J A_HTC711-14-D-RC09.pdf

JUSTIFICATION AND APPROVAL

USTRANSCOM JUSTIFICATION FOR

OTHER THAN FULL AND OPEN COMPETITION

STEVEDORING & RELATED TERMINAL SERVICES (S&RTS)

SINGAPORE

HTC711-14-D-RC09

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

Surface Deployment and Distribution Command (SDDC) requires continued support for Stevedoring and related terminal services within Port service Authority (PSA) in Singapore with relay service to Diego Garcia. Continued support must be accomplished through a sole-source, six ( 6) month extension to meet mission requirements while on-going competition for the follow on acquisition is complete. If the current contract HTC711-14-D-RC09 with American President Lines Ltd., Inc expires, it will cause mission failure.

The current indefinite Delivery Indefinite Quantity (IDIQ) contract included a base period and four (4) one year option periods. The Period of Performance (POP) on the contract (to include all option periods) was from 01 October 2010 through 30 September 2015. In accordance with FAR 52.217-8, Option to Extend Services, a six (6) month extension will be exercised with a PoP of 01 October 2015 through 31 March 2016 to ensure no disruption of service to the customer. The total estimated value for this period is Approval for this extension is sought because the original price evaluation did not include an evaluation of the rates for the six month option period.

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

The contract will provide SDDC 599th Transportation Brigade (5991h Trans Bde)/8351h Transportation Battalion services required to maintain and sustain current and future operations.

S&RTS are required for the receipt, disposition, processing, and loading/discharging of vessels at Port Service Authority (PSA) terminals in Singapore with relay service to Diego Garcia in support of national and strategic military interests of the United States of America.

Singapore S&RTS provides handling of Department of Defense (DoD) sponsored cargo for SDDC's, 599th Trans Bde/8351h Transportation Company, to include vessel loading, vessel discharge, receipt of cargo, disposition of cargo, stuffing/stripping of cargo, intra-terminal transfer of cargo and onward movement of cargo management expertise at Singapore.

599th Trans Bde/8351h Transportation Battalion have vessels scheduled during this six (6) month period which require S&RTS. The contractor is already in place and this extension allows SDDC continuous mission operations in Singapore.

4. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 U.S.C. 2304(c)(l), Only One Responsible Source. Services are deemed to be available only from the original source for the continued provision of highly specialized services when award to any other source will result in unacceptable delays in fulfilling the agency's requirements.

5. DEMONSTRATION THAT THE NATURE OF THE ACQUISITION REQUIRES USE

OF THE AUTHORITY CITED

Army Contracting Command Rock Island (ACC-RI) awarded the current contract in September 2010 with a base period and four (4) one-year option periods. S&RTS contracts were transferred from ACC-RI to USTRANSCOM Acquisition (AQ), 01November2013. Since the transfer, market research has been accomplished with the posting of a Request for Information (RFI) on 24 June 2015 to obtain industry feedback on the procurement of S&RTS services in Singapore.

One interested vendor responded.

A Request for Services Contract Approval (SCR) package containing the Performance Work Statement (PWS) was submitted to TCAQ by SDDC/G9 on 8 April 2015. After review of these documents against market research and issues arising with other OCONUS S&R TS solicitations, it was determined a review of the requirement was warranted prior to issuance of a solicitation.

Exercising the six ( 6) month extension to the current contract is the most prudent course of action for USTRANSCOM AQ and SDDC 599th Trans Bde/8351h Transportation Battalion to provide the most effective requirement documents to industry for the re-procurement of the service.

American President Lines (APL) is the sole contractor knowledgeable in the current movement of DoD cargo through Singapore for the 599th Trans Bde/8351h Transportation Battalion. Failure to extend the current contract for six (6) months would result in mission failure. Current and ongoing missions are a necessity and must not have an interruption in service. An unacceptable delay or interruption of service jeopardizes support and secure deployment of military personnel and cargo during missions and any unforeseen emergency.

The J'roposed extension provides the required experience to ensure mission success, positions the 5991 Trans Bde/8351h Transportation for a safer, gradual transition to a new contract awardee, and mitigates the possibility of negative impact to the nation's strategic combat effectiveness which the S&R TS at the Port of Singapore.

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

FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE

Competitive offers were not sought for the proposed six (6) month extension of services since the acquisition process is in progress for a follow-on contract. TCAQ anticipates releasing the new competitive Request for Proposal (RFP) in October 2015.

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED

COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

During solicitation of the current contract, only one offeror submitted a proposal, American President Lines, Ltd. (APL). APL was evaluated as the lowest priced, technically acceptable offeror and awarded the contract. Price analysis determined that the evaluated price for the base period and four ( 4) option years was fair and reasonable based on market research , that two or more responsible offerors, competing independently, would submit priced offers in response to the solicitation, even though only one offer is received from a responsible offeror IA W FAR 15.403-1( c )(ii). will apply to this six (6) month extension period. No market conditions exist that alter the determination that the price is fair and reasonable.

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS

OR A STATEMENT OF THE REASONS MARKET RESERACH WAS NOT

CONDUCTED:

On-going efforts are underway to issue a competitive RFP. TCAQ-R conducted extensive market research for the follow-on requirement. A Request for Information (RFI) HTC71 l-15- ZR15 was posted to Federal Business Opportunity (FBO) on 24 June 2015. TCAQ received one email inquiry from CSM A YG Group and one questionnaire response from Inchcape Shipping Services (ISS). Attempts were made to contact CSM A YG Group via www.google.com; the email inquiry did not provide an address or phone number to identify. Therefore, the Government received only one response to the RFI. No additional market research efforts were conducted for this six month extension through 31 March 2016.

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

Inchcape Shipping Services L.L.C.

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 Government has begun the acquisition process of procuring the required services. TCAQ-R anticipates award in March 2016. Milestones for the follow-on requirement are being established to include adequate start-up time to remove any barriers to competition.

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 .

Contracting Officer

[jJ ~IS ate

13. TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION

I certify that the data supporting the recommended use of other than full and open competition is accurate and c plete to th best of my knowledge and belief.

Date Functional Manager, SDDC, G3

CONTRACTING ACTIVITY: USTRANSCOM/TCAQ-R

PROGRAM/PROJECT: Ports of Singapore, Stevedoring & Related Terminal Services

(S&RTS)

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

ESTIMATED CONTRACT COST:

TYPE OF J&A: Individual

REVIEW AND APPROVAL:

Branch Chief, Transportation Support Branch

Chief, Specialized Transportation & Support Division

Office of the Staff Judge Advocate

MICHELLE M. MENDEZ

Competition Advocate

Of~/S Date

Date