J A_BridgeBPA15T0104_Redacted.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

Household Goods Packing and Crating Services in Kanagawa Solicitation (RFQ) No. FAS209-1 S-T-0104

I. CONTRACTING ACTIVITY

374th Contracting Squadron {CONS), Bldg. 620, Yokota Air Base, Japan. The Requiring Activities (RAs) are (I) Joint Personal Property Shipping Office (JPPSO) Japan, NA VSUP Fleet Logistics Center (FLC) Yokosuko, (2) Transportation Division, Logistics Readiness Center (LRC) Honshu, 403rd Army Field Support Brigade (AFSB) at CampZama.

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

The action is to be executed as a bridge contract to award a follow-on contract after the current contract F AS209-l 0- D-0004 expires on 30 Jun 2015. CONS and RAs agreed to establish a bridge contract for six (6) months with the incumbent contractor, Yokohama Kaiun International Co., Ltd. (YKl), to acquire Household Goods Pocking and Crating Services in Kanagawa under Direct Procurement Method (DPM).

Ill. DESCRIPTION OF THE SERVICES REQUIRED TO MEET THE AGENCY'S NEEDS

Description: The Contractor will furnish all personnel, equipment, facilities, supplies, services and materials, except as specified herein as government-furnished, for the preparation of personal property of Department of Defense personnel for shipment and/or storage and related services. The Contractor shall perform the services in compliance with the terms and conditions of this contract, Defense Transportation Regulation (DTR), applicable Installation and Government of Japan (GOJ) laws and regulations. Tasks by type of move are as listed below:

Premove Survey Weighing Time Requirements Preparation, Packing, Loading, and Containerii.ation Tagging, Inventorying, and Packing List Appliance Servicing and Unservicing Preparing Containers and Vehicles Marking Exterior Shipping Containers Storage Service .

Unpacking/Unloading and Loss and Damage Reports Documentation Requirements Reports Requirements

Estimated Amount/Quantities/Performance Period: The proposed estimated amount for the six (6) months from I Jul 2015 to31 Dec201S is~ per¥120.1200=$J.00). The averageofhistorical usage for the same period in a year wa~ estimated quantities under the current contrac~o.

FA5209-10-D-0004) as indicated below. It is anticipated that the estimated amount o-~ per ¥120.12=$1.00), which is obtained based on 40% of the annual estimated quantities for the new requirement, is found to be realistic:

Actuul cxpendilures U§!, Amoynt

Basic I Jan 10-31Dec10 Zam a __

Period ,.vok"osiiiUi" Option

I Jan II - 31 Dec II Zarn a

One "voiCo.siiiUi ..

Option I Jan 12-31Dec12 7.nma Two "vok"osiik"ii" - \

Option I Jan 13 - 31 Dec 13 lama ·- Three "voic"osiikii" Option

I Jan 14 - 30Jun 1s• .,, .. l:~m!L,. .._ Four .. Y.~~~-~!!~,. -

•including 6 months extension period thru 30 Jun IS, I .. up through May IS.

Type of Funds: Military Personnel {MP) and Operation and Maintenance (O&M). Accounting and appropriation data will be cited on Task Orders (SFl449) issued by the Ordering Officer at the PPSO, RAs (decentralized actions).

Ordering Officers obtain funds from each member's travel order, Background: Establishing a bridge contract for six (6) months has become necessary as explained below:

The subject requirement is to reacquire a follow-on requirement for the current contract FA5209-10-D·0004, which expires 30 Jun 2015 after extending the contract under the authority of FAR 52.217-8, Extension of Services, A complete Purchase Request package for the subject requirement including the Services Requirements Approval was received on 4 Nov 2014; draft solicitation was prepared on 25 Mar 2015; Contract Review Committee's Review was obtained on 8 Apr 2015; Legal Review was obtained on 9 Apr 2015; AFICA/KH Business Clearance was obtained on 2 May 20 I 5; and the solicitation F A5209-15·R-OO 14 was issued on 4 May 2015 with an offer due date of9 Jun 2015. The offer due date was extended to 15 Jun 20 I 5 by an amendment which incorporated some administrative corrections after pre·proposal conference held on 22 May 2015 . The planned offer due date was I 0 Jun 2015 and the planned contract award date is I Dec 2015 based on the current milestones, by considering processing time for conducting discussions with three to seven offerors. In the event of awarding a contract without discussions, planned award date is I Sep 20 IS. At this point, actual date is only five calendar days behind the milestones, Lack of a contract that satisfies the existing contract requirement will cause stoppages in providing moving services for DPM to the U.S, military members and families in Atsugi, Camp Zama, and Yokota areas, and will invite unacceptable interruptions to the RA 's mission. Establishing a bridge contract will avoid unacceptable delays in obtaining the contractor's service to suppon the RA's continuing requirements until a follow-on contract is awarded and become fully operational, Furthermore, in order to avoid interruptions by starting performance of a follow-on contract during the peak season in July, August, and September, and potential unavailability of minimum guaranteed funds at the beginning of October, the bridge BPA for four (4) months from I July through 31 Dec 2015 is the most advantageou.s method of fulfilling the Government's need to preclude a disruption of services.

IV. STATUTORY AUTHORITY FOR OTHER THAN FULL AND OPEN COMPETITION

10 United States Code 2304(c)(I), Only One Responsible Source, as implemented by FAR 6,302-l(a)(2)(iii) "Only One Respo~ible Source and No Other Supplies or Services Will Satisfy Agency Requirements", V. DEMONSTRATION THAT THE CONTRACTOR'S UNIQUE QUALIFICATIONS OR NATURE OF

THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED ABOVE (APPLICABILITY

OF AUTHORITY)

I. Contractor's Qualifications as Only One Responsible Source To Avoid Unacceptable Delay.

To become fully operational, the Contractor must possess capabilities to obtain, furnish, and meet the following, at minimum. These efforts require substantial efforts for preparation and do not provide Incentives to contractors to compete for six months or less performance period or will invite higher prices in order to take expedited actions:

a. Skills and Assets for Preparation, Packing. Loading, and Containerimtion.

(I) Skills: The Contractor must have skills to prepare, pack, load, and containerize all types of shipments destined for the CONUS or Outside CONUS (OCONUS). The Contractor must be capable of packing shipments with the least cubic measurement, producing packages that withstand normal movement without damage to the container or contents at a minimum of weight.

(2) Crew Members: The Contractor must be able to furnish crew members who have experiences in packing and crating services (who have knowledge in household goods packing and crating services for the U.S. Government are preferred) are required to complete the services.

(3) Vehicles: The Contractor must possess, or is capable to obtain, the adequate number of vehicles to perform the required volume.

(4) Weighing Scale: The Contractor must be capable of utilizing its Contractor-furnished scale properly certified by an inspector in accordance with applicable laws and regulations of Japan.

The Contractor's personnel designated to operate the scales will be licensed or otherwise qualified as weight masters if required by the GOJ laws and regulations.

(S) Conlraetor-Furnlshed Containers: The Contractor must prepare containers constructed IA W ASTM-04169-0 I, Standard Practice for Performance Testing of Shipping Containers and Systems, or those containers listed in SDDC Pamphlet 55-12, those meeting ASTM-06251, and wooden overflow and oversize containers.

(6) Conlractor•s Warehouse: The Contractor must furnish a warehouse facility which shall have the size of storing a minimum of SO containers with the sizes meeting the paragraph above.

(7) Base Passes: The Contractor must possess base passes for the entry to the U.S. Government installations for their drivers ond vehicles, those are to be utilized for the performance. The Contractor must submit, but are not limited to, the following documents to Pass Office of each installation:

(a) Vehicle insurance certificates are required to obtain Base Passes and must cover the automobile liability insurance in the types and minimum amounts of (i) Bodily Injury - ¥30,000,000 per person per occurrence, in addition to the Japanese Compulsory Insurance (JCI), and (ii) Property Dnmage • ¥3,000,000 per occurrence.

(b) Copy of identification card with picture (passport, driver's license. or Jyuki-net card)

(c) Authenticated copy of the residential record (it can be obtained from the local governmental entity only.)

(d) Application form required by each installation (with a picture)

After submission of the above documents, the Pass Office will protess each individual's and vehicle's request. and notify of each individual to make an appointment for taking picture and pick-up the pass. Normally, it requires 30 days to obtain new gate passes. However, for renewing the current valid gate passes, the process is relatively smooth and can be shorter than 30 days.

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b. Meeting the following key conditions:

(I) Time Requirements: The Contractor will be given orders at least one full workday prior to the date specified. The Contractor will be available to receive orders between the hours ofOSOO and 1700. In usual situations. the Contractor may be directed to perfonn services at specified times or days outside the hours of 0800 and 1700.

(2) Order Limitations (FAR 52.216-19): At minimum, the Contractor is obligated to perform to the limitation below:

Base

ZAMA

YOKOSUKA

Government's Estimated Maximum Dally Requirement

NCWT260

NCWT 1200

NCWT: Net hundred weight. I 00 lbs

Government's Minimum Acceptable

Dally Capability

NCWT 135

NCWT700

Offeror•s Guaranteed Dally

Capability

NCWT 135

NCWT700

(NCWT: Net hundredweight)

(3) Facilities: The Contractor shall furnish a warehouse to be used in the performance for Camp Zama as outlined in PWS Appendix H. The key requirements for the warehouse are (I) the size of storing a minimum of 50 containers; (2) supervised detection and reporting system which is activated automatically and which sounds an alarm at a central point manned 24-hours 11 day, recognized by the local fire department or host nation official as adequate; (3) covered by comprehensive general liability insurance minimum ¥20,000,000; and (4) when multiple occupancy of a warehouse exits, there will be a separation by a solid wall or partition having a lire resistance rating of not less than one hour.

( 4) Cargo Insurance. The Contractor shall provide a certification of cargo insurance reflecting coverage on a continuous basis in at least the amount shown below to cover legal liability.

The certificate shall contain the statement that the insurance company shall provide the designated installation contracting officer, a 30-day written notice of any change, expiration, or cancellation of said policy. The undenvriter of cargo insurance shall have a policy holder's ra1ing of A or better in current issue of the best's insurance guide. The certificate shall be prepared wilh original signatures and provided to the designated installation contracting officer. The following is the minimum cargo liability coverage required: For both domestic and international shipments, $SO,OOO.OO (or its equivalent yen amount) per shipment.

(5) Claims Procedure. The provision of Full Replacement Value (FRV) to all DoD customers provides for lhc replacement, repair, or payment for the non-depreciated value of lost or damaged items. The liability limits for FRV are the greater ofSS,000.00 per shipment, or $4.00 times either the Household Goods (HHG) shipment or the gross weight of Unaccompanied Baggage (UB) shipment, in pounds, not to exceed $50,000.

c. Familiarizing with:

(I) Tagging. Inventorying, and Preparing Packing LisL The Contractor must be capable of preparing an accurate, legible, HHG/UB descriptive inventory following the de1ailed requirements specified in the PWS.

(2) U.S. Govemmenl Ordering Documents. Outbound Documentation and Movement.

PJ>GBUBL or TCMD and similar documents covering outbound HHG shipments will be picked up from the Ordering Officer by the Contractor each workday or obtained IA W locally

Page4 of7 established procedures such as mail courier. Distribution of completed PPGBUBL or TCMD and other movement documents will be as outlined in Performance-based Statement (PWS).

2. Accordingly, YKI is the only firm capable of providing the services descn"bed in Section Ill above without the U.S. Government experiencing unacceptable delays in fulfilling its requirements.

3. The current contract information is as follows:

Contractor: Yokohama Kaiun International Co., Ltd.

Contract No.: FA5209-IO-D-0004 Contract Period: Basic Period with four one-year options with six months extension period Basis for Award: Full and Open Competition Date of A ward: 11 Dec 2009 Contract Expiration: 30 Jun 20 I 5 (Extension of six months under FAR 52.217-8 has been exercised.)

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS

MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

IA W FAR 6.305(a), this justification will be posted on the Federal Business Opportunity (FBO) site, the Government Point of Entry, at http://www. fbo.goy/ within 14 days after contract award.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO

THE GOVERNMENT WILL BE FAIR AND REASONABLE

It is highly expected that the prices will be the same as those under the current Option Four. The current contract was awarded to the incumbent contractor and price reasonableness was determined for the Basic Period and all option years. Price fairness and reasonableness was determined based on comparison with the current contract, labor cost increases for similar services, and market prices for similar efforts.

The rates for the period for four-month were evaluated considering fluctuating cost factors. The labor rate in the transportation service industry was increased by approximately 1.27% in 20 JO, J .26% in 2011, and 1.090/o in 20 I 2, 1.40% in 2013 and 1.57% in 2014, and I. 15% in 20 I 5 (as of Apr I 5) in the aggregate of 8.34% for the last as a result of spring labor offensive (SHUNTOU) in Japan. The rate has been constantly increasing every year in the market. Funhennore, the labor costs announced by the Ministry of Land, Infrastructure, Transpon and Tourism (MLIT). OOJ, for the purpose of estimating the costs for public works have increased nearly 25% for truck drivers in Kanagawa prefecture, compared to live years ago due to the upcoming Olympic Games in Tokyo in the year of 2020 (¥15,400/day in 2010 at ht1p://www.mlit.go.jp/common/OOOl 10920.pdf; ¥19,200 in 2015 http://www,mlit.go.jp/common/001067649.pd!)

As to fuel costs, the diesel costs in the commercial market have shown approximately 29% decrease compared to the one in the same month (¥89.3/liter Apr 2014 and ¥63.3/liter Apr 2015). However, there was still approximately a 54.4% variance compared to the highest in Jul 2014 (¥92.2) and the lowest in Jan 20 I 5 (¥59. 7) during the past one year. The fluctuation still continues Coday, which is also impacted by the depreciation of yen. Therefore, the unit prices under Option Four, which are the same as those for Basic Period during 20 I 0, are found to be fair and reasonable. (Source: Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry, Government of Japan al http://www.enecho.meti.go.jp/statistics/)

~Diesel Cost per Liter 8" '2 90.S 91.3 92.2 90.2 88 l 100.0 f ,9_..,._ ~--' . -au·-·· 4 -·--------· - ---- -··. -· 9080.oo ~ F ~ e $ t e e Zooo€l.-. 19.. 10.1 ________ _ _ .. __

~ 10:0 _- ------ -~ -60~7-64:5-·53:'3-

60.0 - -~ ~ ;cl __ .__

50.0 -'----'-----.I..---'-- , __ ,., _ _.__ ...... _____ ,_ _,_ __ ,,_, ___ .,1 _ __ __, VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS. OR A

STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT CONDUCTED

Informal market research identified that becoming fully operational by I Jul IS is identified to be unrealistic for anyone other than the incumbent contractor.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION

Reacquisition of a follow-on contract is in process and based on full and open competition.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE ACQUISITION

None.

XI. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR

OVERCOME ANY BARRIERS TO COMPETITION BEFORE MAKING SUBSEQUENT ACQUISITIONS

FOR THE SUPPLIES OR SERVICES REQUIRED

The solicitation for the follow-on contract is currently issued based on full and open competition. This justification is prepared solely to bridge the period of six months or less from the expiration of the current contract and the establishment of a follow-on contract.

XII. CONTRACTING OFFICER'S CERTIFICATION

The Contracting Officer certifies that this justification is accurate and complete to the best of his/her knowledge and belief. Pursuant to the exceptions cited in FAR 6.302-l(a)(2)(iii), thisjustification for other than full and open competition is determined justified and in the best interest of the Government. Therefore, full and open competition need not be provided for the bridge contract.

XIII. TECHNICAUREQUIREMENTS PERSONNEL'S CERTIFICATION

As evidenced by their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have cenified that any supporting data contained herein, which is their n.-sponsibility, is both accurate and complete <FAR 6.303-2Cb)).

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COORDlNATlON A'ND APPROVAL DOCUMENT

This acq,uisition will establish six (6) months period of a bridge contract to provide Household Goods Packing and .Crating Services in Kanagawa. Under the authority of I 0 United States Code 2304(c)(I ), only O!le rcsponsibl.c source and no other supplies or services wi ll satisfy agency requirements for the six (6) montlis period.

Contracting Acti\~ty:

Ri;:qucst for 'Purchase:

Project'Progrnm Name :

Estimated Contract Cost:

Authority:

TypeJ&A;

C..OORPJNATfON

374 CONS!LGCZ

Request Letters from NAVSUP FLC Yokosnka and LRC Honshu, dnted 2 Jun 15. Applicable acco·unting dot.a will be cited on each order issilcdundcr

· this contract.

Household GoodsPackin and Crating Services in Kanagawa per ~l 20.12 ... $ LOO) JO U.S.C. 2304 c (1), as implemented by FAR 6.302-l (a)(2)(iii) Individual

16 Jun 15

Contracting Officer, 374 CONSILGCZ N: 225-6261/ COM: 042-552-3010 from inside Japan

Chief, Transportati<!n Division, LRC Honshu, 403rd AFSB

DSN: 263-4677

APPROVED:

16Junl5

16 Jun 15

16Jun 15

16 Jun 15