JA RTFBM - Contract No. 72051918C00002.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION (J&A)

TO:

FROM:

SUBJECT:

, Agency Competition Advocate

Matthew Hutcherson, Economic Growth and Education (EGE) Office Director, USAID/El Salvador

Justification and Approval (J&A) for Other than Full and Open Competition for a four-month Extension and Total Estimated Cost (TEC) increase of $550,000.00 for the Regional Trade Facilitation and Border Management (RTFBM) Activity, Contract 72051918C00002

1. This document sets forth the facts and rationale justifying the use of other than full and open competition, in accordance with AIDAR 706.3.

This document was prepared by the USAID/El Salvador Economic Growth and Education Office in order to modify the following contract: Regional Trade Facilitation and Border Management Activity (RTFBM) - Contract Number: 72051918C00002.

Contracting Agency: US Agency for International Development Contracting Activity: USAID/El Salvador Cognizant Technical Office: Office of Economic Growth and Education Contractor: Nathan Associates, Inc.

Activity Title: Regional Trade Facilitation and Border Management Contract Number: 72051918C00002 Period of Performance: July 25, 2018- April 24, 2024 Location: El Salvador

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

This is a request for approval of a contract modification for a non-competitive extension of the Regional Trade Facilitation and Border Management Activity, Contract No. 72051918C00002, with a current effective period of performance from July 25, 2018 through April 24, 2024. The modification would extend the completion date by four months, from April 24, 2024 to August 24, 2024, and increase the total estimated cost (TEC) by $550,000, from $18,257,226 to $18,807,226. The cost-plus-fixed-fee completion contract was awarded using full and open competition procedures to Nathan Associates, Inc. (the Contractor).

Justification and Approval for Other than Full and Open Competition - Contract No. 72051918C00002

The purpose of this contract is the implementation of the Central America Regional Trade Facilitation and Border Management Activity, whose main goal is to contribute to Central American countries’ broad-based economic growth by enhancing regional integration and improving trade facilitation. Through this proposed extension, the Contractor would provide support for El Salvador's trade facilitation agenda and Customs modernization process in addition to continued support for the Deep Integration Process or Customs Union among the governments of Honduras, El Salvador and Guatemala, as further described below.

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

The proposed extension will advance El Salvador’s economic growth agenda and continue supporting regional economic integration, initiatives that are a priority for the US Government.

GOES requested the USG interagency Trade and Customs working group (USDA, CBP, INL, State, Commerce, and USAID) support their Trade and Customs Modernization initiative to facilitate trade and to enhance economic growth. Also, the governments of Honduras, El Salvador and Guatemala, have requested additional support from USAID to implement integrated border processes in the next few months. Mission must maintain existing trade programming to support both of these efforts which have target completion deadlines of May through August 2024.

Anticipated specific services during the proposed extension include:

● Support GOES plan on trade and customs simplification and modernization process to establish single integrated border control points between April and June 2024.

● Support implementation of the Central American Single Declaration and Invoice for goods that qualify for free transit under the Customs Union (FYDUCA) between June and August 2024.

● Develop border integrated control procedures between Customs, Agriculture, and Health entities at land borders to facilitate inspections of those goods that will not have free transit under the Customs Union.

● Provide trade capacity building to the public sector to implement integrated border controls at a single point of entry, to facilitate trade of goods that will have free transit.

● Provide trade capacity building to the private sector to adopt trade facilitation best practices and take advantage of the Customs Union provisions.

● Support companies to become Authorized Economic Operator (AEO) certified in El Salvador, Guatemala, and Honduras, to reduce trade processes and time intensive inspections on goods traded by the AEO.

The TEC increase and time extension will enable the contractor to carry out key USG foreign policy priorities in the region including economic growth priorities under the Root Causes Strategy (RCS) to reduce the causes of irregular migration and food insecurity. The estimated value of these services is $550,000.00.

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

40 U.S.C. 113, as implemented by AIDAR 706.302-70. AIDAR 706.302-70(a)(2) states that “[f]ull 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.” Pursuant to AIDAR 706.302-70(b)(5), an exception to full and open competition is permitted for the continued provision of highly specialized services when “award to another resource would result in substantial additional costs to the Government or would result in unacceptable delays.”

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

(a) Context and nature of the acquisition

The USAID/ES-CAMMission recently finalized the procurement process to establish the $800 million USAID Central America Regional Support Services (CARSS) IDIQ contract, which was the selected mechanism for the follow-on activity to RTFBM. The IDIQ procurement was delayed by months in large part due to a U.S. Government Accountability Office (GAO) protest. The protest resulted in the issuance of a stop work order under the IDIQ and no requests for task order proposals (RFTOP) could be issued. While the protest has since been resolved, the suspension of the IDIQ procurement resulted in a delayed issuance of the RFTOP for the follow-on activity. The fair-opportunity process for the follow-on task order is currently underway; however, due to the necessary procurement action lead time, issuance of the task order award is currently estimated to be July or August of 2024.

The circumstances described will prevent USAID from establishing a follow-on mechanism by the current end date of April 24, 2024. A pause in U.S. Government support for regional trade integration in El Salvador, Honduras, and Guatemala would have a significant adverse effect on USAID’s development objectives, and the three countries would lose momentum to implement time-sensitive trade reform priorities. Considering the timeframe of this extension (four months), engaging another contractor for highly specialized services described in the following section would result in significant cost and would not be feasible due to the necessary contractor mobilization period. Therefore, the Mission is contemplating an additional extension of four months to avoid a lapse in assistance.

(b) Continuation of highly specialized services

Nathan Associates leads USAID/ES-CAM’s efforts in regional trade facilitation and integrated border management in the Central America region. Nathan’s contract requires coordination among authorities of El Salvador, Guatemala and Honduras. In each of these countries, Nathan coordinates with the Ministries of Economy, Customs Directors, Ministries of Agriculture, and health and sanitary registration authorities, each with evolving mandates and priorities that at times conflict. It also supports highly specialized IT systems development and interconnection of the IT systems at both national and regional levels which require close collaboration and buy-in of government officials. The contractor supports private sector advocacy to ensure business interests are reflected in regional trade policy, and helps firms to meet requirements for the Authorized Economic Operator certifications which reduces the burden of import and export documentation and inspection. The contractor developed a wide network of public and private stakeholders by hiring highly specialized trade, IT, and regional integration experts to advise the stakeholders and support coordination of efforts. This deep expertise is difficult to find and replace in the short term, outside of the experts engaged by Nathan. Nathan Associates is able to coordinate this multi-country program based on their specialized knowledge of the complex dynamics among regional stakeholders, and trusted, long-standing working relationships, fine-tuned over years of collaboration. Such knowledge and relationships would take months for another contractor to build, and as such, another contractor could not realistically compete for and provide the needed services in the required time frame.

(c) Impact of not extending the contract

● USAID/ES-CAM and the U.S. Embassy in El Salvador have identified the uninterrupted support to the Governments of El Salvador, Guatemala and Honduras in trade facilitation and integrated border management as a key strategic priority. The extension is necessary to support the White House Root Causes Strategy which prioritizes the region’s trade competitiveness as a means to increase economic opportunities for likely migrants. If the contract is not extended, USAID will be unable to continue providing support to the Deep Integration Process and deliver on the GOES’ requests such as establishing one-stop border posts points during the gap resulting in potential reputational damage and loss of momentum in USAID’s support. Additionally, USAID will not be able to support SIECA, the regional economic integration secretariat, to implement regional initiatives such as harmonizing regional regulations, and IT systems just as they are gaining momentum for support from national governments on the Deep Integration Process.

● It would be cost-prohibitive and would result in an unacceptable delay to award a contract to another implementing partner to take over the required services for the anticipated gap of four months. The mobilization period alone would consume a large portion of the contract extension period. Additionally, a new contractor would require months of preparation to establish the relationships and networks needed to begin performing the highly specialized skills required under the contract. Accordingly, awarding a contract to another partner would entail high costs with few–if any–benefits.

● A local award is not considered feasible to accomplish the required services during this four-month period. In addition, to USAID’s knowledge there is no local organization with the existing capacity and staff in place to promptly deliver the required services. Due to the urgency of the needed services, it would not be possible for a new local partner to develop the knowledge and relationships to deliver the required services within the four-month extension period.

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.

The USAID/El Salvador Mission examined alternative options to meet the Agency’s immediate needs, such as issuing a new mechanism or having a gap in programming. Given the short timeframe, issuing an alternative mechanism was not considered feasible. The Mission considered the option of not having a mechanism for four months as an alternative. This was considered unacceptable considering U.S. Government foreign policy priorities and potential adverse impacts.

A follow-on activity is currently in the solicitation stage and is being procured competitively, through a Task Order under the CARSS IDIQ.

As required by FAR 5.201, an advance notice of the proposed contract action was publicized in the Governmentwide point of entry (GPE) on or about February 8, 2024 providing notice of the Government’s intention to modify the contract pursuant to AIDAR 706.302-70(b)(5). In accordance with FAR 5.203(a), 15 days of response time was provided to potential sources. No comments were received by the CO in response to the posting.

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

The anticipated costs for the proposed extension period will be based on Nathan Associates’ recurrent and historical expenditures, which were established through a full and open competition process and have been found reasonable. The interventions proposed under the extension period are follow-on activities that are similar to those currently being implemented by the contractor.

Additionally, prior to awarding the modification, the Contracting Officer will review the proposed costs and make a determination as to whether the costs 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:

USAID/El Salvador Mission examined alternative options to meet the Agency’s immediate needs and posted an advance notice of the proposed contract action to solicit any interests from potential sources. Due to the urgency of this action and the change in programmatic circumstances described in Section 5, no other market research has been conducted to identify other sources, as it is considered that the contractor is in a unique position to render the required services. Due to the specific nature of the proposed activities along with the extensive time and high start-up costs associated with mobilizing a new contractor for only a short period, there are no other viable, cost-effective mechanisms to implement these activities.

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

The USAID/El Salvador Mission also examined alternative options to meet the Agency’s immediate needs for supporting the Deep Integration Process. A follow-on activity is in the process of being competitively procured but award is not anticipated in time to avoid a break in services, which would result in unacceptable delays in providing the immediate required assistance. The Contractor is best positioned through its relationship with regional governments, expertise in trade-related IT systems, and knowledge of the private sector’s needs to improve regional trade competitiveness. If the Contract is not extended and funded accordingly, this purpose of the Contract would not be accomplished. The time and cost of regional trade will be negatively affected and the Mission’s ability to reduce irregular migration will be impaired. Failure to deliver the intended assistance would result in losing the ability to further this USG foreign policy priority.

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

As required by FAR 5.201, USAID issued a notice of the intended contract action on SAM.gov. No sources have expressed interest, and no comments were received.

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:

The Mission is in the process of competing future requirements under a regional IDIQ mechanism.

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.

_____MLH________________________________ __2/12/2024_____________________

Matthew Hutcherson, EGE Office Director Date:

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.

_____2/15/2024______________ Date:

S Agnes Tusjak, Contracting Officer

14. Approved:

, Agency Competition Advocate Date

LYUDMILA BOND

Digitally signed by LYUDMILA

BOND

Date: 2024.02.29 12:08:20 -05'00'