CTIMR Work Area 2 Bridge Contract
Added: May 23, 2017 1:20 pm JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION 1. Agency and Contracting Activity. The U. S. Customs and Border Protection (CBP), Border Patrol Air and Marine (BPAM). The contracting activity, CBP, Procurement Directorate, proposes to enter into a contract on a basis of other than full and open competition. Requesting Office:U.S. Customs and Border Protection (CBP)Border Patrol Air and Marine Program Management Office (BPAM)1331 Pennsylvania Ave NW, 1220 NWashington, DC 20004 Contracting Office: US Customs and Border Protection (CBP)Procurement Directorate1331 Pennsylvania Ave, N.W. NP 1355NWashington, DC 20229 2. Nature and/or description of the action being approved. This Justification and Approval (J&A) has been prepared by the CBP, BPAM Program Management Office (PMO) to request the award of a sole source follow-on bridge cost plus fixed fee type contract to Kellogg Brown & Root Services, Inc. (KBR) to continue critical maintenance and repair (M&R) support within the Work Area 2 (Tucson and Yuma Sectors). This acquisition will have an eight-month base period of performance from July 22, 2017 to March 21, 2018 with 2 two-month options. The need for this effort is to mitigate a break in service on the existing Comprehensive Tactical Infrastructure Maintenance and Repair (CTIMR) contract HSBP1016C00008 awarded by CBP to KBR which expires July 21, 2017, and will also allow sufficient time for competition for the follow-on (one year base and four one-year options) contract, for which planning began in July 2016, resulting in a change in CBP’s acquisition strategy. There is currently a 6-month extension option available under contract HSBP1016C00008. However, the ceiling price of the contract will be reached by the end of the base year and therefore, CBP is unable to exercise the option. 3. Description of Supplies/Services. Contract Number HSBP1016C00008 was awarded on July 22, 2016 to large business, Kellogg Brown & Root Services, Inc. (KBR) as a 1-year bridge contract. The award of this bridge contract allowed for continuity of CTIMR support (encompassing M&R services) along the Southern Arizona Border and surrounding areas in Work Area 2 while a competition for a follow-on contract was conducted, and included the same scope of work that was included in Contract Number HSBP1016C00008. M&R support provided for the Tactical Infrastructure (TI) along the Southern international border (consisting of five work categories: fence and gates; roads and bridges; drainage and grate systems; lighting and electrical systems; and vegetation control and debris removal) includes maintenance work activities that preserve or sustain the ability of the asset to continue to carry out its intended function or preserve its established level of performance, as well as making repairs to restore existing TI assets to pre-existing conditions, design standards, and level of performance so that it may be effectively utilized for its designated purpose. The M&R work required to support the TI varies based on the inventory quantities for each work category, the number and type of incidents, time of year (variances in illegal border traffic fluctuate with the time of year), economic conditions, weather events, and location. Currently, KBR is performing under this bridge contract ending on July 22, 2017 with a total contract ceiling of $12,345,404. The estimated value for the new sole source bridge is as follows: Period Unit Price Total Base Period 08 months $ $ Option Period 1 02 months $ $ Option Period 2 02 months $ $ Total 4. Identification of Statutory Authority Permitting Other Than Full and Open Competition. 41 U.S.C. 3304(a)(1), as implemented by FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements. 5. Demonstration That the Nature of the Acquisition Requires Use of the Authority Cited. Contract Number HSBP1016C00008 was awarded as a follow-on bridge contract to the original contract HSBP1011C00042 that was awarded on January 21, 2014 under a full and open competition to KBR. During the base year period of performance of contract HSBP1011C00042, the requirements for M&R and improvement support in Work Area 2 had increased beyond the established contract ceiling, which required CBP to utilize the entire available ceiling during Option Year 1 of the contract. Because of the expedited burn rate, CBP reduced the period of performance of contract HSBP1011C00042 by 1 year (ending on July 21, 2016) and awarded a bridge contract HSBP1016C00008 on July 22, 2016 to provide continuity of the M&R support required while a re-compete for a long-term contract could be executed. The planning for the long-term contract re-compete began immediately after the award of the bridge contract on July 22, 2016. During this time, CBP implemented a strategic initiative to convert all existing CTIMR contracts from a cost plus fixed fee to a firm fixed price acquisition strategy. To meet this initiative, the BPAM PMO was required to take additional measures to collect the data required to support this strategy, including conducting a comprehensive inventory of all existing assets in Work Area 2 and itemizing the current condition and details of each asset. However, Work Area 2 (which encompasses 388 miles) contains the largest amount of tactical infrastructure in the CTIMR portfolio and has a significant amount of inventory (consisting of approximately 341 miles of fence and 1,500 miles of road). CBP has compiled data that will allow a significant portion of the effort to be firm fixed price. However, due to the monsoon season, frequent weather events that occur in Arizona, and fence breeches, there is still data that CBP does not have that would facilitate the execution of a complete firm fixed price type contract in this Work Area. Award of this short term CPFF contract with the incumbent will provide more time to collect data and information to support CBP’s strategic initiative to enter into a competitive long-term FFP or FFP/CPFF contract for Work Area 2. Currently, KBR is performing under the bridge contract which ends on July 22, 2017. The contract contains a total ceiling of $12,345,404, which was established during contract performance to respond to the requirements demand. CTIMR support services are essential to CBP due to the critical need to maintain continuity of operations along our borders in the execution of CBP’s national security mission. The absence of these services would jeopardize the safety of Border Patrol agents who monitor illegal activities along the border. Required M&R activities such as the repair of potential fence breaches, road outages, lighting issues, and other natural impediments would place the agents in harm’s way and increase the potential for illegal entries, drug smuggling and terrorist activities in those locations containing inadequately maintained Tactical Infrastructure. The Government will sustain serious injuries unless the agency is permitted to limit the number of sources from which it solicits bids or proposals. In addition, a delay in the award of a contract would result in serious injury, financial or other, to the Government. The current contractor has the knowledge base and experience to provide continuity to the effort. Based on the ramp up time required during the transition from one contractor to a new contractor, it could take upwards of six (6) months or more to begin operations with a new contractor. Based on CBP’s experience transitioning new contractors onto other CTIMR contracts, a six-month period is the average time it takes to fully transition current requirements from one contractor to the other. This transition time would leave a significant gap in the services being performed that would be to the detriment of the CBP mission. Such delays would impact and jeopardize the safety of Border Patrol agents who monitor fence breaches by causing added distance driving to avoid road wash outs or limited visibility due to uncontrolled vegetation or debris accumulation along the fence line. These conditions put the Border Patrol agents in harm’s way as illegal activities are more likely to occur at places where border security can be easily breached. The estimated cost for the bridge effort inclusive of labor and travel is $, which encompasses the full one-year period of performance (should all options be exercised) from July 23, 2017 to July 23, 2018, and is based on the burn rate under the current bridge contract. Awarding a one-year bridge contract (should all options be exercised) for approximately $ will allow services to continue during this critical time and avoid a break in services at a juncture when these services are greatly needed. 6. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable. Upon expiration of the KBR bridge contract, CBP intends to solicit offers from as many potential sources for the follow-on five (5) year contract using Federal Business Opportunities (FBO) and other forms of communication to industry. The follow on contract will be competed and awarded to have performance begin tentatively July 23, 2018. Additionally, a future FedBizOpps announcement will be made available to the public concerning this sole source award in accordance with FAR Subpart 5.102(a)(6) and 5.2. 7. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable. The Costs of this sole source initiative are expected to be comparable to the costs/rates under the current KBR contract. No changes to labor categories, types of activities, or staffing are expected during the bridge contract’s period of performance. Therefore, actual past costs will act as the inhibitor to significant increases in labor rates/costs. In addition, CBP will perform a cost/price realism analysis pursuant to FAR 15.402 to compare the proposed rates, labor hours, material and equipment to the labor rates, hours, material, and equipment under the current KBR contract HSBP1016C00008, as well as the Government’s IGCE, and request DCAA assistance if needed. 8. Description of Market Research. A separate market research effort was conducted for this contractual action. After performing market research on companies that were capable of performing the M&R requirements contained in the SOW in both Tucson and Yuma Sectors, it was determined that fifteen (15) companies had the capabilities and experience performing similar M&R work within a majority of the five work categories (fence and gates, roads and bridges, drainage and grates, lighting and electrical, and vegetation control and debris removal). However, because this acquisition is intended to be a follow-on bridge contract with an 8-month base period and two 2-month options, CBP considered additional elements during market research. Primarily, CBP considered the amount of time that would be required to transition the current work being performed to a new contractor, and the level of risk associated with potential gaps in service during the period when the new contractor was assuming full M&R responsibilities in Tucson and Yuma Sectors. Based on previous experience transitioning incoming new contractors onto other similar CTIMR contracts, it averages six-months or more to fully transition all current ongoing work requirements from one contractor to the other. This transition time would leave a significant gap in the services being performed that would be to the detriment of the CBP mission. Such delays would impact and jeopardize the safety of Border Patrol agents who monitor fence breaches by causing added distance driving to avoid road wash outs or limited visibility due to uncontrolled vegetation or debris accumulation along the fence line. These conditions put the Border Patrol agents in harm’s way as illegal activities are more likely to occur at places where border security can be easily breached. Additionally, an award to a contractor other than the incumbent would require a transition period for the new contractor that would consume a significant amount of time during the short-term contract where the Government would not be receiving adequate services to support its mission critical needs. Thus, awarding this requirement to another competitor for an 8-month base period would result in substantial delays in performance, national security concerns, and significantly increased cost to the Government. Subsequently, although the companies identified tough market research were deemed capable of performing the work required, they would all be new contractors to Work Area 2. And, the amount of time required to transition all Work Area 2 requirements from the current contractor to a new incoming contractor is considered to be a significant risk that could potentially impact ongoing border patrol operations due to a delay in receiving the same level of M&R services currently provided by the current contractor. 9. Any Other Facts Supporting the Use of Other Than Full and Open Competition. If the bridge contract is not awarded, CBP will not have the services needed to maintain continuity of operations and national security along our borders in the execution of CBP’s mission. The absence of these services would jeopardize the safety of Border Patrol agents who monitor illegal activities along the border, as potential fence breaches, road outages, lighting issues, and other natural impediments would place the Border Patrol agents in harm’s way and increase the potential for illegal entries, drug smuggling and terrorist activities, and other disasters in those locations with Tactical Infrastructure that are not properly maintained. For example, a fence breach means that unauthorized individuals (to include drug smugglers, human traffickers or terrorists) can penetrate into the United States, and a road outage (washed away or damaged) means that Border Patrol Agents may be unable to physically patrol a section of the border, respond to unauthorized entries or respond to emergency situations in that area, or provide timely backup to other agents in need, thereby severely impacting CBP’s mission. As a result of the need to use only one source, stemming from the expiration of the current contract on July 22, 2017, the incumbent contractor is the only known company with the ability to immediately support this requirement with limited risks to the government and safety of the Border Patrol Agents. Currently, KBR has competent, knowledgeable, and stable program management and M&R staff performing all CTIMR work requirements in Work Area 2 (both urgent and routine) and has the ability to continue providing this uninterrupted support for CBP. Despite CBP’s best efforts to develop a viable Firm Fixed Price acquisition strategy that would be ready for competition before the expiration of the current KBR contract (on July 23, 2017), the significant level of effort (as described in Section 2) precluded CBP from accomplishing this, resulting in an unexpected delay to the implementation of the strategy. Thus, awarding a new competitive contract vehicle cannot be accomplished before July 23, 2017. Additionally, based on previous experience in Work Area 2, as well as the other Work Areas within the CTIMR program, it takes a minimum of 6 months to properly transition-in a new contractor, to include transitioning activities from the current contractor, training contractor staff on CTIMR specific M&R requirements, environmental and real estate issues, and invoicing procedures, and ramping up program management and M&R staff to a full level. That is a significant amount of time for an 8-month base period of performance. KBR will not require a transition, thereby saving the Government time and money in onboarding a new contractor. The length of time required to transition in a new contractor also impedes on CBP being able to logistically award a new competitive contract vehicle prior to the expiration of the current contract in July 2017. By using the current contractor, the government would realize a cost-savings in the startup cost associated with this requirement. The onboarding and security clearance process also plays a factor and would delay performance of a new contractor and pose even greater risk to the government. The current contractor has the necessary staff, knowledge, and continuity to accomplish the work during the entire bridge period of performance so that work can continue without interruption. 10. A Listing of the Sources, if Any That Expressed, in Writing, an Interest in the Acquisition. Although no offerors provided a written interest in proposing to this specific requirement, the following offerors expressed an interest in smaller contracts performing similar M&R work within Work Area 2: a) DBR General Engineeringb) Martinez Service, Inc.c) Red One Construction, LLC 11. A Statement of the Actions, if Any, the Agency May Take to Remove or Overcome Any Barriers to Competition Before Any Subsequent Acquisition for Supplies or Services Required. Awarding a bridge contract due to the nature of the operation and maintenance requirements for CTIMR Work Area 2 will allow sufficient time for CBP to successfully re-compete the requirement by means of a long-term follow-on contract competition. The estimated timeframe for releasing the long-term follow-on contract solicitation is September 2017, with a projected award date in July 2018. 12. Planning and Funding Statement. The current contract will expire on July 23, 2017, and an 8-month bridge contract (with two 2-month option periods) will be required no later than July 24, 2017 to allow the continuation of critical M&R activities under the contract for a total twelve-month period of performance (ending July 23, 2018) should all options be exercised. This acquisition is not a result of lack of planning or expiration of funds. HSBP1017R00008 Department of Homeland Security Customs and Border Protection
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