JA_LSAAP_W9124J-21-C-0005_Redacted.pdf

Control No: MICC 2020-18 Contractor: Day & Zimmermann Lone Star LLC

Program/Equipment: BRAC-LSAAP

Version – September 2018 FOR OFFICIAL USE ONLY

a. On 9 November 2005, the BRAC Commission’s recommendation for reshaping the Defense Department’s Infrastructure and force structure officially became law. The BRAC recommendations included the closure of LSAAP, a Government-Owned, Contractor Operated (GOCO) Load Assemble Pack facility. D&Z Lone Star LLC has been the operator of the LSAAP since 1951. The Army transferred the majority of the LSAAP acreage to TexAmericas Center (TAC), the Local Reuse Authority and D&Z Lone Star LLC, under an Economic Development Conveyance and negotiated direct sale authorized by provisions of Section 2905(b)(1)(B) of the Defense Base Closure and Realignment Act of 1990 and Title 40 U.S.C. Section 545(b).

The Army retained five parcels of the property to facilitate environmental remediation.

The Purchase and Sale Agreement Between the United States of America and D&Z Lone Star LLC regarding a portion of the LSAAP now owned by D&Z was executed by the Director of Real Estate, United States Corps of Engineers and became effective on 01 September 2010. Article 5 (para 5.2) of the Purchase Agreement states that the Company (D&Z) “will be the exclusive operator of the Army Retained for Cleanup Property.” The Army is the owner of the Resource, Conservation, and Recovery Act and Municipal Solid Waste permits and D&Z Lone Star LLC is the named operator/agent of service on those permits. D&Z also is the owner of the air Permit required by the State of Texas for operation of the landfill. All these permits are required for continued operation in support of environmental remediation efforts and for maintenance of the LSAAP. D&Z Lone Star LLC also provides the security and surveillance required by the current Resource Conservation and Recovery Act (RCRA) permit, via daily patrolling, 24-hour surveillance via Government owned cameras at the High Explosive Burning Grounds and High Explosive Demolition Grounds, and D&Z Lone Star’s established monitor system. This security and surveillance provided by D&Z for $ could not be provided by another vendor without significant additional cost to the Army.

b. The proposed sole source contractor is D&Z Lone Star LLC (65EN2), Hwy 82, W.

Texarkana, TX 75501. As mentioned above, D&Z Lone Star LLC holds the permits required for continued support to this requirement.

c. Alternatives:

(1) Suspend Operations: The BRAC valuation for the facilities requires maintenance and caretaking prior to transfer. Without caretaking, facilities would degrade quickly. Additionally, as required by the permits listed previously, there are environmental remediation actions that if not enacted would cause the Army to be liable for fines. Therefore, this is not a viable option, as the property is to be maintained as required by BRAC and Environmental laws.

(2) Award a Competitive Contract: As previously stated, competition is not applicable due to the unique requirements of BRAC and the requirements outlined in

Program/Equipment: BRAC-LSAAP

Version – September 2018 FOR OFFICIAL USE ONLY

a. Effective Competition: Because this is a sole source action, effective competition is not applicable.

b. Subcontracting Competition: The contractor will be required to submit a subcontracting plan and will be encouraged to consider small business concerns for all potential subcontracting opportunities. The contract will contain Federal Acquisition Regulation (FAR) clauses 52.219-8, Utilization of Small Business Concerns, 52.219-9, Small Business Subcontracting Plan, 52.219-16, Liquidated Damages - Subcontracting Plan, and the associated FAR and Defense Federal Acquisition Regulation Supplement (DFARS) clauses.

7. Actions to Increase Competition: No actions will be pursued to increase competition, since competition is not available due to the unique legal requirements of

BRAC.

8. Market Research: IAW FAR Part 10.001, limited market research was completed.

As outlined above, a contract with the current contractor, D&Z Lone Star LLC is the only viable choice for continued performance of the services.

9. Interested Sources: An updated sources sought notice was not issued as D&Z Lone Star LLC is the only holder of the required permits and the Army would not be able to issue these permits to another contractor within the timeline needed.

10. Other Facts:

a. Procurement History:

(1) D&Z Lone Star LLC, a large business, has been the operator of the LSAAP (previously a Government-Owned, Contractor-Operated facility) since 1951. Contract W9124J-16-C-0006 for caretaker services was awarded to D&Z Lone Star LLC on 24 March 2016 as a sole source contract under the authority 10 U.S.C. 2304(c)(5) as implemented by FAR Part 6.302-5 “Authorized or Required by Statute. Prior to the current contract, W9124J-16-C-0006, the last two contracts awarded for the caretaker operations at the LSAAP were awarded to D&Z Lone Star LLC as sole source contracts under the authority of 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1(a)(2), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

(2) In October 2009, the Army Contracting Command - Rock Island Contracting Center awarded contract W52P1J-09-E-0003 as a no-cost caretaker contract. In addition, they issued 15 Cost Plus Fixed Fee (CPFF) or Firm-Fixed-Price (FFP) task or delivery orders under Basic Ordering Agreement (BOA) W52P1J-10-G-0003 with a total estimated value of $6.34 million. MICC-FSH awarded contract W9124J-14-C-0007 in December 2014 as a one-year CPFF contract with an estimated value of $1.76 million.

Program/Equipment: BRAC-LSAAP

Version – September 2018 FOR OFFICIAL USE ONLY

(3) In December 2015, a letter contract was issued and later definitized in March 2016. Contract W9124J-16-C-0006, with a total period of performance from 01 January 2016 through 30 June 2018, and estimated value of $2 million, was issued under the authority of FAR 6.302-5 – Authorized or Required by Statute.

(4) Due to delays in negotiations, a one month FFP purchase order was issued to continue caretaker services from 1-31 July 2018. In July 2018, contract W9124J-18-C- 0021 was issued with a total period of performance from 1 August 2018 through 31 July 2020 with another 6 months available through exercising FAR Clause 52.217-8 if necessary. Total estimated value was $ million. It was issued as a Sole Source under the authority of FAR 6.302-5 - Authorized or Required by Statute.