JA_SRTS_Hiro_Ceiling_Increase_15-D-R040_Redacted_FINAL.pdf

JUSTIFICATION AND APPROVAL

USTRANSCOM JUSTIFICATION FOR

OTHER THAN FULL AND OPEN COMPETITION

STEVEDORING & RELATED TERMINAL SERVICES (S&RTS)

HTC711-15-D-R040

1. CONTRACTING ACTIVITY

United States Transportation Command (USTRANSCOM), Directorate of Acquisition, Specialized Transportation and Support Division, 508 Scott Drive, Building 1900W, Scott AFB

IL 62225-5357.

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

This action will result in a modification to increase the Hiroshima. Japan S&RTS contract ceiling. The reason for this increase is due to politically motivated decisions, which have resulted in increased rate of deployment/redeployment, military exercise and mission requirements. Additionally, an increase in ammunition handling has occurred which was not foreseeable at the time of the current contract award resulting in higher contract cost. Hiroshima is through Option Year 3 and on pace for a increase in workload over Option Year 4.

This increased demand for Hiroshima strategic sealift capability has pushed the amount of contract obligations to of the current ceiling. As a result of this increase in operational requirements, the ceiling on the contract will be increased by an additional , extending the ceiling from to , to accommodate anticipated operations through the term of the contract.

3. DESCRIPTION OF THE SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS

This contract will provide the 599th Transportation Brigade services needed to maintain and sustain current and future terminal operations. S&RTS includes vessel loading, vessel discharge, receipt of cargo, disposition of cargo, stuffing/unstuffing of cargo, intra-terminal transfer of cargo, inland transportation of cargo, customs clearance, yard management and management expertise. S&RTS are required to move and track Department of Defense (DoD) sponsored cargo through Hiroshima in support of national and strategic military interests of the United States of America. The estimated value for this action is .

4. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 U.S.C. 2304(c)(1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. DEMONSTRATION THAT THE NATURE OF THE ACQUISITION REQUIRES USE

OF THE AUTHORITY CITED

A firm fixed-price IDIQ contract, HTC711-15-D-R040, was awarded to Sanyo Kaiun CO., LTD, beginning 1 April 2015. The contract is currently in Option Period 3, with the fourth and final option period set to begin on 1 April 2019.

A Request for Services Contract Approval (SCR) package was submitted to TCAQ by SDDC/G3 on 28 November 2018 requesting an increase to the Hiroshima, Japan S&RTS contract ceiling.

The services being provided are in support of the 599th Trans Brigade’s enduring mission. As discussed in paragraph 2, the total expected expenditure by the end of the contract is . The current contract ceiling is set at . Modifying the contract to increase the ceiling by will cover the expected expenses for the final period of the contract and 6-month extension if exercised.

Sanyo Kaiun CO., LTD is the sole qualified contractor known to be available and capable of performing required S&RTS services in support of DoD cargo transiting to and from the Port of Kure, Hiroshima, Iwakuni, Sasebo and Sendai. Any other contractor typically performing this requirement would require at least thirty days to receive the appropriate security clearances for this location. A similar period of time is generally necessary to stage contractor-supplied equipment at the ports. Additionally, support for current and ongoing missions is a necessity and there must not be an interruption in service. Failure to increase the ceiling price by executing this modification would degrade the 599th Transportation Brigade’s capability to provide Single Port Management for Warfighters in USINDOPACOM, thus degrading the CG’s Strategic Port and Ammunition readiness levels. An unacceptable delay or interruption of services jeopardizes support and secure deployment of military personnel and cargo during missions and any unforeseen emergency. This contract ceiling increase is required to ensure that the Government is capable of continued performance at a high operational tempo and efficiency in theater.

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

FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE

Competitive offers were not sought specifically for this proposed ceiling increase. FAR 5.202(a)(11), exception applies. The proposed contract action is made under the terms of an existing contract that was previously synopsized in sufficient detail to comply with the requirements of 5.207 with respect to the current proposed contract action. A full and open, competitive Request for Proposals (RFP) will be made for the follow on contract.

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED

COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

At time of award, Sanyo Kaiun CO. LTD, prices were determined fair and reasonable IAW FAR 15.404-1(b)(2). No other market conditions exist that alter the determination that the price is fair and reasonable.

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS

Prior to award, market research was conducted and one company expressed interest in performing this type of service at Hiroshima, Japan. Sanyo the incumbent, was the only company to submit a proposal for this requirement. No additional market research efforts were conducted specifically for this action.

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

COMPETITION

None.

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

INTEREST IN THE ACQUISITION

None.

11. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY

SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR SERVICES REQUIRED

A full and open RFP will be released next year to begin the solicitation of a new long term contract in Hiroshima, Japan. Market research is currently being conducted and an RFI will be issued to see what, if any, changes to the current contract structure would result in increased competition at the port.

12. CONTRACTING OFFICER 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.

BRITA M. DORSEY

Contracting Officer

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.

Chief (Acting), Seaport Contract Management Branch, SDDC-G3

DORSEY.BRITA.M. Digitally signed by

DORSEY.BRITA.M.

Date: 2018.12.14 12:05:17 -06'00'

CONTRACTING ACTIVITY: United States Transportation Command, USTRANSCOM/TCAQ-R, 508 Scott Drive, Building 1900W, Scott AFB, IL 62225-5357

PROGRAM/PROJECT: S&RTS, Hiroshima, Japan

AUTHORITY: 10 U.S.C. 2304(c)(1)

ESTIMATED CONTRACT COST:

TYPE OF J&A: Individual

REVIEW AND APPROVAL:

KERI A. LINDSCO

Competition Advocate

LINDSCO.KERI.ANN Digitally signed by

LINDSCO.KERI.ANN.

Date: 2018.12.19 14:11:21 -06'00'