Redacted__ECMM_JA_Final_20180322_Redacted.pdf

FOR OFFICIAL USE ONLY

Justification and Approval (J&A) for Other Than Full and Open Competition

FOR OFFICIAL USE ONLY 14 Nov 2017

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

COORDINATION (AFFARS 5306 . 304 ( a) ) ** The text in the signature blocks below is editable, including the title.

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APPROVAL (AFFARS 5306 . 304 ( a) )

Date

3 Apr 18

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Sign and Save Procedure

I. Contracting Activity.

(See "Specific Guidance for Completing this Template" below.)

Air Force Installation Contracting Agency 773 Enterprise Sourcing Squadron (773 ESS/PK) 3515 S. General McMullen, San Antonio, TX, 78226-1865

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

This contract action will be for the acquisition of a commercial item IAW FAR part 12. A commercial item determination was completed on 06 February 2013. IAW DFARS 212.102(a)(ii), a prior commercial item determination shall serve as a determination for subsequent procurements of items. Market research indicated that the commercial market can fulfill this requirement IAW FAR 12.202 for non-personal medical logistics services for Expeditionary Contingency Medical Materiel (ECMM). The performance of operations and maintenance logistics management and support services are services generally offered to the public and are provided to non-governmental entities for other than governmental purposes.

The resulting contract will be awarded to a large business as firm-fixed-price contract. (estimated at

Due to the limited time available before the end of the current Expeditionary Contingency Medical Materiel (ECMM) contract, the Air Force (AF) intends to continue contract services with the award of a direct sole source award to under the authority of FAR 6.302-1.

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

The Air Force Medical Operations Agency (AFMOA), Medical Logistics Division, has a requirement for ECMM Services in the 50 United States, Guam, and Japan. The services provided on this contract support the Air Force (AF), the Air Force Reserve Command (ARC), the Air National Guard (ANG), the Army, and the JANUS project. The ECMM program is designed to provide medical logistical support personnel for routine staffing at various locations for assemblage packaging of War Reserve Materiel (WRM), inspections, and audits; and provide medical logistical support personnel for temporary surge in workload for contingency, humanitarian, and base exercises. The same services are provided to top secret locations under the JANUS project, which is a classified, strategic, national medical contingency program.

The aforementioned services augment AF military personnel and DoD civilian employees. Contractor employees provide full service/operational activity; government personnel ensure the overall performance of the contracted function, but do not perform the individual tasks/services.

This requirement was previously solicited and awarded by the Department of Veterans Affairs at Fort Detrick, Maryland, with an award date of 01 Apr 2008 through 30 Apr 2013. The contract was awarded on a competitive basis to for a nine month base period and four one-year option periods. In March of 2009, this requirement was transferred to the Air Force District of Washington (AFDW). A five month bridge contract, awarded by the Army, was established that allowed sufficient time for the Army to complete the follow-on acquisition. The current award was awarded competitively by Army MEDCOM to begin full performance on 1 October 2013 and will expire 31 July 2018. Army MEDCOM has relinquished responsibility for the follow-on acquisition to the AF.

The 24 month period of performance (01 Aug 18 - 31 Jul 20) will consist of a six month base period, four three-month option periods, and the Option to Extend Services IAW FAR 52.217-8, which allows for an additional six month option. The transition contract is structured with numerous short option periods to allow flexibility in the period of performance while the AF proceeds with full and open competition for the follow-on effort.

Estimated Value & Appropriation Types The current estimated total potential value for the 24 month transition contract is ~ with a six month base period ( ), four three-month option periods ( each), and a six month option to extend services ( ).

The following appropriation types will be utilized:

0132 - R&D - JANUS (Classified) 0100 - O&M - Department of Defense 3400 - O&M - Active Duty Air Force 3840 - O&M - Air National Guard 3740 - O&M - Air Force Reserve Command 2020 - O&M - Active Duty Army

Anticipated Contract Line Items (CLINs) & Type:

X001 FFP CSDC CONUS Locations Services X002 FFP Staffed CONUS Locations Services X003 FFP HQ ECMM Support Services for Staffed CONUS Locations X004 FFP Planned Travel Unstaffed CONUS Locations X005 FFP OCONUS Locations Services X006 FFP Planned Travel Staffed OCONUS Locations X007 FFP Unplanned Travel to Staffed CONUS & OCONUS Location X008 FFP JANUS Support Services X009 FFP JANUS Planned Travel X010 FFP Training X011 FFP ANG Support Service X012 FFP ANG Planned Travel X013 FFP ANG Unplanned Travel X014 FFP Army Support Services

X015 NSP CDRL

6016 FFP Option to Extend Services 6017 FFP Transition-out NOTE: CLINs X001-X015 will reoccur in the base and each option period of performance.

IV. Statutory authority permitting other than full and open competition.

The statutory authority for this action is 10 USC 2304(c)(1), as implemented by FAR 6.302-1. Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. Specifically, pursuant to FAR 6.302-1(a)(2)(iii) for DoD, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in unacceptable delays in fulfilling the agency's requirements. (See 10 U.S.C. 2304(d)(1) (B)).

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

The current ECMM requirement is being met under GSA Task Order (TO) W81K04-13-F-0013. The TO's period of performance is 1 Oct 2013 - 31 Jul 2018.

To avoid disruption of services, it is necessary to utilize other than competitive procedures to award a sole source transition contract to allow for continued coverage by the incumbent, Award to any other source would result in unacceptable delays in fulfilling the AF's requirement. At this time, there is an anticipated delay of 18 months to support a competitive follow-on with an anticipated value above .

Highly Specialized Service. This contract provides critical medical logistics support to assist the mission at 90 AF sites, 93 ANG sites, and one Army site, and an undisclosed number of sites in support of the JANUS project.

This contract also provides support for base exercises, contingency, and humanitarian efforts. The support at various sites for the multiple agencies in addition to support for base exercises, contingency, and humanitarian relief is the mission being supported by this contract. As a result, this contract requires that the contractor be able to provide surge services within 24 hours of notice for CONUS and OCONUS operations.

Since 2002, this contract has assisted with the DoD Ebola Response Effort, the Japanese tsunamis, Indonesian tsunami, Haitian earthquake, Chilean earthquake, and Hurricanes Harvey, Irma, Thomas, Gustav, Irene, Rita, Dean, and Katrina. The contract also supported outfitting of Balad Theater Hospital in Iraq and the surge in Afghanistan. Further, the contract supported DoD and Department of State (DoS) medical engagement missions including providing aeromedical evacuation equipment to Kuwait, medical materiel to Afghan Medical Service, and expeditionary medical support (EMEDS) and resupply assemblages to Ukraine. Therefore, this transition contract is for continued performance of a highly specialized service.

Gap in Highly Specialized Services Will Impact Critical AF Missions. The current contract does not properly include a transition-out period or documented transition plan. Therefore, the incumbent is under no contractual obligation to train a new contractor or to assist the United States Government (USG) during contract transition.

This contract is supported by full time equivalents (FTEs) that are geographically dispersed both CONUS and OCONUS supporting over 200 locations.

Without a contractor who is ready to perform with proper access and security, the AF will not be able to respond to contingencies and humanitarian efforts or to base exercises. AFMOA anticipates that it will take at least 90 days after award for a new contractor to be trained and prepared to meet mission requirements. No military personnel, either permanent party or temporary duty personnel, are available to backfill any potential loss in contracted services. The transition associated with a contract of this magnitude inherently has performance risk when a sufficient plan is in place. The performance risks associated with the transition without a plan are significant.

Transitioning this contract without a transition plan poses a significant performance risk to the fiscal year (FY) 2018 production plan ($170M requirement), which includes new assemblage builds and modernization of War Reserve Materiel (WRM) Air Force Medical Services (AFMS) capabilities worldwide, proper maintenance and sustainment WRM assemblages worldwide, response to expeditionary/contingency operation, humanitarian assistance, exercises, and support to Theater Lead Agency Medical Materiel (TLAMM)/Reachback programs in support of the warfighter worldwide. Without the incumbent and a formal 90 day transition plan, the FY 2018 Production Plan would fail.

In addition, the warfighter in Air Force Central Command (AFCENT) area of responsibility (AOR) would lose reachback capability to in medical assets limiting its ability to get repair parts and medical supply items critical to the mission in theater, which directly contributes to the 98% survival rate of the warfighter.

Southern Command (SOUTHCOM) TLAMM would be completely inoperable leaving 30 customers (including Special Operation Forces) and 31 countries without medical reachback/contingency support. Further, the Low Unit of Measures (LUM) program would cease causing a materiel cost increase at local MTFs.

The transition contract will require that the incumbent provide a transition plan subject to USG approval. The transition plan will allow for a seamless transition, if necessary, after the award of the competitive follow-on contract to ensure that all critical functions supported by the contract are not unnecessarily delayed.

Transition of Top Secret Project Will Cause Gap in Highly Specialized Services. A segment of the contract, the JANUS project, is a Top Secret program that requires Top Secret Facility Clearance and appropriate personnel with Top Secret Clearance. As with any Top Secret project, it is in the best interest of the Government to minimize the number of individuals read into the program by minimizing the number of people who have a need to know. Given that it is the Government's intent to award a competitive follow-on contract as soon as practicably possible, it is also in the best interest of the Government to award this short transition to the incumbent to minimize the number of individuals who have to be read into the JANUS project.

The JANUS Security Manager has indicated that it takes 60 days for a Top Secret contract to transition from one contractor to another. Therefore, even if the contract was awarded by the end of the current period of performance (31 Jul 18) it would take another source 60 days to obtain this capability. Without support of WRM located at MTFs, the mission would be unable to support contingency, base exercise, or humanitarian efforts. Thus, awarding to another source would preclude the ability of the war fighter to accomplish specific medical materiel missions.

Awarding competitively or non-competitively to any other source would result in unacceptable delays in fulfilling the mission requirements. Accordingly, is the only business capable of providing services described in Section III above without the mission experiencing unacceptable delays in fulfilling its requirements. Without this transition contract, contingency operation, humanitarian support, and WRM in garrison maintenance would cease, causing a severe gap in the overall readiness state of the AFMS.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

IAW FAR 5.201 a Notice of Proposed Contract Action/Special Notice, 541614 Expeditionary Contingency Medical Materiel (ECMM) Services, was posted on FedBizOpps (FBO) 03 November 2017; the posting remained open for seventeen days.

A detailed description of the requirement was included in the FBO notice. The notice advised that any interested responsible party that believed it was equally or otherwise uniquely capable of meeting the requirements should submit a capability statement. The notice also stated that supporting evidence must be furnished in sufficient detail to not only demonstrate the ability to fulfill the requirement but also demonstrate that competition would be advantageous to the government and would not create a break in service or degradation of performance quality. No source expressed interest in the published Special Notice/ Synopsis that was posted on FBO.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

This is an acquisition for a commercial item, and IAW FAR 15.403-1(c)(3) an acquisition of a commercial item is an exception from the requirement of certified cost or pricing data. IAW FAR 15.404(a)(1), price analysis will be performed in order to ensure that the overall price being paid is fair and reasonable. The fair and reasonable determination will be IAW FAR 15.404(b)(2)(ii), comparing the proposed prices to historical prices paid by the Government for the same and similar items; FAR 15.404(b)(2)(v), comparison of proposed priced with independent Government cost estimates; and FAR 15.404(b)(2)(vi), comparison of proposed prices with prices obtained through market research for the same or similar items. Based on the comparisons listed above, the Contracting Officer anticipates that the price will be considered fair and reasonable.

IAW DFARS PGI 215.404-1(a)(iii), if the contracting officer cannot determine price reasonableness without obtaining data other than cost or pricing data, at a minimum, the contracting officer must obtain appropriate data on the prices at which the same of similar items have been sold previously. If previous sales data is not sufficient to determine price reasonableness, the contracting officer must then obtain "data other than certified cost of pricing data" and, if necessary, perform a cost analysis.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

As described in Section VI above, market research, IAW FAR part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.

On 03 November 2017, the Air Force published a Notice of Proposed Contract Action/Special Notice to FBO.

The Notice, published for seventeen days, allowed any interested responsible party that believed it is equally or otherwise uniquely capable of meeting the ECMM contract requirements to submit a capability statement or proposal for Government consideration. No source expressed interest in the published Proposed Contract Action/Special Notice posted on FBO.

In an effort to comply with regulatory instruction and guidance, the Integrated Project Team (IPT) researched mandatory sources and other existing contract vehicles to determine if a solution already existed for this effort. After thoroughly scrubbing the PWS, the AbilityOne Program indicated that the majority of the program was beyond its scope.

Market Research supports the award of a transition contract to the incumbent in order to not cause unacceptable delay in the provision of ECMM services. During the transition period, the acquisition team will restructure the requirement in order to make it more competitive.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

Technical data packages, specifications, engineering descriptions, statements of work, or purchase descriptions suitable for full and open competition have not been developed or are not available because responsibility for executing the ECMM contract is transitioning from the Army to the AF and the current PWS is overly restrictive. The AF is taking steps to remove the overly restrictive language for a competitive follow-on effort.

X. List of any sources that expressed, in writing, an interest in the acquisition.

See Section VIII above.

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.

Modify the Requirements Document to Lower Competition Barriers and Provide for a Performance-Based Acquisition To increase competition for the follow-on effort, the IPT is modifying the PWS to remove overly restrictive competition barriers.

Further, to increase competition for the follow-on effort, the IPT is modifying the PWS to align with a performance-based acquisition (PBA). IAW with FAR 37.102, performance-based acquisition is the preferred method for acquiring services. A PBA is defined as an acquisition structured around the results to be achieved as opposed to the manner by which the work is to be performed.

XII. 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.

XIII. 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.

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