ETFO_for_Posting_FBO.pdf

DEFENSE THREAT REDUCTION AGENCY

8725 JOHN J. KINGMAN ROAD, STOP 6201

FORT BELVOIR, VA 22060-6201

EXCEPTION TO FAIR OPPORTUNITY (ETFO) JUSTIFICATION

1. Nature and/or Description of the Action The Defense Threat Reduction Agency contracting activity plans to procure by modification, without requesting proposals from the other contractors under the CTRIC II Indefinite Delivery/ Indefinite Quantity contracts, additional effort under the current task order HDTRA1-11- D-0009-0012 with URS for nuclear security enhancements in Kazakhstan. URS will be the only contractor solicited to provide the required technical effort. As such, this acquisition would be an exception to the FAR 16.5 "Fair Opportunity" process.

2. Description of the Supplies/Services Required The additional work required from the contractor (security equipment and installation) in this modification has been identified in a collaborative project between the DTRA Cooperative Threat Reduction (CTR) program and the Government of Kazahkstan (GOK). GOK concurred in the CTR recommendations to procure this equipment. The work covers four tasks/sub-projects that are integrally related to, and an outgrowth of, the work being performed by URS on the task order HDTRA1-11-D0009-0012. These four sub-projects will encompass continued physical protection system (PPS) upgrades, other security equipment procurement, and the procurement of vehicles and one railcar. The period of performance for the tasks will begin upon award of the modification and end on September 25, 2019, which is the last day of performance of the five year period of the task order which commenced in 2014. The current value of the order inclusive of all option periods is approximately $27 million. The tasks to be acquired through this modification will cost a combined total of approximately $3,100,000. The contract type of the order is Cost Plus Fixed Fee.

3. Exception to Fair Opportunity The justification for this ETFO action is FAR 16.505(b)(2)(i)(B) which states “the order must be issued on a sole-source basis in the interest of economy and efficiency as a logical follow-on to an order issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order”. In this case, issuance of a literal new task order for this effort is not feasible. The CTRIC II ordering period for NEW orders ended in July 2018. A modification for new/additional work can be issued on the current order; with the increase in value, the maximum ordering value ceiling of the CTRIC II IDIQ contract value will not be exceeded.

The new work cannot be accomplished under the Changes Clause, therefore this ETFO is being executed to justify the basis for this sole source acquisition through a supplemental agreement bilateral modification.

4. Justification Rationale

The use of the established contractor greatly reduces cost and risk to the Government. URS already has operations and an established program management office in-country, and has established relationships with the various Kazakhstan agencies, and many of the suppliers who will be involved in implementation of the new activities. Achieving these same milestones for a new contractor would take significant time and cost, negatively impacting the performance of this project with such a delay. The Government does not expect to receive a better price by competing this task amongst the contract holders.

The proposed work is a logical follow-on to the current work being performed by the CTRIC II contractor since 2014 in Kazakhstan. These tasks are direct outcomes of the technical discussions and training activities already undertaken by URS under the initial task order, granting URS an in-depth understanding of the new tasks that would take another contractor substantial time to develop. Their assessments of the current security risks and their analysis of optimal solutions and enhancements have been under discussion for months. URS has developed specialized and unique knowledge of the GOK nuclear security environment. The requirements covered by this modification resulted from assessments URS was required to perform under the SOW, and CTR’s and the GOK’s acceptance of the recommendations and decision to implement them.

Because this work must be completed by the CTRIC II end date of September 29, 2019, efficiency and timeliness is of the utmost importance, and URS will be able to begin completion of this work as soon as the proposed effort is approved, ensuring that all work can be completed by the final task order end date. As such, continuing this effort with the current contractor is the most advantageous approach for the Government.

At the time of the original order, fair opportunity was given to all of the CTRICs to bid on the work, and an industry day was held in which the other CTRICs participated. It was also communicated to the other CTRICs, at the time of the original order, that follow-on work would likely be required. As the awardee of the original effort, URS was the only contractor to provide a bid for this contract; other potential bidders did not bid or ask for an extension of the TORP submission date.

The Statement of Work will be updated in the planned modification to clarify and explicitly refer to the identified additional four sub-projects (follow-on tasks) to be acquired. The contractor will be required to submit a cost and technical proposal which will be evaluated by the Government. An independent government cost estimate (IGCE) has been developed and will be used as a tool to evaluate the reasonableness of the contractor’s proposed pricing. Negotiations will be conducted if needed to arrive at a fair and reasonable price.

5. Market Research

TIMBERLAKE.KATHERINE.KAY.