A02.14 Sole Source Justification Under the SAT_NNOMPEAS SAM.gov.docx

CUI

SOLE SOURCE MEMORANDUM FOR ACTIONS UNDER THE SAT

IAW FAR 13.106-1(b)(1)(i)

1. Contracting Activity: The United States Army Corps of Engineers (USACE), Humphreys Engineer Center Support Activity (HECSA)

2. Description of Action: Subject approval for acquisition of needed professional services via new firm-fixed sole-source or by other than full and open competition acquisition to undertake follow-on work by Alluvion Data Systems (small business qualified) is based on benefits to interests of the Government for critical described technical work and development of applications involving data compilation, management, and analysis of maritime related data and information. These applications are of measurable value for economic and engineering evaluation of USACE-sponsored waterway systems improvements conducted in support of the agency’s civil works program for planning of new work and support for evaluation of associated operations and maintenance (O&M) in support of USACE’s civil works program pertaining to waterborne navigation. This work and the recommended vendor principal is familiar and associated with work efforts fulfilled via previously issued services acquisitions W912HQ17P0091, W912HQ18P1029, W912HQ19P0131, and W912HQ20P0101 regarding ongoing technical development of the NNOMPEAS system.

This work was initiated via originally fully competitively-advertised contract actions with the purpose to develop and maintain a centralized computer-based system to tabulate waterborne transportation cost structures and utilization statistics for coastal deep-draft waterway projects. At that time RJP Consulting was competitively selected as the most technically qualified and cost-effective provider of professional services for supporting work efforts. The new requirement is necessary to complete follow-on work in order to enhance the current system so that it meets currency of data and updated standards required by HQUSACE and analysts in the field.

Work completed to-date and through fiscal year 2021 has been facilitated under the professional administration of RJP Consulting Services. However, at the end of 2021 the principal for the firm had elected to retire and stand down RJP consulting services as an ongoing business concern. The primary contract technician for NNOMPEAS with RJP Consulting Services, Mr. Ken Colerick (as the principal of Alluvion Data Solutions (ADS)), expressed indication of willingness to continue to provide technical services in support of ongoing work requirements with an endeavor to effort, expertise, and compliance to requirements characteristic of previous associated assignments or awards. Mr. Colerick has served as the primary technician for developmental or ongoing work on the system during the last several years successfully completing all technical requirements in compliance with associated contractual awards and actions as listed further below. With services provided over this past year Mr. Colerick and Alluvion Data Systems (ADS) has successfully administered and developed adaptation of the system to develop capabilities for analytical application to the inland waterway system in addition to specifications to update and further develop the system for coastal deep-draft applications.

Correspondingly, it is anticipated that Mr. Colerick could continue to support development of the system as needed on a technically competent and cost-efficient basis avoiding virtually all of the marginal costs described under Section 5 further below associated with employing another contractor who did not have the same background, technical knowledge and skills, familiarity, and specific technical experience regarding the system and its intended use or application.

3. Description of Supplies/Services: Acquisition of Professional Services to Support Development of Enhancements to NNOMPEAS (National Navigation Operation & Management Performance Evaluation & Assessment System); System Modification to Support Enhancements for Upload, Processing, and Analysis of Foreign Trade & Domestic Waterborne Coastal Traffic Data from the Waterborne Commerce Statistical Center (WCSC), Ongoing or Periodic Update of Vessel Operating Costs, Update of Power & Emissions Models, Enhancements for Display and Download of Data, Support Requirements for Migration to a Cloud Environment & Measures for Second-Phase Development of Capabilities for Value-to-the-Nation Reporting - 2023. This new purchase order will enable the update of NNOMPEAS for operation in compliance within the current USACE computerized environment in addition to update of input information for vessel movements and vessel operating costs combined with evaluation of integrating additional inland waterway movements and display enhancements for statistical views requested by analysts or users in the field or USACE District offices. The independent Government estimate (IGE) of costs totals less than $XXX,XXX.XX with a period of performance of approximately one year in duration.

4. Authority Cited: 10 U.S.C. 2304(C)(1) or 41 U.S.C. 253(C)(1) as implemented in FAR 13.106-1(b)(1)(i)

5. Reason for Authority Cited: Based on the initial purchase order, W912HQ-11-P-0170, and follow-on purchase orders issued to RJP Consulting Services (and by preceding explanation, Alluvion Data Services), no other contractor has assisted with development of or currently uses or works with NNOMPEAS. Furthermore, a new contractor would be unable to readily assume this unique and highly specialized work in a timely or cost-effective manner relative to the proportional cost of the follow-on work as stated in the supporting performance work statement (PWS). This action requires and justifies the use of subject authority based on the nature of limited market availability of specific knowledge, skills, and experience essential to professionally competent, timely and cost-effective execution of needed work efforts particularly to data management and analysis, familiarity with naval architecture and vessel operations, maritime data, and the requirements of National Economic Development (NED) Analysis as applied by USACE (for additional information reference the supporting PWS).

6. Efforts to Obtain Competition: Efforts were extended some years ago when associated work efforts were started with expectation that work would need to be undertaken over a period of years subject to fiscal budgets and resources of the Government and the civil works program of USACE. These efforts involved extensive market research over a period of several months concurrent to informal and opportunistic research (research and inquiry as time and resources would allow over time) that had been conducted over a period of approximately one year. This was followed by formal solicitation for services via full and open competition to seek out and secure highly qualified and competent professional services from what was (and still is) believed the most technically knowledgeable and qualified entity for needed work combined with objective considerations for best or at least, equal cost effectiveness compared to any other firm professionally engaged in like or a comparable realm of work. Once selected, commitment was made on the part of the Government to the methods, techniques and approaches of the selected firm for consistency in technical approach and analytics for related marine engineering products essential to viable technical endeavor in a cost-effective manner given the nature of the work.

Based on the previous orientation period with the current contractor, the estimated amount of time that it would take a USACE technical analyst to technically orient a new contractor on the subject system would depend on the contractor’s experience with applicable USACE analytical practices and procedures in addition to knowledge, skills, and abilities (KSA’s) with applied software and code logic. Based on such experience requirements are estimated at approximately six (6) to eight (8) man-months of technical labor time allocated over a likely timeframe of eight (8) to ten (12) calendar months or more. This would allow the new contractor to acquire technical familiarity of\with applied USACE economic evaluation procedures and principles embodied by the system (which is in large part essential to understanding and efficient development support of the system) plus development of knowledge concerning how the system itself is programmed/source-coded and how it does (and does not) functionally operate.

Based on previous experience, technical labor costs to get a new contractor up to acceptable efficiency in production (or “speed”) on NNOMPEAS would amount to approximately $495,000 or more. This provides for one senior experienced USACE technical individual training or orienting one (or possibly more) contractor personnel for at least five (5) months at an average current fully-burdened hourly rate of approximately $258 for each individual. This estimate does not include potential non-labor costs such as for travel for technical meetings and processes or procedures to acquire basic knowledge (with a likely need of up to six (6) to as much as eight (8) weeks of travel) and support access to related sensitive data, etc. which could increase the estimate by approximately another $32,000 to nearly $40,000 or more for an estimated total of approximately $527,000 or more. These estimates do not include the significant value of delay in use of the system as otherwise scheduled for development or absence of knowledgeable technical support while orienting a new contractor.

Evaluation in the preceding contexts indicates it is simply not in the interests of the Government to assign what constitutes follow-on work at this time or in the foreseeable future to another entity. Regarding further considerations of competition, please see items 8 and 9.

7. Actions to Increase Competition: Subject work efforts described for securement of professional services outlined in the supporting performance work statement (PWS) constitute follow-on work of a relatively or highly-specialized technical nature. Prior justifications for restricted competition, sole-source acquisition, and justification for other than full and open competition have been sufficiently or acceptably substantiated for relatively recent placement of historical or prior needed technical work with the subject contractor (RJP Associates and then subsequently Alluvion Data Solutions). In reference to opportunities for interest or contestment and any absolute extent of barriers to interest or competition, reference response(s) to items 6, 8, and 9 herein. In context of potential capability to breakout subsystems or components for competition, this simply is not realistically viable given the nature of the work and the probable costs that would be incurred, especially versus notably limited budgets and time resources.

8. Market Research: Informal market research is done on a periodic ad-hoc basis for awareness of skills and technological capabilities versus costs that are or may be offered or newly brought to market or commercial availability by other potentially competitive firms. To-date, no firm to the knowledge of the technical manager (Ian Mathis; USACE-IWR; GS-14; 703 428-7257) possesses technical capacity or capabilities that warrant consideration for assignment of work to an alternative contractor or vendor on a technical basis and this is emphasized when considerations of costs are taken into account subject to fiscal constraints for budgets and associated time constraints.

9. Interested Sources: Each year or time a contract for securement of professional services has been developed and technical work assigned to the recommended contractor, a posting or advertisement for opportunity of contestment has been placed in accordance with prevailing requirements for Government contracting acquisition law, regulation and practice and each time either relative few or no other entities have shown interest or responded or, without exception, the entities that have shown interest simply were, upon further review determined to not be sufficiently or adequately technically qualified, cost-effective, or neither qualified or sufficiently cost-effective to warrant further consideration by the Government for assignment of respective work.

10. Other Facts: None are believed to be necessary given responses to preceding queries or discussion, and with further reference to associated performance work statement (PWS) dated August of 2023. Recent procurement history is as follows:

1. Task Order or Contract numbers and dates of the last several awards.

W912HQ21P0092P00001- Awarded 16 September 2021 in the amount of $96,750 W912HQ20P0101 – Awarded 24 September 2020 in the amount of $97,050 W912HQ19P0131 -- Awarded 25 September 2019 in the amount of $122,610 W912HQ18P0129 -- Awarded 27 September 2018 in the amount of $139,850 W912HQ17P0091 -- Awarded 28 September 2017 in the amount of $149,550

2. Competitive status of these actions.

W912HQ21P0092P00001- Sole source award to Alluvion Data Services (ADS) W912HQ20P0101- Sole source award to RJP Consulting Services W912HQ19P0131- Sole source award to RJP Consulting Services W912HQ18P0129- Sole source award to RJP Consulting Services W912HQ17P0091- Sole source award to RJP Consulting Services

11. Fair and Reasonable Cost Determination: I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable, based on and in the interests of the Government for best value based on the preparation of an independent Government estimate (IGE) prior to solicitation by the Government employee(s) familiar with the level of effort required and using current labor rates from contract actions with similar work. Per FAR 15.403-1(b)(3), certified cost and pricing data is not required.

David A. Kaplan Procuring Contracting Officer Phone: 703-428-8487

12. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

David A. Kaplan Procuring Contracting Officer Phone: 703-428-8487

Approval Based on the foregoing justification, I hereby approve award of a firm fixed price contract in the amount of $XXX,XXX.XX on another than full and open competition basis pursuant to the authority of FAR 13.106-1(b)(1)(i), subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

David A. Kaplan Procuring Contracting Officer

Prepared by:

Bart P. Dziadosz Contract Specialist

CUI

(Source Selection information - See FAR 2.101 and 3.104-4)