JA_CLIN 0002_Increase_31 July_Posting.pdf
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- Attached to
- Justification for VTE Maintenance Contract Value Increase Federal contract opportunity
- Solicitation number
- FA700023X0001
About this file
This document is a sole source justification for a modification to increase the value of a contract line item for over and above maintenance services on elevators at the United States Air Force Academy. The original contract awarded to incumbent Peak Elevators, LLC in October 2020 included a line item valued at $500,000 for non-routine repairs, with the value increased to $1,110,000 under prior modifications. Usage has exceeded the maximum value, necessitating an additional $750,000 increase to $1,860,000 to cover requirements through the end of the base period in September 2025. This will allow the 10th Contracting Squadron time to complete a recompetition. Peak is willing and able to perform the work. The justification cites Peak's performance history and the potential for confusion involving separate contractors as rationale for the non-competitive award.
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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items
March 2023 Page 2 of 3March 2023 Page 2 of 3
I. Contracting Activity.
10th Contracting Squadron, 8110 Industrial Drive, USAF Academy, CO 80840
II. Nature and/or description of the action being processed.
The proposed action is a modification to USAFA Vertical Transportation Equipment Maintenance Contract FA700020D0010 to increase the value of CLIN 0002 (Over and above full maintenance). The original award amount for CLIN 0002 was $500,000.00 with a base ordering period of 1 October 2020 - 30 September 2025 and two one year options.
Modifications P0004 and P0006 raised the CLIN value to $1,110,000. Each CLIN 0002 task order has averaged $100,000.00; therefore 10 CONS contemplating an increase of $750,000.00 for the remainder of the contract base ordering period (30 September 2025). The proposed contract modification will raise the value of CLIN 0002 by another $750,000.00 to $1,860,000.00 total. The value of previous modifications ($610,000.00) to raise the value of CLIN 0002 did not cumulatively exceed 25% ($615,683.00) of the total original contract value ($2,462,732.00).
III. Description of supplies/services required to meet agency needs.
CLIN 0002 is for over and above services and non-routine repairs including, alterations (modernizations), damage caused by user neglect or vandalism, and damage from uncontrollable situations. Aging equipment and negligence has required an increase for CLIN 0002 requirements. This action will ensure that USAFA elevators remain fully operational until the end of the ordering period, 30 September 2025 and throughout the reacquisition.
IV. Statutory authority permitting other than full and open competition.
FAR 13.501 in accordance with 41 U.S.C. 1901
V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).
Peak Elevators, LLC. holds contract FA700020D0010 and has performed all work on this contract to this point. Including all work under CLIN 0002. Peak is willing and capable of performing the increased work load on CLIN 0002 despite this modification constituting an increase in CLIN 0002 value from the value anticipated at the time of award. This modification will ensure that USAFA elevators are in operational condition for the remainder of the base period and allow 10 CONS sufficient time to complete a reacquisition for FY26.
Peak currently has oversight of CLIN 0001- Full Service VTE Maintenance and Repairs to have a different contractor come in and administer CLIN 0002 - Over and Above Services will cause confusion of contractor's responsibility and services warranty.
VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.
This Justification and approval will be posted to www.sam.gov for interested parties to provide comment. Task Order values reached the CLIN maximum in short succession leaving the contracting office without time to complete reacquisition without a break in service. The solicitation for FA700020D0010 received only two responses including the incumbent contractor, Peak Elevators, LLC.
VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.
The proposed $750,000.00 increase in value to CLIN 0002 is an estimate based on over-and-above requirements thus far on FA700020D0010. Historically, CLIN 0002 has typically been utilized for minor repairs not related routine to negligence or vandalism, however, USAFA's aging elevator infrastructure necessitated larger scale repairs to several elevators to bring them up to operational condition. The increase in the value of CLIN 0002 will ensure that mission essential elevators are kept in operational condition for the remainder of the base period. Price analysis will be conducted for each task order issued under CLIN 0002 and will be negotiated on an individual basis.
Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items
March 2023 Page 3 of 3March 2023 Page 3 of 3
VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.
Market research was conducted on 7 June 2023, SBA Dynamic Search only identified one local Small Business under NAICS 238290, Other Building Equipment Contractors in the local area with elevator repair capabilities. Using historical pricing data for ad hoc repairs outside the scope of CLIN 0001, it is determined that the proposed action will likely cover the requirement for the remainder of the base period. This modification will allow 10 CONS adequate time to conduct market research for reacquisition of the Vertical Transportation Equipment Maintenance contract.
IX. Any other facts supporting the use of Other Than Full and Open Competition.
N/A
X. List of any sources that expressed, in writing, an interest in the acquisition.
N/A
XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.
The Vertical Transportation Equipment Maintenance contract will be reacquired at the end of the base period for the current contract (30 Sept 2025). There is no intent to execute option years on FA700020D0010. The reacquisition will include an Independent Government Cost Estimate based on the level of repairs needed over the previous 5 years. The new contract will be solicited with a more accurate anticipated value of over-and-above services.
XII. Certification by the Contracting Officer.
As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.
XIII. Certification by the technical/requirements personnel.
As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.
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