JA for USAID Securing Georgias Energy Future Program (1).pdf

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

TO: David Hoffman, Activity Competition Advocate

FROM: Marika Olson, Director, Economic Growth Office, USAID/Georgia

SUBJECT: Justification for an Exception to Fair Opportunity

1. This document sets forth the facts and rationale justifying an exception to fair opportunity, in accordance with FAR 16.505.

This document was prepared by the USAID/Georgia Economic Growth Office for modification to Contract/Task Order 7200AA19D00025/72011421F00002 for a $4,500,000 increase to the original Total Estimated Cost (TEC) of $15,714,040.

2. The nature and/or description of the action being approved:

This is a request to approve a non-competitive modification of USAID/Georgia’s Securing Georgia’s Energy Future Program (Contract number 7200AA19D00025/72011421F00002), adding federal supplemental funding in response to the global emergency caused by the war in Ukraine, to increase the total estimated cost by up to $4.5 million from $15.7 million to $20.2 million. Under this action Deloitte Consulting LLP, the implementer of the Program, will increase support to renewable energy projects by supporting additional commercial, small and micro scale renewable energy projects in wind, solar, and/or hydropower through provision of technical and material support.

The Energy Program was awarded competitively on March 28, 2021 as a five-year, $15,714,040 task order under the Energy IDIQ II (7200AA19D00025) to Deloitte Consulting LLP. The award has been modified twice: in October 2021 and in June 2022.

During the initial phase of the program in 2021, the contractor conducted consultation meetings with energy sector stakeholders and USAID beneficiary organizations before submitting the year 1 work plan. The purpose of the consultations was to verify that the deliverables and outputs that the implementer had proposed were still needed and appropriate for the energy sector and to learn if there was a need for additional immediate and critical assistance in the energy sector. As a result of the consultations, Deloitte identified the need for a few additional deliverables/outputs and the need to replace several deliverables/outputs with new ones. Deloitte proposed these changes, which were reviewed by the task order Contracting Officer’s Representative (COR), who concurred, and approved by the Contracting Officer through Modification #01. The revisions were considered to be minor and had no budgetary impact. No competition issues were raised with this modification. Modification #02 provided incremental funding.

3. Description of the supplies or services required, including an estimated value:

The proposed amendment to the USAID Securing Georgia’s Energy Future Program will increase support to renewable energy projects, allowing the Program to support additional commercial, small and micro scale renewable energy projects in wind, solar, and/or hydropower by providing technical and material support. Over 5 years, the Program initially planned to implement 15 projects. The additional funding would allow the Program to provide technical and material support for at least 45 additional projects over the remaining period while leveraging a minimum of $5,000,000 in additional funds in private sector investment, reducing greenhouse emissions, and supporting Georgia's climate change goals by promoting clean and renewable energy technologies.

This amendment will enable the Program to increase its impact in critical areas to U.S. foreign assistance objectives such as advancing Euro-Atlantic integration and reducing malign influence.

The Task Order COR requested IDIQ COR for a concurrence to this action to which positive response was received.

4. Identification of the exception to fair opportunity (see 16.505(b)(2)) and the supporting rationale, including a demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the exception cited.

Logical Follow-on - FAR 16.505(b)(2)(i)(C)

In the interest of economy and efficiency, this action must be issued on a sole-source basis because it is a logical follow-on to the Task Order 7200AA19D00025/72011421F00002 already issued under the contract and all awardees were given a fair opportunity to be considered for the original order. This modification calls for exactly the same work that the original solicitation called for and will involve new work that is within the general scope of the existing task order and within the purpose of the contract. Section C.7 of the solicitation listed “# of EMS [energy management systems] and DSM [demand-side management] pilot projects implemented” as a deliverable, with a life of project target of 15. Under the planned contract modification, this target would be increased to 60. Section IV “Detailed Work Objectives” under Objective 2 of the solicitation, “Increased Investment to Promote Energy Sector Resilience,” says: “The Contractor is expected to build the capacity of the Government of Georgia and the energy sector institutions to attract and facilitate future private-sector investment, including options for demand-side management, energy management systems and diversified, sustainable, renewable energy generation (incl. micro, small and medium size wind, solar and hydropower), …”. This deliverable and related description of pilot projects and alternative options for these topics are what the planned modification would expand. There are no differences in the type of service that will be performed under this modification and no extension to the period of performance will be necessary. Creating a new award for this work would be inefficient, as it would create a separate management unit to perform exact the same type of work being implemented under the current task order. In addition, the new work must be fully coordinated and integrated with the current activities, which can only occur successfully if all of these pilot projects are implemented under a single award.

5. A demonstration by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable:

From experience and the competitive process for award of the initial task order contract, other competitive processes of the same nature, and market knowledge, USAID/Georgia’s Regional Contracting Office possesses the tools and knowledge to ensure that the negotiated costs are fair and reasonable. Additionally, an independent government cost estimate (IGCE) has been completed using existing and historical costs under the existing project to estimate the cost to the government for this proposed modification. The Contracting Officer will use this and the existing activity’s historical expenditure information to make a determination about proposed costs. A cost analysis will also be conducted on proposed costs for the expansion.

6. Other facts supporting the use of exception to fair opportunity:

Deloitte Consulting LLP is highly qualified and positioned to implement the proposed expansion of the USAID Securing Georgia’s Energy Future Program. It continues to meet Program targets and consistently receives positive ratings on key metrics in its Contractor Performance Assessment Reports (CPARs).

7. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made:

The Agency intends to compete future requirements through full and open competition. Category Management will be taken into consideration in the design of future procurements.