20250728_CUI_West Pt JA 2025_106_Redacted.pdf

CUI//SP-PROCURE//FEDCON

Control No.:

Legal Counsel:

Director, MICC-West Point:

MICC Legal Counsel:

Assistant Director, Small Business Program:

6. Reason for Authority Cited:

a. This acquisition is being conducted under the authority of 41 U.S.C. 1901, as implemented by FAR Subpart 13.5, Simplified Procedures for Certain Commercial Products and Commercial Services. Specifically, FAR 13.501(a)(1)(ii) permits a sole source award when the agency’s need is of such unusual and compelling urgency that providing for full and open competition would result in unacceptable delays. This aligns with the conditions described in FAR 6.302-2, which authorizes limiting sources when an urgent and compelling need would cause serious injury to the Government if the required services were not available without delay. The current contract, W911SD-20- C-0002, is expiring, and a competitive follow-on contract is currently under development. The LRC is still in the process of defining their requirement and finalizing their acquisition package, including securing waiver approval from Army G9 to operate the GOCO facility. These pre-award actions are not expected to be completed prior to the expiration of the current contract. As such, a short-term bridge contract is required to prevent disruption in critical support services. To assess whether alternative sources exist for a short-term bridge, market research was conducted, including the posting of a sources sought notice to SAM.gov on 5 June 2025. One (1) contractor, BHPE LLC, expressed interest. However, transitioning to a new contractor for a short duration bridge contract presents significant operational risk. A new contractor would require time to phase in, including hiring personnel, securing installation access, conducting inventory and accountability of Government Furnished Property, and establishing familiarity with site specific procedures and facility operations. This would delay performance and could result in service degradation or a lapse in support. PENN Enterprises, Inc. is the only source capable of providing uninterrupted service within the limited time available. As the incumbent, PENN already has operational control of the GOCO facility, a trained workforce in place, and full familiarity with the Government’s performance expectations and coordination protocols. No other vendor can be brought in and made operational in time to meet the immediate and ongoing need for service.

The prospect of a new contractor for this bridge contract would also raise the potential of two transitions within a short period of time. The upcoming competition will provide for a transition, but it is unreasonable to incur the expense and efforts for two such transitions within this short period of time. The benefits of competition will not offset the expense and efforts of multiple transitions within this short timeframe.

b. Alternatives.

1) Allow the current contract to expire: Allowing the current contract to expire without awarding a bridge contract was deemed unacceptable. A lapse in services would immediately disrupt mission - critical operations. The absence of laundry and dry-cleaning services would compromise hygiene and infection control standards at Keller Army Community Hospital, potentially impacting patient safety and healthcare delivery. Additionally, cadet operations would be impaired due to the lack of properly laundered uniforms and linens, undermining discipline, readiness, and daily functioning.

Such impacts would result in serious injury to Government operations and the welfare of personnel relying on these essential services.

2) Utilize In-house Government Personnel and resources: The laundry facility is a GOCO plant, and while the Government owns the equipment, it does not have personnel available who are adequately trained or experienced to operate the equipment or manage the facility’s operations. The Government lacks staff qualified to perform essential functions such as equipment maintenance, production scheduling, quality control, and delivery services. Establishing an in-house capability would require significant time and resources to hire, train, and certify personnel and assume full responsibility for facility management. Given the urgent timeline and the need for uninterrupted services, this alternative is not feasible.

3) Award to Another Vendor: The Government issued a sources sought notice on 5 June 2025 for the purpose of conducting market research to identify potential sources for a short-term bridge contract. As a result of this notice, BHPE, LLC expressed interest in the requirement. However, transitioning services to a new contractor for the bridge period presents significant operational risk. A new vendor would require time to hire and train personnel, secure installation access, conduct complete inventory and accountability of Government Furnished Property (GFP), and become familiar with the operational processes and requirements of the GOCO facility.

These transition tasks can’t be accomplished before the expiration of performance under FAR Clause 52.217-8 on 29 July 2025, without causing delays or introducing performance risks that could disrupt essential services.

c. Additional Supporting Information: Transitioning to a new contractor at this time is deemed unacceptable due to insufficient time to properly prepare and implement the new contract without mission failure. Although a new contractor would likely hire the incumbent’s existing workforce, additional time would still be required to issue employment offers, process background checks, assume accountability of GFP, and establish quality control procedures specific to the GOCO facility. Moreover, there is insufficient time for a standard thirty (30) day phase – in period, which is critical to ensure an effective and compliant transfer of operations. Awarding a sole source bridge contract to the incumbent will prevent a lapse in services and provide the Government with adequate time to complete the procurement process for the competitive follow-on contract.

d. Impact if justification not approved: If this justification is not approved, the current contract will expire on 29 July 2025, resulting in a lapse of essential laundry and dry -cleaning services. This would jeopardize life, health, and safety by undermining infection control and patient care at the Keller Army Community Hospital and disrupting operations at the United States Military Academy due to the lack of clean uniforms and linens for cadets. Such a lapse would risk mission failure and seriously impair both medical support and operational readiness.

7. Efforts to Obtain Competition: In accordance with FAR 6.302 – 2, the Government determined that unusual and compelling urgency precluded full and open competition. To the maximum extent practicable under the circumstances, a notice of the Government’s intent to award a sole source bridge contract to Penn Enterprises, Inc. was posted on SAM.gov on , in accordance with FAR 5.201. As a result of the synopsis, one contractor responded expressing interest in the requirement. However, it was determined that the contractor could not meet the Government’s urgent timeline and mission critical continuity requirements. Given the limited time available before the expiration of the current contract, competition was not feasible. With regards to subcontracting competition, PENN Enterprises, Inc. is a small business under NAICS code 812332 and a subcontracting plan is not required. PENN Enterprises, Inc. will be required to adhere to the Limitations on Subcontracting CD 2021-O0008, Revision 1.

8. Actions to Increase Competition: In accordance with FAR 6.301(c) and FAR 6.303- 2(a)(10), competition for this bridge contract is not possible due to time constraints and the imminent expiration of the current contract on 19 July 2025. The purpose of this short-term bridge action is to maintain uninterrupted services while allowing the Government sufficient time to complete the competitive procurement for the follow-on contract. The requiring activity is actively finalizing the acquisition package and necessary waivers for operation of the GOCO facility.

9. Market Research: Market research for the bridge requirement was conducted to identify qualified sources capable of performing the necessary services without interruption upon expiration of the current contract. On 5 June 2025, the Government posted a sources sought notice as well as the performance Work Statement to SAM.gov. As result of this posting one (1) contractor, BHPE LLC, expressed interest in the bridge requirement; however, it was determined that transitioning to a new contractor was not feasible due to time constraints and operational complexities of assuming control of the GOCO facility. As a result, market research concluded that no other source could meet the immediate requirements, making a sole source bridge award to PENN Enterprises, Inc. necessary to ensure continued services.

10. Interested Sources: See Paragraph 6 for the synopsis information.

11. Other Facts:

Procurement History

Contract number: W911SD-20-C-0002 Vendor: PENN Enterprises, Inc.

Award date: 23 January 2020 Competitive Status:100% Small Business Set-Aside

Contract number: W911SD-14-C-0006 Vendor: PENN Enterprises, Inc.

Award date: 12 September 2014 Competitive Status: 100% Small Business Set-Aside

Approval

Based on the foregoing justification, I hereby approve the procurement of Laundry and Dry-Cleaning Services on a sole source basis pursuant to the authority of the Simplified Procedures for Certain Commercial Items, Title 41 United States Code Section 1901 as implemented by Federal Acquisition Regulation 13.5. The estimated value of the contract is for a six-month base period of performance including FAR 52.217-8 for up to another six months, if utilized, from 30 July 2025 through 29 July 2026. The approval is subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

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