Limited_Sources_JA_75ABW_CE_Deicer_Redacted_2_Redacted.pdf

Limited Sources Justification and Approval (J&A)

March 2018 Page 1 of 7

Contracting Activity: AFSC OL:H/PZIO

Purchase Request / Local ID Number: TBD

Program / Project (and PE, if applicable): Liquid Runway Deicer in support of 75th ABW

Program Type (PEO or Other Contracting): Other Contracting (Operational)

Authority: Multiple Award Schedule Program (FAR 8.405-6(b)(1))

Estimated Contract Cost (including options):

Is thisa BridgeAction asdefined intheAFBridgeActionReductionPlan? Yes No

COORDINATION (AFFARS 5306 . 304 ( a) ) ** To remove a row, click the "X" next to the signature block.

** To restore the row, click the appropriate link to the right: PM CO CSO Legal COCO CA SCO PEO AQC AQ Blank-1 Blank-2

Date Project Lead/ Program Mgr / Requiring Activity Signature X

X

X

12 Jun 2019

Date Contracting Officer Signature

12 Jun 2019

Date Local Legal Reviewer

Signature

APPROVAL (AFFARS 5306 . 304 ( a) ) ** To remove a row, click the "X" next to the signature block.

** To restore the row, click the appropriate link tothe right: COCO CO CA PEO SPE Blank

X

Description of Limitation:

This action is to be executed to satisfy the need for liquid runway deicer. Only Cryotech E36 brand liquid runway deicer meets the Government's current requirement. Similar products cannot be modified to the meet the Government's need. The Government will establishment a Blanket Purchase Agreement (BPA) in accordance with the procedures contained in Federal Acquisition Regulation (FAR) 8.405-3, for establishment of a BPA under a Federal Supply Schedule, to meet that need. This justification therefore supports the use of an item peculiar to one manufacturer, specifically a brand name, in accordance with FAR 8.405- 6(b)(1).

Date Competition Advocate

Signature

March 2018 Page 2 of 7

( See guidance at the end of this document for completing the following sections. ) Remove guidance pages.

I. Contracting Activity.

a. Department of the Air Force, Air Force Sustainment Center (AFSC), OL:H/PZIO, Operational Contracting Branch 6039 Aspen Ave. Bldg. 1289, Hill Air Force Base, UT 84056. The contracting officer for this action is Ms. Christina Witt ph.

801-586-5441.

b. The 75th ABW CES has requested establishment of a Blanket Purchase Agreement, due to the repetitive need of required items of supply, as specified under section III of this Justification and Approval (J&A).

II. Natureand/ordescriptionoftheactionbeingprocessed.

This action is being processed in order to establish a single-award Blanket Purchase Agreement (BPA) to fulfill repetitive supply needs for liquid runway deicer. The BPA will be established in accordance with the procedures contained in Federal Acquisition Regulation (FAR) 8.405-3, for establishment of a BPA under a Federal Supply Schedule. As specified in FAR 8.405- 3, a Request for Quote (RFQ) will be posted to the General Services Administration (GSA) "e-Buy" System in order to afford the schedule holder, Cryotech, an opportunity to submit a quote. The RFQ will be limited to one manufacturer of the required supply item, as specified within this J&A.

a. Pricing will be established on firm-fixed price per unit basis. Liquid deicer is procured in bulk truck loads, up to 4,400 gallons per load, and will be priced on firm-fixed price per gallon basis.

b. The BPA will be established with a base period consisting of one year, with four additional one-year option periods and one 6-month extension. Accordingly, the BPA will be inclusive of a base line item and four option year line items and a 6-month extension option, for the liquiddeicer, as follows:

CLIN 0001- Cryotech E-36 Brand Potassium Acetate Liquid Runway Deicer Base POP: September 15, 2019 – September 14, 2020 CLIN 1001- Cryotech E-36 Brand Potassium Acetate Liquid Runway Deicer Opt. 1 POP: September 15, 2020 – September 14, 2021 CLIN 2001- Cryotech E-36 Brand Potassium Acetate Liquid Runway Deicer Opt. 2 POP: September 15, 2021 – September 14, 2022 CLIN 3001- Cryotech E-36 Brand Potassium Acetate Liquid Runway Deicer Opt. 3 POP: September 15, 2022 – September 14, 2023 CLIN 4001- Cryotech E-36 Brand Potassium Acetate Liquid Runway Deicer Opt. 4 POP: September 15, 2023 – September 14, 2024 CLIN 5001- IAW FAR clause: 52.217-9 Option to Extend the Term of the Contract.

POP: September 15, 2024 –March 14, 2025

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

a. 75 ABW CES is responsible for clearing of snow and ice on all runways, taxi ways, and flight-line areas, at Hill Air Force Base.

In order to accomplish this mission the 75 ABW CES requires Cryotech E36 brand liquid runway deicer.

b. In order to establish a total estimated quantity of liquid as well as total estimated value for the BPA, an analysis of historical purchase data for runway deicer was performed. The historical data was grouped by fiscal year and consisted of procurement history, specific to Hill AFB, from February 2009 up to March 2019. Results of the analysis are outlined below.

i. CLINs 0001-5001, Liquid Deicer: Historical purchases of liquid deicer procured per fiscal year ranged from 17,600 to 96,800. While historical purchases may be an indicator of the cyclical nature of necessary quantity, it is not possible to predict with certainty the required seasonal need. This necessitates using of a worst case scenario in order to mitigate chances of mission failure in any given year. Accordingly, a worst case estimate of 96,800 gallons per year, or a total of 484,000 gallons over the course of five years, will be utilized for purposes of establishing total estimated quantity of the BPA. Unit pricing of liquid deicer has trended down from gallon, the earliest available pricing, to the most recent purchase price of $ / gallon. Based on the downward trend of the unit pricing, it is reasonable to utilize the most recent price of $ /gallon, March 2018 Page 3 of 7 adjusted for inflation, for purposes of estimating the total value of liquid deicer. This therefore results in a total estimated value of CLINs 0001-5001 of A break-out of CLIN structure and estimated values is a follows:

CLIN QTY x Unit Price W/Inflation Factor = Total 0001: 96,800 x 1001: 96,800 x 2001: 96,800 x 3001: 96,800 x 4001: 96,800 x 5001: 96,800 x

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

The BPA will be established pursuant to FAR 8.405-6(b)(1), Items peculiar to one manufacturer. The product is essential to the Government's requirements, and similar products cannot be modified to meet the agency's needs, as outlined below.

a. Liquid Deicer

Air Force Instruction (AFI) 32-1002 for Snow and Ice Control, A2.2, states "All liquid chemicals for airfield use (other than isopropyl alcohol and propylene alcohol) must be certified to SAE AMS 1435B, Fluid, Generic, Deicing/Anti-Icing Runways and Taxiways. CAUTION: Do not allow any mixing or blending of deicing products from different manufactures in storage or dispensing tanks. This could effect the chemistry of the originally certified products and the product would then require re-testing to ensure it satisfies SAE AMS 1435B." Per Air Force Civil Engineer Center (AFCEC) letter dated 28 February 2019, currently only two brands of liquid potassium acetate have been approved for use on CONUS Air Force controlled airfields, Alpine RF-11 brand and Cryotech E36 brand. Of the two approved brands, 75 ABW/CES currently utilizes Cryotech E36 Brand potassium acetate liquid runway deicer. In order to maintain the chemistry of the certified product, as required per AFI 32-1002, changing to an alternative brand would require disposal of the current stock of Cryotech E36, flushing of the storage tanks and the dispensing truck, and, replacement of liquid deicer with the alternate brand. Total cost of accomplishing this would be approximately $ as itemized below:

Value of disposed liquid deicer stock: 49,000 gal. x $ */gallon= $ Labor for flushing of storage tanks and dispensing truck: 80 hours x /hour=

*$ /gal. is based on FOB destination price for most recent Hill AFB acquisition.

Market research performed by reviewing GSA Advantage indicates that both Alpine RF-11 brand and Cryotech E36 brand liquid deicer are available via Federal Supply Schedule (FSS). All FSS contractors are required to publish a price list of all supplies and services offered by the schedule contractor, as part of establishing the schedule. Per FAR 8.404(d), GSA determines the FSS pricing to be fair and reasonable, for purposes of establishing the schedule. Current schedule pricing for Cryotech E36 is /gallon. Current pricing for RF-11 ranges from /gal. to /gal. Therefore, based on the current schedule pricing, there would not be a cost savings resulting from changing brands. Therefore, the Government would not recoup the cost of changing to the alternate brand, as outlined above, because Cryotech E36 is currently the lowest priced product.

The alternative to changing brands of liquid deicer, would be to install additional storage, and procure a second dispensing truck, in order to have redundant systems to handle second brand. Total cost of accomplishing this would be approximately as itemized below.

Procurement/installation of two additional storage tanks: $ Second dispensing truck: $

*Currently Hill AFB is not authorized to have a second truck by Air Force Headquarters.

While procuring and establishing a redundant system would provide for a second source of liquid deicer, based on the current pricing of the liquid deicer as discussed above, the Government would not recoup the costs of establishing the redundant system, because Cryotech E36 is currently thelowest priced product.

March 2018 Page 4 of 7

V. DeterminationbytheorderingactivityContracting Officerthattheorderrepresentsthebestvalueconsistentwith FAR 8.404(d).

The Government will use applicable price analysis techniques (FAR 15.404-1(b)), to include comparison of historical pricing, and pricing available on GSA Advantage. The Government also has 10 years of historical purchase data available to utilize for purposes of a historical pricing comparison. Additionally, per FAR 8.404 (d), Federal Supply Schedules include pricing that has previously been determined fair and reasonable by GSA for purposes of establishing the schedule.

Additional price reductions will be sought in accordance with FAR 8.405-4, Price Reductions. The required products are also widely used in commercial applications. As such, pricing offered to commercial customers will also be requested, as necessary.

VI. Descriptionofthemarketresearchconductedandtheresults,orexplainwhymarketresearchwasnotconducted.

In accordance with FAR 8, prioritizing of sources of supplies and services for use by the Government, Federal Supply Schedules were first reviewed for purposes of conducting market research. A search utilizing GSA Advantage revealed that the required product is available on a federal supply schedule. In accordance FAR 8.004, agencies are encouraged to satisfy requirements for supplies through Federal Supply Schedules, or other non-mandatory sources, prior to satisfying the requirement through commercial sources in theopenmarket.

VII. Other facts supporting thejustification.

None

VIII. Actionstheagencymaytaketoremoveorovercomeanybarriersthat ledtotherestrictedconsiderationbefore anysubsequentacquisitionforthesuppliesorservices.

In accordance with FAR 8.405-3(e), the Contracting Officer will review the BPA on a yearly basis to ensure that it still represents the best value. As part of the review, the Contracting Officer will consult with the requiring activity to determine if any additional products or sources have become available, which have received required approval and will not be cost prohibitive to pursue as a replacement or as an alternative source. This will occur prior to the exercise of each option and documented in writing within the contract file.

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 andbelief.

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.

March 2018 Page 5 of 7

GUIDANCE

I. Contracting Activity.

Fully identify the contracting activity responsible for the proposed contracting action. Include the name/phone number of the Contracting Officer. Specifically identify as a “Limited Sources” Justification. Identify purchase request number, if applicable.

II. Natureand/ordescriptionoftheactionbeingprocessed.

State whether the action is a new order or by modification to an existing order. Identify the GSA schedule number, the Blanket Purchase Agreement (BPA) number, the ordernumber for the current action, and the Contactor(s). Indicate the Period of Performance (PoP). Also identify the type of theorder/line itemsontheorder(e.g. Firm Fixed Price, Labor Hour, etc).

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

Specifically describe the supplies and/or services to be acquired including the price and quantity of each item in the order and state the total estimated value of the order. For services, state whether the services are performance-based and, if not, provide rationale for not beingperformancebased. Also state the delivery/performance schedule/period for the items undertheorder.

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

This section is normally the most detailed part of the justification. To assist you in preparing this justification, an introductory sentence and the four circumstances of FAR 8.405-6 that justify restricting the number of schedule holders are provided below. Select the appropriate cite, then provide, in narrative form, a detailed explanation supporting the specific circumstance cited for limiting the number of schedule holders.

(Introductory sentence) 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.

After selecting the appropriate cite, next select one of the four sentences below and provide a detailed explanation supporting the specific circumstancecited.

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”. (Provide a detailed justification with supporting documentation, as evidence of the “unique or highly specialized” nature of the procurement.

The user/customer typically provides this supporting information. Recommend attaching supporting documentation to the back of the document. General statementsare not acceptable.)

FAR 8.405-6(a)(1)(i)(C), “The new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures.” The original order was not issued under sole source or limited source procedures. (Provide details on the previously competed order and explain how this order is a logical follow-on to that order. Explain fully the connection between the previous work/order and the current one.

The user/customertypically providesthis supporting information. Generalstatementsarenotacceptable.)

FAR 8.405-6(a)(1)(i)(A), “An urgent and compelling need exists, and following the ordering procedures would result in unacceptable delays.” (Provide a detailed justification with supporting documentation that explains the exact urgency of the requirement and the schedule impact if time were to be taken to follow FSS ordering procedures. The user/customer typically provides this supporting information. Recommend attaching supporting documentation to the back of the document. General statements of urgencyarenotacceptable.)

FAR 8.405-6(b)(1), “The item is peculiar to one manufacturer. A brand name item, whether available on one or more schedule contracts, is an item peculiar to one manufacturer.” (Brand name specifications should not be used unless the particular brand name, product or feature is essential to the Government'srequirements. Therefore, explain why the particular brand item is essential to the Government'srequirements, and why other companies' similar items, or products lacking the particular feature, do not meet, or

March 2018 Page 6 of 7 cannot meet, or cannot be modified to meet, the agency's need. The user/customer typically provides this supporting information.

Generalstatementsarenotacceptable.)

V. DeterminationbytheorderingactivityContracting Officerthattheorderrepresentsthebestvalueconsistentwith FAR 8.404(d).

This section needsto betailored based upon whethertheorderis for supplies/services not requiring a statement ofwork (FAR 8.405-1) or if theorderis for services requiring astatementofwork(FAR 8.405-2).

For FAR 8.405-1 orders the best value determination needs to be based upon the supply or service offered under MAS contracts by surveying at least three schedule contractors through the GSA Advantage! on-line shopping service, or by reviewing the catalogs or price lists of at least three schedule contractors. The ordering Contracting Officer's review of the Contractor's price list(s) and any price reductions sought is also required. (Contracting Officer should seek additional price discounts/concessions based on the specific order requirements on all orders over the micro-purchase threshold.) In addition to price, when determining best value, the ordering activity may consider, among other factors, past performance, special features of the supply or service required for effective program performance, trade-in considerations, probable life of the item selected as compared with that of a comparable item, warranty considerations, maintenance availability, environmental and energy efficiency considerations, and delivery terms.

When an order contains brand name specifications, the Contracting Officer shall post the Request for Quote (RFQ) along with the basis ofthejustificationasrequired by FAR 8.405-6(b)(3).

For FAR 8.405-2 orders for services requiring a statement of work, FAR 8.405-2(d) requires that an evaluation beperformed based on the criteria provided to the schedule contractors. Therefore, the justification must address howthe FAR 8.404(d) requirement for an evaluation of the proposed level of effort and mix of labor will be conducted and include a statement that the Contracting Officer will perform a price reasonableness determination aspart of thebest value determination.

VI. Descriptionofthemarketresearchconductedandtheresults,orexplainwhymarketresearchwasnotconducted.

Discuss market research that was conducted among schedule holders and the market research results that led to the conclusion to go sole source or to limit the number of schedule holders to be solicited. The narrative in this section should provide a high level of confidence that the requirements of 8.405-1 and 8.405-2 could not be met. If no market research was conducted, state so and provide therationale.

VII. Other facts supporting thejustification.

When FAR 8.405-6(a)(1)(i)(C) is cited for an follow-on acquisition as the basis for the justification, include an estimate of the cost that would be duplicated and the basis and derivation of the estimate, or provide details on why a delay to solicit additional schedule holders would be unacceptable.

Provide any other facts supporting the Limited Sources Justification.

VIII. Actionstheagencymaytaketoremoveorovercomeanybarriersthat ledtotherestrictedconsiderationbefore anysubsequentacquisitionforthesuppliesorservices.

Describe all efforts to be taken to remove or overcome any barriers that preclude the agency from meeting the requirements of FAR 8.405-1and FAR 8.405-2 before any subsequent acquisition for the supplies or services is made. If no actionsare planned, so state and providereasons.

IX. Certification by the Contracting Officer.

The contracting officer's signature on the signature page evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

X. Certification by the technical/requirements personnel

March 2018 Page 7 of 7

As evidenced by their signatures on the signature page, the technical/requirements personnel have certified that any supporting data contained herein which is their responsibility is both accurate and complete.