FAR 8.4 - Limited Sources Justification - Amex Int'l - Award Date 3-27-2012.pdf

U.S. Agency for International Development 1300 Pennsylvania Avenue, NW Washington, DC 20523 www.usaid.gov

JUSTIFICATION AND APPROVAL - LIMITED SOURCE JUSTIFICATION

Potential Source: Amex International

Requesting USAID Bureau for Democracy, Conflict, and Humanitarian Assistance Office: Office of Food for Peace Policy and Technical Division

DCHA/FFP/PTD

Ordering USAID Office of Acquisition and Assistance Activity: M/OAA/DCHA/AFP 1300 Pennsylvania Avenue, N.W. / SA-44 Washington, D.C. 20523

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED:

This document sets forth the facts and rationale justifying the use of other than full and open competition for the continuation of services under contract FFP-M-00-06-00050 with Amex International, a small business. This acquisition is conducted under the authority of the Multiple Award Schedule Program in accordance with Federal Acquisition Regulations (FAR) Part 8.405-6(a)(1)(A).

The Office of Food for Peace of the U.S. Agency for International Development’s Bureau for Democracy, Conflict and Humanitarian Assistance (DCHA/FFP), is requesting a contract modification to extend the contract performance period with Amex. The modification will provide for the vital continuation of services for the AMEX International Institutional Support Services Contract (ISSC). This request seeks approval of a three-month extension of this ISSC, from March 28, 2012 through June 30, 2012.

III. DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS (INCLUDING THE ESTIMATED VALUE):

DCHA/FFP provides administrative, technical and financial oversight for the Title II program. Title II represents the largest amount of United States Government resources committed to global food insecurity. DCHA/FFP makes available Title II resources to private voluntary organizations, international organizations and foreign governments to address food

- 2 -insecurity resulting from short term emergencies and longer term development problems in food deficit countries.

Title II programs operate in an environment characterized by increased frequency and severity of natural and manmade disasters; the heightened diplomatic, military and humanitarian demands on the U.S., including the war on terrorism; and the destabilizing potential of HIV/AIDS, conflict, and increased numbers of refugees and internally displaced persons.

The ISSC with AMEX International, Inc. supports DCHA/FFP in addressing international food aid needs in an effective, efficient, and timely manner. DCHA/FFP makes and administers all Title II the assistance awards in-house (i.e., awards are not made/implemented by the Office of Acquisition and Assistance. The majority of ISSC staff directly support DCHA/FFP’s grant-making, commodity procurement, and budgeting functions related to Title II these awards. If the extension of this contract is not approved, DCHA/FFP will be unable to process the majority of the actions required below to deliver its assistance.

Objective 1: Assist in the planning, management, technical and administration support of PL 480, Title II grants and cooperative agreements.

Objective 2: Provide technical support to the Program Operations Division for calls forward, procurement tracking, booking, shipping, budget analysis and presentations.

Objective 3: Assist FFP to expand its training portfolio by assessing training needs, developing standardized training packages, modifying and/or developing technical training modules, organizing and implementing training sessions related to Title II food aid program implementation, monitoring and evaluation.

Objective 4: Provide information support in the areas of report writing and material updates, as well as modify (or develop) and implement a public relations, communication and outreach strategy for FFP.

Objective 5: Provide data and operational support.

Objective 6: Provide any necessary administrative/clerical and travel support to

DCHA/FFP daily operations.

Objective 7: Support the planning and organization for Title II specific events, such as the Food Aid Consultative Working Group, and follow-up actions as necessary.

The contract was awarded September 27, 2006, as a Labor Hour contract with a base year and four option years, all of which were exercised. The fourth option year ended September 27, 2011 and a six month unfunded extension, approved by the Administrator, will expire March 27, 2012.

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The present justification requests approval of an additional three month extension of the current contract to begin March 28, 2012, and run through June 30, 2012.

IV. THE AUTHORITY AND SUPPORTING RATIONAL DEMONSTRATING THE

PROPOSED CONTRACTOR'S UNIQUE QUALIFICATIONS TO PROVIDE THE

REQUIRED SUPPLY OR SERVICE

In accordance with FAR 8.405-6 Limited Sources, this award is authorized on a limited sources basis because of the urgent and compelling need as described below, and following the procedures would result in unacceptable delays to deliver life-saving DCHA/FFP assistance abroad. No other authority provided is suitable. In sum, if this request is not approved, DCHA/FFP will be unable to process critical actions required to deliver its assistance abroad.

DCHA/FFP is the U.S. Government leader in international food assistance, including to the Horn of Africa where there is an ongoing drought with over 10 million vulnerable people being fed food aid. In addition, DCHA/FFP is providing emergency food aid to address needs arising in the Sahel and elsewhere, including Pakistan and Yemen. At the same time, DCHA/FFP emergency food aid programs help to create stable environments and provide a stabilizing foundation upon which broader development activities may be built, and are increasingly designed to help people forestall or withstand future disasters. This includes investments to strengthen livelihoods and governance; promote reconciliation, consensus building and peaceful political competition, and strengthen the rule of law. This contractor assists DCHA/FFP in the administration of Title II emergency and development programs regarding commodity calls forward, procurement tracking with USDA, and the booking and shipping of commodities overseas. Without this support, DCHA/FFP will not be able to deliver life-saving assistance overseas in a timely manner. Lives will be at stake, and would undermine USAID’s ability to work with the international community to provide assistance to those in need as quickly as possible. Absent this extension, these development investments may fail, as DCHA/FFP programs will be disrupted with many lives at risk..

During the first extension from September 30, 2011, to March 28, 2012, DCHA/FFP realized that the processes within DCHA/FFP grew differently within the last year, especially with the addition of the new Emergency Food Security Program, which is not captured under the existing ISSC.

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In the meantime, in September/October 2011, offices within DCHA began to discuss options for an acquisition strategy for a proposed Shared Services IQC to include a majority of the DCHA offices requiring institutional support. It was recognized that coordinating DCHA’s democracy programs, international disaster assistance, emergency and developmental food aid, transition activities, and conflict mitigation programs under one Shared Services IQC for institutional support, was critical. This strategic alignment of institutional support mechanisms within DCHA is a key element of the management reform of USAID. This alignment will decrease redundancy among DCHA institutional support agreements/mechanisms, which will improve operational efficiency and effectiveness and reduce costs through economies of scale.

DCHA/FFP realized as a result of this process and a change in requirements, it needed an entirely different methodology and contracting approach for its future ISSC requirements. On January 20, 2012, the BAAR approved DCHA’s Shared Ceiling IQC request. This approved action bridges the funding during DCHA’s follow-on acquisition process. The DCHA Shared Services IQC is expected to be solicited in mid-2012 with an award date before or by March 30, 2014. These decisions, brought about because of realizations emanating from advance planning processes, resulted in a dramatic change to DCHA/FFP’s contracting approach. Where earlier DCHA/FFP had planned for a contractual approach similar in some ways and different in others to the one in the subject contract for the last decade (with competition at appropriate intervals), DCHA/FFP has determined that it needs a fundamentally different contractual approach. This decision was made a little over one month as a result of high level officials involved in the USAID contracting process blessing the Shared Services IQC approach. Although it was not focused on the subject contract but agency requirements at large, its impact on this contract cannot be avoided.

DCHA/FFP now finds itself with two separate requirements. The first is extending the current contract by three months to maintain existing services. The second is to re-compete the existing requirements through September 2013 (with an option to extend), until the DCHA Shared Services IQC is awarded. Rather than restructure DCHA/FFP requirements for the period July 2012 through September 2013, it is more efficient to meet its requirements during this time period in a manner similar to the approach in the past, and institute a significantly revised and improved approach that incorporates multiple requirements through the Shared Services IQC. This decision results in a re-competition of the existing requirement for a limited duration – a previously unanticipated outcome.

There is an urgent and compelling need in the interim to have the services provided as discussed above. However, DCHA/FFP is limiting the period to the minimum necessary – three months, while it completes the re-competition that is already underway.

V. CONTRACTING OFFICER’S DETERMINATION THAT THE ORDER

REPRESENTS THE BEST VALUE

In accordance with FAR Part 8, the ordering activity contracting officer performed the due diligence in making a best value determination. Because services offered on the schedule

- 5 -are priced either at hourly rates, or at a fixed price for performance of a specific task, GSA has already determined fixed-price services and rates for services offered at hourly rates under schedule contracts to be fair and reasonable. The prices provided by the contractor were previously determined to provide best value, and despite increases in prices in the market place since that determination in November 2011, the prices for the subject sole source bridge contract have not increased. Further, in accordance with FAR 8.405-2(d), the ordering activity contracting officer will consider the level of effort and labor mix for determining price reasonableness.

VI. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS

NOT CONDUCTED.

DCHA/FFP consulted with the Office of Small and Disadvantaged Business Utilization (OSDBU) and the ordering activity contracting office while conducting market research.

DCHA/FFP researched the GSA Schedules and determined that the requirement is appropriate for small businesses under the Management, Organizational and Business Improvement Services (MOBIS) schedule.

VII. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION

As stated supra.

VIII. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY

SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR SERVICES REQUIRED.

No barriers exist to a subsequent acquisition of the services required. Agency efforts are currently underway to provide for competition. The ordering activity, ordering activity contracting office, and OSDBU conducted market research to identify schedule contractors for this activity. Four small business schedule contractors capable of filling the requirement were identified. The ordering activity contracting office provided each schedule contractor a copy of the request for quotation on March 20, 2012.