Loren Data Corp.

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COMMERCE BUSINESS DAILY ISSUE OF NOVEMBER 23,1999 PSA#2481

Department of the Navy, Naval Sea Systems Command, 2531 Jefferson Davis Highway, Arlington, VA 22242-5160

19 -- PERSONNEL BOAT (MEDIUM) SOL N00024-00-R-2207 DUE 120799 POC Stephen V. Piasecki, SEA 02222, Contracting Officer, 703/602-3102, X222 The proposed contract action described below is for supplies for which the Government intends to solicit and negotiate with only one contractor under authority of FAR 6.302-1. This notice of intent is not a request for competitive proposals. The Naval Sea Systems Command intends to issue a firm fixed price sole source modification to an existing contract, contingent on the availability of funds, to Willard Marine, Inc. (WMI), Anaheim, CA, for two (2) additional Personnel Boats (Medium) (PE(M)). As a result of WMI's involvement in a current contract for the construction of the PE(M), WMI is in the unique position to significantly reduce the time and cost required for the construction of two additional boats because of the following: an existing programmatic infrastructure, technical expertise, design data and drawings, tooling (molds), and production facilities. An award to any other source would result in substantial duplication of efforts (and costs to the Government ) already accomplished and available at WMI and pose inherent cost and schedule risk that would not be recovered through competition.. Furthermore, WMI has already absorbed, and the Government has paid, the non-recurring costs associated with this project. Due to the low increase in quantity of this additional effort, another firm could not be competitive since such a firm would have to include, and the Government would have to pay, the same non-recurring costs already paid to WMI on the ongoing PE(M) contract. In addition, the small increase of two boats offers a competing contractor little opportunity for cost reductions due to learning. Posted 11/19/99 (W-SN402195). (0323)

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