Changes Fixed-Price 252.203-7000 Requirements Relating to Compensation of Former DoD Officials (SEP 2011) 252.203-7002 Requirement to Inform Employees of Whistleblower Rights (Sep 2013) 252.204-7003 Control of Government Work Product (Apr 1992) 252.204-7009 Limitations on the Use or Disclosure of Third-Party Contractor Reported Cyber Incident Information 252.204-7012 Safeguarding Covered Defense Information and Cyber Incident Reporting (Oct 2016) 252.204-7015 Notice of Authorized Disclosure of Information by Litigation Support (May 2016) 252.215-7013 Supplies and Services Provided by Nontraditional Defense Contractors. (Jan 2018 252.225-7048 Export Controlled Items (Jun 2013) 252.232-7010 Levies on Contract Payments (Dec 2006) 252.247-7023 Transportation of Supplies by Sea (Apr 2014) 52.252-1-Solicitation Provisions Incorporated by Reference (Feb 1998) 52.252-2-Clauses Incorporated by Reference (Feb 1998) Section K - Representations, certifications, and other statements of offerors or respondents 52.203-18 Prohibition on Contracting with Entities that Require Certain Internal Confidentiality Agreements or Statements--Representation (Jan 2017) 52.204-24 Representation Regarding Certain Telecommunications and Video Surveillance Services or Equipment. 52.204-19 Incorporation by Reference of Representations and Certifications (Dec 2014) 52.209-11 Representation by Corporations Regarding Delinquent Tax Liability or a Felony Conviction (Feb 2016) 252.204-7008 Compliance with Safeguarding Covered Defense Information Controls (Oct 2016) 52.212-3 Offeror Representations and Certifications-Commercial Items (Oct 2018) Section L - Instructions Conditions and Notices to Bidders 52.212-1 Instructions to Offerors—Commercial Items (Jan 2017) 52.204-7 System for Award Management (Jul 2013 52.204-13 System for Award Management Maintenance JUL 2013 52.204-22 Alternative Line Item Proposal (Jan 2017) 52.211-14 Notice of Priority Rating 52.204-22 Alternative Line Item Proposal (Jan 2017) 252.213-7000 Notice to Prospective Suppliers on Use of Supplier Performance Risk System in Past Performance Evaluations (Mar 2018) Section M – Evaluation Factors for Award 52.212-2 Evaluation Commercial Items FAR Part 13 Best value, SPRS past performance, price and delivery terms