7.18.12_CAT_A_I_Extention_of_Services_J A.pdf

JUSTIFICATION AND APPROVAL

USTRANSCOM JUSTIFICATION FOR

OTHER THAN FULL AND OPEN COMPETITION

CATEGORY A

1. CONTRACTING ACTIVITY.

United States Transportation Command, Contract Airlift Division, Commercial International Branch, USTRANSCOM/TCAQ-CI, 508 Scott Drive, Building 1900W, Scott AFB IL 62225- 5357.

2. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED.

The Defense Logistics Agency Defense Distribution Center (DLA/DDC), Defense Logistics Agency Medical Prime Vendor (DLA/MPV), Aviation and Missile Command (AMCOM), and Navy Inventory Control Point (NAVICP) requires continued contracts support for the less than planeload air cargo transportation services provided under the Category A (CAT A) program.

The final option year for the CAT A contracts expire on 30 September 2012. The contracts include FAR clause 52.217-8, Option to Extend Services, permitting extension of services for up to six additional months. This Justification and Approval (J&A) authorizes the execution of FAR clause 52.217-8, allowing service to continue for two additional months from I October- 30 November 2012 and four optional months (December 2012, January 2013, February 2013, and March 2013). The execution of this option is necessary to bridge the gap between the expiration of the current contract and start of the follow-on contract. The extension authorized by FAR 52.2I7-8 is anticipated to be executed via a modification to the current contracts for the additional two month period of performance and four optional months if necessary. Executing the extension under FAR 52.217-8 will also require an increase in the program's estimated ceiling by from (original program ceiling) to The current value of this contract based on actual expenditures is as of26 June 2012, which equates to a historical expenditure of per month. Assuming the remaining three months of Option Year Three averages , the contract value at the end of this option period (30 September 2012) is estimated to be ( below the original program ceiling). Again using the per month as a baseline, the total estimated value of the extension is if all six months are exercised. Therefore, the total program value is estimated to be (rounded) at the end of the six-month extension period ( above the original program ceiling). The actual extension will be limited to the time necessary for USTRANSCOM to enter into follow on contracts for the required services.

Original Program Ceiling Actual Expenditures (as of26 Jun 12) Estimated Expenditures (I Jul 12-30 Sep 12) Estimated Contract Value (30 Sep 12) Six-Month Extension (I Oct 12-31 Mar 13)

Modified Pro2ram Ceilin2

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

NEEDS.

The CAT A program provides international commercial cargo delivery service of less than full pallet loads (non 463L palletized) to users specified by Headquarters Air Mobility Command (HQ AMC) and United States Transportation Command (USTRANSCOM). CAT A service requires time-definite, door-to-door pick-up and delivery, transportation, Intransit Visibility (lTV), Syncada participation, and expedited customs processing and clearance for hazardous, perishable, oversized or unusual shipments.

The current CAT A program is supported by a multiple award Indefinite-Delivery Indefinite Quantity (IDIQ) contract with eight Civil Reserve Air Fleet (CRAF) carriers: Air Transport International (AT!), Atlas, Continental, Evergreen International Airlines (EIA), Federal Express (FOX), Miami (MIA), National Air Cargo (NAC), and US Airways. The follow-on contracts include a base year and three option periods.

4. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION.

The authority for a limited number of responsible sources to prevent unacceptable delays in agency requirements is 10 U.S.C. 2304(d)(l)(B)(ii) and the Federal Acquisition Regulation (FAR) 6.302-1 (a)(2)(iii)(B).

5. DEMONSTRATION THAT THE PROPOSED CONTRACTOR'S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE USE OF

THE AUTHORITY.

The use of authority 10 U.S.C. 2304(d)(l)(B)(ii) is essential to prevent unacceptable delays in this critical service being provided in the Continental United States (CONUS) and Outside Continental United States (OCONUS) supporting the Department of Defense (DOD). Failure to continue performance via a contract extension would have a detrimental impact on the war fighters' mission within the CENTCOM AOR, which includes sending medical supplies and general cargo to CENTCOM locations as well as locations in Europe and the Pacific. This program transported approximately 30M pounds of cargo to CONUS and OCONUS locations during Fiscal Year (FY) 20 II. TCAQ-Cl is actively pursuing a follow-on contract with an anticipated base period of performance beginning on I December 2012 or thereafter if an additional extension is required. Therefore, the extension of services provided by the contractual authority of FAR 52.217-8 will be executed to extend services until the start of the follow-on contract. The additional two months, and four optional months, are required to provide the necessary procurement time, as well as time for the Government and successful awardees to establish the operational/contractual logistics required to begin performance by I December 2012 start date (unless subsequently amended) based on a planned award date on/around 31 October 2012 (unless subsequently amended).

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The incumbent contractor(s) A Tl, Atlas, Continental, EIA, FDX, MIA, NAC, and US Airways are the only sources that can provide the required services without interruption until a multiple award Indefinite-Delivery Indefinite Quantity (IDIQ) are re-awarded. They have all required equipment in place and are positioned to continue daily support for the two month period of contract extension required.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE.

On I May 2012, a synopsis with accompanying draft documents was posted to Federal Business Opportunities (FedBizOpps) to notify potential offerors of the pending re-competition for the CAT A program. On 4 June 2012, the official solicitation documents were posted to FedBizOpps. In accordance with a class J&A posted to FedBizOpps on 25 August 2011, this requirement is limited to CRAF participants in accordance with statutory authority 10 U.S.C.

2304( c )(3), Industrial Mobilization.

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE.

The pricing in these contracts was determined fair and reasonable at the time of contract award based on a comparison between each contractors' competitively proposed rates. The option year rates were determined fair and reasonable based on fixed adjustments to each offerors fair and reasonable rates according to the Economic Price Adjustment (EPA). The EPA adjustment allows for annual increases based on a Producer Price Index (PPI) specific to the industry, in this case NAICS 481112, Scheduled Air Freight Transportation. The EPA adjustment permits standard increases based on inflation of costs specific to that industry. EPA adjustments to rates previously determined fair and reasonable maintain rates that are fair and reasonable since the allowable rate adjustment is the same for all contractors. Exercising FAR clause 52.217-8 requires the contractors to perform at the rates specified in the contract for the period of the extension.

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED.

Market research has been conducted for the follow-on procurement. For purposes explained in the class Justification and Approval (J&A) approved on 3 March 2011, this requirement is limited to participants in the CRAF program. In accordance with this J&A, USTRANSCOM may award contracts to Department of Defense Commercial Airlift Review Board (CARB) approved carriers participating in CRAF, and not in a suspended non-use status that submit acceptable proposals in response to solicitations for USTRANSCOM Less-Than-Planeload transportation requirements. The incumbents along with four other entities have expressed interest in competing for the follow-on requirement. Market research indicates that other CRAF carriers may be able to perform this requirement by subcontracting with foreign flag entities operating in the region.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION.

None.

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

INTEREST IN THE ACQUISITION.

See Section 8 above.

11. A STATEMENT OF THE 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.

A large-scale follow-on competitive procurement effort is underway with an award scheduled for 31 October 2012, unless subsequently amended, with the 30-day notification period being used to develop/train ordering officers on the new CAT A contract. The requested extension will allow this requirement to be competed among the CRAF carriers.

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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.

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.

CONTRACTING ACTIVITY: USTRANSCOM TCAQ-Cl

PROGRAM/PROJECT: CAT A Services

AUTHORITY: 10 U.S.C. 2304(d)(l)(B)(ii), Limited to Prevent Unacceptable Delays in Agency Requirements

ESTIMATED CONTRACT COST: Ceiling increased from

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