A04_5_JA_Incinerator_Final_(3)-1.pdf

JUSTIFICATION AND APPROVAL

TO PROCURE USING OTHER THAN FULL AND OPEN COMPETITION

Upon the basis of the following justification, I, as the Competition Advocate, hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of 41

U.S.C. 1901.

JUSTIFICATION

I. Agency and Contracting Activity:

Requiring Activity – Pentagon Force Protection Agency, Pentagon

Contracting Activity – Washington Headquarters Services Acquisition Directorate

II. Nature/Description of Action(s): The proposed action is to award a follow-on firm fixed price contract for maintenance, repair and system operation of two incinerators located at the Pentagon Classified Waste

Destruction Facility to Air Pollution Control Products (APC), located at 10967 Richardson Rd, Ashland VA

23005. The type of funds to be used for this effort is Pentagon Reservation Maintenance Revolving Funds

(PRMRF), Fiscal Year 16. The period of performance is 1 October 2016 through 30 September 2020.

III. Description of Supplies/Services: Incinerator maintenance, repair and system operation to include the following:

(1) Labor, materials, tools, equipment and travel necessary to perform normal operations of the incinerators and ancillary equipment in accordance with (IAW) with Original Equipment Manufacturer (OEM) standards.

(2) Preventive maintenance of incinerators and ancillary equipment in accordance with OEM standards.

(3) Routine repairs of incinerators and associated equipment in accordance with OEM standards.

(4) Emergency repairs that impair the routine operation of the incinerators and associated equipment.

(5) Compliance with Virginia Department of Environmental Quality regulations.

The Government estimate for this contract for a base year with four 1-year options is $2,393,000.00.

IV. Identification of Statutory Authority: The statutory authority permitting this action is 10 U.S.C.

2304(c)(1) Only one responsible source and no other supplies or services will satisfy agency requirements. Per FAR 13.501(a)(1)(ii), this justification uses the format at FAR 6.303-2, modified to reflect an acquisition under the authority of the test program for commercial items.

V. Demonstration of Contractor’s Unique Qualifications:

A sources sought notification was posted on FedBizOpps on 23 July 2015 which resulted in the incumbent being the only response.

The Government contacted the manufacturer Consutech and they confirm that Air Pollution Control Products

(APC) is the sole source that can provide these services because they have been the only vendor licensed by

Consutech for the last 30 years.

APC ensures the facility is available and operational for the government's essential mission. The plant is made up of a complex system of large equipment which has to operate in unison for the successful destruction of our large volumes of classified materials. In addition to this contractor operating the plant, they also maintain all equipment with an ongoing preventive maintenance schedule on a daily basis. Emergency repair and unscheduled maintenance is also covered. The facility Department of Environmental Quality permit to operate also requires a state licensed Class I and IV operator, which is provided by the contractor. Contractor tasks involve daily plant start up, system operation, residue removal, system monitoring and ensuring optimum performance in addition to the maintenance and repair.

The process equipment was built by Consutech Systems near Richmond, VA. The manufacturer does not provide direct maintenance. For end user site support, the manufacturer only staffs a field service tech which is available on an as needed basis and not full time. The manufacturer tech is not for permanent site operation and maintenance, just individual service calls only and for limited duration. The current contractor, however, is the only Consutech Systems factory certified and authorized representative for sales and service.

There are proprietary intellectual properties that all manufacturers rely on and they differ with each company.

This has to do with equipment construction and fabrication details. Another area the APC is responsible for is the operating software program changes and troubleshooting for the Programmable Logic Control (PLC) that is the heart of the plant operation. Access to this information is critical when making major repairs such as structural and refractory or upgrading control system performance. Since APC Products, Inc. is the factory authorized dealer, they have the necessary access to this information.

The current system in place was purchased over 20 years ago and has a remaining lifespan of 25 years. There is no other vendor authorized to provide this service. The incumbent has provided excellent customer service to the

Government.

VI. FedBizOpps Announcement/Potential Sources: A notice of intent to sole source will be posted on the

Federal Business Opportunities (FedBizOpps) website in accordance with FAR 5.201 requirements.

VII. Determination of Fair and Reasonable Price: The contracting officer will compare current pricing to historical pricing paid over the last 20 years to determine a fair and reasonable price.

VIII. Description of Market Research: As described in Section VI above, market research, in accordance with

FAR Part 10, was conducted through a sources sought notification. APC was the only respondent to the sources sought notification. A complete market research report is available as Attachment A.

IX. Any Other Supporting Facts: Historically over the last 20 years, Air Pollution Control Products has been the sole source vendor providing this service to the Government. There has been no interest from other certified small businesses to provide this service. Consutech is the manufacturer and Air Pollution Control Products is the sole authorized distributor.

This requirement was competed on FedBizOpps in July 2010. APC was the only respondent.

X. Listing of Interested Sources: Air Pollution Control Products.

XI. Actions Taken to Remove Barriers to Competition: The customer will continue to monitor the manufacturer’s distributor list. Since this equipment is proprietary, there are no other authorized vendors who can service this equipment.

The Government estimates that this work will be sole sourced until there is a need to purchase a new incinerator.

At that time, the Government will research options for equipment where maintenance can be procured on a competitive basis.

The Government has asked the vendor if they would authorize additional vendors to provide this service. The response was that APC has been providing this service for the manufacturer for over 30 years. Over the years, other vendors were given an opportunity to service this manufacturer’s products but they were proven to be unsuccessful. The manufacturer states that APC provides the best customer service and representation of their company and will not offer opportunities for other vendors in the future.

XII. Reference to the Approved Acquisition Plan (AP): This requirement is below the formal written acquisition plan threshold.

TECHNICAL AND REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance, which are included in this justification and which form a basis for this justification, are complete and accurate to the best of knowledge and belief.

Technical Cognizance:

ROBERT KRUMPOS

Chief, Security Operations Division (703)697-7868

CONTRACTING OFFICER CERTIFICATION

I certify that this justification is accurate and complete to the best of my knowledge and belief.

STEPHANIE L. POWELL

WHS/AD, Contracting Officer, (703)545-0541

APPROVED BY:

WENDY R. SCHERMERHORN

Procuring Activity Competition Advocate, (703)545-1603