JA_Kuwait_18-12rev_Redacted(black).pdf

JUSTIFICATION AND APPROVAL

USTRANSCOM JUSTIFICATION FOR

OTHER THAN FULL AND OPEN COMPETITION

STEVEDORING & RELATED TERMINAL SERVICES (S&RTS), KUWAIT

HTC71117DR021 18-12

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 the award of a six-month extension of the sole source, Firm Fixed Price, Indefinite Delivery Indefinite Quantity (IDIQ) contract with contractor, Cargo Transport Systems Company (Cargo) for services in Kuwait. Period of Performance at contract award was 09 June 2017 through 08 March 2018, including option periods. Period of Performance for this extension will be 09 March 2018 through 08 September 2018. Additionally, the ceiling on the contract will be increased by an additional to accommodate current and 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 595th Transportation Brigade (595th Trans BDE) services needed to maintain and sustain current and future operations while the follow-on, long-term acquisition is completed. 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 Kuwait in support of national and strategic military interests of the United States of America. The estimated value for this action is total.

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

HTC711-16-D-R004 was awarded to KGL Transportation Company on 28 June 2016. As a result of the Kuwait Port Authority (KPA) preventing that contractor from performing any work at the port, HTC711-16-D-R004 was terminated. Ongoing missions were set to begin on 12 June 2017 and would remain continuous. This requirement provides for the largest volume of cargo movement in the CENTCOM area of responsibility and includes yard and staging management that cannot otherwise be provided. Without any reasonable means of otherwise providing S&RTS in Kuwait, a sole source, nine-month contract, HTC711-17-D-R021, was awarded to Cargo Transport System Company (Cargo) beginning 09 June 2017.

In order to avoid performance issues issues based on KPA port restrictions which led to the previously terminated contract, continuous efforts have been made to establish a method of verifying offeror authorization to operate at KPA ports. However, KPA has not been forthcoming with information such as a current list of authorized vendors and are generally unresponsive to such Government requests. This extension is needed to continue and finalize development of the acquisition plan to avoid a similar situation that resulted in the termination of HTC711-16-D-R004, whereby KPA prevented the awardee from performing the contract.

Accompanying this extension is a ceiling price increase of , to cover both current and anticipated operations through the term of the contract. Unexpected missions requirements has led to a higher than projected workload, including a division redeployment, a hazardous fluid leak on a vessel, multiple operations with a large percentage of deadlined vehicles and several large ammunition movements. In order to achieve the high-throughput and pace demanded in a combat theater, it becomes necessary to leverage extra manpower and equipment to complete mission requirements such as these.

Cargo Transport Systems Company is the sole qualified contractor known to be available and capable of performing required S&RTS services in support of DoD cargo transiting through the Ports of Shuaiba, Shuwaikh and Kuwait Naval Base, Kuwait. Any other contractor typically performing this requirement would require at least thirty (30) days to receive the appropriate security clearances for these locations. A similar period of time is generally necessary to stage contractor-supplied equipment at the ports. Support for current and ongoing missions is a necessity and there must not be an interruption in service. Failure to extend the current services by executing this contract would result in the Government being seriously injured as cargo would not be able to be processed, resulting in mission failure. An unacceptable delay or interruption of service jeopardizes support and secure deployment of military personnel and cargo during missions and any unforeseen emergency. This six-month extension provides the required services and support to ensure mission success and positions the 595th Trans Bde for a safer, gradual transition into a new contract following competitive source selection for S&RTS at the Ports of Shuaiba, Shuwaikh, and Kuwait Naval Base.

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

FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE

As this is an extension of contract HTC711-17-D-R021, which was the result of the HTC711-16- D-R004 contract termination, competitive offers were not sought specifically for this contract action. The current contract was awarded to Cargo, who represented the second lowest priced, technically acceptable evaluated offeror in response to the HTC711-15-R-R014 solicitation and was also the subcontractor on the previous contract, W52P1J-10-D-0013. TCAQ will solicit from as many competitive sources as possible for the follow-on contract. Based upon lessons learned from the HTC711-16-D-R004 termination and in anticipation of further market research, competition will be sought from as many contractors as possible that are identified with the authorization to operate at the KPA ports of Shuaiba and Shuwaikh.

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED

COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

During solicitation of the terminated contract, HTC711-16-D-R004, offerors submitted proposals. Cargo’s price was determined fair and reasonable. However, discussions had to be opened and Final Proposal Revisions were requested.

which resulted in award to , KGL Transportation Company. As that contract, HTC711-16-D-R004, has now been terminated for the Government’s convenience, and Cargo has agreed to honor their proposed prices under the initial competition, the cost to the Government is fair and reasonable based upon adequate price competition and comparison against the Independent Government Cost Estimate and historical pricing 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

Efforts are underway to complete the source selection for the follow-on acquisition. TCAQ-R conducted extensive market research for the terminated contract, HTC711-16-D-R004. TCAQ-R released a Request for Information (RFI), TRANSCOM18R004, on 11 January 2018 pursuant to the anticipated released of Request for Proposals (RFP) HTC711-18-R-R003. The source selection for HTC711-16-D-R004 received offers and TCAQ-R expects similar competition for the follow-on contract. No additional market research efforts were conducted specifically for this contract.

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

The following companies submitted proposals in response to the acquisition for HTC711-16-D- R004:

Additionally, the following company submitted responses to RFI TRANSCOM18R004 as of the date of this J&A:

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

The solicitation for HTC711-16-D-R004, the terminated contract, was issued on 14 May 2015 using full and open competitive procedures. Five offers were received. TCAQ-R awarded the follow-on contract on 28 June 2016 based upon lowest priced, technically acceptable source selection procedures. The primary barrier to competition is that performance at two of the ports are controlled by the KPA. Further competition efforts will include: (1) ensuring offerors have authorization to perform through the KPA via submission of some form of verifiable documentation, and (2) a list of approved vendors will be sought directly from KPA from which TCAQ can independently verify the authorization of each offeror.

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.

THOMAS M. FEE III

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.

BRANDON SNYDER

Chief, Seaport Contract Management Branch, SDDC-G3

FEE.THOMAS.M.

Date: 2018.01.23 09:40:03 -06'00'

SNYDER.BRANDON.MICHAEL.

Date: 2018.01.23 09:55:28 -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, Kuwait

AUTHORITY: 10 U.S.C. 2304(c)(2)

ESTIMATED CONTRACT COST:

TYPE OF J&A: Individual

APPROVED:

KERI A. LINDSCO

Competition Advocate

LINDSCO.KERI.AN

N.

Date: 2018.01.23 12:08:52 -06'00'