3_23-JA-FECON-0015_Redacted.pdf

5. Rationale Justifying Use of Cited Statutory Authority.

J&A No. 23-JA-FECON-00015

This is a follow-on requirement which is currently being satisfied through an existing contract, N40084-19-D-8904, by the above-named contractor JC Co., Ltd. The current contract is a single award, Firm-Fixed-Price Indefinite Delivery Indefinite Quantity, performance-based service contract, and was awarded on 29 May 2019. The contract includes a 12-month base period and four 12-month option periods. The total value of the current contract is 119, 10l,655JPY/$1,081 ,886.40 for the total 60-month time period. The current contract final option period expires on 31 May 2024.

The current contract N40084-19-D-8904 and the following four contracts N62836-00-D-8704, N40084-06-D-8701, N40084-l 1-D-0076 and N40084-14-D-8705, were all awarded to the same contractor, i.e., JC Co., Ltd. Historically, the only offer received from industry to satisfy these requirement has come from JC Co., Ltd. The market research into the reason for this shows that there is only one local government approved source for the services required under this J&A in Atsugi. In accordance with the Sewage Act (Act No. 43 of 1983), a septic tank cleaning company must be granted permission from the mayor or head of the city, town, or village who has jurisdiction over the area where the company performs the work. For NAF Atsugi, the mayor of Ayase City has such jurisdiction. As such, Ayase City was contacted on 14 April 2023 and confirmed that JC Co., Ltd. had been the only company with permission to perform sewage collection and disposal services in the Atsugi area since 1970, and Ayase City indicated that it would not issue any new permits.

Based upon the foregoing, only JC Co., Ltd. can satisfy the agency's current requirement for sewage pumping, collection, disposal and transportation services and for cleaning of sewage utility systems at NAF Atsugi, Japan.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

Although a synopsis of this planned contract action was not published per FAR 5.202(a)(l2), regulatory exception, a sources sought was published in SAM.GOV on 7 December 2023 for 15 days in accordance with DF ARS PGI 206.302-1, seeking potential sources to satisfy the requirement. J&T Recycling Corporation contacted the Contract Specialist and expressed interest in this procurement. However, after learning that the awardee is required to have a permit issued by Ayase-City to perform the requirements, this vendor decided not to submit a Statement of Capability (SOC) as they do not possess such permit. No other vendors submitted SOCs in response to the sources sought notice.

In accordance with FAR 6.305, the approved J&A will be posted on SAM.GOV within 14 days after award of the contract.

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. Contract award will be made based upon the price only. The Government will ensure fair and reasonable pricing by comparison of the proposed prices to historical prices paid, comparison of proposed prices with Independent Government Cost Estimates, and comparison of proposed prices with prices obtained through