Redacted Bridge BMC J A.pdf

COORDINATION AND APPROVAL DOCUMENT

Contracting Activity: AFNWC/PKOC

Purchase Request/Local Identification Number: F2K2AC1xxxAxxx (To restrict OCI issues, AF Form 9 will be processed through ABSS just prior to award.)

Project/Program Name: Kirtland Air Force Base (KAFB) Base Maintenance Services Contract

Bridge

Estimated Contract Cost: $29.81M

Type Program: AFPEO/CM Program

Authority: 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1, Only One Responsible

Source and No Other Supplies or Services Will Satisfy Agency Requirements

Type Justification & Approval (J&A): Individual

Contracting Officer:

SUSAN J. MCDANIEL

AFNWC/PKOC, DSN: 246-5680

_9 Dec 10__

Date Signed

Project Lead / Program

Manager:

D. BRENT WILSON, PE

377 MSG/CE, DSN: 246-7911

_9 Dec 10__

Local Legal Reviewer:

ANTHONY SPRATLEY

AFNWC/JA, DSN: 263-7465

_13 Dec 10__

Chief, of the Contracting

Office:

GREG A. CAUDLE, Major, USAF

AFNWC/PKO, DSN: 246-4531

_14 Dec 10__

Competition Advocate:

JEANNINE KINDER

AFNWC/PK, DSN: 263-1924

_15 Dec 10__

Chief, Analysis and Program

Support Dev:

PHILLIP W. MARCUM

HQ AFMC/PKT, DSN: 787-5274

_14 Jan 11__

Executive Director:

STEVEN F. BUTLER

HQ AFMC/CA, DSN: 787-5274

_14 Jan 11__

Solicitation No. FA9401-11-R-0002, Kirtland AFB, 377 MSG/CE, Base Maintenance Services Bridge Contract, 9 Dec 10 Page 2

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

AFNWC/PKOC

2000 Wyoming Blvd SE, Bldg 20604, Room D-17a

Kirtland AFB NM 87117

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

The proposed action provides award of a new, Firm-Fixed Price (FFP) Base Maintenance Services contract bridge to

Chugach Management Services Joint Venture (CMSJV) for up to 12 months. The contract period of performance will begin 1 Apr 11.

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS

Base maintenance services comprise the day-to-day base operations and maintenance (O&M) services in multi-functional areas to include Administration Management & Customer Support; Facility & Infrastructure Maintenance

& Support; Operations Management; Grounds Maintenance; Engineer Services (Planning, Programming, Design

Management, and Construction Management); Maintenance Engineering; Real Property Management; Asset

Management; Logistics Support (Material Control); Information Management; and Emergency Management &

Response for KAFB and mission partners at associated geographically separated support locations. The acquisition total estimated value is $29.81M.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION

10 U.S.C. 2304(c)(1) as implemented by FAR 6.302 [FAR 6.302-1(a)(2); FAR 6.302-1(a)(2)(iii)(A); and FAR

6.302-1(a)(2)(iii)(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)

A. The services identified under Section III are currently being provided under Contract #F29650-00-D-0002, awarded in April 2000, with a first operational performance period start date of 1 Oct 00. The last option period will expire on 31 Mar 11.

B. The 377

MSG/CE requires that a 12-month bridge contract be awarded to provide the necessary time to competitively award the follow-on 5-year Base Maintenance Contract. Due primarily to in-sourcing efforts, the follow-on contract requirements vary somewhat from the effort under contract now, which also forms the basis for this bridge effort. The Air Force has diligently worked the acquisition procedures, but current manning and changes in government in-sourcing policies caused a delay in the anticipated acquisition process, thereby impacting the current schedule. Projected award date of the follow-on effort is 13 Sep 11. Given the projected award date, the bridge effort under this J&A will begin on 1 Apr 11 and end on 31 Mar 12.

C. The contract requirements under this J&A are for Civil Engineer functions. These functions are unique at

Kirtland AFB because of the expansive footprint of the base property, the sophistication of many of the facilities to be maintained, and the number of large equipment needed to successfully support the requirements.

D. The requirement includes properly managing 51,558 acres and 1,794 facilities. There are approximately

23,000 people working at Kirtland, including over 11,000 people who work in non-federal and civilian contractor positions. The 377 ABW is the host organization for Kirtland AFB. The wing supports more than 100 mission partners, including the Air Force Research Laboratory, Air Force Operational Test and Evaluation Center, 58th

Special Operations Wing, New Mexico Air National Guard, Field Command Defense Special Weapons Agency, Air

Force Inspection Agency, and Air Force Safety Center.

Solicitation No. FA9401-11-R-0002, Kirtland AFB, 377 MSG/CE, Base Maintenance Services Bridge Contract, 9 Dec 10 Page 3

E. The nature of this bridge contract acquisition is not only to provide the Civil Engineer services unique to

Kirtland AFB, but to provide these services for up to 12 months. In that short period of time, any contractor other than the incumbent (CMSJV) would incur start-up costs and ramp-up transition time to meet the current contract’s requirements. Those significant costs (see later discussion) would not be recouped in such a short contract period.

Also, the transition ramp-up period will require 2 months prior to the 12-month (or less) period under this contract period. Add to the consideration that once the follow-on contract is awarded, another transition period of approximately 3 months for ramp-down or demobilization (with attendant costs) will be experienced. If this 12-month bridge contract effort were awarded to any other contractor than the incumbent, that contractor could conceivably be locked in a near-constant state of transition into the contract and then transition out of the contract, and incurring costs associated with both efforts which are beyond the typical costs of standard performance outside of transition periods. The impact would be an interruption of services and degradation of KAFB’s mission. A new bridge contractor with only 6-10 months experience will not be able to provide an experienced/efficient phase-out example to the follow-on phase-in contractor.

F. Timing of the bridge contract start-up is also critical to successful transition/ramp-up. CMSJV is the only known company that can meet the requirement to be in place and fully operational at the required performance start date of 1 Apr 11. As the incumbent for the past 10 years, CMSJV is the only contractor who is knowledgeable of the requirements and geographic footprint required to support the base’s mission partners and residents as well as the nuclear surety mission, while supporting the war fighter, without any interruption of critical infrastructure services. The following are unique to CMSJV as the incumbent:

knowledge, experience, and in-place procedures for seamless transition, uninterrupted service fully-trained employees with special knowledge of the base O&M services, facilities incumbent’s special knowledge enables timely and effective contractor emergency response has required clearances for allowing access to critical, secure sites saves from 2 – 12 months to process

G. Award to any other source would result in substantial duplication of cost to the government that is not expected to be recovered through competition and an unacceptable gap in fulfilling the Air Force’s requirements.

CMSJV is the only company with the personnel, tools, equipment, vehicles, and materiel mobilized to perform these services which are essential and mission critical to KAFB. Any other contractor would, of necessity, experience investment and transition costs for this large operation. The following are unique to the Kirtland bridge BMC effort or to CMSJV as the incumbent:

CMSJV was required under GFE provisions to replace vehicles/equipment as needed at CMSJV expense with new purchases of contractor property remaining GFE (heavy vehicles) have been maintained only for use through the 12-month bridge contract to the extent that CMSJV owns vehicles/equipment or GFE is in poor condition, a new contractor must add those costs to their bridge contract proposal bridge contract would require significant capital investment (vehicles/equipment) cost of $5.01M

(includes inflation for FY11) in Government-Furnished Equipment (GFE), such as heavy vehicles and office equipment replacement purchases the government would again pay capital investment (vehicles/equipment) costs under follow-on contract transition costs ($387K, includes inflation for FY11) would be incurred for transition out to the bridge contract and then again for follow-on contractor, within 12 months

H. Accordingly, CMSJV is the only firm capable of providing the supplies and services described in Section III above without the Air Force experiencing substantial duplication of cost ($5.01M + $387K = $5.397M) that could not be expected to be recovered through competition and an unacceptable gap in fulfilling its requirements.

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

MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

On 7 Jul 10, a sources sought synopsis was publicized to the Federal Business Opportunities (FBO) website (under

Contract Award Number FA9401-10-C-0025), as required by FAR Subpart 5.2. The synopsis described the

Solicitation No. FA9401-11-R-0002, Kirtland AFB, 377 MSG/CE, Base Maintenance Services Bridge Contract, 9 Dec 10 Page 4 acquisition using content from Sections III and V above. The sources sought synopsis closed on 14 Jul 10. There were no interested parties other than the incumbent.

On 1 Nov 10, another sources sought synopsis was publicized to the FBO website (under Solicitation Number

FA9401-11-R-0002) due to a change in the period of performance from 6-8 months to up to 12 months. The sources sought synopsis closed on 8 Nov 10. Again, there were no interested parties other than the incumbent. Several reasons for this are: (1) up front capital expenditure would be significant if not prohibitive for a maximum 12-month return on investment; (2) experience in the nuclear surety mission is rare and would require that most of the incumbent’s employees are willing to transfer to a new contractor, a high risk proposal for only a maximum of 12 months; and (3) the risks are high that contract performance will be less than perfect during a transition period in or out, and there is little time to build solid past performance to be relied upon for the follow-on competition.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE

The Base Maintenance Contract re-compete price evaluation team will conduct a price analysis for this bridge contract effort using other than cost and pricing data submitted with the contractor’s proposal. The government will compare the proposal against the Independent Government Estimate (IGE) to determine price fair and reasonable.

Based on this evaluation and comparison, the team will develop a negotiation objective range for negotiation strategy.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS, OR A

STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT CONDUCTED

The Base Maintenance Services contract bridge requirement is similar in scope and magnitude to the 5-year follow-on Base Maintenance Contract. The results of the Base Maintenance Contract re-competition market research completed in October 2009 were applied to the bridge contract. A sources sought notice was posted to FBO on 13

Oct 09. Sixteen capability statements were received -- two large businesses, two small businesses, ten 8(a)s, and one pending joint venture 8(a) with the incumbent. Four 8(a) companies, including the pending joint venture, were evaluated to be viable candidates to perform this requirement as prime contractor. The market research team determined that at least two or more 8(a) small business firms are capable of performing as a prime contractor on a long-term basis (at least a 5-year period of performance).

Several contractors can perform base maintenance services on a long-term basis; however, there is only one contractor (CMSJV) who is capable of performing base maintenance services on a short-term basis (i.e., bridge contract) with no service gaps and without added investment and duplicate transition costs. As described in Section

VI above, (bridge contract) market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition, and soliciting inquiries from interested parties.

Despite government efforts made in July and November 2010 to solicit interest from as many sources as practicable, the solicitation results show that the incumbent is the only source interested in performing base maintenance services on a short-term basis.

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

COMPETITION

Award to a new contractor for the bridge contract would, as stated in Section V above, duplicate costs for the purchase of vehicles and equipment and transition phase-in period. Any delay in award of a bridge contract could create potential failure due to interruption of services and/or degradation of KAFB’s mission. Degradation affects include equipment failures due to lack of maintenance, facility damage due to leaks or other system failures, and costly impacts due to lack of timely maintenance and repair.

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

Incumbent; no others. See Section VI above. There are no organic resources to take over performance.

Solicitation No. FA9401-11-R-0002, Kirtland AFB, 377 MSG/CE, Base Maintenance Services Bridge Contract, 9 Dec 10 Page 5

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

This bridge contract is a means to cover the gap in highly specialized base maintenance services due to the delay in the re-compete effort for the follow-on contract. Evolving in-sourcing policy created ripple effects that delayed the progress of the re-compete by approximately 10 months. The government intends to use competitive source selection procedures for the next and future follow-on contracts.

XII. CONTRACTING OFFICER’S CERTIFICATION

The contracting officer’s signature on this Coordination and Approval Document evidences that she has determined this document to be both accurate and complete to the best of her knowledge and belief (FAR 6.303-2(a)(12)).

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

As evidenced by their signatures on this Coordination and Approval Document, the technical and/or requirements personnel have certified that any supporting data contained herein that is their responsibility is both accurate and complete (FAR 6.303-2(b)).