72026719D00001 DCEO IDIQ Justification and Approvals.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION (J&A)

TO: Andrew Plitt, Acting Assistant Administrator, Bureau for Middle East

FROM: Rachel Sorey, Deputy Director, Stabilization, Governance and Economic Opportunity Office, USAID/Iraq

SUBJECT: Justification and Approval for Other than Full and Open Competition (J&A)

1. This document sets forth the facts and rationale justifying the use of other than full and open competition, in accordance with AIDAR 706.302. This document was prepared by the Stabilization, Governance and Economic Opportunity Office, USAID/Iraq.

2. The nature and/or description of the action being approved:

This is a request to approve a modification to contract number 72026719D00001 held by Chemonics Inc. for the Durable Communities and Economic Opportunities (DCEO) IDIQ to allow small scale construction activities under the current statement of work. Per Section H.28, “Restriction on Construction,” of the IDIQ, no construction is allowed under the IDIQ or task orders. The modification will not increase the ceiling or period of performance of the contract nor make changes to the performance work statement. The modification will remove the prohibition on construction and incorporate required clauses regarding construction.

3. Description of the supplies or services required, including an estimated value:

The Indefinite Delivery, Indefinite Quantity (IDIQ) contract, Durable Communities and Economic Opportunities (DCEO) project aims to build resilient, adaptive communities and advance economic well-being in target communities in Iraq by addressing underlying drivers of conflict, increasing community leadership of inclusive local development, improving private sector networks, and increasing micro, small, and medium enterprise (MSME) development.

In order to respond to community priorities under the DCEO IDIQ contract via Task Orders, it is necessary for the contractor to accomplish some incidental and ancillary renovation, repair, improvement, alteration, refurbishment, and other small-scale construction work. The proposed action for approval in this request is to allow the contractor to implement small-scale construction.

Potential construction sub-activities envisioned under this award include, but are not limited to, rehabilitation of existing facilities, or construction of new facilities necessary for protection and installation of equipment such as groundwater wells, irrigation pumps, diesel generators and photovoltaic solar power systems, children's play structures, park benches, road improvements and safety upgrades, and street lighting. Possible work also includes improvement, renovation, alteration, and/or refurbishment of existing facilities and infrastructure such as manufacturing facilities, greenhouses or other agricultural infrastructure, water supply systems, irrigation canals, existing roads, parks, playgrounds, or buildings. Activities under this award may also include construction of walls, fences, leveling/grading of outdoor work spaces, and construction of facilities and installation of equipment to improve agricultural marketing such as cold stores or silos. Although this request does not increase the ceiling or period of performance of the project, construction will be limited to $250,000 or less, per site. The Contractor must also clearly demonstrate that any proposed construction sub-activities are incidental and/or ancillary to achievement of other non-construction objectives specified in the DCEO IDIQ contract or subsequent Task Orders.

4. Statutory authority permitting other than full and open competition:

AIDAR 706.302-70 states that, “Full and open competition need not be obtained when it would impair or otherwise have an adverse effect on programs conducted for the purposes of foreign aid, relief, and rehabilitation,” and may be applied per AIDAR 706.302-70(b)(3)(i) for “an award for which the Assistant Administrator responsible for the project or program makes a formal written determination, with supporting findings, that compliance with full and open competition procedures would impair foreign assistance objectives, and would be inconsistent with the fulfillment of the foreign assistance program.”

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition that requires use of the authority cited:

Over the past 20 months, the DCEO Contractor has been engaging community leaders and other stakeholders to identify opportunities to build resilient, adaptive communities and advance economic well-being in target communities. This engagement resulted in identifying solutions that will lead to eliminating the destabilizing factors in vulnerable communities and/or advancing economic well-being. DCEO field staff have gained the trust of the community leaders and other stakeholders that enable them to easily communicate and adapt to implement the identified needs in the targeted communities. The construction activities were identified by community leaders as interventions that will support the contract objectives. Thus, DCEO is uniquely positioned to implement the new construction works and it is impractical for other implementers to build on and continue the implementation of the remaining phases of engagement as it linked the work that was done previously by DCEO during the first 20 months of the activity. Also, for the reasons described below, a new contractor would not be timely or effective in the manner required and requested.

The design and competition of a new mechanism that could be awarded, operationalized and engender the trust of the community leaders and the other stakeholders would not be feasible in such a short time frame. With average timelines for design to procurement greater than 12 months, not including the required onboarding of new contractors, office space provision and other start-up related actions, the window to support the community dialogues would have passed by the time a new awardee could be operational. This would constitute an unacceptable delay. Furthermore, as stated above, the construction is a component of the work that the Contractor is implementing under DCEO and supports those contract objectives. That is, the construction cannot be implemented by another contractor, as it is specifically for the results under DCEO.

Finally, a direct award to local contractor(s) was not considered because of the complexity involved with the close coordination between community dialogue sessions and subsequent construction activities; these interventions are entirely intertwined. Chemonics is expected to bring international standards to oversight and accountability, public procurement, and maintain the ability to mobilize international and regional expertise in response to ad hoc requests and opportunities - capabilities which currently do not exist in the Iraq market.

6. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was publicized as required by FAR 5.2

[AIDAR 705.2].

The IDIQ contract was competed through full and open competition. It is a single award IDIQ with Chemonics as the IDIQ holder.

Per AIDAR 705.202, a notice is not required when the authorities of AIDAR 706.302-70(b)(1) through (b)(3) are used. As this justification uses AIDAR 706.302-70(b)(3)(i), USAID/Iraq is not required to publicize the notice of the modification. Upon completion of the modification, the finalized J&A will be posted according to the requirements of ADS 302.3.4.5(h)(2) and FAR 6.305.

7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable:

The initial award for this activity demonstrated, through the evaluation of technical capabilities, costs, and past performance, that the current contractor offered the best value to the government. The proposed additional activities fall within the general scope of those contemplated during that competition and thus do not affect this determination. As stated above, this modification will not increase the IDIQ ceiling or the total estimated cost of the task orders. Furthermore, construction costs will be minimal and reviewed on a case-by-case basis. The Contracting Officer will ensure that the associated costs for the proposed additional activities are fair and reasonable.

8. Description of the market research conducted, and the results or a statement of the reasons market research was not conducted:

Extensive market research was conducted prior to awarding the IDIQ contract, which was openly competed. Further market research was not conducted for this modification because the construction activities need to be linked to the community-identified destabilization factors, which are determined through ongoing community dialogue sessions. Very few organizations in Iraq have the capacity to work on issues of community resilience and recovery, particularly within the time frame expected.

There currently is no centrally-managed IDIQ or surge support mechanism that could be used to support this effort; specifically, as the team and work need to be assembled and operational in June, 2022, the options are severely limited. Based on the competition of the existing contract, there are international firms available and capable of completing the required work; however, based on extensive knowledge of firms operating in Iraq, there are no international firms that are poised to do this work within the strict time and cost constraints.

9. Other facts supporting the use of other than full and open competition:

DCEO has already completed the initial phases of the contract, which consist of community dialogue sessions, identifying destabilization factors, and identifying the solutions. It is not practical to engage new implementers to implement the solutions. As it would require significant time for a new implementing partner and newly fielded experts to gain the trust necessary to communicate with community leaders to implement the identified solutions. Thus, the issuance of a non-competitive modification to this contract exceeds the benefits of a competitive process because a competitive award for the completion of these services would halt the current progress and greatly delay achieving the intended goals, resulting in impairment of this program.

10. Sources, if any, that expressed an interest, in writing, in the acquisition:

Per AIDAR 705.202, a notice is not required when the authorities of AIDAR 706.302-70(b)(1) through (b)(3) are used. As this justification uses AIDAR 706.302-70(b)(3)(i), USAID/Iraq is not required to publicize the notice of the modification. Therefore, no sources have expressed interest.

11. The actions the Agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

USAID/Iraq intends to compete future requirements through full and open competition and potentially set aside some requirements for US small businesses.

12. Technical or Requirements Personnel Certification:

In accordance with FAR 6.303, I hereby certify that the technical statements included above and which form a basis for the justification are complete and accurate.

13. Contracting Officer Certification:

In accordance with FAR 6.303, I hereby certify that the justification is accurate and complete to the best of my knowledge and belief.

Ahmed Mohammed Agha

Digitally signed by Ahmed Mohammed Agha Date: 2022.06.02 13:49:51 +03'00'

Zachary Clarke Digitally signed by Zachary Clarke Date: 2022.06.02 14:44:42 +02'00'

[STAND ALONE PAGE]

Internal Agency Clearances:

1. Clearance:

[As required, see ADS 302.3.4.5 and Exceptions to Competition Guide (https://pages.usaid.gov/M/OAA/exceptions-competition]

Paul Kim______________________________ _05/23/2022______________________ Regional Legal Advisor

2. Clearance:

[As required, see ADS 302.3.4.5 and Exceptions to Competition Guide (https://pages.usaid.gov/M/OAA/exceptions-competition]

Deborah Broderick, Agency Competition Advocate

DEBORAH RYAN

BRODERICK (affiliate)

Digitally signed by DEBORAH RYAN BRODERICK (affiliate) Date: 2022.06.06 16:26:33 -04'00'