20-63 TX SRTS JA_Redacted.pdf

JUSTIFICATION AND APPROVAL

USTRANSCOM JUSTIFICATION FOR

OTHER THAN FULL AND OPEN COMPETITION

PORTS OF BEAUMONT, PORT ARTHUR, AND CORPUS CHRISTI TEXAS

HTC711-15-D-R037

Control Number: 20-63

1. CONTRACTING ACTIVITY

United States Transportation Command (USTRANSCOM), Directorate of Acquisition, Specialized Transportation and Support Division, 508 Scott Drive, Building 1900W, Scott AFB

IL 62225-5357.

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

This action will result in a modification to extend the Period of Performance of the firm-fixed price Indefinite Delivery Indefinite Delivery (IDIQ) contract HTC711-15-D-R037 supporting Stevedoring and Related Terminal Services (S&RTS) at the Ports of Beaumont, Port Arthur, and Corpus Christi, Texas. Period of Performance for this extension will be for six (6) months from 3 October 2020 through 2 April 2021. The first option period will be four (4) months from 3 October 2020 through 2 February 2021 and the second option period will be two (2) months from 3 February 2021 through 2 April 2021. The estimated value for this six (6) month extension is $16.3 Million.

3. DESCRIPTION OF THE SERVICES REQUIRED TO MEET THE AGENCY’S

NEEDS

The 842nd Transportation Battalion requires continued S&RTS support to maintain and sustain current and future terminal operations while the follow-on contract, which was recently awarded on 28 July 2020, is in a post-award protest with the Government Accountability Office (GAO).

S&RTS includes vessel loading, vessel discharging, cargo receipt and disposition, cargo staging, transfer of cargo, tallying and checking, customs clearance, yard management, handling of Government provided securing material, and management expertise. S&RTS are required to move and track Department of Defense (DoD) sponsored cargo through the Ports of Beaumont, Port Arthur, and Corpus Christi, Texas in support of national and strategic military interests of the United States of America throughout the world.

4. STATUTORY AUTHORITIY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

The statutory authority permitting the use of other than full and open competition is 10 U.S.C.

2304(c)(2) Unusual and Compelling Urgency, as implemented under FAR 6.302-2.

5. DEMONSTRATION THAT THE NATURE OF THE ACQUISITION REQUIRES USE

OF THE AUTHORITY CITED

In accordance with FAR 6.302-2(a)(2)(b), an unusual and compelling urgency precludes full and open competition, and delay in award of a contract would result in serious injury, financial or other, to the Government. Any approach to fulfilling this requirement other than extending the Period of Performance of the current contract would result in serious injury to the mission of the 842nd Transportation Battalion and strategic initiatives of the United States.

A firm-fixed price IDIQ contract, HTC711-15-D-R037, was awarded to Shippers Stevedoring Co. (SSC) effective 13 March 2015. SSC was purchased by Cooper/Ports America, LLC (CPA), and a novation modification was issued on 22 December 2016. The contract is currently in a six

(6) month extension authorized by FAR 52.217-8, Option to Extend Services, which expires on 2 October 2020. The follow-on Three Port Texas S&RTS contract, HTC711-20-D-R050, was recently awarded on 28 July 2020, with an effective start date of 3 October 2020. However, a post-award protest was filed with GAO on 10 August 2020. On 29 September 2020, USTRANSCOM submitted notice of corrective action to the GAO. This Justification and Approval (J&A) supports an additional six (6) months of performance of contract HTC711-15- D-R037 to permit the Agency time to perform its corrective action, issue or affirm a new source selection decision, and allow the successful offeror to begin performance. The incumbent, CPA, has the equipment and labor in place, and the Government needs the S&RTS services immediately and on a continuing/on-going basis. The current incumbent contract is due to expire on 2 October 2020, and a delay in contract award would result in serious injury to the Government.

The Government’s need for S&RTS at the Ports of Beaumont, Port Arthur, and Corpus Christi, Texas is both vital and unusual and compelling because:

(1.) It provides critical specialized transportation services that include, but are not limited to:

vessel loading, vessel discharging, cargo receipt and disposition, cargo staging, transfer of cargo, tallying and checking, customs clearance, yard management, handling of Government provided securing material, and management expertise;

(2.) Government personnel are not available in sufficient number, nor do they possess the specific capability to perform the S&RTS services required under the Ports of Beaumont, Port Arthur, and Corpus Christi, Texas contract without jeopardizing other aspects of the S&RTS mission;

(3.) Services at the three ports are continuing and ongoing and are required to continue without interruption as the Government resolves the GAO protest; and

(4.) It will allow the incoming contractor time to coordinate a transition with the outgoing contractor. It will also allow time for the incoming contractor to coordinate with labor and stage its gear and equipment to ensure seamless operations to prevent a break in service until the transition is complete.

Failure to extend the Period of Performance would degrade the 842nd Transportation Battalion’s capability to provide support for military unit deployments and exercise execution. The services being provided are in support of the 842nd Transportation Battalion’s enduring mission to ensure the warfighters continued readiness in the Texas Gulf region as well as overseas operations. A break in service would negatively impact readiness and cannot occur. An unacceptable delay or interruption of services jeopardizes support and the secure deployment of military personnel and cargo during missions and unforeseen emergencies. This Period of Performance extension is in order to avoid direct financial and operational injury to the Government.

Support of current and ongoing missions is a necessity, and there must not be an interruption in service. This extension provides the required services and support to ensure mission success and mitigates the possibility of negative impact on the transportation of mission critical cargo.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE

Due to unusual and compelling urgency, offers were not solicited from other sources for this extension. However, the Three Port Texas S&RTS contract HTC711-20-D-R050 was recently awarded on 28 July 2020 and offerors submitted proposals in a full and open competitive environment. A current and ongoing need exists for uninterrupted services while the Agency performs its corrective action and up until the new contract can begin performance. In the event that there is a follow-on contract in the future, the Government will ensure that offers are solicited from as many potential sources as is practicable.

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

The Contracting Officer will negotiate the proposed labor and commodity rates to ensure they are fair and reasonable. Modification P00006 to HTC711-15-D-R037 incorporated a revised Schedule of Rates dated 27 November 2019. CPA’s revised prices were determined to be fair and reasonable based on the Contracting Officer’s analysis of the proposal, taking into consideration technical analysis and the Independent Government Cost Estimate, IAW FAR 15.404-1(b)(2). Additionally, the Government will use the updated pricing from the recently competitively awarded HTC711-20-D-R050 follow-on Three Port Texas S&RTS contract. No other market conditions exist that alter the determination that prices on this contract may be determined fair and reasonable.

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS

No additional market research efforts were conducted specifically for this action. Prior to award of the current Ports of Beaumont, Port Arthur, and Corpus Christi, Texas S&RTS contract, HTC711-15-D-R037, market research was conducted and four (4) vendors expressed interest in