JA for Bulk Waste-Final_04 SEP 2020 KB_FINAL.pdf

J&A No. 20-JA-FEACQ-0013

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Facilities Engineering Command Far East (NAVFAC FE), Facilities Engineering And

Acquisition Division (FEAD), Camp Butler, Okinawa, Japan.

2. Description of the Action Being Approved.

This justification seeks approval to award a Firm-Fixed-Price (FFP) contract to Kankyo

Solution (herein referred to as Kankyo), on an other than full and open competition basis for the performance of recurring Bulk Waste Services at all Marine Corp Bases (MCB) in

Okinawa, Japan, for a period not to exceed the time necessary to meet the urgency described below or no more than 12 months.

This action is necessary because Clean Recycle (CR) the contractor currently performing recurring bulk waste services under contract N40084-19-D-2008 was cited and issued a corrective notice by Uruma City’s Public Health and the Okinawa Prefectural Government

(OPG) after CR’s two incinerators failed government inspection and their trans-shipment yard’s accumulation of wastes passed permit limitations. Until CR can repair the impacted incinerators and pass government inspection its capacity to perform bulk waste collection, transport, and disposal services under N40084-19-D-2008 has been disrupted. A stand-alone contract for bulk waste services must be awarded immediately to address the accumulation of

MCB bulk waste and the potential harm arising from the same due to Okinawa’s impending typhoon season (July through October).

3. Description of Supplies/Services.

This proposed action is to provide no more than 12-months of bulk waste service coverage for the period beginning on/about September 14, 2020 through August 30, 2021. The estimated value for recurring and non-recurring bulk waste services for all MCB in Okinawa

Japan is approximately $700,000.00.

Recurring services will be obligated on purchase order N40084-20-P-2203 effective on/about

14 September 2020. The recurring services portion of this contract is to be funded as follows:

CUSTOMER Apporpriation Type FY20

Marine Corps Operations & Maintenance $700,000.00

$700,000.00TOTAL

The requiring technical activity (RTA) has confirmed the urgency of the requirement and the availability of funds for this requirement.

4. Statutory Authority Permitting Other Than Full and Open Competition.

This contract will be awarded pursuant to 10 U.S.C. 2304(c)(2) or 41 U.S.C. 3304(a)(2), as implemented by FAR 6.302-2, “Unusual and Compelling Urgency”.

5. Rationale Justifying Use of Cited Statutory Authority.

This action is being necessitated due to unforeseen performance issues on recently awarded contract N40084-19-D-2008 which was awarded, after full and open completion to CR. CR is not presently capable of meeting MCB bulk waste service requirements under the contract due to issues with its incinerators. Although CR has successfully repaired one incinerator the lack of having both incinerators operational continues to prevent CR from performing bulk waste services at MCB. Per CR the time-table for repairing the inoperable incinerator is presently unknown because the original equipment manufacturer (OEM) for the same is no longer in business and locating a reliable vendor to trouble shoot and repair the same has been challenging. CR attempted to rely on other manufacturers from mainland Japan for repair parts, but these other manufacturers could not guarantee the support, reliability and longevity of CR’s inoperable incinerator. Accordingly, CR has requested that all of the MCB bulk waste service requirements and regular waste service requirements for the Southern camps under contract N40084-19-D-2008 be de-scoped from the contract. Currently CR is only capable of meeting the requirements for regular waste disposal for the Northern camps.

Per the RTA, as a result of CR’s inability to collect, transport, and dispose of bulk waste at

MCB, bulk waste is accumulating and the MCB designated locations for pick-up of the same are filling up quickly. MCB bulk waste accumulation raises imminent health and safety concerns because Okinawa is currently in Typhoon season (most typhoons hit Okinawa between July and October). Per the RTA, MCB accumulated bulk waste creates a potential for flying debris that can cause personal injury and property damage. A disruption in the provisioning of bulk waste services at MCB is not in the best interest of the Government as the same will pose a significant risk of serious injury with bulk waste being blown about during Okinawa’s typhoons.

Use of the authority cited in Section 4 above is deemed appropriate since full and open competition is not practicable for this requirement because a delay in award of a contract would result in serious injury, financial or other, to the Government.

Market research performed by the RTA indicates no source in Okinawa other than Kankyo has the knowledge, experience and current capability of mobilizing and providing the required bulk waste services at MCB in the required time period, see paragraph 6 below for further explanation.

For the reasons discussed above the RTA does not expect CR to resume performance of

MCB bulk waste services in the next 2-3 month timeframe or any time in the near future. As such, the RTA reasonably expects the accumulation of bulk waste at all MCB will worsen to the point where the designated locations for bulk waste pickup are over capacity. This presents an unacceptable and increased health and safety risk as bulk waste accumulation will create the potential that objects will be flying about during Okinawa’s typhoon potentially causing personal injury or property damage. According to the RTA, the disruption in MCB bulk waste services have also been the subject of several complaints due to the increased presence of bulk waste pile up and accumulation around the designated locations for bulk waste pick-up. Insects and pests (mosquitoes, rodents, and snakes) are also attracted to the affected areas of the camps, which will create additional health and safety concerns.

In the opinion of the RTA, any delays associated with competing this requirement, would intensify the impact on the disruption in bulk waste services to the MCB described above potentially creating mission impacts. Accordingly, to avoid any further disruption of bulk waste services for MCB, executing a contract not to exceed 12 months to a capable contractor is the most effective and efficient way for the Government to proceed. Kankyo has proven to be a capable and responsible contractor based on their satisfactory performance under Air Force contract FA527018P0080, FA527019PA012, and FA527018P0028.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

The RTA’s market research only considered local sources with full knowledge and experience in performing industrial waste services in Okinawa, Japan. Two local contractors were contacted to determine their capability in performing the required services in the time period required Okinawa’s typhoon season (July through October), i.e., Kurashiki and

Kankyo. Both Kurashiki and Kankyo are familiar with the requirement due to their known experience performing general and industrial services on Okinawa with other agencies (Air

Force and Army Corp). Kurashiki and Kankyo are sister companies.

The RTA only considered Kankyo for the bulk waste services contemplated by this justification because it submitted a bid in response to the IFB for the current contract

N40084-19-D-2008 awarded to CR and it is currently registered in the SAM database. The

RTA did not consider Kurashiki because it did not bid on the IFB for the current contract and it is not currently registered in the SAM database. The RTA contacted Kankyo to determine if it had the capability to provide services for the bulk waste services for all MCB. Kankyo confirmed that it has the permits and licenses required and the capability to perform the bulk waste service requirement.

Based upon the RTA’s personal knowledge of the limited sources of vendors on the island of

Okinawa with the capability and capacity to perform the services required by this justification no other sources were contacted. In the opinion of the RTA only Kankyo can perform the current requirement.

The justification shall be posted on FedBizOpps within 14 days after contract award per FAR

6.305. A synopsis of the proposed contract action is not required in accordance with FAR

5.202(a)(2).

7. Determination of Fair and Reasonable Cost

The Contracting Officer has determined the anticipated cost to the Government of the services covered by this J&A will be fair and reasonable through comparison of proposed prices with the Independent Government Estimate based on historical data and government estimating resources. Award of the contract will be made only after the price has been determined fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

NAVFAC FE FEAD Camp Butler conducts ongoing market research and acquisition planning to ensure future requirements are competitively procured. Due to the unforeseen inability of the contractor to meet all of the refuse services requirements under their current contract while making an effort to have service coverage in place, FEAD Camp Butler will continue to seek to maximize use of the existing refuse services contract N40084-19-D-2008 with CR.

Subsequently, following the expiration of the CR contract on 28 February 2021 and Kankyo contracts on 30 August 2021, NAVFAC FE FEAD Camp Butler is seeking to solicit the refuse service requirement as two (2) separate acquisitions, one for the general waste and the other for the industrial bulk waste in Okinawa, Japan using competitive procedures.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

GARRY D. BRUST Date

Facilities Services Contract Manager

Naval Facilities Engineering Command Far East, FEAD Camp Butler

Requirements Cognizance:

LCDR NATALIE C. GILLIVER Date

FEAD Director

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

MARVIN D. RAMPEY Date

Legal Counsel

Naval Facilities Engineering Command Far East

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

JACINTO A. AMPOSTA Date

Supervisory Contract Specialist

ECHELON IV CHIEF OF CONTRACTING OFFICE APPROVAL

Upon the basis of the above justification, I hereby approve the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C.

2304(c)(1).

KATHRYN A. BALONEK Date

Chief, Contracting Office

Naval Facilities Engineering Command Far East