ETFO_08-D-0007-0012 BTRIC Phillipines Scope Incr Mod 10_PAO1.pdf

DDEFENSE THREAT REDUCTION AGENCY

8725 JOHN J. KINGMAN ROAD, STOP 6201

FORT BELVOIR, VA 22060-6201

EXCEPTION TO FAIR OPPORTUNITY (ETFO) JUSTIFICATION

Amendment 0001 – Task Order Modification 0010

1. Nature and/or Description of the Action

This Exception to Fair Opportunity (ETFO) justification is Amendment 0001 to the ETFO previously approved for the requirement entitled “Philippines Facility Renovation, Equipment Procurement, and Integration Services Support”, for modification 0006. The prime contractor Black and Veatch Special Projects Coorporation (B&V), is the only contractor able to provide the required technical effort. The purpose of this ETFO Amendment 0001 is to justify an increase to the task order value from the current value of $23.2M by the estimated amount of up to $1.2M, to $24.4M. Previously, modification 0006 increased the value of the order by $10M from $13.2M to $23.2M. The ETFO approved by the Competition Advocate for that modification estimated an increase value for mod 0006 of $2M. However, a $10M increase was within the approval authority of the Competition Advocate.

The BTRIC ID/IQ HDTRA1-08-D-0007 task order 0012 was competed under a FAR Part 16.5 fair opportunity competition. This requirement will be procured through a bilateral negotiated modification to the subject order (preliminary modification number is 0010). The original Exception to Fair Opportunity Justification for mod 0006 is attached.

2. Description of the Supplies/Services Required

Supplies/Services required include enhanced site assessments and related analyses and planning of all RADDLs under the Philippines’s DA including:

Fourteen (14) RADDLs Facilitation of findings workshop Development of reporting documentation (inclusive of Gap Analyses, Analyses of Alternatives) Development of appropriate training and outbreak response protocols and/or plans.

DTRA proposes to add this new work as an increase to the existing scope to the current BV Task Order. The estimated dollar value of the additional work is not to exceed $1,200,000 USD.

3. Exception to Fair Opportunity

This ETFO will be issued pursuant to Federal Acquisitions Regulation (FAR) 16.505(b)(2)(i)(B).

16.505(b)(2)(i)(B) exempts fair opportunity if “ Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.”

4. Justification Rationale

BV has been performing this task order since 2016. The SOW tasks include site assessments of diagnostic labs in the Philippines, analyses of alternatives and training activities. This modification will expand upon the content of the site assessments, analyses of alternatives and training tasks and the contractor’s level of effort in these areas. The modification adds an increased focus on increased collaboration with the Philippines, analysis of their operational readiness, sustainment efforts, and the feasibility of the recommended implementation approaches to these existing tasks. Because BV is the company currently performing this project and these tasks, it is not feasible to break out these enhancements and expanded “next step” follow-on activities and procure them under a separate competitive task order. BV is the only contractor with the know-how to carry out these very unique and specialized SOW add-on requirements which are integral to the current tasks and deliverables they are performing.

BV is already mobilized and has established a legal presence to execute the work in the Philippines. The BV team is finalizing similar work in other areas of the Philippines and is in a position to extend the requested services to additional facilities once notified. PMO support to oversee the execution of the project will allow BV to leverage existing resources. By contrast, even if it was possible to break out this additional effort in another procurement, it will be more expensive to deploy two contractors to execute similar scopes of work in different locations throughout Philippines, because the Government will have to pay for two sets of PMO, require another contractor to establish a legal presence, and mobilize two different sets of teams to execute these tasks. Additionally, potentially monitoring two different contractors requires the Government to spend twice as much time on contract surveillance, administration and project coordination which would be difficult if not impossible to achieve.

The services requested with the increase to scope are considered to be urgent due to the approaching period of performance end date of February 1, 2021. By the conclusion of work under the existing task order, a transition and sustainment plan has to be in identified for any further follow-on work in the Philippines. Additional site assessments performed by BV would be completed with enough time to build out requirements for the DA moving forward. With the use of fair opportunity, the procurement timeline would have unacceptable impacts on the timeline for which the assessments could be completed. Any delays in project implementation would negatively affect DTRA’s credibility with the Government of the Philippines and potentially lead to a decline in DTRA’s ability to engage with this country in the future.

5. Market Research

Market research conducted prior to original task order award included the examination of historical DTRA and DoD data, a review of whole-of-government commercial databases, a review of internet resources, and reliance on personal knowledge of procuring supplies/services of this type. Market research identified several small, in-country businesses as potential awardees possessing experience performing similar work as outlined in the SOW. However, in-country companies possessed little demonstrable experience working with laboratory design and life sciences- focused facilities. Furthermore, Filipino companies identified as potential awardees were not considered due to DTRA’s concern for high corruption risks, lack of legal protections in the Philippines, and the high level of active contract administration required by DTRA to ensure that U.S. quality standards are upheld. Similar to local Filipino firms, DTRA discovered U.S.-based small businesses with experience performing construction work. However, the U.S.- based small businesses also lacked the integration and life science expertise necessary to fulfill requirements as outlined in the SOW.

Following market research, BTRP (formerly CBEP) determined the BTRIC IDIQ contract was the most appropriate vehicle to fulfill the requirements for construction/renovation/BS&S laboratory upgrades (based on required site assessments), given the acquisition timeline, locations for execution, and complexity of the project. The BTRIC IDIQ contract vehicle contractors were deemed fully qualified to perform the stated requirements.

6. Other Supporting Facts

B&V has been evaluated for price reasonableness and past performance prior to inclusion in the ID/IQ. Work to be performed under this modification will be follow-on and/or similar activities to those already being performed under HDTRA1-08-D-0007. Conducting a new fair opportunity competitive action would be disadvantageous to the Government in terms of performance, cost, schedule, and duplication of work already performed by B&V. The cost would be duplicative for this effort include setting up a PMO office in Philippines obtaining knowledge and personnel to perform the renovations and procure licenses and permits in Manilla, and the learning curve associated with developing training. The current market research demonstrates that B&V was the only responsible and qualified offeror in competition, both in cost and technical approach.

BTRP requires Government of the Philippines approval to move forward with other contracted activities under the current BTRIC contract. Philippines DA Department Order 4, Series of 2017 has directed establishment and strengthening of a national integrated laboratory system. Adding these additional requirements maximizes BTRP alignment with the DA integrated laboratory plans and provides the Philippines Government the assurances needed to approve execution of the current BTRIC contract activities. All site assessments and resulting documents/actions are requested by the Philippines for the purposes of complete laboratory maintenance, transition, and sustainment.

Assessments must be completed within the current period of performance (30 September 2016 - 001 February 2021). Completion under the existing Task Order is imperative to maximize cost savings to the Government. The BTRIC is in place and has performed site assessments on seven (7) of the 14 RADDLs with a different focus. The BTRIC will be asked to assist the DA in providing their own site assessments on all 14 of the RADDLs in addition of measuring progress and retention of best practices emphasized during BTRP sponsored trainings, mentorship, and workshops over the life of the contract. Estimated cost of the assessments and related activities/products are currently estimated not to exceed $1.2M USD.

7. Subsequent Actions

Future similar requirements, if any, will likely be procured through a competitive task order that will build on lessons learned from this acquisition, reducing the need for post award modifications of this type. Due to the complex and dynamic relationship between DTRA and the partner country, it is not always possible to predict at the time of task order competition and award all the evolving future requirements (and subsequent need for SOW changes) that may emerge over the period of performance of an order.