JA_Medwide_Extension_up_to_31_Dec_14_Redacted.pdf

Source Selection Information – FAR 2.101 and 3.104

DEPARTMENT OF THE NAVY

NAVSUP FLEET LOGISTICS CENTER SIGONELLA

DETACHMENT NAPLES

PSC 817 BOX 0050

FPO AE 09622

IN REPLY REFER TO:

J&A Number: 13-031

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity. Naval Supply Systems Command (NAVSUP) Fleet Logistics Center Sigonella (FLCSI), Detachment Naples, Italy.

2. Description of the Action Being Approved. This document supports the sole source extension of FLCSI Detachment Naples' contract N68171-07-D-0007 with Multinational Logistic Services (MLS) for husbanding services in the Mediterranean region for an additional 15 months of contract services consisting of 12 months with a 3-month option.

3. Description of Supplies/Services. Contract N68171-07-D-0007 is a requirements contract with firm-fixed prices competitively awarded on a best value basis by NAVSUP FLCSI Detachment Naples to MLS for husbanding services in the Mediterranean region. Husbanding services consist of services such as trash removal, collection/holding/transfer (CHT) of bacteriological/chemical liquids, waste oil and aggregate water removal, fresh potable water, pilot services, tug services, line handler services, crane services, brow (gangway) rental, water taxi services, vehicle rental (sedans and buses), paint float rental, forklift services, telephone services (landline and cellular), fenders, and force protection services.

The determination to award the current contract to MLS as the best value to the Government was made by the contracting officer based upon a consideration of past performance, technical capability and price with the Government’s evaluation of the past performance and technical capability of each offeror being more important than their price. The Government received three offers. Award was made to MLS on the basis of their past performance combined with the lowest evaluated price.

The contract can be summarized as follows:

Period Dates Estimated

Contract Value

Total port visits

Base 01 April 2007 – 31 March 2008 $35,873,251.07 290 Option 1 01 April 2008 – 31 March 2009 $36,016,571.00 383 Option 2 01 April 2009 – 31 March 2010 $36,180,217.55 175 Option 3 01 April 2010 – 31 March 2011 $36,365,971.94 233 Option 4 01 April 2011 – 31 March 2012 $36,500,986.69 281 6-month Option

(FAR 52.217-8)

01 April 2012 – 30 September 2012 $0 153

J&A Extension 01 October 2012 – 30 September 2013 $31,784,346.78 236* Total $212,721,345.03 1751

*Based on LOGSSR report dated 12 Sep 2013

It is the Government's intention to compete and award a firm fixed price indefinite delivery indefinite quantity follow-on contract on a best value basis. This bridge contract is required to incorporate all adjustments as a result of using a new strategy as well as lessons learned from the recent CENTCOM Husbanding Service Provider request for proposal released in May 2013 and to allow ample time to solicit, evaluate, negotiate and award the follow-on contract. The inclusion of the option period provides flexibility to ensure contract coverage for any unforeseen events that may occur prior to or after contract award. The option will only be exercised if necessary.

Major adjustments include the following:

- New draft Pub 740 “Husbanding”. Naval Supply Systems Command (NAVSUP), our Head of Contracting Activity, issued a new draft of the Pub 740 that included revisions to the performance work statement and the pricing schedule affecting our requirement. To comply with those revisions it was necessary to thoroughly review the new draft to capture the changes, provide comments, discuss them at both local and NAVSUP level, and then revise the pre-solicitation package in accordance with the final decisions.

- Contract Line Items (CLINS) structure. The structure of some CLINS changed. As a result, it was necessary to re-calculate CLIN quantities for each port. For instance, CLIN #XX01 for Husbanding Services originally consisted of 2 SUBCLINS (one for ship classes I, II, and III, and another one for ship classes IV and V). CLIN #XX01 for the current contract consists of five separate SUBCLINS, one for each ship class. This change required a new analysis of the data to re-allocate the aggregated quantities to the single

SUBCLINS.

- Units of issue. Some units of issue changed making it necessary to convert the quantities from the old units of issue to the new ones. For instance, the unit of issue for CLIN #XX12 for rental of cellular phones changed from “Day” – the unit used under the current contract -to “Each”. This required a new analysis of the data to re-calculate the quantities based on the new units.

- Forward Deployed Naval Forces (FDNF) ships. A U.S. Navy initiative is to place FDNF destroyers in Rota, Spain, that is not part of the current husbanding contract for the Mediterranean area. Upper management discussions and data analysis were conducted to evaluate the opportunity to include it in the follow-on contract and the impact in terms of type and quantity of services required to support the FDNF ships. A final decision was made not to use the EUCOM contract to support the FDNF ships.

- Evaluation process. The evaluation process changed from Trade-off to Lowest Price

Technically Acceptable (LPTA). It required a complete revision of the Section L “Instructions, conditions, and notices to Offerors” and Section M “Evaluation factors for the award” of the solicitation to identify the most appropriate documentation and factors for this new evaluation process.

The above effort required discussions with all the interested parties including the requiring activity, NAVSUP, the in-house husbanding team, and the contracting officer’s representative, and a significant amount of time to coordinate and identify the most appropriate strategy for this acquisition.

The Government’s estimate for the 01 October 2013 – 31 December 2014 period anticipated by this document is $28,864,794.30.

This estimate is based on the actual services and quantities ordered under the current contract for the last 10 months. The total cost of actual services ordered during that period ($19,243,196.24) was divided by 10 to obtain the monthly cost ($1,924,319.62) and then multiplied by 15 to obtain the total cost for the entire extension period ($28,864,794.30). As such, this document only supports an extension to the contract ordering and performance period through 31 December 2014.

The milestones for the award of the follow-on contract are summarized in the table below:

Action Milestone Date # of Days

* A one month notice is necessary for a new contractor to be ready to provide support.

4. Statutory Authority Permitting Other Than Full and Open Competition. 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1, Only One Responsible Source And No Other Supplies Or Services Will Satisfy Agency Requirements.

5. Rationale Justifying Use of Cited Statutory Authority. The current contract for husbanding support services in the Mediterranean region expires on 30 September 2013. The Navy has a continuing need for the services beyond that expiration and FLCSI Detachment Naples does not anticipate that the competitive best-value award of the follow-on contract and potential transition to a new contractor will be completed before 30 September 2013.

The estimate for the continuation of the contract through 31 December 2014 is higher than the balance remaining available against the contract’s estimated maximum, an increase of the estimated contract maximum is anticipated.

Because U.S. Navy ships rely on the services provided in foreign ports, it is in the best interest of the Government to extend the current contract while a follow-on is competitively awarded.

There is no other contractor presently capable of performing the required services besides the incumbent, MLS. MLS has or can obtain equipment, assets, facilities, and personnel to immediately perform services. They have a stable network in the Mediterranean area and have good business relationships capable to respond within the timeframe of this extension, to perform satisfactorily, over the entire area. Any other husbanding contractor that could potentially perform services in the area needs at least 2-3 months to organize their network to satisfy the requirements of the ships visiting the region. Additionally, MLS employees and subcontractors have undergone the requisite security checks required to perform these services. Awarding this bridge to another company would cause a disruption in service because of the time it takes to vet the employees and subcontractors for these mission critical services in the Mediterranean region and establish the aforementioned network of foreign port service providers. A sole source modification to contract N68171-07-D-0007 will be issued to the incumbent to extend the period of performance of services for an additional period of 15 months, consisting of a 12 month base with a 3-month option, commencing 01 October 2013 through 31 December 2014.

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

There were no efforts made to solicit any offerors besides the incumbent contractor since the sole purpose of the extension contemplated herein is to enable competition for the follow-on contract.

Notice of this justification and the Government's intended modification of the contract to enable the competitive follow-on will be provided on https://euro.neco.navy.mil/ in accordance with FAR 6.305. The follow-on requirement will be publicized and competed on EURONECO.

7. Determination of Fair and Reasonable Cost. The prices for the extension of the current contract through 31 December 2014 will be identical to those of the current contract. These prices were previously determined to be fair and reasonable via competition and the Contracting Officer has not noted any changes to the prevailing market conditions for the specific goods and services obtained under this contract that would otherwise indicate that the current contract prices are not fair and reasonable.

8. Actions to Remove Barriers to Future Competition. FLCSI will use FAR, DFARS and NMCARS regulations and guidance to conduct full and open competition for the new requirement. The new anticipated solicitation for a long term contract will be uploaded in EuroNECO for 30 days and solicited to potential contractors identified through market research to ensure widest dissemination and encourage maximum competition.

9. Contracting Officer’s Determination. The Contracting Officer assigned to this procurement has determined that the extension is in the best interest of the Government.

10. CONTRACTING POINT OF CONTACT

Michael Alexander Director of Acquisition Phone: (00) 39-081-568-3841 Email: Michael.Alexander@eu.navy.mil

Gary Trimble Contracting Officer Phone: (00) 39-081-568-3743 https://euro.neco.navy.mil/ mailto:Michael.Alexander@eu.navy.mil

Email: gary.trimble@eu.navy.mil

Berardino Albrizio Contract Specialist Phone: (00) 39-081-568-3534 Email: berardino.albriz.it@eu.navy.mil mailto:gary.trimble@eu.navy.mil mailto:berardino.albriz.it@eu.navy.mil