FAR-Part13-5-Sole-Source-JA_Life_Support_Services_Ujmajor_Hungary.pdf

Version – MAY 2016 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR SUBPART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS – SOLE SOURCE JUSTIFICATION AND APPROVAL

Program/Equipment: U.S. Army Europe requires life support services for 5-7 CAV, 1st Brigade, 3rd Infantry Division at Ujmajor Base, Hungary.

Authority: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 as implemented by FAR Subpart 13.5.

Amount: $278,000.00

Prepared by: SSG Johnathan Robbins DSN: 314-475-8739 Contract Specialist Date: 24 June 2016 Email: johnathan.d.robbins.mil@mail.mil

Contracting Officer: MAJ Matthew Wernert DSN: 314-475-7260 Contracting Team Leader Date: 24 June 2016 Email: matthew.e.wernert.mil@mail.mil

Technical: CPT Korey Tighe DSN: N/A 5-7 CAV S-4 Date: 24 June 2016 Email: korey.a.tighe.mil@mail.mil

Requirements: Judith O’Connor DSN: 314-537-4451 Contract Management Specialist Date: 24 June 2016 Email:

Reviews: I have reviewed this justification and find it adequate to support sole source.

Legal Counsel:

Typed Name: Todd Bailey

DSN:

Signature: ____________________ Date: ____________________

FAR Subpart 13.5 Simplified Procedures for Certain Commercial Items – Sole Source Justification and Approval

1. Contracting Activity: 928th Contracting Battalion, Regional Contracting Office Bavaria, Grafenwohr, Germany

2. Description of Action: U.S. Army Europe requests a firm fixed price contract with HM EI Zrt. The Government projects award for June 2016. Fiscal year 2016 Operations and Maintenance funds will be used.

An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

3. Description of Supplies/Services:

U.S. Army Europe requires life support services for 300 Soldiers in 5-7 CAV at Camp Ujmajor, Hungary. The services include the rental of sleeping quarters, toilet containers, shower containers, and the associated daily cleaning, maintenance, heating, ventilation, and cooling (HVAC), delivery of potable water, and disposal of grey and black water and solid waste. The period of performance of these services is 24 June 2016 to 29 August 2016.

Period of Performance: 24 June 2016 to 29 August 2016 Total Value: $278,000.00

4. Authority Cited: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 (or 41 U.S.C. 1903 for Special Emergency Procurement) as implemented by FAR Subpart 13.5:

Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited:

(a) The acquisition must be accomplished through a sole source because at Camp Ujmajor, Hungary, there is a single contractor, HM EI Zrt, which performs all of the life support services on the base. This contractor was selected by the Hungarian Ministry of Defense in 1993 to establish operations at Camp Ujmajor and has been performing services there for rotational training units ever since. They also own the buildings on site that U.S. Forces will be occupying. In addition, due to the Hungarian government not being able to provide support U.S. Forces training in Hungary via an Acquisition Cross Servicing Agreement with the U.S. Government, the most cost-effective solution is to enter into a sole-source contract with the contractor at Camp Ujmajor. HM El Zrt is established at the site through an agreement with the Hungarian government and has the infrastructure in place to quickly support rotational training units. U.S. Army rotational forces in Europe have been ordered by the Commanding General of U.S. Army Europe to begin training with the Hungarian Army on 24 June 2016. The sole source contract with the contractor on Camp Ujmajor is required in order for U.S. forces to generate and mass combat power quickly, demonstrate interoperability with the

Hungarian/NATO force structure, and sustain operational reach in Central Europe in order to deter aggression against NATO allies. If the sole source contract with the contractor at Camp Ujmajor is not executed, then the U.S. Army Europe will have to expend additional money and resources to establish its own life support area with associated services that would prove to delay the deployment of U.S. forces to Hungary and would end up costing hundreds of thousands of dollars more than necessary. A delay in U.S. forces deploying to Hungary will not allow for deterrence against Russia to take place and without the sole source contract, the quality of life standards will drastically decrease for the period of time that U.S. forces will be in Hungary.

(b) Alternatives: LOGCAP was considered in order to provide life support services, but at $1.6 million was cost prohibitive. Tents from Germany will be used beginning 29 August 2016 when the contractor at Camp Ujmajor can no longer support U.S. forces due to the Hungarian Army needing to use the facilities and associated services.

Additional contracts for toilets, showers, and laundry services will be put into place starting on 29 August. The follow on contracts in support of U.S Forces will not be at Camp Ujmajor, but at a location in the vicinity. The solicitations for these contract will be advertised using full and open competition on the Federal Business Opportunities website.

6. Efforts to Obtain Competition: In accordance with FAR 5.202(a)(12), this action will not be synopsized.

7. Actions to Increase Competition: The U.S. Government will release multiple solicitations for toilet containers with service, shower containers with service, laundry service, and other logistical services to support another U.S Army rotational unit deploying to Hungary on 29 August 2016 to replace the unit that arrived in Hungary on 24 June 2016 at a different location. The solicitations for these services will be advertised on the Federal Business Opportunities website using full and open competition.

8. Market Research: Market research identified at least three companies that expressed an interest in providing life support services beginning on 30 August 2016. The market research was conducted in June 2016 by emailing vendors identified under certain NAICS codes in System for Award Management and also previous vendors used on similar contracts awarded by RCO Bavaria. The results of the requests for information sent to the vendors were that they had the capacity and the resources to acquire the supplies and services needed for tents, toilet containers, shower containers, and laundry service. The vendors were registered in System for Award Management which helped determine their responsibility in order to be awarded future contracts.

9. Interested Sources: The names of the companies that expressed interest in providing life support services include KVG, LLC, MEPS GmbH, Xeless, and ATCO Frontec. A presolicitation notice will be released on the Federal Business Opportunities website after the award of the sole-source contract to potentially identify even more vendors to who can meet the specific life support requirements for U.S. forces in Hungary staring on 30 August 2016.

10. Other Facts: The fact that there is a contractor already performing life support services at Camp Ujmajor, Hungary and has been doing so since 1993 supports the reasoning for a sole-source contract. Another company would have to gain authorization from the Hungarian government to perform service on the base and mobilize significant resources, which would not be economical or make good business sense.

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: CPT Korey Tighe Date:

Title: 5-7 CAV S-4 Signature:

12. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: Judith O’Connor Date:

Title: Contract Management Specialist Signature:

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. Cost analysis and negotiation with the contractor will provide the basis for the determination of fair and reasonable price. This determination will be made using the following: cost analysis and negotiation of costs with the contractor.

As a part of this basis, certified cost or pricing data is not required because the item and/or services being acquired are considered commercial.

Typed Name: MAJ Matthew Wernert Date:

Title: Contracting Officer Signature:

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: MAJ Matthew Wernert Date:

Title: Contracting Officer Signature: