Redacted_551st_Modification_JA_Redacted.pdf

Limited Sources Justification and Approval (J&A)

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 1 of 5

Contracting Activity: 27th Special Operations Contracting Squadron (27 SOCONS)

Purchase Request / Local ID Number: F1L5AA8086AW01

Program / Project (and PE, if applicable): 551st Modular Building Lease

Program Type (PEO or Other Contracting): Other

Authority: Multiple Award Schedule Program (FAR 8.405-6)

Estimated Contract Cost (including options):

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Description of Limitation:

This will be a modification to FA4855-15-F-0004 GSA task order and according to FAR 8.405-6(a)(1)(i)(B), only one source is capable of responding due to the unique or specialized nature of the work. 27 SOCONS will be restricting this requirement to the incumbent contractor by extending the current task order through modification.

COORDINATION (AFFARS 5306.304(a) )

Date

14 Jun 2018

Project Lead / Program Mgr / Requiring Activity

Matthew A. Astroth

551 SOS/CC 575-784-0759

Signature

Date

14 Jun 2018

Contracting Officer

Bonnie L. Yoakum

27 SOCONS/PKA 575-904-5155

Signature

Date

14 Jun 2018

Local Legal Reviewer

Mr. Derek Hirohata

27 SOW/JA 575-784-2211

Signature

Date

14 Jun 2018

Chief of the Contracting Office (COCO)

John A. Purcell

27 SOCONS/CC 575-784-2321

Signature

APPROVAL (AFFARS 5306.304(a) )

Date

15 Jun 2018

Competition Advocate

Jason A. Whittle

AFICA/KO 850-884-3990

Signature

ASTROTH.MATTHEW.A.10

54604056

Digitally signed by

ASTROTH.MATTHEW.A.1054604056

Date: 2018.06.14 14:09:04 -06'00'

YOAKUM.BONNIE.L.1238

818547

Digitally signed by

YOAKUM.BONNIE.L.1238818547

Date: 2018.06.14 14:28:48 -06'00'

HIROHATA.DEREK.KAZUY

OSHI.1165892760

Digitally signed by

HIROHATA.DEREK.KAZUYOSHI.1165892760

Date: 2018.06.14 16:00:07 -06'00'

PURCELL.JOHN.A.128515

Digitally signed by

PURCELL.JOHN.A.1285151100

Date: 2018.06.14 16:26:03 -06'00'

WHITTLE.JASON.A.107280

Digitally signed by

WHITTLE.JASON.A.1072805158

Date: 2018.06.15 10:11:01 -05'00'

March 2018 FOR OFFICIAL USE ONLY Page 2 of 5

I. Contracting Activity.

The contracting organization responsible for this action is the 27th Special Operations Contracting Squadron (SOCONS), Cannon AFB, NM; the Contracting Officer will be TSgt Bonnie L. Yoakum, 575-904-5155. This is a limited Sources J&A.

II. Nature and/or description of the action being processed.

This J&A will result in a modification to the existing order FA4855-15-F-0004, a Firm Fixed Priced Task Order that was awarded off GS-07F-0358J, to Nortex Modular Leasing and Construction Company. The task order's current period of performance (PoP) is 1 Jul 2015 - 30 Jun 2018. Based on communication with the USACE, the anticipated construction completion date is February 2019; therefore the anticipated PoP for the extension to the task order is eight (8) months; 1 Jul 2018 - 28 Feb 2019.

The proposed modification is a continuation of the previous lease. This lease is required to retain the temporary facility that houses the 551st SOS until the permanent facility is completed.

III. Description of supplies/services required to meet agency needs.

The proposed contract action will be a performance-based service.

The 551st SOS requires use of a one-story modular facility approximately 32,942 square feet. This facility must support current and projected personnel, training, administrative, and classroom activities. The leased facility is required to house the unit until their permanent facility (bldg 724) is complete, which is currently anticipated no later than 28 Feb 2019.

The contractor will provide a facility and cover repairs for items under warranty, to include but not limited to; leaking roofs, heating, ventilation, and air conditioning (HVAC).

At conclusion of this modification, the contractor will dismantle and remove the facility at the government's expense.

Appropriation type: 9700 Operation and Maintenance (O&M) appropriations from SOCOM will be used to fund this contract.

The total modification price is estimated to be

Projected Period of Performance (PoP) of modification/extension to task order FA4855-15-F-0004: 1 Jul 18 - 28 Feb 19

IV. Identification of the justification/rationale for limiting sources and demonstration of the contractor's unique qualifications to provide the required supply/service.

FAR 8.405-6 requires an ordering activity to justify its actions when restricting consideration of schedule contractors to fewer than required in FAR 8.405-1 or 8.405-2. FAR 8.405-6(a)(1)(i)(B), “Only one source is capable of responding due to the unique or specialized nature of the work”. The unique nature of this procurement is due to the 551st SOS having no other alternative for relocation as their permanent facility is not completed. Therefore, the current facility is still required. Based on the costs associated with changing contractors and facilities for the limited time required, there would be significant savings to the Government by continuing use of the facility already installed.

Cost savings are realized by avoiding new transportation, setup/delivery fees. Additional costs savings with Nortex Modular Leasing and Construction exist due to the length of the lease period. Three GSA schedules were reviewed under the same Special Item Number (SIN), 361-50. None of the schedules listed transportation, setup/delivery fees, or teardown fees; and none of the vendors were willing to provide the information when contacted. Innovative

March 2018 FOR OFFICIAL USE ONLY Page 3 of 5

Modular Solutions (contract number GS-07F-076AA) provided the next lowest lease price at per sq ft. The following is a comparison of the potential costs savings realized by issuing a modification.

Nortex Modular Leasing Innovative Modular Solutions

Nortex offers a lease price of per sq foot based on their current GSA schedule price list. The current task order lists an outdated unit price of per sq foot. The contractor stated they would honor the $ per sq foot price on the extension. Innovative Solutions offers a lease price of per sq foot according to their GSA schedule. Since Innovative Modular Solutions did not provide setup, teardown, or transportation costs, the pricing provided by Nortex Modular Leasing was used in the comparison. Setup costs could vary from which was initially paid on the original order with Nortex Modular Leasing and included transportation costs as well. Teardown costs are based on Nortex's GSA schedule at per sq foot. Transportation is calculated by the cost per mile submitted by Nortex at per mile. Transportation from Nortex facilities is 417 miles; transportation from Innovative is 1,138 miles. The discount information is provide on both GSA schedules. Nortex provides a 10% discount; Innovative provides a 1% discount. The estimated difference of would be saved by modifying the current order instead of issuing a new solicitation. Based on the costs identified above, there would be significant savings to the Government by continuing use of the facility already installed.

In addition, removal/replacement of the facility, by soliciting to other vendors, would result in mission stoppage for the 551st SOS and the 27th SOW. Current estimated lead time to have a new facility of this size prepared and then installed is between 120 and 180 days. Since this lease is needed through February 2019, even a 120 day lead time would not be acceptable. Additionally, many vendors contacted stated that they would not be interested in such a short term lease for such a large building. This disturbance would disable the 551st SOS from continuing effective student training and decrease the ability to provide combat mission capable aircrew members to the 16th/73rd/524th/3rd/33rd SOS units.

Therefore, Nortex Modular Leasing and Construction is the only firm capable of providing the supplies and services described in Section III without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition.

V. Determination by the ordering activity Contracting Officer that the order represents the best value consistent with

FAR 8.404(d).

Internet market research, as well as historical pricing data, show there are other vendors who are capable of providing the same services as Nortex Modular Leasing and Construction. A search of GSA Advantage showed a total of 17 vendors provided the same Special Item Number (SIN), 361-50. In accordance with FAR 8.405-1, three of the 17 vendors were randomly selected for price comparison; in addition to Nortex Modular Leasing.

In accordance with FAR 15.404-1(b)(2), market research is used to determine a fair and reasonable price. Nortex offered the lowest per sq foot price at . The next low is Innovative Modular Solutions at . The highest price found was per sq foot offered by Modular Management Group (contract number GS-07F-0222X ). In

March 2018 FOR OFFICIAL USE ONLY Page 4 of 5 addition, if any of the contractors were selected, other than the incumbent, the Government would be required to pay installation charges again.

IAW FAR 17.502-1(a)(2) the Contracting Officer has determined that the federal supply schedule continues to be the most suitable contract vehicle as there will be a reduction of administrative costs by using an existing contract; and, under normal acquisition procedures, the schedule would generate lower prices via a greater number of vendors with reasonable access fees, if any.

Therefore, based on the aforementioned information, it is the Contracting Officer's determination that continuing the lease through the incumbent contractor is fair and reasonable and in the best interest of the Government.

VI. Description of the market research conducted and the results, or explain why market research was not conducted.

Market research, in accordance with FAR Part 10, was conducted. Internet market research, as well as historical pricing data, show there are other vendors who are capable of providing the same services as Nortex Modular Leasing and Construction. A search of GSA Advantage showed a total of 17 vendors are capable of providing the required services;

to include the incumbent. They all provided the same Special Item Number (SIN), 361-50. However, some of the vendors were contacted and they did state they do not deliver to New Mexico.

A sources sought or a request for information was not posted as we are aware that there are other vendors available in the market place. However, the government's market research indicates that there are no other vendors willing or able to provided leased buildings to Cannon AFB to meet the end user's immediate needs at a fair and reasonable price for the short performance period required.

VII. Other facts supporting the justification.

This proposed acquisition was previously approved, and awarded, sole source to the incumbent contractor under FAR 6.302-1(a)(2)(iii)(A). See attached J&A. The previous J&A did not contain a sufficient performance period as construction was delayed during the planning stages and the project was original going to be completed in FY18.

The construction contract was not awarded by USACE until 8 Feb 2017 and a notice to proceed was not issued until 23 Mar 2017. The 551st SOS needs to continue leasing the building until their permanent facility is completed in Febr 2019. AFSOC/A4 and the 27th Special Operations Civilian Engineering Squadron have made a determination in their Economic Analysis (EA) from May 2015 that this building will need to be leased until the permanent facility is completed. In accordance with AFI 32-1021, the EA should be updated and revalidated; however, the facts and conclusions discussed in the EA have not changed, nor have there been any changes to the requirement. A determination to not update the EA was made by 27 SOCPTS Lead Budget Analyst, Mr. Dusty McEldowney, in coordination with AFSOC/FM and AFSOC/A4.

VIII. Actions the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services.

This modification is restricted due to it's follow-on nature to the original J&A and task order as they did not contain a sufficient performance period. This contract action is to support the completion of the 551st's new facility; the lease will not continue past construction completion.

IX. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

March 2018 FOR OFFICIAL USE ONLY Page 5 of 5

X. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.