Ceiling Increase JandA_Redacted.pdf

CUI

SOURCE SELECTION INFORMATION – See FAR 2.101 and 3.104

JUSTIFICATION AND APPROVAL (J&A)

USTRANSCOM JUSTIFICATION FOR

OTHER THAN FULL AND OPEN COMPETITION

GLOBAL HEAVYWEIGHT SERVICES (GHS)

CONTRACT NOs. HTC711-19-D-C002 thru C026

CONTROL NUMBER: 23-14

1. CONTRACTING ACTIVITY.

United States Transportation Command (USTRANSCOM), Directorate of Acquisition, Airlift Division (TCAQ-C), 508 Scott Drive, Building 1900W, Scott AFB, IL 6225-5357.

2. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED.

This action will result in a modification to increase the current Global Heavyweight Service (GHS)-1 contract ceiling. Multiple factors contributed to the need to increase the ceiling. First, GHS-1 absorbed the CAT A contract. At the time of award, GHS-1 shipment volume was correctly estimated. However, when GHS-1 task orders were solicited, the awarded rates were higher than anticipated, leading to increased spending for the ~15-month period of performance.

Second, the ceiling established in the IGCE in 2018 was based on the assumptions that domestic operations tempo would closely mirror the previous years and that international volume and cost would increase. However, beginning in 2020, COVID-19 significantly disrupted those assumptions and led to virtually all passenger flights being grounded, which significantly increased the demand for space on cargo flights and unexpectedly raised rates as a result.

Additionally, GHS shipment reporting was unexpectedly delayed 18-24 months. When the reports were eventually received and analyzed in October 2022, it was discovered that cost was higher than originally estimated. Finally, the GHS-2 source selection experienced protest delays early in the process, which extended the originally planned award date. Due to these unforeseen occurrences, GHS-1 has incurred increased expenditures beyond what was originally forecasted. The contract ceiling will need to be increased by $67,200,000.00, extending the ceiling from $348,423,689.98 to $415,623,689.98 to support continued services through 31 January 2023.

3. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS.

The GHS-1 contract provides heavyweight delivery services for international and domestic shipments. Services shall be provided for the U.S. Department of Defense (DoD), other Federal Government agencies, and contractors who have a cost-reimbursable contract line-item number under another Government contract which includes transportation of freight (Cost-Reimbursable Contractors (CRC)). The contractor is required to provide door-to-door, time definite, pick-up and delivery, transportation, timely and accurate shipment tracking, government Third Party Payment System (TPPS) participation, customs clearance processing (if applicable) and

Controlled by: USTRANSCOM Controlled by: Directorate of Acquisition CUI Category: General Procurement and Acquisition Limited Dissemination Control: FED ONLY

POC:

tcdearja Cross-Out tcdearja Cross-Out tcdearja Cross-Out tcdearja Cross-Out tcdearja Cross-Out shipment data reporting. The contractor shall provide these services for international shipments over 300 lbs. Additionally, the contractor will provide services for CONUS domestic shipments over 150 lbs. and over 300 lbs. for Alaska and Hawaii. The services provided within the scope of this contract are considered “operationally critical support” as defined in DFARS 252.204-7012, “Safeguarding Covered Defense Information and Cyber Incident Reporting.”

4. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION.

The statutory authority permitting the use of other than full and open competition is 41 U.S.C.

3304(a)(2), Unusual and Compelling Urgency, as implemented under Federal Acquisition Regulation (FAR) 6.302-2.

5. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF

THE AUTHROITY CITED.

In accordance with (IAW) FAR 6.302-2(b)(2), an unusual and compelling urgency precludes full and open competition, and delay in award of a contract would result in serious injury, financial or other, to the Government. Any approach to fulfilling this requirement other than increasing the ceiling of the current contract would result in the disruption of domestic and international shipments needed by the Transportation Offices worldwide which would cause serious injury to the warfighter readiness.

The services being provided are in support of the GHS-1 contract. As of September 2022, the Government has obligated $330,803,384 of the current $348,423,689.98 ceiling. The total expected expenditure by the end of the contract is $415,623,689.98. Modifying the contract to increase the ceiling by $67,200,000 is expected to cover the expenses of the unforeseen increase in requirements through the remainder of the contract ending 31 January 2023.

GHS-1 is an essential contract fulfilling various shipping services to support the warfighter and other essential U.S. Government agencies. Delays in shipments would cause serious injury to the Government IAW FAR 6.302-2(b)(2). Specifically, any delay in shipments would negatively affect the delivery of medical supplies, perishable food items, and other essential supplies necessary for critical mission and whole-of-government support.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICAL.

Competitive offers were not sought specifically for this proposed ceiling increase since the GHS- 2 contract is currently in source selection. However, participation in GHS-1 (and the impending GHS-2) is open to all CRAF carriers, provided they are in good standing and maintain their Federal Aviation Administration (FAA) and CARB approvals. All existing CRAF carriers were solicited, and notices were published on the System for Award Management (SAM) website for each solicitation. Interested parties may access the SAM website at www.sam.gov. All U.S. Flag air carriers have the opportunity to join the CRAF program at any time. Therefore, the decision tcdearja Cross-Out whether to join the CRAF and become eligible to compete for these opportunities is an internal business decision made by the carrier.

7. DETERMINATIONS BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE.

At time of award, GHS-1 rates were determined fair and reasonable IAW FAR 15.404-1(b)(2)(i) based on adequate competition. No other market conditions exist that alter the determination that the rates are fair and reasonable, and adequate competition at the shipment level is expected to continue. As competition is maintained at the shipment level and no updates were made to the proposed rates submitted at contract award and escalated at rate refresh IAW GHS-1 PWS 2.5.1.2., the anticipated cost to the Government is expected to be fair and reasonable.

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED.

Formal market research for GHS-1 was conducted during source selection. The objective of this research was to determine the following:

- If Global Heavyweight Services are performed in the commercial marketplace.

- If it is commercial practice to acquire domestic and international freight transportation services under one contract.

- The effects the consolidation of current Government air tenders will have on how companies currently perform those requirements.

- The contract types, lengths, pricing structure, business standards, practices, and terms and conditions used in the commercial marketplace by commercial entities.

Market research was conducted for GHS-1 and GHS-2, and the findings are documented and included in both contract files. The market research determined that the Government’s need can be met through the commercial market, and the service required to transport heavyweight cargo via air transportation is a commercial item frequently purchased within the commercial market.

Based on the commercial nature of the mission, availability of suitable commercial aircraft, and the historical award of commercial air tenders, it is expected that there will be adequate competition and capacity to provide aircraft and services to meet customer requirements. No additional market research efforts were conducted for this action.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION.

None.

10. A LISTING OF SOURCES, IF ANY, THAT EXPRESSED AN INTEREST IN THE

ACQUISITION.

None.

tcdearja Cross-Out

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

OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE MAKING ANY

SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR SERVICES REQUIRED.

A competitive source selection is cmTently being worked for GHS-2.

12. CONTRACTING OFFICER'S CERTIFICATION.

I ce1tify that the data suppo1t ing the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

JESIKA A. DEARMOND

Contracting Officer

13. TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION.

I ce1tify that the data suppo1t ing the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Chief, Commercial Services Branch, TCJ4-L

14. WRITTEN DETERMINATION OF THE APPROVING OFFICIAL IDENTIFYING

THE CIRCUMSTANCES THAT APPLIES TO TIDS ACTION.

Based on the above cited justification, I hereby detennine the circlllllStances in FAR 6.302- 2(b )(2) applies to this justification for an exception to fair opportunity.

Head of the Contracting Activity

CUI

tcdearja Cross-Out