20220630_Justification_Approval_Redacted.pdf

CUI//SP-PROCURE//FEDCON

Control No: MICC

Contractor: Three Cities Management, LLC Program: Cadet Mess Attendant and Waiter Services

CUI//SP-PROCURE//FEDCON

Small Business Specialist:

DSN:

Date: See digital signature

DSN:

Date: See digital signature

DSN:

Contracting Office Division Chief:

Director, MICC-West Point:

Date: See digital signature

Deputy Assistant Director, Small Business Program:

DSN:

Date: See digital signature

MICC Office of Counsel:

DSN:

Date: See digital signature

Contractor: Three Cities Management, LLC Program: Cadet Mess Attendant and Waiter Services develop a severely diminished capacity of operations to provide for feeding the cadets.

This service involves having tables and servicing stations readily available for various types of meal service, to include special events and banquets, as well as cleaning of the Cadet Mess and the running of the pantry/dishwashing areas. It is tantamount to a major failure and disruption of the academic training and operational tempo of the U.S.

Military Academy for the period these services are not fully available.

2) Use of in-house resources: The current contractor employs a staff of approximately 175 Full-Time Equivalents (FTEs) to perform mess attendant and waiter functions. It would take 120-180 days to recruit and hire through the civilian personnel system, and then an additional 90 days to train the personnel necessary to support the current requirement. Before West Point could be exempted from the outsourced system, a cost analysis and justification would be required and have to be approved by Army Sustainment Command and other agencies. This process would take approximately six months to obtain a decision that could just as easily be disapproved. Overall, a one-year timeline is a conservative period. The length of this process renders this alternative unrealistic.

3) Award a non-competitive Firm-Fixed-Price contract to other than the incumbent who is in the current Cost-Plus-Fixed-Fee contract type. There is insufficient time to plan, solicit, award, and conduct phase-in with another contractor for this 3-month extension period. However, it would be neither cost effective for the Government nor realistic for a contractor other than the incumbent, Three Cities Management, LLC, to mobilize and perform during that brief period of performance. Based on the necessary phase-in period of 30 days, the duplication costs of the phase-in as the incumbent vendor is transitioning over to the new vendor, for such a brief interim period would not be recoverable. In addition, the start-up costs required of the new vendor would not likely be an investment that the vendor could recoup over such a short timeframe. Additionally, a new contractor may need to recruit/relocate/ transfer staff, as well as transfer and establish accountability of Government Furnished Property (GFP).

Three Cities Management, LLC has the labor structure in place that will ensure the continuity of operations of services for up to the requested additional 3 months of performance without any interruption in the mission.

e. Impact if Not Approved. Without the approval of this justification and approval request there will be no attendant and waiter services until the award of a contract is in place. Failure to endorse this action translates into a lack of capability to feed cadets on par with current operations and at best will result in developing an adhoc solution with a severely diminished capacity to provide for feeding the cadets. The best-case scenario is a material uptick in the amount of time required to process cadets through the mess hall. This additional time spent in the mess hall will be taken from academic and training hours or from the number of meals a cadet will partake each day. A degradation of sanitary conditions will likely occur within the mess hall and an increased labor cost associated with the operation of the mess hall. The impact of disapproving this request runs the gamut from the best-case to the worse-case, which is the failure to provide the service and the cascading effect on the academic and operational training mission tantamount to a major failure of the U.S. Military Academy mission for the period these services are not fully available. Failure to favorably endorse this justification and approval and the subsequent loss of these services is contrary to the interest of the Government. The inability to feed cadets commensurate with the present standard would create a substantial loss of continuity, academic programming and public trust, as this would most likely become a publicly shared story.

6. Efforts to Obtain Competition: The Contracting Officer shall publish the notices required by FAR 5.201 and any bids or proposals that are received shall be taken into consideration.

a. Effective Competition: Because this is a sole source action, effective competition is not applicable.

b. Subcontracting Competition: The incumbent is a small business who self performs. There is no likelihood of subcontracting opportunities for this action.

7. Actions to Increase Competition: Competition exists; however, an automatic stay was implemented on under Title 31 U.S.C. Section 3553(c)(1) with the post-award protest of the competitive follow-on procurement.

8. Market Research: In accordance with Federal Acquisition Regulation (FAR) 6.302- 1, Defense Federal Acquisition Regulation Supplement (DFARS) PGI 206.302-1(d), and DFARS Procedures, Guidance, and Information (PGI) 206.302-1(d), and waiver dated 5 February 2021, waives the sources sought synopsis due to protest.

9. Interested Sources: Solicitation W911SD21R0054 was posted on 02 August 2021.

Six small businesses responded to the solicitation: (1) Rice Services, Inc., a Small Business; (2) Grace Management, Inc., a Native American owned, EDWOSB, Small Disadvantage Business; (3) Crystal Enterprises, Inc., EDWOSB/WOSB; (4) Three Cities Management LLC, Small Business, HUBZone; (5) MITCHCO International, Inc., SDB, VOSB; and (6) NYSCB/Blackstone Consulting, Inc.

10. Other Facts: Current contract W911SD-19-C0012 was awarded to Three Cities Management, LLC, on 31 May 2019.

a. Procurement History

1) No later than 30 June 2022, an additional 3-month option period will be modified onto bridge contract W911SD-19-C-0012, under the authority of 10 U.S.C 3204(a)(1) as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency requirements.

2) A stop work order was issued on contract on

3) GAO protest was received on: – GAO Case from

Three Cities Management LLC.

4) Contract was awarded on

5) On 31 March 2022, an additional 3-months of performance (1 April 2022 – 30 June 2022) were modified onto bridge contract W911SD19C0012, under the authority of 10 U.S.C 2304(c)(1) as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. See J&A MICC Control No. 2022-42.

6) On 30 July 2021, an additional 4-months of performance was modified onto bridge contract W911SD19C0012, under the authority of 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. See J&A MICC Control No. 2022-7.

7) On 1 December 2020, an additional 8-month option period was modified onto bridge contract W911SD19C0012, under the authority of 10 U.S.C. 2304(c)(1) as

Services Will Satisfy Agency Requirements.

8) On 22 June 2020, a Termination for Convenience of the Government was issued on contract W911SD19C0009.

9) On 19 June 2020, GAO dismissed the protests filed on 18 May 2020 based on corrective action.

10) On 29 May 2020, a 6-month option was modified onto bridge contract

W911SD19C0012, under the authority of 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

11) On 19 May 2020, a Stop-work order was issued on contract

W911SD19C0009.

12) GAO protests were received on 18 May 2020 - B-417783.4 from Rice

Services, Inc.; and B-417783.5 from Three Cities Management LLC.

13) On 29 April 2020 the abeyance was lifted on contract W911SD19C0009, with Pentad Corporation to be fully operational as of 1 June 2020.

14) On 25 November 2019 an additional 1-month and 2 two-month option periods were modified onto bridge contract W911SD19C0012, under the authority of 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

15) On 27 August 2019, GAO dismissed the protests filed on 22, 23, and 24

July 2019 based on corrective action.

16) On 29 July 2019, the 4-month option was exercised on bridge contract

W911SD19C0012.

17) On 23 July 2019, a Stop-work order was issued on contract

W911SD19C0009.

18) GAO protests were received on: 22 July 2019 - B-417783 from Rice

Services, Inc; 23 July 2019 - B-417783.2 from Three Cities Management LLC;

and 24 July 2019 - B-417783.3 from Rice Services, Inc.

19) Contract W911SD19C0009 was awarded on 28 June 2019.

20) On 25 June 2019, a Small Business size protest determined that proposed awardee, Pentad Corporation, is a Small Business.

21) On 31 May 2019, bridge contract W911SD19C0012 was awarded on an other than full and open competition basis to Three Cities Management, LLC for a 2-month base period of performance and a 4-month option period, under the authority of 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

22) Small Business Size Protest was received on 17 May 2019.

23) Solicitation W911SD19R0004 was issued as a small business set-aside on 5

February 2019, limited to those offerors who were determined to be eligible for award of solicitation W911SD17R0033.

24) On 11 January 2019, a modification to contract W911SD18C0007 was issued for a period of performance from 12 January 2019 through 31 May 2019, on an other than full and open competition basis under the authority of 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

25) On 2 August 2018, GAO dismissed the protests filed on 6 and 9 July 2018 based on corrective action.

26) Bridge contract W911SD18C0007 was awarded on 12 July 2018 on an other than full and open competition basis to Three Cities Management, LLC, with a period of performance of 12 July 2018 through 11 January 2019, under the authority of 10 U.S.C.

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

27) Performance on the follow-on contract W911SD18C0005 was stopped on 12

July 2018 and later Terminated for the Convenience of the Government on 13 September 2018 as a result of the GAO protests.

28) GAO protests were received on 6 July 2018 and 9 July 2018.

29) Bridge contract W911SD18C0002 was awarded on 29 March 2018 on an other than full and open competition basis for a period of 1 April 2018 through 30 June 2018, to Three Cities Management, LLC, under the authority of 10 U.S.C. 2304(c)(1), as

Services Will Satisfy Agency Requirements.

30) Solicitation W911SD17R0033 was issued as a small business set-aside on

20 November 2017 with a closing date of 20 December 2017. GAO protest was received on 19 December 2017.

31) Contract W911SD10C0013 was awarded on 1 July 2010 as a HUBZone set aside to Watson Services Inc. During performance, a novation agreement was incorporated and the contractor Three Cities Management LLC took over contract performance. There were multiple protests and bridges prior to award of contract

W911SD10C0013.

Approval

Based on the foregoing justification, I hereby approve the procurement of Cadet Mess Attendant and Waiter Services for West Point on an other than full and open competition basis, pursuant to the authority of Title 10 United States Code Section 3204(a)(1), as implemented by Federal Acquisition Regulation 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. The estimated value of the contract is for up to a three-month period of performance, from approximately 1 July 2022 through 30 September 2022. This approval is subject to availability of funds, and provided that the services or property herein described have otherwise been authorized for acquisition.

U.S. Army Mission and Installation Contracting Command, JBSA Fort Sam Houston, TX