JA_Norwalk-Redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

19-0011

Justification for Other than Full and Open Competition

1. Summary/Introduction:

Defense Logistics Agency Energy (DLA-E), a Major Subordinate Command of DLA, is the contracting activity for environmental remediation services at the Defense Fuel Support Point (DFSP) Norwalk, CA. This support is provided under contract SP0600-14-D-5410 that was awarded to The Source Group, Inc. (SGI), using a best-value tradeoff award strategy under full & open competition. This Justification & Approval (J&A) for Other Than Full and Open Competition, pursuant to the authority granted in 10 U.S.C. 2304(c)(1), is for the exercise of contract clause Federal Acquisition Regulation (FAR) 52.217-8 Option to Extend Services which was not evaluated at the time of contract award. The option permits the Government to extend the contract with the same terms and conditions for up to six months. This J&A supports the six-month contract extension to SGI, the incumbent, for environmental remediation services at DFSP Norwalk, California.

The current contract is a requirements-type. The anticipated value for the six-month extension is $445,220.00, increasing the total contract value from to . The current contract term is extended by 6 months, from April 30, 2019 to October 31, 2019.

2. Nature and/or description of the action being approved (FAR 6.303-2(b)(2):

The action being approved is exercise of contract clause FAR 52.217-8 Option to Extend Services to extend the current contract for environmental remediation services at DFSP Norwalk under FAR 6.302-1(a)(2)(iii) – Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. Under the circumstances and as explained below, SGI is the only responsible source capable of performing services at DFSP Norwalk; therefore, an extension is appropriate to maintain continuity of operations. The extension period was not evaluated at the time of award and, therefore, this J&A is being completed in accordance with the requirements of FAR 17.207(f) and FAR Part 6.

The environmental remediation services at DFSP Norwalk requires continuous 24 hour /7 day remediation system operations and is highly specialized. The current contract expires on April 30, 2019. The Government intends to compete and award a follow-on environmental remediation services contract under a new solicitation. However, the follow-on award will not be completed in sufficient time to allow for an uninterrupted transition of services at DFSP Norwalk. Because the Government has a continued need for remediation services, exercise of the option under the current contract will ensure that there is no gap in services in fulfilling the agency’s requirements pursuant to FAR 6.302-1(a)(2)(iii)(B). DLA could incur fines, penalties and/or fees if services were discontinued as there are many permitted activities with compliance requirements and/or conditions that must be met.

Justification for Other Than Full and Open Competition (Cont’d) (SP0600-14-D-5410 – The Source Group, Inc.)

Additionally, a new contractor would need to procure a sufficient inventory of off-the-shelf and custom designed components and tools to ensure remediation systems are properly maintained and operational 24 hours per day. A new contractor would also need to set up hazardous waste disposal accounts, procure internet and phone services, and obtain/update permits. A new contractor will need to establish accounts with multiple utility companies in order to process payments. A new Contractor would need to make access arrangements with the Navy and multiple parcel owners to conduct work at the Tustin El Toro Release Site. Not only would this add time to the project schedule, the contractor’s pricing would take all of these costs into account. The pricing would present a substantial increase or duplication of cost to the Government that is not expected to be recovered through competition, especially for such a short duration until a new follow-on contract can be awarded.

The estimated value of the six month extension is $445,220.00. FY 19 Defense Working Capital Funds will be used to fund this requirement. Separate PRs will be created to issue task order(s) to authorize work and obligate funds under this contract.

3. Description of supplies or services required to meet the agency’s need (including estimated value) (FAR 6.303-2(b)(3)):

The current contract for these services was competitively awarded to The Source Group, Inc.

(SGI) on April 16, 2014 under contract number SP0600-14-D-5410. The total dollar value of the current contract is .

In order to meet the at DFSP Norwalk, it is that the environmental remediation services are . Within the scope of this contract, SGI is responsible to provide all materials, labor, & services to perform operations and maintenance, at both sites including over-arching project management and database management. The anticipated tasks within this six-month extension are as follows:

1) Norwalk

a. Compliance Services

b. Restoration Advisory Board Document Archive

c. WRD/WDR Permitting and In Situ Arsenic Treatment

d. Transition Period Services

2) El Toro Tustin Release Site

a. Interim Remedial Action Plan (IRAP) Preparation

b. IRAP Remedial System Design, Walgreens Site

c. Establish Utility Accounts and Payment of Utilities

d. Transition Period Services

4. Identification of the statutory authority permitting other than full and open competition (FAR 6.303-2(b)(4)):

This J&A is based upon the authority of 10 U.S.C. §2304(c)(1), as implemented by FAR 6.302- 1, and more specifically, the authority of FAR 6.302-1(a)(2)(iii). The services sought are highly

(SP0600-14-D-5410 – The Source Group, Inc.)

specialized and award to a new source would likely result in substantial duplication of cost to the Government that is not expected to be recovered through competition, and would result in unacceptable delays in fulfilling the agency’s requirements.

5. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited (FAR 6.303-2(b)(5)):

The at DFSP Norwalk is dependent upon the environmental remediation services currently being provided by the incumbent, SGI. While it is no longer an active installation, there is significant community and regulatory interest concerning the ongoing restoration activities at DFSP Norwalk. These services are to the support of the United States Air Force (USAF) property transfer (facility transfer) of DFSP Norwalk from DLA to the Air Force.

SGI, in the last several years, were key participants in meetings/ceremonies with the community, City of Norwalk, and regulatory agencies, supporting the property transfer. At the Tustin El Toro Release Site, SGI’s efforts are also to the project success. Timely environmental remediation, compliance and response to support DLA in our in accordance with Air Force and Navy standards is required to meet the at these sites.

The existing work force is trained and able to conduct operations without interruption.

Additionally, SGI currently possesses the equipment and personnel to sustain the services

. A new contractor would require 45 to 60 days of preparation time prior to beginning performance to acquire the necessary equipment, utility accounts and access agreements to perform the requirements, including time to develop and implement operations, training plans, and personnel. Per FAR 6.302-1(a)(2)(iii)(A), an award for this short term requirement through full and open competition would result in substantial duplication of these costs to the Government that is not expected to be recovered through competition.

6. Description of the efforts made to ensure that offers are/were solicited from as many potential sources as is/was practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies (FAR 6.303- 2(b)(6)):

On December 21, 2018, a Sources Sought was posted to FBO.gov to provide notice of the contract requirement and solicit capability statements from potential vendors. DLA Energy – FESDA did not receive any responses to the sources sought notice by the closing date of January 7, 2019.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable (FAR 6.303-2(b)(7)):

The Contracting Officer has determined that the anticipated cost to the Government is fair and reasonable. The current contract was awarded for a contract period of May 1, 2014 – April 30, 2019. The solicitation contained FAR clause 52.217-8 - Option to Extend Services (Nov 1999), (SP0600-14-D-5410 – The Source Group, Inc.)

which permits the Government to extend the contract with the same terms and conditions for up to six months. DLA Energy intends to exercise the extension period for six months via a bilateral modification to the contract. The total option price of this six-month extension is estimated to be $445,220.00. This price is composed of the rates of the current requirements contract and was evaluated as fair and reasonable using . The IGCE for a re-solicited procurement estimates the six-month extension performance period for the same services at .

Additionally, in connection with the restoration tasks, a new contractor would need to quickly procure equipment to sustain 24/7 operations for a groundwater extraction system, as well as provide personnel to participate in public stakeholder meetings (mid-May 2019) at the geographically separated fuel release site in Tustin CA. A new contractor would have to apply for multiple permits and access agreements related to the remediation work at both the DFSP and Tustin release site. Based on these considerations, award to a new contractor would likely result in a substantial increase or duplication of cost to the Government that is not expected to be recovered through competition for such a short performance duration.

8. Description of the market research conducted and the results or a statement of the reason market research was not conducted (FAR 6.303-2(b)(8)):

On December 21, 2018, a sources sought was posted to FBO.gov to provide notice of the requirement and solicit capability statements from potential vendors. DLA Energy received no responses by the closing date of January 7, 2019.

9. Any other facts supporting the use of other than full and open competition, such as (FAR 6.303-2(b)(9):

Not applicable.

(i) Explanation of why technical data packages, specifications, engineering descriptions, statements of work, or purchase descriptions suitable for full and open competition have not been developed or are not available.

Not applicable.

(ii) When 6.302-1 is cited for follow-on acquisitions as described in 6.302-1(a)(2)(ii), an estimate of the cost to the Government that would be duplicated and how the estimate was derived.

(iii) When 6.302-2 is cited, estimated cost, or other rationale as to the extent and nature of the harm to the Government.

(SP0600-14-D-5410 – The Source Group, Inc.)

Not applicable.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition (FAR 6.303-2(b)(10):

DLA Energy FESDA did not receive any responses to the Sources Sought notice posted on December 21, 2018 to FBO.gov by the closing date.

11. Actions that may be taken to remove or overcome barriers to competition before any subsequent acquisition for the supplies or services are required (FAR 6.303-2(b)(11)):

There are no known barriers to competition at this time for DFSP Norwalk. The Government has procured these services competitively in the past and intends to do so in the future. The Government anticipates that the follow-on solicitation, will be issued using full and open competition, and a new contract is anticipated to be awarded on or before October 31, 2019, with performance beginning November 1, 2019.

I hereby certify that the data that forms the basis for this justification is accurate and complete to the best of my knowledge and belief.

Contract Specialist Environmental Services Bulk Petroleum Supply Chain Services

I hereby certify that the data which forms the basis for this justification is accurate and complete and that the purchase request covers only the minimum requirements to satisfy the needs of the Government.

Chief, Environmental Division DLA Installation Management for Energy

(SP0600-14-D-5410 – The Source Group, Inc.)

I have reviewed and concur with this Justification.

Senior Counsel DLA- Counsel Energy

Approved:

Contracting Officer Environmental Services Bulk Petroleum Supply Chain Services