JA_SRTS_Yoko_Ceiling_Increase_17-D-R001.pdf

FOR OFFICIAL USE ONLY

JUSTIFICATION AND APPROVAL

USTRANSCOM JUSTIFICATION FOR

OTHER THAN FULL AND OPEN COMPETITION

STEVEDORING & RELATED TERMINAL SERVICES (S&RTS)

HTC711-17-D-R001

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 Yokohama, Japan S&RTS contract ceiling. The reason for this increase is due to requirement changes attributed to the political landscape and natural disasters which resulted to an increase in exercises. The additional service orders needed to support these exercises has naturally increased expenditures on this contract beyond what was originally forecasted. The contract is currently 25% thru its life cycle and has utilized 86% of the current ceiling. To ensure services continue without interruption will require a contract modification to raise the contract ceiling by $3.8M from $1,372,449.73 to $5,172,449.73.

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

The 599th Transportation Brigade provides a Single Port Management for Warfighters in USINDPACOM. Due to the changes attributed to the political landscape and natural disasters, the US Army-Japan (USAR-J), III Marine Expeditionary Force (III MEF), and the Japanese Self Defense Force (JSDF) have elected to choose new locations and requirements for exercises every year which would require cargo to flow thru underutilized ports and areas. In the effort to meet supported customers’ requirements, the 599th adapted two mainland Japan port handling contracts to handle the most frequently used ‘non-home-station’ ports. Historically exercises have been covered by applying LINER IN / LINER OUT terms versus FREE IN / FREE OUT terms. However, in keeping with the CG’s intent, the 599th Mission Command exercises utilizes the FREE terms handling which inevitably has increased service orders under the contract. The contracted S&RTS services supports the brigade’s mission to support Commanders and DoD activities, to include but not limited to harbor-craft and lightering support, conveyance loading and discharging (ships, trucks, barges), and longshoring support. The estimated value for this action is $3.8M.

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, HTC711-17-D-R001, was awarded to Keihin Koun CO., LTD, beginning 8 February 2017. The contract is currently in Option Period 1, with the second 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 Yokohama, 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 $5.1M. The current contract ceiling is set at $1,372,449.73. Modifying the contract to increase the ceiling by $3.8M will cover the expected expenses for the remaining option year and 6-month extension if exercised.

Keihin Koun, Co., 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 Kanagawa Prefecture and Nagoya. 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 SDDC CG’s Strategic Port 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, Keihin Koun, Co., 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 Yokohama, Japan. Keihin Koun Co., LTD, 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

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

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.

MELISSA ROMAGNO

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

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

PROGRAM/PROJECT: S&RTS, Yokohama, Japan

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

ESTIMATED CONTRACT COST: $3.8M

TYPE OF J&A: Individual

REVIEW AND APPROVAL:

KERI A. LINDSCO

Competition Advocate