JA_PES_Ceiling_Redacted_Final.pdf

LIMITED SOURCE JUSTIFICATION & APPROVAL (J&A)

FEDERAL ACQUISITION REGULATION (FAR) PART 8 ACQUISITIONS

Multiple Award Schedule (MAS)/Multiple Award Contract Orders under MAS/General Services Administration Schedules (GSA)/

Federal Supply Schedules (FSS) FAR 8.405-6

Purchase Request Number: Not Applicable (N/A) Contract Number:

Task/Delivery Order Number: N/A Procurement Title: Professional Engineering Services BPA Ceiling Increase Estimated Value: Ceiling increase of Limited Source Authority: FAR 8.405-6(a)(1)(i)(C)

LIMITED SOURCE JUSTIFICATION

J&A Number:

Upon the basis of the following justification, I, as Procuring Activity Competition Advocate, hereby approve this limited source justification in accordance with FAR 8.405-6(a)(1)(i)(C).

The acquisition referenced herein is conducted under the authority of the Multiple Award Schedule Program.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requesting Agency:

Contracting Activity:

DISA/Defense Information Technology Contracting Organization (DITCO)/

2. NATURE/DESCRIPTION OF ACTION(S): The nature of this action is to increase the ceiling of the DISA Professional Engineering Services (PES) blanket purchase agreement (BPA), , to allow for facility engineering requirements to continue through the end of the ordering period, . This change would be completed through a modification to the BPA.

This ceiling increase is necessary due to the level of facility engineering work required under this BPA being underestimated in (during market research). The BPA was estimated at , and the resultant agreement was awarded with a ceiling cost of , based on this estimation. To date, DITCO has awarded Call Orders totaling .

The end user utilized past facility engineering requirements focused on the headquarters

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(HQ) facility at with some engineering involvement required at other Contiguous United States (CONUS) or Outside Contiguous United States (OCONUS) to project the requirements that would fall under this BPA. This estimate resulted in approximately

, while estimate did not account for the

, utilizing the BPA as much as they have required. main headquarters campus has required various facility engineering studies, which have fallen under the BPA scope; as a result, the current BPA breakdown, to date, is as follows:

Due to the program office’s inability to fully anticipate ever-expanding missions, both agencies’ aging facility infrastructures, and the overall desire to decrease overhead expenses throughout , the estimated costs associated with this BPA were significantly underestimated during acquisition planning. With the additional facility engineering requirements within that were not planned at the outset of the BPA, they are also utilizing this BPA, so the current ceiling of does not accurately support the mission requirements.

The current PES BPA, , was awarded to with a ordering period of

. This action will increase the ceiling of the PES BPA by , from to . Call orders under the BPA will be firm-fixed price and will be funded with Operations and Maintenance funds at the time of the individual call order award.

All other direct costs, to include travel, are invoiced on a cost basis, and the contractor is only reimbursed their actual expense via a Cost Reimbursable Contract Line Item Number (CLIN).

3. DESCRIPTION OF SUPPLIES/SERVICES:

a. The PES BPA is a facility engineering services BPA, providing mechanical, electrical, architectural, structural, plumbing, civil, and environmental engineering support services.

This BPA supports facility engineering services at various and sites for ongoing facility operations and maintenance as well as, in part, special facility projects, including various engineering investigations/analyses, repair/renovation projects, business case analysis, preliminary facility design plans, and Military Construction (MILCON) support documents.

b. This action will not change the overall facility engineering services scope included within the PES BPA. This ceiling increase will allow for continued support of facility engineering needs until the end of the BPA’s ordering period, Page 3 of 7 Pages

4. IDENTIFICATION OF LIMITED SOURCE AUTHORITY AND DEMONSTRATION OF

CONTRACTOR’S UNIQUE QUALIFICATIONS:

a. Circumstances Justifying Limiting the Source: FAR 8.405-6 (a)(1)(i)(C), in the interest of economy and efficiency, the BPA ceiling increase is a logical follow-on to the original competitively bid FSS BPA. The BPA was awarded in accordance with the applicable FSS ordering procedures.

b. Description of the Justification: The original BPA was competed among all viable and interested vendors holding GSA FSS Schedule 871 Professional Engineering Services and 899 Environmental Services Schedules. The request for proposal supporting the PES BPA, Tracking No. , outlined the Government’s anticipation that a ceiling increase may be required prior to expiration of the agreement. Specifically, Section 13 of the BPA PWS , which states, in part:

• “Identification of Significant Possible Growth. Dependent on changing requirements and available funding, the Government may require a significant increase in the level of effort provided by this BPA.”

• “Identification of Possible Follow-on Work. This BPA is based upon the workload of the support may increase, based upon needs of the Government.

The contractor shall provide the ability to deliver additional FTE support to the BPA in direct assistance of the increased workload. Additional FTE requirements will not require future competitive bidding and may be added under modification to this Performance Work Statement. Both positive and negative performance will be documented in past performance reports/database.”

Based on this language, which was available and provided to all interested offerors at time of the BPA award, all interested offerors were made aware during the solicitation phase that a ceiling increase may be required during the BPA lifecycle.

This BPA provides engineering support services for all of mission-critical and administrative facilities located in both locations. has already identified additional requirements that must be fulfilled within the next 90 days;

award of these call orders will result in the Government exceeding the current ceiling cost of . Failure to procure these additional requirements within the next 90 days will result in being unable to move forward with their much needed new facility and will leave DISA unable to provide critical facility engineering services to the requiring sites.

(1) The facility requirements were not a known issue when the BPA ceiling was being estimated; however, has utilized approximately of the overall BPA cost to date. Consequently, the requirements have caused the BPA ceiling to be reached

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(2) The facility engineering requirements have all been within scope of the PES BPA and have been deemed mission critical projects.

The time required to initiate a new contract action, evaluate qualified engineering firms, conduct a source section board, award a new contract, and bring a new facility engineering vendor on board would be extensive and not a feasible option for continuing the required services, surely resulting in mission work stoppages and unacceptable delays. Re-compete of this action for a period of approximately would result in drastic amounts of re-work and increased costs to the Government. The published acquisition lead time (PALT) for this type of action is 157 calendar days for solicitation and award; add an additional for security approval (if the personnel already have active security clearances) along with an additional of startup time. Based on these PALTs, it is in the best interest of the Government to increase the ceiling of the PES BPA, which will allow services to continue under the current BPA until the end of the ordering period on .

c. Justification:

(1) Minimum Government requirements:

The contractor shall provide licensed professional engineering personnel who have a background in facility engineering project management and have available long and short term on-site personnel able to assist , whether within the United States or worldwide.

Specific engineering requirements:

The contractor must provide personnel, fully qualified to direct the performance of engineering functional task elements for;

o Electrical systems: from the building entrance transformers down to the power distribution units on the raised floor. Experience with Uninterruptible Power Supply units, from 80K to 6.6MW, and generator sets, from 100KW to 9MW, is required.

o Mechanical systems: from the cooling towers down to the computer room air conditioner units on the raised floor. Experience with the air conditioning systems and plants from 10 ton Direct Expansion to 4,000 ton plants is required.

(2) Proposed sole source contractor: is the current vendor on the PES BPA, . This BPA was competed amongst all viable and interested vendors holding GSA FSS Schedule 871 Professional Engineering Services and 899 Environmental Services Schedules. Three proposals were received, and was identified as the winning offeror. As detailed above, re-competing this requirement would result in unacceptable delays, additional startup costs, and duplicative solicitation costs for an overall additional estimated cost of (duplicated actions and costs include preparing a procurement package, requesting solicitations, the proposal source selection process, contractor’s overhead expenses

, onboarding new employees , purchasing equipment etc.).

The engineering requirements continue, based on the existing BPA ordering period end date of .

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(3) Discussion regarding cause of the limited source situation: The current PES BPA expires on ; one additional option year will remain, which will extend the PES BPA’s ordering period through . Due to and expanding missions, the awarded BPA ceiling was significantly underestimated.

These additional work requirements could not have been foreseen at the conception of the PES BPA and were therefore not included in the BPAs resultant ceiling. As a result, the current BPA ceiling cannot cover the additional requirements through the end of the ordering period in

(4) Demonstration of limited source: While other contractors are capable of providing the PES BPA services required by both , the time constraints and increased costs associated with getting a new facility engineering contractor under contract and through security requirements cannot be completed economically or efficiently.

(5) Procurement discussion: This BPA, , was competed amongst all viable and interested vendors holding GSA FSS Schedule 871 Professional Engineering Services and 899 Environmental Services Schedules.

(6) Impact: The current BPA ceiling is anticipated to be reached in , with the two upcoming call orders for ongoing facility engineering contractor support reaching approximately . With the known ongoing facility support at as well as worldwide support expected to require in for requirements and the expected call orders from the reaching approximately , the increase in ceiling is greatly needed. Failure to increase the BPA ceiling will result in being unable to address facility requirements (ongoing facility needs and upcoming MILCON projects), which will cause delays to facility projects, possibly resulting in facility failures to critical infrastructure and work stoppage on mission-critical projects.

5. BEST VALUE DETERMINATION:

a. The current PES BPA represents the best value to the Government, in accordance with FAR 8.4.04(d) – GSA has already determined the labor rates for services offered at hourly rates under schedule contracts to be fair and reasonable. The current BPA rates, based on the contractor’s GSA FSS Schedule, were negotiated at BPA award.

also provided a discount of to their GSA schedule rates, therefore resulting in additional savings to the Government. The current BPA was competed and was found to be the lowest priced offeror. Market research does not indicate significant changes in the market place and, therefore, the Government has no reason to believe the agreed upon rates are unreasonable. Based on the above, the rates being offered by are considered fair and reasonable and provide the best value to the Government, price and other factors considered.

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b. All call orders awarded under the PES BPA are firm fixed price and utilize the already negotiated labor rates. Each call order requires the contractor, to submit a cost proposal outlining their proposed labor category, rate, and quantity of hours. The Government evaluates each call order to proposal to ensure each labor category, rate, and quantity are in line with current BPA rates and the requirements of each individual call order. All other direct costs, to include travel, are invoiced on a cost basis, and the contractor is only reimbursed their actual expense.

6. MARKET RESEARCH:

Market research was conducted from through and reevaluated in to identify any alternative sources capable of fulfilling the Government’s facility engineering needs in an economical and efficient manner. There are no options that are more cost effective or available in the time constraints required to meet the Government’s needs. Based on current market research and in the interest of economy and efficiency, it has been determined that only can fully support the Government’s needs at this time.

7. ANY OTHER SUPPORTING FACTS: N/A

8. ACTIONS THE AGENCY MAY TAKE TO REMOVE BARRIERS THAT LED TO THE

RESTRICTED CONSIDERATION:

a. Procurement history.

(1) , competitive solicitation of the GSA FSS Schedule 871 holders, firm fixed price, and time and materials contract awarded to ., a large business, with a period of performance of

(2) , competitive solicitation of the GSA FSS Schedule 871 & 899 holders, firm fixed price, BPA awarded to ., a large business, with an ordering period of (base year with four option years).

b. At the end of the ordering period, , these services will be picked up by contract

The contract was awarded

The estimated cost of the follow-on contract, and therefore the total ceiling cost of the follow-on, were both established with the understanding that the services provided by would not be required under until the expiration of H in therefore, it is not a feasible option to procure services through at this point.

9. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP):

In accordance with the exceptions under DISA Acquisitions Regulation Supplement 7.103(S- 91)(1)(vii), an AP is not required.

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TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance, which are included in the J&A, are accurate and complete, to the best of my knowledge and belief.

NAME: SIGNATURE:

TITLE/ORGANIZATION:

PHONE: DATE:

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance, which are included in the J&A, are accurate and complete, to the best of my knowledge and belief.

NAME: SIGNATURE:

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete, to the best of my knowledge and belief.

NAME: SIGNATURE:

TITLE/ORGANIZATION: DISA/ DITCO- PL8

PHONE: DATE:

PROCURING ACTIVITY COMPETITION ADVOCATE APPROVAL (PACA): I have reviewed this justification and find it to be accurate and complete, to the best of my knowledge and belief. Since this justification does not exceed $13.5M, this review serves as approval and my written determination that the aforementioned FAR circumstances apply.

NAME: SIGNATURE:

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO