r_J A Sea-Air Multimodal Ext Mod USC-6 .pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SEA- Am MULTI-MODAL MODIFICATION TO USC-6

1. CONTRACTING ACTIVITY. United States Transportation Command (USTRANSCOM), Sealift Services Division, 508 Scott Drive, Scott AFB IL 62225-5357. USTRANSCOM is DoD's single manager of common user transportation of all modes (sea, air, surface).

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED. The purpose of this action is to continue the inclusion of sea-air multi-modal requirements to the existing intermodal (sea and surface transportation) contracts known as the Universal Services Contracts (USC)-6. USC is comprised of nineteen Firm-Fixed-Price, multiple award, Indefinite Delivery/Indefinite Quantity contracts. USC-6 awards are currently made to only ocean common or contract carriers. USTRANSCOM's intent is to maintain the sea-air multi-modal required services under USC-6 for a period of time that is necessary to award a separate long term sea-air contract. The continued services of the sea-air multi-modal requirement under USC-6 will continue to provide the needed operational flexibility to allow contractors to transport limited segments of door-to-door service via sea, air, and surfaceunder their existing USC-6 contracts.

3. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY'S

NEEDS. USTRANSCOM continues to require USC-6 carriers to maintain an air mode to the existing intermodal (sea, surface) door-to-door movement of cargo under USC-6. The carriers will be required to transload cargo from seaport to aerial port, and deliver cargo to final destinations using multiple modes of transportation, including the air mode. The estimated value of this acquisition will increase the dollar magnitude to over for the remainder ofUSC-6. USTRANSCOM is continuing its efforts to lead to a new competitive contract outside ofUSC-6 considering all Civil Reserve Air Fleet (CRAF) and Voluntary Intermodal Sealift Agreement (VISA) strategic partners. The continuation of this requirement will be effective immediately through the final completion date ofUSC-6 or such earlier time as a new competitive contract is effective.

The requirement consists of the following general services-

a) Select multi-modal location (seaport/airport) that is suitable for offloading cargo from USC-6 sealift vessels.

b) Multi-modallocation must be able to accommodate DoD provided armed couriers to escort missions sensitive cargo moving via air to final destination.

c) Provide secure cargo holding location to accommodate cargo being prepared to be airlifted.

d) Provide aircraft, personnel, equipment, tools, material, maintenance, supervision, ground transportation, unloading and loading capability of cargo for transload operations, and deliver cargo.

e) Coordinate all activities with the host nation to implement the requirements in the work statement.

f) Provide reliable and secure time definite delivery, in-transit visibility (lTV), and door-to-door management of military cargo.

4. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION. Authority for this acquisition is 10 USC 2304(c)(2) and FAR 6.302-2, Unusual and' Compelling Urgency.

5. DEMONSTRATION THAT THE CONTRACTOR'S UNIQUE QUALIFICATION OR NATURE

OF THE ACQUISITION REQUIRES USE OF ONLY ONE RESPONSffiLE SOURCE AND NO

OTHER SUPPLIES OR SERVICES WILL SATISFY AGENCY REQUIREMENTS AUTHORITY.

USTRANSCOM's current ability to meet United States Central Command's (CENTCOM) distribution

' requirements have been severly degraded due to the recent closure of the Torkham and Chaman border crossings which accommodates cargo into Afghanistan. The increased hostility along these borders has impacted negatively the flexibility and capacity capabilities of transporting cargo into Afghanistan. Closure of these inland routes in Pakistan, border closures, and subsequent attacks on USC cargo continues to limit USTRANSCOM's mission to support the war fighter.

USTRANSCOM must continue to have a contractual mechanism in-place to provide an immediate and secure alternate method to move cargo from nearby seaports into Afghanistan when these types of disruptions occur. A separate contract continues to be pursued and remains a work in progress as US TRANSOM works very closely with its commercial partners. Therefore, in order to continue meeting mission requirements and provide USTRANSCOM the required flexibility of sea-air multi- modal transportation, USTRANSCOM must continue to include this requirement in the USC-6 contract. Thus providing USC carriers the ability to expedite cargo via air (vice trucking) to final destination. Removing the current multi-modal capability under USC-6 while waiting the time to award a new, competitive contract would constitute a delay that could result in avoidable physical injury or death to DoD personnel and others, could result in avoidable financial losses of DoD cargo and equipment, or could jeopardize DoD's mission accomplishment.

The USC-6 carriers currently provide international, door-to-door cargo transportation and distribution services using ocean common or contract carriers, as defined in the Shipping Act of 1984, offering regularly scheduled commercial liner service, along with inland line hauls, for requirements that arise in any part of the world. Approximately 90% of DoD international cargo moves under the USC-6 contracts. These contracts call for the USC-6 carriers to provide ocean, intermodal, and related transportation and distribution services to support their offered services as required. The USC-6 contract applies to Unit Movement Cargo and Other Than Unit Movement (OTUM) Cargo. Unit Movement Cargo is described by Unit Line Numbers (ULNs) and Plan Identification Numbers (Pills) in the Joint Operation Planning and Execution System (JOPES) -whether contingency, exercise or administrative in nature- whether characterized as deployment, redeployment or retrograde cargo. As such, maintaining a limited air piece to this existing international transportation/distribution services contract is the most expeditious means to meet this requirement. The world-wide and intermodal nature ofUSC-6 continues to be the best existing contract vehicle for immediate expansion to meet the urgent requirement.

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

AS MANY POTENTIAL SOURCES AS IS PRACTICABLE. This action was not synopsized in accordance with FAR 5.202(a)(2). Due to the complexity of this requirement, it is in the Government's best interest to maintain air transportation to the USC-6 contract, as the need to quickly move troops and associated equipment into Afghanistan does not allow time to solicit other sources. It is the government's intent to continue efforts to develop and solicit a long term competitive requirement outside ofUSC-6.

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST

TO THE GOVERNMENT WILL BE FAIR AND REASONABLE. The Contracting Officer hereby determines that the anticipated price will continue to be fair and reasonable in accordance with FAR Subpart

15.4. Based on current existing USC-6 multi-modal rates and ongoing market research, competition is maintained for all the sea-air routes in USC-6 and USTRANSCOM, which is the DOD single manager for all modes of common user transportation, is equipped to evaluate prices for air transportation, as well as sea and surface transportation.

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

STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT CONDUCTED.

USTRANSCOM's International Scheduled Services Division did conduct market survey on industry capabilities and potential sources for intra-theater surface and air (multi-modal) transportation of military break-bulk cargo to/from various destinations in Afghanistan. Currently 5-ocean carriers provide successful multi-modal shipments under USC-6 with more carriers considering adding multi-modal to their business model. The Government was looking for commercial solutions to maximize the cost savings associated with surface (primarily ocean) transportation for the longest and safest portions of these movements, while capitalizing on the speed and safety of airlift to move designation break-bulk cargo to the final destinations in Afghanistan. Numerous carriers showed an interest by responding to the request for information market survey and have since been awarded multi-modal rates under USC-6. The responses from the industry offered a door-to-door multi-modal solution for transporting break-bulk, oversized/outsized cargo through partnerships with ocean carriers and DoD approved foreign airlines.

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9. ANY OTHER FACTS SUPPORTING THE USE OF RIMI*liiA%E1fi+d)NltQ£fN COMPETITION. There are several factors that make this a complex effort. First, there are different laws and regulations applicable to the movement of government cargo via sea and air. Second, any resulting contract would require a system capable of allowing the government to book cargo over various multimodal routes. Due to the complexity and necessity for a long-term acquisition plan to achieve successful completion of this activity in a timely and economic manner, it is in the government's best interest to have a short term and long term solution. The short term solution continues to be the USC-6 contract. Continuing the service under this contract allows USC carriers to transport cargo via air vice land when determined to be in the best interest of the Government. The USC-6 contract already encompasses multimodal transportation and is supported with a comprehensive web based booking system. The long term solution will be to solicit a competitive requirement outside ofUSC-6.

10. A LISTING OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN

THE ACQUISITION.

Agility International Inc.; AKSU Transport and Foreign Trade Co; ANHAM, L.L.C.; America President Lines Ltd Inc.; ATLAS Air Worldwide Holdings & American Shipping and Logistics Group (ASL); DB Schenker; DHL Global Forwarding; DHL Express; Evergreen Airlines; HEB International Logistics; Liberty Global Logistics and UPS; Maersk Line, Limited; Mondo International, Inc.; Nassery Transportation;

National Airlines; Safe Ports; Rig Boss LLC/Sky Boss Logistics; SRX Transcontinental Inc.; TransAtlantic Lines; National Air Cargo

II. A STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR

OVERCOME ANY BARRIERS TO COMPETITION BEFORE MAKING ANY SUBSEQUENT

ACQUISITION FOR THE SUPPLIES OR SERVICES REQUIRED. USTRANSCOM's intent is to pursue a competitive follow-on effort among CRAF and VISA strategic partners.

12. CONTRACTING OFFICER'S CERTIFICATION. I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

WILLIAM R. LINDQUIST

Contracting Officer

Date

4) ff6 12..

13. TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION. I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

WILLIAM P. MANN, Lt. Col, USAF

USTRANSCOM/TCJ3

Date

Date

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SEA- AIR MULTI-MODAL MODIFICATION TO USC-6

JUSTIFICATION & APPROVAL (J&A)

PROGRAM: Sea-Air Multimodal modification to USC-6 AUTHORITY: 10 USC 2304(c)(2) and FAR 6.302-2, Unusual and Compelling Urgency.

ESTIMATED CONTRACT COST:

TYPE OF J&A: Classs

REVIEW AND APPROVAL:

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Staff Judge Advocate

JEFF

Chief, siness Support and Policy Division Directorate of Acquisition rfJL~f#

WILLIAM T. RACHAL

Competition Advocate Directorate of Acquisition

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SANDRA M. HALAMA

Head ofthe Contracting Activity

Director of Acquisition lO F~ /1_ Date

Date

Date

Date

FEB 2 1 2012

Date

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