JA N6274220R3603 Redacted.pdf

SOURCE SELECTION INFORMATION SEE FAR 2.101 AND 3.104

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Department of Navy, Naval Facilities Engineering Command (NAVFAC) Pacific.

2. Description of the Action Being Approved.

Award of a bridge contract on a sole source basis to DZSP 21, LLC (DZSP) for base operations support (BOS) services, Joint Region Marianas (JRM), Guam.

The proposed action is for a 3 month base period 1 September 2020 - 30 November 2020, plus one (1) 3-month option period 1 December 2020 – 28 February 2021. The previous approved Justification and Approval (J&A) for Other Than Full and Open Competition (attachment 1) and Request for Authorization of a Bridge Contract (attachment 2) have been included.

3. Description of Supplies/Services.

The BOS services include 0100000 General Information, 0200000 Management and Administration, 0600000 Port Operations, 1000000 Material Management, Andersen Air Force Base (AAFB), 1501000 Facility Management, 1502000 Sustainment, Restoration and Modernization (SRM), 1502000A Sustainment, Restoration and Modernization (AAFB SRM), 1602000 Electrical, 1605000 Wastewater, 1606000 Steam, Hot Water and Demineralized Water, 1607000 Potable Water, 1700000 Transportation, 170000A Transportation AAFB, and 1800000 Environmental Services.

The proposed contract is for a 3-month base period, plus one (1) 3-month option period, with an estimated dollar value of . The estimated cost for this bridge contract was derived from historical data, including the previous BOS services contracts N62742-05-C- 3501, N40192-10-C-3000, and N40192-13-C-3001*; the follow-on BOS Services contract N62742-14-C-1150; the six-month extension issued under N40192-13-C-3001 via FAR 52.217-8 Option to Extend Services (NOV 1999); and the sole source bridge contracts N62742-15-C-1160, N62742-16-C-1130, N62742-17-C-1170, N62742-18-C-1110, and N62742-19-C-1175. Due to the existing Collective Bargaining Agreement for the current active contract, the Government does not anticipate further adjustments as a result of Secretary of Labor revisions to prevailing labor rates. The applicable Register of Wage Determination under U.S. Department of Labor will be included in the modification. (*New contract numbers were assigned to N62742-05-C-3501 for administrative reasons due to the large volume of accounting classification reference numbers (ACRNs) required for customer funding).

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING COMMAND, PACIFIC

258 MAKALAPA DR., SUITE 100

JBPHH, HI 96860-3134

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

SOURCE SELECTION INFORMATION SEE FAR 2.101 & 3.104

The resultant contract will be funded by the following types of FY20 & FY21 funds:

- Operations & Maintenance, Navy

- Operations & Maintenance, Air Force

- Operations & Maintenance, Army National Guard

- Family Housing Operations & Maintenance, Navy

- General Fund (formerly, Navy Working Capital Funds)

- Defense Health Program Funds

- Defense Commissary Agency Funds

- Defense Working Capital Funds

- Transportation Working Capital Funds, Air National Guard

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

10 USC 2304(c)(1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

a. Pursuant to 10 USC Section 2304(c)(1), DZSP, the incumbent contractor, is the only source capable of performing the required BOS services without unacceptable delays, disruption to services, and substantial duplication of costs. As discussed in detail below, based upon the time needed to conduct a competitive procurement, transition requirements, and additional costs that would be incurred by the Government, only DZSP can meet the agency’s requirements for continuous BOS services.

b. The requirement for this sole-source contract has arisen as a result of the receipt of a pre-award Government Accountability Office (GAO) Protest B-418637.1. The protest was received on 6 April 2020 due to the elimination of one of the offerors from the competition. On 17 April 2020, the GAO dismissed the protest as the Agency decided to take corrective action by re-admitting the offeror back in competition. The corrective action required additional discussion questions to be issued to all offerors in the competitive range. The additional time required to review, evaluate and request Final Proposal Revisions (FPRs) will delay the award of the reprocurement action.

Consequently, Solicitation N62742-19-R-1199 will not be awarded in time for the new contractor to begin mobilization on 14 April 2020 as anticipated with the award of P00002. Currently, NAVFAC Pacific is taking corrective action and delaying the award of the new contract to 31 July 2020. As a result of the time needed for corrective action, the new bridge is also needed (3 month base with 3 month extension) to allow sufficient time to collect funding. The funding collection process requires a minimum of 60 days.

The 3 month extension may be invoked to ensure the continuation of services due to circumstances resulting in award/performance delays that are beyond the control of the Agency (e.g. protests, mistakes, pandemics, natural disasters, etc.).

SOURCE SELECTION INFORMATION SEE FAR 2.101 & 3.104

c. The current bridge contract, N62742-19-C-1175, was awarded on 25 February 2019 with a period of performance through 29 February 2020 based on the projected award date of the new contract. However, solicitation N62742-19-R-1199 was not awarded by 29 February 2020 due to unanticipated delays caused by the customer’s decision to insource ordnance work for operational reasons. The decision to remove Annex 0700000, Ordnance, led to mandatory negotiations with the SBA prior to the issuance of the RFP, and also resulted in the successful defense of an Agency level protest. Subsequently, N62742-19-C-1175, was modified on 27 February 2020 as P00002 to extend the period of performance through 31 August 2020. P00002 was awarded with the expectation of the new contractor to be in full performance from 15 July 2020.

d. As begin on 1 August 2020, with full performance starting on 1 December 2020.

The period of performance for the current bridge N62742-19-C-1175, P00002, is 1 March 2020 – 31 August 2020. The new bridge will have a base period of performance of 1 September 2020 – 30 November 2020 and one option period of 1 December 2020 – 28 February 2021.

Table 1 Award Date Mobilization (120 day) Full Performance Option Period New Contract N62742-19-R-1199

Current Bridge N62742-19-C-1175 P00002

27 Feb 20 1 Mar 20 – 31 Aug 20

New Bridge N62742-20-R-3603

28 Aug 20 1 Sep 20 – 30 Nov 20 1 Dec 20 - 28 Feb 21

e. An interruption of BOS services would seriously injure the Government due to the critical nature of the functions supported by these services. JRM plays a key role in providing logistics and mission support to the operating forces for all U.S. military forces deployed in the Western Pacific. In addition to providing a range of facility and base support functions required for the sustainment and operation of Naval and Air Force bases in Guam, the proposed modification to the bridge contract also incorporates shore mission operational services such as vessel and port logistics support, ordnance handling, explosive safety requirements, and airport support services at Andersen Air Force Base.

These services are all critical to the execution of the supported commander’s mission. An interruption of any duration in these services would, therefore, adversely impact force readiness and operational capability of the U.S. military forces, and thus, U.S. national security interests in Asia and the Western Pacific.

f. NAVFAC Pacific competitively solicited the follow-on contract via solicitation number N62742-19-R-1199. A protest to GAO created a need to award a new bridge contract with a 3 month base and 3 month option period. It would not be feasible to solicit competitive proposals on a full & open basis for the required bridge contract period prior to the expiration of DZSP's current bridge contract. The required BOS

SOURCE SELECTION INFORMATION SEE FAR 2.101 & 3.104

services are complicated, extensive, and multifaceted. The proposed 3 month base plus the additional 3 month option, for a total of 6 months, includes the time required for proper cost evaluation of each proposal to determine completeness, cost reasonableness, and cost realism. In addition, accounting/financial management systems, financial capability and cost control will be evaluated. With respect to the technical evaluation, the Agency will also be required to conduct an extensive evaluation of proposals with respect to past performance, corporate experience, management plans, staffing, resources, technical approaches, safety, and small business utilization.

g. DZSP is uniquely qualified to perform for the limited duration of the proposed bridge contract. Unlike any other potential source, DZSP currently possesses the on-site workforce and equipment required to perform the required support services. DZSP currently maintains a workforce consisting of employees of which are managerial positions. Additionally, it has an established subcontractor workforce of an additional personnel. DZSP also currently owns approximately of equipment used in the performance of these services. Categories of this equipment include heavy

DZSP also owns line items of tools and test equipment worth approximately . With this existing workforce and equipment, DZSP is capable of fully meeting the requirement as of 1 September 2020.

h. Further, any contractor other than DZSP would require an extended mobilization period which would result in an unacceptable delay and/or interruption of services in meeting this requirement. NAVFAC Pacific has estimated that any other contractor would normally require at least three months to properly transition, badge and train the workforce. Transition would also encompass, at a minimum, the purchase/lease of equipment (normally the incumbent’s), stand-up of a local office, re-location of any off-island key personnel and a wall-to-wall inventory. Furthermore, Guam is a remote location and that any equipment not available already on Guam would have to be shipped by sea. Any contractor to meet this requirement must be fully operational by 1 September 2020. In sum, award to a contractor other than DZSP creates a substantial risk of unacceptable delay.

i. The transition to another contractor for the performance of this modification to the bridge contract would also result in the potential duplication of costs of approximately that is not expected to be recovered through competition for the limited duration required. Because the contract is a cost plus fixed fee type, all transition costs incurred by a new contractor would be borne by the Government. The Independent Government Estimate (IGE) for transition costs under the prior solicitation were approximately and can reasonably be projected based on the previous IGE at

SOURCE SELECTION INFORMATION SEE FAR 2.101 & 3.104

approximately for the bridge contract to a new contractor. There is also substantial risk that these costs could be higher. For example, DZSP may not be willing to sell its equipment to a likely competitor under the planned full and open competition for the intended long-term follow-on contract. Should that occur, the Government would bear substantial costs for the procurement and shipment of any new equipment.

Likewise, personnel costs for any off-island hires could be expected to be higher due to the limited duration the proposed bridge contract.

6. Description of Market Research and Efforts Made to Solicit Offers from as Many Offerors as Possible.

NAVFAC Pacific posted a Request for Information (RFI) to the Federal Business Opportunities (FBO.gov) website on 12 May 2020 in accordance with DFARS 206.302-1(d).

The response due date was 26 May 2020.

The anticipated award date is 28 August 2020 with full performance of all annexes beginning on 1 September 2020. Because of the depth and breadth of experience required to perform all of the services stated in the RFI, it is highly improbable for another contractor to have sufficient time to have: all equipment, trained workforce personnel (including designated key personnel), required security clearances, all permits, licenses and authorizations by 1 September 2020. As stated in paragraph (5), the time to negotiate and award the requirements of a modified competitive bridge contract is not achievable given the extremely limited time before the current bridge contract expires. Also, as indicated in paragraph 5, DZSP is the only source capable of performing the BOS services under a bridge contract by 1 September 2020. A synopsis of this requirement will be issued in accordance with FAR

5.207. Any additional information regarding the capability of any offerors will be considered and this J&A supplemented or revised as appropriate.

Upon approval of this J&A, and issuance of the synopsis, NAVFAC Pacific will issue a Request for Proposal to DZSP. This justification shall be made publicly available within 14 days after the award of the proposed modification to satisfy 10 U.S.C. 2304(1).

7. Determination of Fair and Reasonable Cost.

The Contracting Officer (CO) will ensure that the anticipated cost to the Government for the services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

SOURCE SELECTION INFORMATION SEE FAR 2.101 & 3.104

A competitively solicited BOS contract is scheduled to be awarded during the planned duration of the proposed bridge contract. As recounted above in paragraph 5, performance under a competitively solicited contract was initially delayed through a series of protests at the GAO and the Court of Federal Claims. Additional delays were created upon the removal of Annex 0700000, and resulting SBA negotiations. Most recently, a Pre-Award GAO Protest was received on 6 April 2020, which NAVFAC Pacific is taking corrective action.

9. Contracting Point of Contact. The point of contact at NAVFAC Pacific is Auria Lee,

(808) 474-7043 or e-mail auria.lee@navy.mil.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS/FUNCTIONAL LEAD 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/REQUIREMENTS CERTIFICATION:

Signature Name (Printed)

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

Phone No.

Date

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

ECHELON III CHIEF OF THE CONTRACTING OFFICE CERTIFICATION

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

Signature

Name (Printed)

SOURCE SELECTION INFORMATION SEE FAR 2.101 & 3 .104

ECHELON II ASSISTANT COMMANDER FOR ACQUISITION APPROVING

CERTIFICATION

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)(l).

Signature Name (Printed) Phone No.

SOURCE SELECTION INFORMATION SEE FAR 2.101 & 3 .104