CUI_Campbell JA 2024_90_Redacted.pdf

Control Number: MICC 2024-90

FAR SUBPART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS – SOLE SOURCE JUSTIFICATION AND APPROVAL

1. Contracting Activity: United States (U.S.) Army Mission and Installation Contracting Command (MICC) – Fort Campbell, 6923 Desert Storm Avenue, Fort Campbell, KY 42223-5355

2. Description of Action: DPW requests a sole source firm-fixed-price contract with Little Trammel SMB, Limited Liability Company. The Government projects award of the contract in September 2024. An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement (DFARS) 207.103(d)(i)(B).

3. Description of Services: This is commercial supply buy for the purchase of stream mitigation credits within the Stewart County, TN region. This requirement is in support of Range 28 tank trails construction on Fort Campbell, which will ultimately support the 101st Airborne Division (AASLT), as well as US Army National Guard and US Army Reserve units. The stream mitigation credits are required by the State of Tennessee Department of Environment and Conservation (TDEC) to offset the environmental damage that will be caused during construction by placing culverts or any other item in streams restricting the natural flow of water. By purchasing these credits, the Government can then obtain the TDEC permit for the Range 28 tank trail construction.

Once the permit is obtained, USACE will move forward with their Range 28 Multipurpose Training Range (MPTR) requirement. Stream mitigation banks earn mitigation credits by repairing or doing positive environmental work within their region.

The mitigation banks earning these credits are typically not-for-profit organizations, and their environmental actions are funded by selling the earned credits. This instant action requires the contractor to provide 366 stream mitigation credits from the local Stewart County, TN region.

The North American Industry Classification Standard (NAICS) Code is 813312 – Environment, Conservation, and Wildlife Organizations. The small business size standard is $19.5 million. The Product and Service Code (PSC) is F113 – Environmental Systems Protections-Wetland Conservation and Support.

Estimated Value:

4. Authority Cited: Simplified Procedures for Certain Commercial Items, Title 41 United States Code (U.S.C.) 1901 as implemented by FAR subpart 13.5: Simplified Acquisition Procedures for Certain Commercial Products and Commercial Services.

5. Reason for Authority Cited:

a. In accordance with (IAW) FAR 13.500(a), the Government may use simplified acquisition procedures for procurements greater than SAT but not exceeding $7.5M when the contracting officer reasonably expects, based on the nature of the supplies or services sought and on market research, that offers will only include commercial products or commercial services. The Government’s anticipated award price is which is under the threshold of FAR 13.500(a) for use of simplified acquisition procedures, and as detailed below, the contracting officer reasonably expects that offers to fulfil this requirement will only be for commercial products or services. IAW FAR 13.501(a), sole source (including brand name) acquisitions conducted under simplified acquisition procedures are exempt from the requirements in FAR part 6, except for the justification format requirements at FAR 6.303-2.

As detailed in Section’s 6, 8, and 9 of this justification, the Contracting Officer does not have reasonable expectation that two or more small business concerns will respond to the Government’s requirement. As detailed in Section 8 below, market research identified only one (1) small business concern capable of performing the Government’s requirement. The Government’s requirement cannot be provided by an 8(a) participant under the provisions of FAR subpart 19.8.

The proposed sole source small business concern, Little Trammel SMB, LLC, has been determined to be a responsible contractor with respect to performance and the Contracting Officer believes award can be made at a fair and reasonable price as detailed below in Section 12 of this justification. Little Trammel SMB, LLC is designated in the System for Award Management (SAM) as a small business concern by SBA.

Based on the rationale contained herein, there is a reasonable basis to conclude that the agency’s minimum needs can only be satisfied by unique services available from only one source. When the services required by the agency are available from only one responsible source, the Government need not provide for full and open competition.

b. Currently there are no viable alternatives available to the Government.

c. Impact if justification is not approved. Without the requisite number of stream mitigation credits required by TDEC, the Government cannot receive the necessary environmental permits to move forward with the tank trail construction on Range 28 at Fort Campbell, KY. The tank trail is an integral component of a large construction project at Range 28. Without the mitigation credits allowing for completion of the trail and Range 28 construction project, the project will not be completed. The range is an integral training site that provides real world training to prepare Soldiers for combat, including facilitating live fire and other tactical training that is necessary to ensure competency and proficiency during real world missions. Little Trammel is the only mitigation bank with enough credits in the required geographic region to meet the TDEC requirement and allow construction to move forward.

6. Efforts to Obtain Competition: In an effort to obtain competition, the Government posted a sources sought on SAM.Gov. The sources sought published on 27 August 2024 yielded one (1) response, BHPE Limited Liability Company (LLC). The Government reviewed the response, and it provided no indication they were capable of meeting the Governments requirement.

7. Actions to Increase Competition: MICC-Fort Campbell does not anticipate future stream mitigation requirements. If a need arises, we will conduct market research to pursue competition to the maximum extent practicable among any firms with the sufficient amount of credits to meet the Government’s requirement at that time.

8. Market Research: Market research was conducted from 26 August 2024 through 3 September 2024. Methods used to conduct market research include market surveys, internet search, a search of government databases, the posting of a sources sought, GSA Market Research and the review of historical contracts.

a. Internet Search: An internet search for the purchase of stream mitigation credits was conducted to identify potential contractors that could satisfy the requirement. The internet search provided limited results with the findings centered on the Tennessee Department of Environment and Conservation (TDEC) and United States Army Corps of Engineers (USACE) websites.

b. Government Databases: A query of government databases was conducted using SAM.gov, contractdirectory.gov, Paperless Contracting File (PCF), Federal Procurement Data System-Next Generation (FPDS-NG), and Electronic Data Access (EDA). A search was performed for the NAICS and PSC codes for the requirement. The search yielded no Indefinite Delivery Vehicles (IDV) in contractdirectory.gov. A search of the local PCF and EDA databases failed to identify a contract previously conducted for mitigation credits on Fort Campbell, KY. A search of the United States Army Corps of Engineers (USACE) website for mitigation banks revealed three (3) mitigation banks within the Stewart County Tennessee region. Of these three (3) banks, Little Trammel SMB, LLC has 2,011 credits currently available for purchase, Walnut Shade SMB has 200 credits currently available for purchase, and West Fork Drakes SMB has .1 credits currently available for purchase. This leaves only Little Trammel SMB, LLC with enough credits to provide the 366 stream mitigation credits required. It is not known when, if ever, the other banks will have enough credits to meet this requirement.

9. Interested Sources: As identified in the market research, there is one (1) interested, and capable source, Little Trammel SMB, LLC a small business. The Contracting Officer does not have reasonable expectation that offers would be received from two (2) or more small business concerns for this requirement that would preclude awarding a sole source contract. Only Little Trammel SMB, LLC has a sufficient amount of local stream mitigation credits as required by TDEC.

10. Other Facts:

a. Procurement History. The MICC Fort Campbell office has not previously purchased stream mitigation credits.

b. A search of FPDS reveals the Department of the Army has previously purchased stream mitigation credits at various offices. The majority of which have been on a limited source/sole source basis.