Consolidation of Contract Requirements Determination_FINAL_Redacted.pdf

DETERMINATION AND FINDING

COORDINATION AND APPROVAL PAGE

Purpose: Request approval from Senior Contracting Official to issue a Firm Fixed Price contract for the purchase of monthly preventive maintenance (PM) and repair services of automatic chemical wash systems, PM and inspection services on fire alarm systems and components, and cleaning of kitchen exhaust systems hoods, ducts, fans, and filters at various Army installations on the Island of Oahu and Pohakuloa Training Area and Kiluaea Military Camp (PTA/KMC), Island of Hawaii. Consolidating these requirements will result in the Government being able to clean, service, and maintain the entire system, ensuring all performance requirements are met, and enabling DPW to meet its mission objectives in supporting multiple military installations. Preventative maintenance and repairs can also be provided in a timely manner, saving taxpayer dollars and removing the undue risks and liabilities when scheduling conflicts arise. Consolidation will also create continuity for the system’s lifecycle, as a singular contractor will be responsible for the entire system, therefore enabling the Government to hold a contractor accountable. Lastly, consolidation would create administrative efficiencies for the Government in partnering with the singular Contractor.

Title of Effort: Preventive Maintenance and Repair of Fire Suppression/Fire Alarm, Automatic Chemical Wash Systems and Hoods, Ducts, Fans & Filter Cleaning

Contract Vehicle: W912CN-25-Q-0007

Requesting Agency: Directorate of Public Works (DPW)

Requirements POC:

Contracting Activity: 413th CSB, RCO-HI

Purchase Request/Local Identification Number: N/A

Requirement Description: This is a non-personal services requirement to provide monthly preventive maintenance (PM) and repair services of automatic chemical wash systems, PM and inspection services on fire alarm systems and components, and cleaning of kitchen exhaust systems hoods, ducts, fans, and filters at various Army installations on the Island of Oahu and Pohakuloa Training Area and Kiluaea Military Camp (PTA/KMC), Island of Hawaii.

Estimated Cost/Price of the Action (including options) and type of funds:

Authority: 15 U.S. Code §657q, FAR 7.107-2 and AFARS 5107.107-2

Type Determination: Class

JUN 22

CONSOLIDATION OF CONTRACT REQUIREMENTS DETERMINATION

FOR Preventive Maintenance and Repair of Fire Suppression/Fire Alarm, Automatic Chemical Wash Systems and Hoods, Ducts, Fans & Filter Cleaning (As codified in 15 U.S. Code §657q and as prescribed by FAR 7.107-2 and AFARS

5107.107-2)

RATIONALE

1. Consolidation may provide substantial benefits to the Government. However, because of the potential impact on small business participation, before conducting an acquisition that is a consolidation of requirements with an estimated total dollar value exceeding , a written determination shall be made that the consolidation is necessary and justified in accordance with 15 U.S.C. 657q, after ensuring that--

(a) Market research has been conducted;

(b) Any alternative contracting approaches that would involve a lesser degree of consolidation have been identified;

(c) The determination is coordinated with the agency's Office of Small Disadvantaged Business Utilization or the Office of Small Business Programs;

(d) Any negative impact by the acquisition strategy on contracting with small business concerns has been identified; and

(e) Steps are taken to include small business concerns in the acquisition strategy.

2. Introduction: Regional Contracting Office-Hawaii (RCO-HI) plans to solicit offers for preventive maintenance (PM), repair, and inspection of automatic chemical wash systems, fire alarm components and fire protection systems. Additionally, the solicitation will cover the cleaning of kitchen hoods, ducts, fans and filters.This procurement will encompass the Island of Oahu, as well as the Pohakuloa Training Area and Kilauea Military Camp (PTA/KMC) on the Island of Hawaii. RCO-HI has conducted thorough market research that demonstrates consolidation of this procurement to be both necessary and justified.

FAR 2.102 defines consolidation as

(1) a solicitation for a single contract, a multiple-award contract, a task order, or a delivery order to satisfy -- (i) two or more requirements of the Federal agency for supplies or services that have been provided to or performed for the Federal agency under two or more separate contracts, each of which was lower in cost than the total cost of the contract for which offers are solicited; or (ii) requirements of the Federal agency for construction projects to be performed at two or more discrete sites; or;

Total awarded amount: $525,910 Number of option periods: Base plus four one-year Options Number of Offerors: 2 Source Selection Method: Competed Simplified Procedures for Certain Commercial Items, FAR 13.5 Basis for fair and reasonable pricing: Comparison of proposed price with independent Government cost estimate.

Contract number, awarded Contractor: W912CN-21-D-0008, GMB Inc.

Description of requirement: Kitchen Hoods,Ducts, and Filters Cleaning Method of procurement: 8(a) Direct Award Contract type: Single Award IDIQ, FFP Period of performance: 01 March 2021 – 28 February 2026 Total awarded amount: $569,100 Number of option periods: Base plus four one-year Options Number of Offerors: 1 Source Selection Method: 8(a) Direct Award Basis for fair and reasonable pricing: Comparison of proposed price with independent Government cost estimate.

Contract number, awarded Contractor: W912CN-22-C-0004, Dynamic Planning & Response LLC Description of requirement: Automatic Chemical Wash System Method of procurement: 8(a) Direct Award Contract type: FFP Period of performance: 15 Jan 2022 – 14 Jan 2027 Total awarded amount: $201,381.60 Number of option periods: Base plus four one-year Options Number of Offerors: 1 Source Selection Method: 8(a) Direct Award Basis for fair and reasonable pricing: Comparison of proposed price with independent Government cost estimate.

4. Results of Market Research: A sources sought notice for the consolidated requirement W912CN-25-Q-0007 was published on 31 October 2023, on the SAM.gov website (Contract Opportunities), with responses due by 15 November 2023. This notice aimed to gauge interest across the U.S. industry to identify companies capable of meeting the scope and magnitude of the required services. Three companies—Anchor Pacific Resource Management, Inc., Sanford Federal, Inc., and Media Plumbing & Heating, Inc. DBA Kinetix (the incumbent for the Fire Suppression contract)—expressed interest and submitted capability statements demonstrating their ability to fulfill the consolidated requirement. However, the incumbents for the Auto Chem Wash and Kitchen Hoods and Ducts Cleaning contracts did not respond to the sources sought notice. Consequently, emails were sent to these incumbents to confirm their capacity to perform all three services under the new requirement, but no responses were received.

Another Sources Sought was posted 12 June 2024 with responses due 20 June 2024 and two responses were received, one being Media Plumbing & Heating Inc, the incumbent for the Fire Suppression contract. The other company that responded to the sources sought was BHPE, LLC.

Discussions were held with the Small Business Specialist (SBS) and market research was performed by the SBS to determine other capable companies. It was determined that the best way forward would be to set aside the requirement for total small business.

Searches were conducted on the Ability One website for fire suppression, food service equipment repair, and food service equipment cleaning on 12 April 2024 and these services were not listed.

Conducted a search on GSA and there are 4 small businesses that provide maintenance for fire suppression systems:

EPC Service, Inc.

Wycliffe Enterprises, Inc.

Alutiiq Logistics & Maintenance Services, LLC Media Plumbing & Heating, Inc.

Conducted a Yellow Pages Vendor Search and found the following companies in the local area:

Burney’s Commercial Service National Fire Protection Co.

Alexander Gow Fires Equimpent Co.

Emails were sent to the companies to determine if they were capable of providing the services for this requirement but no responses were received.

A search within FPDS-NG utilizing the criteria of the NAICS, PSC, small business set-aside, and award type of purchase order and definitive contract shows there are at least 19 small businesses capable of performing these services.

A search within the Dynamic Small Business Search also yielded 43 potential vendors located in Hawaii under the NAICS code 238220.

Below is a list of the potential vendors information:

Additionally, there are times when a contractor cannot service or perform repairs unless the other contractor services their portion of the system first; and typically this is not identified until a contractor begins diagnosing the issue. For example, the Government discovered that proper cleaning of the entire hood, duct, fans and filters within the fire suppression system requires the system to be put into test mode or inactivated by certified personnel, which is the fire suppression contractor, and then reactivated once the cleaning is completed. This requires both the fire suppression contractor and the hoods, ducts, fan ventilation contractor to respond. Various sections have been left uncleaned whenever scheduling conflicts with the two contractors occur, causing grease to build up, which after a certain amount, is a food and safety violation as well as a fire hazard.

Underlying/compounding issues and scheduling conflicts has caused the Government additional costs and hinders timely execution of services/repairs, often resulting in unmet performance requirements and the Government unable to hold a singular contractor responsible. Troubleshooting issues, servicing/repairing the system, and waiting for multiple contractor availabilities results in the system being unusable and causes the DFACs and CDCs to be shut down for life, health, and safety issues. This in turn results in mission failure as DPW can no longer provide daily, healthy, quality food for soldiers/civilians/children within military installations.

Keeping these requirements as separate contracts prevents timely servicing/repairs and subjects the Government to undue risks and liability for life, health, and safety.

Consolidating these requirements will result in the Government being able to clean, service, and maintain the entire system, ensuring all performance requirements are met, and enabling DPW to meet its mission objectives in supporting multiple military installations. Preventative maintenance and repairs can also be provided in a timely manner, saving taxpayer dollars and removing the undue risks and liabilities when scheduling conflicts arise. Consolidation will also create continuity for the system’s lifecycle, as a singular contractor will be responsible for the entire system, therefore enabling the Government to hold a contractor accountable. Lastly, consolidation would create administrative efficiencies for the Government in partnering with the singular contractor.

6. Consolidation Benefit Analysis:

Consolidate Not to Consolidate

Pre-Award Man- Hours

1,048 Estimated Pre-Award Man-hours

DPW: 548 Estimated Pre-Award Man-hours RMO: 40 Estimated Pre-Award Man-hours 413 CSB : 460 Estimated Pre-Award Man-hours

3,048 Estimated Pre-Award Man-hours

DPW: 1,644 Estimated Pre-Award Man-hours RMO: 120 Estimated Pre-Award Man-hours 413 CSB: 1,284 Estimated Pre-Award Man-hours

Pre-Award Cost

OPM.gov

GS-11= $36.24

GS-12= $44.89

GS-13=$51.66

GS-14=$61.04

GS-15=$71.80

Legal O-3 (Equiv.

GS-11) =$36.24

CONOPS Reviewer

GS-13=$51.66

SCO O-6 (Equiv.

GS-15) =$71.80

$46,329.36 Estimated Pre-Award Cost

DPW:

Contract Performance Evaluator: GS-11 ($36.24) x 436hrs total = $15,800.64 Contract Performance Evaluator Supervisor: GS-12 ($44.89) x 88hrs = $3,950.32 Budget: GS-12 ($44.89) x 24hrs = $1,077.36

RMO:

CSMO 40hrs x GS 12 ($44.89) = $1,795.60

413 CSB:

RCO Director 40hrs x GS15 ($71.80) =$2,872.00 RCO Div. Chief 40hr x GS14 ($61.04) =$2,441.60 RCO Team Lead 80hr x GS13 ($51.66) =$4,132.80 RCO Con. Sp. 256hr x GS11 ($36.24) = $9,277.44 Legal 24hr x O3 ($36.24) =$869.76 CONOPS Review 12hr x GS13 ($51.66)= $1,239.84 SCO Approval 8hr x GS15 ($71.80) =$2,872.00

$135,664.02 Estimated Pre-Award Cost Fire Suppression $45,221.34 Auto Chem Wash $45,221.34 Kitchen Hoods and Ducts $45,221.34

DPW:

Contract Performance Evaluator: GS-11 ($36.24) x 436hrs total = $15,800.64 Contract Performance Evaluator Supervisor: GS-12 ($44.89) x 88hrs = $3,950.32 Budget: GS-12 ($44.89) x 24hrs = $1,077.36

RMO:

CSMO 40hrs x GS 12 ($44.89) = $1,795.60

413 CSB:

RCO Director 40hrs x GS15 ($71.80) =$2,872.00 RCO Div. Chief 40hrs x GS14 ($61.04) =$2,441.60 RCO Team Lead 80hrs x GS13 ($51.66) =$4,132.80 RCO Con. Sp. 224hrs x GS11 ($36.24) =$8,117.76 Legal 24hrs x O3 ($36.24) =$869.76 CONOPS Review 12hr x GS13 ($51.66) =$1,239.84 SCO Approval 8hr x GS15 ($71.80) =$2,872.00

Post-Award Manhours

128hrs/year Estimated Post-Award Hours 640hrs for 5 years

DPW: 32hrs/ year. 160hrs for 5 years RMO: 8 hrs/year. 40hrs for 5 years 413 CSB: 88hrs/per year. 440 for 5 years

433hrs/year Estimated Post-Award Hours 2,825hrs for 5 years

DPW: 96hrs/year. 480hrs for 5 years RMO: 24hrs/yeas. 120 hrs for 5 years 413 CSB: 267hrs/year. 2,225 for 5 years

Post-Award Cost $29,355.18 per year Estimated Post-Award Cost $146,775.90 for 5 years

DPW:

$88,611.54/year Estimated Post-Award Cost $443,057.70 for 5 years

DPW:

Contract Performance Evaluator: GS-11 ($36.24) x 120hrs = $4,348.80

Contract Performance Evaluator Supervisor: GS-12 ($44.89) x 40 hrs = $1,795.60

Budget: GS12 ($44.89) x 24hrs = $1,077.36

RMO:

CSMO: 40hrs x GS 12 ($44.89) = $1,795.60

413 CSB:

RCO Director 46hr X GS15 ($71.80) =$3,302.80 RCO Div. Chief 46hr X GS14 ($61.04) =$2,807.84 RCO Team Lead 88hr X GS13($51.66) =$4,546.08 RCO Con. Sp. 200hr x GS11 ($36.24) =$7,248.00 RCO Quality Assurance 30hrs x

GS12($44.89)=$1,346.70

Legal 30hr x O3 ($36.24) =$1,087.20

Contract Performance Evaluator: GS-11 ($36.24) x 120 man hrs total = $4,348.80

Contract Performance Evaluator Supervisor: GS-12 ($44.89) x 40 hr = $1,795.60

Budget: GS12 ($44.89) x 24hrs = $1,077.36

RMO:

CSMO: 40hrs x GS 12 ($44.89) = $1,795.60

413 CSB:

RCO Director 46hr X GS15 ($71.80) =$3,302.80 RCO Div. Chief 46hr X GS14 ($61.04) =$2,807.84 RCO Team Lead 88hr X GS13($51.66) =$4,546.08 RCO Con. Sp. 205hr x GS11 ($36.24) =$7,429.20 RCO Quality Assurance 30hrs x

GS12($44.89)=$1,346.70

Legal 30hr x O3 ($36.24) =$1,087.20

Total Manhours 1,688 Man-hours

Estimated man-hours needed for consolidated contract

5,873 Man-hours

Estimated man-hours needed if requirement is not consolidated and kept as 3 separate contracts

Total Cost $193,105.26

Estimated cost needed for consolidated contract

$578,721.72

Estimated cost needed if requirement is not consolidated and kept as 3 separate contracts

The pre-award and post-award factors differ due to the dollar value review thresholds required for the consolidated requirement vs 3 separate requirements.

Estimated man-hours for 5 years of Not Consolidating: 5,873 man-hours Estimated man-hour for 5 years of Consolidating: 1,688 man-hours Estimated Savings: 4,185 man-hours

The difference in man-hours for pre-award is 3,048 hours (not to consolidate) – 1,048 hours (consolidate) = 2,000 hours.

The difference in man-hours for post award for 5 years is 2,825 hours (not to consolidate) – 640 hours (consolidate) = 2,185 hours.

Estimated Total Cost for Not Consolidating $578,721.72 Estimated Total Cost for Consolidating -$193,105.26 Estimated Savings $385,616.46

Analysis was conducted on RCO, Requiring Activity, and Resource Management Office, all of which comprise the Government stakeholders. Analysis was based on estimates, with an expected estimated savings of $385,616.46 or 17.7% of the estimated contract value of the consolidated requirements. This is a substantial benefit, resulting in more efficient and effective use of resources.

7. Bundling: Bundling may provide substantial benefits to the Government. However, for this requirement bundling is not applicable. There is no potential impact on small business participants since this requirement will be total set-aside for small business.

Setting aside for small business will eliminate any negative impact or concerns on contracting with small businesses.

8. Considerations, Facts, Reasoning Supporting the Determination: Contract W912CN-20-D-0006 was a total small business set-aside, W912CN-21-D0008 was executed as an 8(a) set-aside, and W912CN-22-C-0004 was executed as an 8(a) set-aside. The determination to proceed with a total small business set-aside has been coordinated with the Small Business Specialist, Charles Allen. Steps were taken to include small business concerns in the acquisition strategy and the DD2579 was approved and signed on 6 November 2024.

9. Summary: USAG-HI and RCO-HI has determined that the consolidation of W912CN- 20-D-0006, W912CN-21-D-0008 and W912CN-22-C-0004 for Preventive Maintenance and Repair of Fire Suppression/Fire Alarm, Automatic Chemical Wash Systems and Hoods, Ducts, Fans & Filter Cleaning is justified and in the best interest of the Government. The consolidated requirement will be a firm-fixed-price (FFP), requirements type service contract procured under FAR 13.5 Simplified Acquisition Procedures. The following were utilized in the decision to consolidate: improve/enhance performance; enable timely servicing; enable all performance requirements and mission objectives to be met; better terms and conditions from (one) 1 contractor vs. three (3) contractors; create continuity for the system’s lifecycle and administrative efficiencies with a singular contractor; substantial cost savings of $385,616.46 or 17.7% to the Government. Lastly, there is no impact to small business as this will be solicited as total set-aside small business competitive contract award.