1. JA 22-0169 ATGHS_Naples_Redacted.pdf

SOURCE SELECTION INFORMATION – SEE FAR 2.101 & FAR 3.104

DEPARTMENT OF THE NAVY

U.S. NAVSUP FLEET LOGISTICS CENTER SIGONELLA

PSC 812 BOX 28

FPO AE 09627-0001

IN REPLY REFER TO

J&A No: 22-0169

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. CONTRACTING ACTIVITY

NAVSUP Fleet Logistics Center, Sigonella Site Naples, Italy PSC 817 Box 50

FPO AE 09622-0050

2. DESCRIPTION OF THE ACTION BEING APPROVED

FLCSI requests authority to award a third bridge modification contract to ALISUD – GESAC HANDLING – SERVISAIR 2 (ALGESE) under contract N68171-16-C-0001 to continue Air Terminal Ground Handling Services (ATGHS) at U.S.

Naval Support Activity (NSA), Naples, for a period of six months (6) months from: 01 June to 30 November 2022. FLCSI also requests additional two 3-month option periods, from 01 December 2022 to 28 February 2023, and 01 March 2023 to 31 May 2023. Request for Authorization of Bridge Contract (RABC) 22-0168 supports this action. The total contract price inclusive of the above requested extensions will be €23,426,846.10 ($26,918,127.20).

The total value of the extensions is Euro €3,091,675.50 ($3,552,425.03) using the FY22 Navy Budget Exchange Rate of $1 = €0.8703). The table below summarizes the periods of performance and associated amounts:

Above USD/Euro conversion based on FY22 Navy Budget Exchange Rate (BER): $1.00 = €0.8703.

Funding for this modification will use FY22 and FY23 Operations & Maintenance, Navy (O&MN) funds and Air Mobility Command (AMC) Transportation Working Capital Funds (TWCF). See Attachment 1 for breakdown of price for each performance period and the pro-rata shares.

On 16 February 2022, ALGESE confirmed that FLCSI would apply its current prices for the new base period of six (6) months and the two 3-month extensions. See Attachment 2.

3. DESCRIPTION OF REQUIRED SUPPLIES/SERVICES

Contract N68171-16-C-0001 (“Contract”) is for the provision of ATGHS in support of the Defense Transportation System (DTS). This includes, but is not limited to the following aircraft: all US Government-owned or operated aircraft; US-sponsored foreign Government or civil aircraft; Coalition Forces aircraft; North Atlantic Treaty Organization (NATO);

Strategic Airlift Capability Heavy Airlift Wing (HAW) aircraft; commercial contract aircraft; and commercial tendered aircraft, at primarily the Naval Support Activity (NSA) Naples (military) and occasionally at the Italian Military Ramp (as coordinated with the Contracting Officer’s Representative), Naples, Italy. The Contractor facilitates on-time aircraft departures and maintains the ability to provide sustained ATGHS for a working Maximum on Ground (MOG) capability of one (1) wide-body aircraft or the equivalent thereof.

Period of Performance Total Extension Amount/Euro

Total Extension Amount/USD

Base: 01 Jun 2022 to 30 Nov 2022 €1,543,662.00 $1,773,712.51 Option 1: 01 Dec 2022 – 28 Feb 2023 Includes MHE Repairs

€ 771,831.00 € 4,351.50

$ 886,856.26 $ 5,000.00

Option 2: 01 Mar 2022 – 31 May 2023 € 771,831.00 $ 886,856.26 €3,091,675.50 $3,552,425.03

Navy Marine Corps Acquisition Regulation Supplement April 2018 (Change 18-21)

The Contract is Firm Fixed Price (FFP). On 19 October 2015, NAVSUP Fleet Logistics Center Sigonella (NAVSUP FLCSI), DET Naples, Italy competitively awarded it to ALGESE. Performance began on 01 January 2016. The structure of the Contract had an initial nine-month base period, four 12-month option periods, and a final three-month option period.

Included in the Contract was FAR § 52.217-8 “Option to Extend Services,” which allowed FLCSI to also exercise a 6-month option from 01 January through 30 June 2021 via modification P00036.

On 25 June 2021, FLCSI requested a six-month extension from 01 July 2021 through 31 December 2021, which RABC #21-0157 approved. J&A #21-0159 supported RABC #21-0157. FLCSI needed the extension because of COVID-19-related delays in the procurement and several agency level protests. On 29 June 2021, Modification P00039 incorporated the extension.

On 2 November 2021, FLCSI awarded the follow-on contract, Contract N68171-22-C-0002 (“Contract 0002”) to Louis Berger Aircraft Services (LBAS). ALGESE filed a post-award Government Accountability Office (GAO) protest on 10 November 2021. GAO docketed this protest as B-420350. This required an immediate stay in the new award until resolution of the protest. On 20 December 2021, ALGESE filed a Supplemental Protest with GAO, which GAO docketed as B- 420350.1.

On 21 December 2021, FLCSI requested an additional five-month extension from 01 January through 31 May 2022, which RABC #22-0063 approved. J&A #22-064 supported. FLCSI needed the extension because of the above-referenced GAO post-award protests filed by ALGESE. On 21 December 2021, Modification P00041 incorporated the extension.

Before GAO issued a decision on ALGESE’s protests, ALGESE filed another bid protest on 18 January 2022 before the Court of Federal Claims (COFC) in which it raised similar allegations as it did in its GAO bid protests. As a result, GAO dismissed ALGESE’s two GAO protests on 25 January 2022.

On 25 January 2022, the Government filed its Partially-Unopposed Motion for Voluntary Remand, which COFC granted on 01 February 2022. The Government requested a 90-day remand in order to reconsider the award decisions for both the Naples ATGHS and Rota, Italy solicitations, particularly in light of four decisions issued by courts in Spain that addressed LBAS’s labor relations practices in Rota. FLCSI was not aware of these Spanish court decisions until ALGESE raised them in its GAO protests. ALGESE contended that these judgments amounted to finding that LBAS violated Spanish labor laws, and that FLCSI should have considered this in its evaluation of LBAS’s past performance under a prior contract in Rota.

ALGESE further contended that, because LBAS relied upon its prior Rota performance in competing for the current Naples solicitation, FLCSI must also reevaluate that decision. Lastly, ALGESE contended that LBAS had an obligation by the terms of the solicitation to disclose the Spanish court judgments as evidence of its violation of foreign law, and because it failed to do so, FLCSI should have disqualified its proposal. FLCSI is currently waiting for a Spanish legal opinion regarding the four subject decisions. The Government will file a status report with COFC by 28 April 2022.

Depending on how COFC rules, FLCSI may have to reopen the procurement and even if the procurement does not need reopening, there is still a three-month transition period needed between contracts. Therefore, even if COFC issues a favorable decision before the current bridge extension period expires there would not be enough time for a timely transition.

Based on the amount of time for previous COFC protests, FLCSI anticipates that it needs at least another five to six months but possibly even more time because of the likelihood of further litigation. Without this extension, there would be a break in services resulting in a complete loss of ATGHS services in Naples, which will be detrimental to support the Department of Defense (DoD) Airlift System in Naples, Italy.

4. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

The statutory authority permitting other than full and open competition is 10 U.S.C. § 2304(c)(1), “Only one responsible source and no other supplies or services will satisfy agency requirements)”, as implemented by FAR § 6.302-1.

5. RATIONALE JUSTIFYING USE OF CITED STATUTORY AUTHORITY

ALGESE is currently performing the Contract and has in place on-site trained personnel and special handling and other equipment necessary to perform the required services. At this time, there is no other contractor capable of taking over performance on such short notice without unacceptable delays in these critical services that fulfill the Air Force’s and Navy’s shared requirement. It would take another contractor a minimum of three months to phase in and obtain all the required equipment and trained personnel necessary to assume performance of this contract.

It is therefore in the best interests of the Government to extend the current contract for a base period of six (6) months from 01 June 2022 through 30 November 2022. Without an extension to the period of performance, NSA Naples will lack contractual coverage, and a lapse in the required services could result in a complete loss or severe degradation of ATGHS at NSA Naples, which will be detrimental to the DOD Airlift System. NSA Naples is a vital link in DOD’s airlift capability and transportation system. Disruption to this capability cannot occur.

Given the foregoing, FLCSI will issue Contract Modification P00043, (Attachment 3) to ALGESE on a sole source basis.

ALGESE can immediately perform the requirement without causing a break in service pending the resolution of the COFC protest and resolution of award of the follow-on contract. Notice of this justification and the Government’s intended modification of the contract will be provided on https://euro.neco.navy.mil/ in accordance with FAR § 6.305.

6. DESCRIPTION OF EFFORTS MADE TO SOLICIT OFFERS FROM AS MANY OFFERORS AS

PRACTICABLE

As explained above, a follow-on contract, Contract 0002, for Naples ATGHS was to have replaced the current Contract.

FLCSI awarded the new contract competitively on 02 November 2021 with an effective date of 01 January 2022 to LBAS.

This contract included a base period of nine months, from 01 January 2022 through 30 September 2022, plus four 12-month option periods, and a final option period of three months (a total of sixty months). It also included the possibility to extend the period of performance for an additional six months utilizing FAR § 52.217-8, “Option to Extend Services,” considering that the transition time/phase-in for this requirement is approximately three months.

Due to the ongoing COFC post-award protest, however, the new contract still requires an immediate stay until resolution.

Thus requiring this J&A as supporting documentation for the bridge extension.

7. DETERMINATION OF FAIR AND REASONABLE COST

The Contracting Officer has determined the anticipated cost to the Government of the services covered by this J&A will be fair and reasonable. The prices for the extension of the current contract will be identical to those of the last option exercised against the current contract pursuant to FAR § 52.217-8 “Option to Extend Services” as confirmed by email received from ALGESE on 16 February 2022. See Attachment 2. Additionally, ALGESE confirms that its prices will remain the same not only for the initial 6-month extension, but also for the two 3-month options, if exercised. FLCSI previously determined these prices were fair and reasonable via competition and the Contracting Officer has not noted any changes to the prevailing market conditions for the specific goods and services obtained under this contract that would otherwise indicate that the current contract prices are not fair and reasonable.

8. ACTIONS TO REMOVE BARRIERS TO FUTURE COMPETITION

As stated above, the execution of the modification contemplated herein is to provide continuous services. FLCSI competitively awarded the follow-on contract on 02 November 2021. The plan of actions and milestones is as follows:

Action Date

Government Status Report due to COFC 28 April 2022 COFC Decision Unknown Contract Ends 31 May 2022 Third Bridge period of performance begins 01 June 2022 https://euro.neco.navy.mil/

Third Bridge period of performance ends 30 November 2022 Option 1 - 3-month extension, exercised if necessary 01 Dec 2022 – 28 Feb 2023 Option 2 - 3-month extension, exercised if necessary 01 March 2023 – 31 May 2023

LIST OF ATTACHMENTS:

Attachment 1: Price Breakdown for each performance period of the Extension and pro-rata shares.

Attachment 2: ALGESE Email Confirmation Regarding Pricing for Extension, dated 16 February 2022 Attachment 3: Contract Modification P00043

CERTIFICATIONS AND APPROVAL

TECHNICAL CERTIFICATION

I certify that the facts and representations under my cognizance, which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

REQUIREMENTS COGNIZANCE:

STEVEN COOPER

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

_____________________________ David Koman________ DSN (314) 626-4148 _____________

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief. To the extent that the J&A/LSJ value is between $250K and $750K, the Contracting Officer’s signature below also represents approval of the

J&A/LSJ.

CONTRACTING ACTIVITY COMPETITION ADVOCATE REVIEW

To the extent that the J&A/LSJ value is between $750K and $15M, the Competition Advocate’s signature below also represents approval of the J&A/LSJ.

JUSTIFICATION AND APPROVAL