LIMITED_SOURCES_JUSTIFICATION_VRH_FBO.pdf

LIMITED SOURCES JUSTIFICATION

FOR FEDERAL SUPPLY SCHEDULE (FSS) AWARDS

(FAR 8.4)

1. Contracting Agency and Activity.

The Department of Energy’s (DOE), Loan Programs Office (LPO) plans to extend Task Order DE- DT0002463 to Value Recovery Holding (VRH) by means of this Limited Sources Justification via the Federal Supply Schedule (FSS), in accordance with the Federal Acquisition Regulation (FAR) 8.405-6.

The Office of Headquarters Procurement Services will execute this action.

2. Nature and/or Description of Action Being Approved.

This action is to extend the Task Order currently being performed by VRH under DE-DT0002463 to March 31, 2017 in order to make a follow-on award from solicitation DE-SOL-0008302 that closed on September 27, 2016. This Limited Sources Justification is pursuant to FAR 8.405-6(a)(1)(i)(B), Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

VRH currently provides highly specialized technical and management support services to LPO under a competitive FSS Task Order awarded by DOE on May 9, 2011 with a period of performance through November 8, 2016. The current Task Order ceiling amount is $115,350,657.85 and the current funded amount is $6,555,853.08. The following is the projected estimate price to complete the work being performed under the Task Order until March 31, 2017.

The total estimated cost to extend the Task Order for services from November 8, 2016 to March 31, 2017 is $5,870,000.00.

3. Description of Supplies or Services (Including the Estimated Value).

The LPO is responsible for guaranteeing loans to eligible clean energy projects by providing direct loans to eligible manufacturers of advanced technology vehicles and components. Given the familiarity that VRH has with the work and the “corporate memory” they possess, it would be impossible for any other company to step in and provide the various services that VRH currently provides. For example, VRH provides skilled personnel in project areas such as environmental, engineering/technical, credit modeling, project finance, risk management, and management operations. All of these areas require highly specialized personnel with programmatic knowledge and experience for the program to operate successfully.

Examples of the services currently being provided by VRH under Task Order DE-DT0002463 include:

(a) Engineering and technical services to support robust and defensible decisions including such deliverables as assessment of maturity of project schedule, viability of engineering and design, evaluation of key components availability and integration into overall design, effectiveness of regulatory approach, and maturity of plant operations, infrastructure and approach.

(b) Expert level skills in nuclear program, project, and nuclear fuel cycle risk analysis. Expertise includes but is not limited to technical, engineering, procurement, construction and performance aspects of Nuclear Power Projects and fuel supply agreements.

(c) Support for determining the level of the National Environmental Policy Act (NEPA) review required, the appropriate analysis and information to include in the NEPA documentation, and the proper tracking and DOE processing of the documentation.

(d) Expert level skills in developing lifecycle emissions analysis methodologies for energy projects to include the development of emissions inventories, well-to-wheels emissions identification and analysis, cradle-to-grave emissions identification and analysis, and industry specific reviews.

(e) Expert technical and analytical support for the development of program strategic plans and organizational and human capital requirements. The focus of the work is on program evaluation and strategic planning and the development, requirements identification, and job task analysis necessary to complete authoritative organization, function, position, and resource documentation for LPO.

(f) Expert support for an Internal Controls Oversight Program to include policy and procedures manuals, A-123 testing and the annual assurance letter and related reporting, audit support (GAO, IG, internal financial, IT) and related matters.

(g) Developing options for improved performance including business process improvements and re-engineering from a process management perspective and overall customer service. This includes providing support for business process modeling and improvement, procedure development, project control, and general programmatic support as well as providing assistance in the conduct of management analysis and analysis of ongoing management operations.

(h) Maintaining databases in the areas of enterprise architecture, cyber security, and interfaces and uses of corporate systems. This includes collecting data, analyzing results, tracking program progress, designing and implementing records management support, and recommending methods for records retention and disposal.

(i) Expert support services to include providing advice in terms of designing, building, and operating new IT systems; recommending changes in LPO’s use of the DOE web page, social media, and other media including press releases; assisting in preparing responses to inquiries from Congress, stakeholders and the public; providing meeting and conference support, general office management and other support; and, assisting LPO in reviewing, scoring, analyzing and selecting applicants for loan and loan guarantees.

(j) Expert program, project, financial, technical and credit risk analysis. This expertise includes the Federal Credit Reform Act, private sector finance, structured project finance, preparation of pro-forma financial statements and analyses, energy market analysis, credit risk analysis, project management and industry specific reviews.

If LPO was not granted an extension of these services, it would severely compromise the project areas listed above and impair the ability of LPO to adequately function until another contractor can come up to speed on the job that needs to be completed. The work mentioned above to be performed during the extension period is a continuation of the services currently performed by VRH. This extension allows the

Government to maintain the current level of expertise and support without a break in service until a new contractor is competitively selected. It is recommended that the extension of Task Order DE-DT0002463 be issued for VRH through March 31, 2017.

4. Authority and Supporting Rationale.

FAR 8.405-6 requires an ordering activity to justify its actions when restricting competition of schedule contractors to FAR 8.405-1 or FAR 8.405-2. The specific circumstance justifying the restriction for this acquisition is FAR 8.405-6(a)(1)(i)(B), Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

The services being performed during this extension period are consistent with the work VRH is currently performing under Task Order DE-DT0002463. A break in this service would be catastrophic to LPO, as it would mean that the multi billion dollars in issued loans would not be serviced adequately due to the lack of a skilled contractor. New projects currently in the pipeline would not receive the time sensitive attention required to move them through the various due diligence stages. The environmental and technical aspects of the applications for current projects would suffer because the program relies heavily on specialized contractor support to provide site visits for environmental and technical project assessment and compliance with loan requirements and milestones. Risk assessment is another aspect of LPO that would suffer greatly as LPO relies heavily on specialized contractor support to aid in the risk management of current projects and also various audits carried out throughout the year.

Bringing in a new contractor would require a substantial learning curve to become familiar with the characteristics of LPO loan applicants and issued loans; mainly due to the large amount of business sensitive information that is not readily available. VRH employees and subcontractors have been cleared of all conflicts of interests (or have a conflict mitigation in place) and have executed Non-Disclosure agreements. A new contractor would have to clear conflicts of interest checks, and considering the complexity and sensitive nature of these loans, this could be substantial. Also, to bring in a new contractor for the Task Order DE-DT0002463 that expires on November 8, 2016 with the possibility of bringing in another contractor after the Request for Proposal (RFP) selection process, will dilute the corporate knowledge of LPO loans. LPO relies on VRH’s corporate knowledge of these loans and VRH is the only source available to continue services until a new contractor is selected.

5. Ordering Activity Contracting Officer Determination of Best Value (Consistent with 8.404(d)).

Task Order DE-DT0002463 was competed and awarded to VRH on a best value basis. The prices offered by VRH for this extension have been established under its GSA MOBIS contract, which have been determined to be fair and reasonable by GSA.

Based on VRH’s successful performance during the term of this Task Order and the measurable contribution to LPO’s mission goals that VRH has achieved, an extension to March 31, 2017 to the term of this Task Order to VRH is in the best interest of the Government. Additional discounts will be requested from and it is the determination of the Contracting Office that VRH clearly offers the "best value".

6. Description of the Market Research Conducted Among Schedule Holders and the Results or a Statement of the Reason Market Research Was Not Conducted

Market research was conducted for a follow on award to this Task Order. It was determined through market research that there were multiple small businesses that could provide these services. Therefore, and therefore a FAR Part 12 RFP was issued on August 24, 2016 and multiple offers were received on

September 27, 2016. As of the date of this justification, proposals are currently being evaluated and selection of a new contractor is anticipated by January 2017.

7. Any Other Facts Supporting the Justification.

No other facts supporting the justification have been identified beyond those already documented in this Limited Sources Justification.

8. Actions to Overcome Barriers to Competition.

The RFP was competitively solicited and proposals are currently being evaluated by a Technical Evaluation Committee of experienced LPO federal employees who are extremely familiar with the LPO requirements. The LPO fully intends to have a transition period of 30 to 45 days whereby the selected contractor’s employees will receive sufficient time with the incumbent (VRH) gaining the experience needed to continue the specialized services required by LPO.

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