r_12-34 J A Theater Expr Ext Svcs 25 Jun.pdf

JUSTIFICATION AND APPROVAL

USTRANSCOM JUSTIFICATION FOR

OTHER THAN FULL AND OPEN COMPETITION

THEATER EXPRESS

I. CONTRACTING ACTIVITY.

United States Transportation Command, Contract Airlift Division. Commercial International Branch, USTRANSCOM!fCAQ-CI, 508 Scott Drive, Building !900W, Scott AFB IL 62225- 5357.

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

The United States Central Command (CENTCOM) requires continued contract support for the less than planeload air cargo transportation services provided under the Theater Express program. The final option year for the Theater Express contracts expired on 31 March 2012 and was extended to 30 June 2012 based on a previous three-month extension executed under the authority ofF AR clause 52.217-8, Option to Extend Services. This Justification and Approval authorizes the execution ofF AR clause 52.217-8 allowing service to continue for one additional month from 1-31 July 2012 and two optional months (I August- 30 September 2012). 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 52.217-8 is anticipated to be executed via a modification to the current contract for the additional one month period of perfonnance (and two optional months if necessary).

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

NEEDS.

The CENTCOM Theater Express program provides international commercial scheduled air cargo transportation services primarily within the CENTCOM Area of Responsibility (AOR) as required by the Air Mobility Division (AMD), Combined Air Operations Center (CAOC), and Airlift Control Team (ALCT). Transportation services include time-definite, porHo~port pickR up and delivery, Intransit Visibility (lTV), and customs processing and clearance of 463L palletized and roll-on/roll-off cargo to CENTCOM Forward Operating Bases, Forward Operating Locations (FOBs/FOLs). Carriers are responsible for all personnel, training, supervision, equipment, Prior Permission Requests (PPRs), Diplomatic Clearances (DIPS), and customs cJearances procedures. The Theater Express program augments military airlift capability in support of the war fighters operating in the CENTCOM Theater. The program provides international transportation of cargo delivered within 96 hours.

The current THX program is supported by five Civil Air Reserve Fleet (CRAF) carriers: Air · Transportation International (A Tl), Evergreen International Airlines (EIA), Federal Express (FDX), National Air Cargo (NAC), and United Postal Service (UPS). The contracts include a base year and one option year that was extended through 30 June 2012.

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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)(I)(B)(ii) and the Federal Acquisition Regulation (FAR) 6.302-l(a)(2Xiii)(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 USC 2304(d)(I)(B)(ii) is essential to prevent unacceptable delays in this critical service supporting war fighters operating in the CENTCOM AOR. Failure to continue performance via a contract extension would have a detrimental impact on the war fighters' mission within the CENTCOM AOR. This program transported approximately 270 million pounds of cargo to multiple locations within.the CENTCOM AOR during Fiscal Year (FY) 20 II. TCAQ-Cl is actively pursuing a follow-on contract with an anticipated base period of performance beginning on 1 August 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 one month extension (and two optional months) is required to provide the necessary time for the Government and successful awardees to estabJish the operational/contractual logistics required to begin performance by the I August 2012 start date (unless subsequently amended) based on a planned award date on/around I July 2012 (unless subsequently amended).

The incumbent contractor(s) Air Transportation International (A TI), Evergreen International Airlines (EIA), Federitl Express (FDX), National Air Cargo (NAC}, and United Postal Service (UPS) are the only sources that can provide the required services without interruption until the contract is re-awarded. They have all required equipment in place and are positioned to continue daily support for the one 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 14 October 2011, a synopsis with accompanying Draft soJicitation documents was posted to Federal Business Opportunities (FedBizOpps) to notifY potential offerors of the pending re competition for Theater Express services. On 29 Dec 2011, the official solicitation documents were posted to FedBizOpps. In accordance with a class Justification and Approva1 posted to FedBizOpps on 25 August 2011, this requirement is limited to Civil Reserve Air Fleet (CRAF) participants in accordance with statutory authority 10 USC 2304(c}(3), Industrial Mobilization.

7, DETERMINATION BY THE CONTRACTING OFFICER THAT mE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE.

The city-pair rates were determined fair and reasonable at time of contract award based on comparison between each contractor's 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 perfonn at the rates specified in the contract for the period of the extension.

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCfED 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 sqlicitations 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 perfonn 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 I July 2012. The requested extension will allow this requirement to be competed among the CRAF carriers.

12. CONTRACflNG OFFICER'S CERTIFICATION.

I certify that the data supponing the recommended use of other than full and open competition is accunne and complete to the best of my knowledge and belief.

~\1?\-6 MICH L PARDUE

Contnlct g Officer

13. TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION.

I certify that the data supporting the recommended use of other than full and open competition is accunne and complete to the best of my knowledge and belief.

CHRISTOPHER N. OMDAL. Lt Col, USAF CENTCOM J4-Mobility Air Branch

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CONTRACTING ACTIVITY: USTRANSCOM TCAQ-Cl

PROGRAM/PROJECT: Theater Express

AUTHORITY: 10 USC 2304(d)(l)(B)(ii), Limited to Prevent Unacceptable Delays in Agency Requirements

ESTIMATED CONTRACT COST:

REVIEW AND APPROVAL:

KERI A. LINDSCO

Chief, Commercial International Branch

GINAK.LEE

Acting ~~rlift Division

Office of the Staff Jndge Advocate

WJLLIAM T. RACHAL

Competition Advocate

SANDRA M. HALAMA

Head of the Contracting Activity

3 mfEj I .f-.

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DATE

MAY 2 3 2012

DATE