JA_FEMA_Generators_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA)

GENERATOR PROGRAM

1. Defense Logistics Agency (DLA) Troop Support, Construction and Equipment (C&E) Supply Chain, is the contracting activity.

2. The action being approved is the ability to solicit for DLA/FEMA requirements on an other than full and open competition basis.

3. The proposed action is for the approval of five (5) DLA Troop Support bridge contracts for three hundred and thirteen days (313) each to provide for leasing/rental of generators/associated equipment and the purchase of related supplies to support FEMA disaster relief operations. The FEMA Generator Program is a competitively awarded multiple award program with post-award competition of delivery orders. The original five (5) year contracts, SPE8EG-16-D-0023 with ADS, SPE8EG-16-D-0024 with Berger/Cummins JV, SPE8EG-16-D-0025 with Caterpillar, SPE8EG-16-D-0026 with Inglett & Stubbs International, and SPE8EG-16-D-0027 with Texas Power & Associates, were awarded on March 4, 2016 with a program maximum dollar value of $45 million.

The program is expected to meet its contract maximum prematurely November 9, 2017 due to an unprecedented 2017 hurricane season. The proposed action will result in the award of five (5) bridge contracts that will be effective from November 8, 2017 through September 18, 2018. The Program maximum dollar value for the five (5) bridge contracts will be $90 million.

4. The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only One Responsible Source or a Limited Number of Responsible Sources and No Other Supplies or Services Will Satisfy Agency Requirements.

5. The use of this authority is necessary to maintain support to FEMA and the Army Corps of Engineers (USACE) under the FEMA Generator Program. FEMA and USACE are part of the National Response Framework to provide local and state governments assistance through management of an emergency power mission. The FEMA Generator Program contracts provide the rapid deployment of generators/associated equipment and related supplies to support FEMA disaster relief operations. FEMA has both Continental United States (CONUS) and Outside Continental United States (OCONUS) distribution centers with generator fleets (power packs of varying sizes and capacities) to support emergency response operations. The FEMA Generator Program contracts provide generators via lease/rental when the nearest FEMA generator fleet has a shortfall in inventory or does not have the generator sizes or quantities in inventory when an emergency response is required. As with most disaster relief operations, FEMA will not know the actual shortfall until a full assessment is accomplished at the time of the disaster.

There are currently five contractors, ADS, Berger/Cummins JV, Caterpillar, Inglett & Stubbs and Texas Power, supporting the program. The required equipment is only available from the current Program contractors because they are the only known suppliers that have the established business relationships that allow them to meet the needs of the FEMA disaster relief operations. These five contractors are obligated to maintain a readiness plan which includes contractual arrangements with sources of supply, transportation and tracking capabilities, and repair services. They provide support and maintain a readiness position twenty-four (24) hours a day and seven (7) days a week, with request for quote (RFQ) responses required in four (4) hours and other communications requiring a thirty (30) minute response time. As requirements are received, they are competed among the contract holders, whenever possible, and as permitted under the terms of these contracts. These contractors have established relationships with suppliers and transportation assets to provide generators via lease/rental agreements and to transport generators and track them to required locations within 24 to 72 hours of award. These contractors also have established field service representatives (FSRs) to provide technical assistance to USACE during mission assignments for the leased generators. Any other vendor would require a Government evaluation, including a capability assessment, and a minimum 60day ramp-up period.

Consequently, failure to make an award to the five (5) DLA FEMA generator contractors will result in unacceptable delays in fulfilling agency requirements to support disaster relief operations.

Due to the extreme demand from an unprecedented hurricane season in 2017, the Program contract maximum will be met prematurely. From March 4, 2016, when the FEMA generator contracts were awarded, to August 2017, which included support for Hurricane Matthew in October 2016 and participation by contractors in FEMA live drills. In the summer and fall of 2017, three

(3) devastating hurricanes affected the United States and its territories in relatively quick succession: Hurricane Harvey, Hurricane Irma, and Hurricane Maria. Delivery orders were placed and are being placed against the FEMA Generator Program contracts in response. For Hurricane Harvey, were provided via lease/rental to FEMA in support of hurricane relief efforts in Texas For Hurricane Irma, were provided via lease/rental to FEMA in support of hurricane relief efforts in Florida and the U.S. Virgin Islands

Hurricane Maria resulted in unprecedented damage to Puerto Rico and the U.S Virgin Islands. To support FEMA’s requirements for Puerto Rico, have been provided via lease/rental. For the US Virgin Islands, via lease/rental.

A bridge contract period from November 8, 2017 through September 18, 2018 is required so that DLA Troop Support can maintain coverage for generator support to FEMA, to continue the mission in Puerto Rico and for any other potential relief operations while the follow-on procurement is being processed. Award for the follow-on is anticipated in July 2018 with a subsequent sixty (60) day ramp-up period required. FEMA has indicated a