Fair_opportunity_exception_justification.pdf

Justification for an Exception to Fair Opportunity or to Use Brand-Name Restriction

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Is this a brand-name justification? Yes No

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Contracting Activity: 374 CONS/PKB

Purchase Request / Local ID Number: Contract No. FA520920D0013, TO No. FA520923F0245

Program Name (and Program Element, if applicable): ZNRE 22-1020, Repair Roof and HVAC System, B4335 Base Theater

Estimated Cost/Price of the Order (including options): Base- JPY 279,000,000 / Mod1-JPY 90,000,000

Type Program (see DAFFARS 5302.101 for definitions): PEO Program Operational Enterprise

Type of D etermination: Individual Class Expires: [ click and select ]

Fair Opportunity Exception: FAR 16.505(b)(2)(i) (Check the applicable subparagraph below.)

(A) (B) (C) (D) (E) (F) (G) Check this box to display the FAR 6.302 exceptions.

Click here for instructions to complete the boxes below.

(1) Contracting Activity:

374 Contracting Squadron/PKB

(2) Nature and/or description of the action being approved:

Out of Scope Modification The additional work includes the following:

Remove and reinstall new floor materials, seats, and foot lights for the Auditorium with associated work.

(3) Description of the supplies/services required to meet the agency's needs:

The original scope requires the contractor to repaint exterior walls, repair water damaged ceilings, recoat the roof, and replace the mechanical systems. The purpose of the modification is to minimize the downtime of the base theater function. The additional work includes removing and reinstalling new floor materials, seats, and foot lights for the Auditorium with associated work. The proposed work was not included in the scope for ZNRE 22-1020, Repair Roof and HVAC System. Therefore, the Contracting Officer determined that this additional work is "out of scope" from the original contract.

(4) Identification of the exception to fair opportunity and the supporting rationale:

The Contracting Officer determined that the additional work must be awarded on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract. The rationale of this determination is stated as below:

The original project was solicited under a fair opportunity to be considered for the original order. The ongoing construction project involves the temporary closure of the base theater for repairs, which has a direct impact on base morale. The theater, being the sole English-speaking theater on base, relies on v 18 Jan 2024 Security Marking (select from the drop-down list) Page 2 of 5v 18 Jan 2024 Security Marking (select from the drop-down list) Page 2 of 5 revenue generated to sustain its employees during the construction period. If the project is not extended, the facility technically must be returned to the user upon the completion of the initial project and it will not be useful to the users. They cannot recall their staff and and begin using the facilities immediately and optimally between the original work and the additional work. In essence, this would just be one long shut down with even worse logistics than if it were only one contractor.

(5) Contracting Officer's determination that the anticipated cost to the Government will be fair and reasonable:

Contractor's proposal is determined to be fair and reasonable based on the comparison with the Government Cost Estimate.

(6) Other facts supporting the justification:

The theater's ceiling and roof space directly above the seating area is currently under the control of the incumbent contractor responsible for the HVAC and ceiling work. In consideration of safety concerns, if the Government chooses to proceed with a new solicitation, the current project must be completed first and accepted by the Government before transitioning to the next contractor, as both will be utilizing the same space. Pursuing a separate contract for the additional work will extend the construction work by roughly 10 months, resulting in $364,000 in lost revenue.

In addition, the Government considered if these additional works are available as the commercial item. In accordance with Real Property Installed Equipment (RPIE) examples stated in DAFI 32-9005 (14 September 2022), installation of theatre chairs is fallen under the real property. Therefore, the incumbent construction company is sufficiently qualified to accomplish the additional work.

(7) Actions the agency may take to remove or overcome any barriers to increasing fair opportunity before any subsequent acquisition for the supplies or services:

N/A

(8) Program Manager's certification that supporting data is accurate and complete:

As evidenced by my signature below, I certify that any supporting data contained herein, which is my responsibility, is both accurate and complete.

(9) Contracting Officer's certification that the justification is accurate and complete:

As evidenced by my signature below, I certify that the justification is accurate and complete to the best of my knowledge and belief.

(10) Approving Official's determination that one of the circumstances in FAR 16.505(b)(2)(i) applies to the order.

As evidenced by my signature below, I hereby determine that the fair opportunity exception checked on page 1 applies.

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