JA - Other than Full and Open Comp - ATAC III - RED.pdf

CUI

SOURCE SELECTION INFORMATION – See FAR 2.101 and 3.104

JUSTIFICATION AND APPROVAL (J&A)

USTRANSCOM JUSTIFICATION FOR

OTHER THAN FULL AND OPEN COMPETITION

ADVANCED TRACEABILITY AND CONTROL (ATAC) SERVICES III

1. C ONTRACTING ACTIVITY.

The United States Transportation Command (USTRANSCOM), Specialized Transportation

Services and Support Division, USTRANSCOM/TCAQ-R, 508 Scott Drive, Building 1900W, Scott AFB IL 62225-5357, is the contracting activity.

2. N ATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED.

Naval Supply Systems Command (NAVSUP) requires other than full and open competition for the acquisition of Advanced Traceability and Control (ATAC) Services III. This action will be completed by a firm-fixed price modification to extend the period of performance of contract

HTC711-15-D-R054, by six months (i.e., 29 March 2021 – 28 September 2021).

3. D ESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

A GENCY’S NEEDS.

The purpose of this acquisition is to support NAVSUP on the ATAC Program. The Government requires transportation services to move repairable parts within and between all 48 contiguous states, plus Alaska, Hawaii, and Canada. Transportation services procured under this contract are critical as they directly support the movement of goods to the warfighter and are key to the

US Navy’s efforts to provide responsive, effective, and efficient movement solutions. This requirement consists of tracking, tracing, packing, reporting, and movement of valuable repairable parts from two parent sites located on the West (i.e., San Diego, CA) and East (i.e., Norfolk, VA) coasts, and smaller sites, as well as other electronic Retrograde Management

System (eRMS) enabled Department of Defense (DOD) contractor facilities. The transportation services provided shall include the consolidated movement of Not Ready For Issue (NRFI) material, Redistribution Order (RDO) material, Ready For Issue (RFI) material, and Carcass

Express/Routine material.

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Repair parts range in a wide variety of sizes, from circuit cards, cardboard boxes, wooden crates, and metal cans to items larger than a complete aircraft. Small shipments, which cannot be effectively consolidated while meeting consolidation time, transit time, and delivery requirements, will be moved via DOD small package contracts (i.e., Next Generation Delivery

Services (NGDS)). For continental United States (CONUS), NGDS encompasses shipments weighing less than 150 lbs., and for Alaska, Hawaii and Canada, NGDS encompasses shipments weighing less than 300 lbs. The estimated value of this six-month extension is .

4. S TATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

C OMPETITION.

The authority permitting other than full competition is vested in 10 U.S.C. 2304(c)(1), and it’s implemented in accordance with FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

5. D EMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

Q UALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF

T HE AUTHORITY CITED.

In accordance with FAR 6.302-1(a)(2)(iii)(B), highly specialized services may be deemed available from the original source in the case of a follow-on contract when it is likely that award to any other source would result in unacceptable delays to fulfill the agency’s requirements. Any approach to fulfilling this requirement other than extending the period of performance on the current contract would result in unacceptable delays. The incumbent contractor meets the

Government’s unique and highly specialized requirements, including providing transportation services to move repairable parts within and between all 48 contiguous states, plus Alaska, Hawaii, and Canada. Transportation services procured under this contract are critical as they directly support the movement of goods to the warfighter and are key to the US Navy’s efforts to provide responsive, effective, and efficient movement solutions.

A firm-fixed price Indefinite Delivery Indefinite Quantity (IDIQ) contract, HTC711-15-D-R054, was awarded to 1st Coast Cargo Inc. with a performance start date of 1 August 2015. The period of performance consists of one-year base period and four (4) one-year options plus a six-month extension with performance ending 28 March 2021.

If a bridge contract determination was not approved and a break in service were to happen, the

Navy/United States Marines Corps (USMC) would lose substantial capability to support the warfighter. The only alternative solution for the Navy would be moving shipments via the tenders process, which would result in a significant reduction in movement of critical material and ultimately decrease mission readiness. The Government’s demonstration that only one responsible source and no other supplies or services will satisfy agency requirements are because:

(1) ATAC provides critical specialized transportation services, including but not limited to:

NRFI material, RDO material, RFI material, Carcass Express/Routine material; and express service for Repair and Return (R&R) shipments. Services also include process improvements focusing on distribution-related functions and the effects on the total Supply Chain.

(2) The Navy currently operates tracking/reporting for ATAC III with one Contracting Officer

Representative (COR) and one Alternate COR. The tenders process would require additional manpower which the Navy has stated is not feasible. Without additional manpower, the processing and issuance of shipments would be drastically slowed.

(3) If tenders were utilized the Navy would not be able to use its

, costing the

Government time and money.

(4) There would likely be a negative cost impact to the Navy with utilizing the tenders process.

During the period from June 2020 to November 2020, the ATAC III contract had total shipments with a total cost of . The current ATAC III contract allows for consolidation of shipments which has reduced transportation costs by , decreasing per pound shipments from . (FY06) to in (FY 20). If the Navy were to use the tenders process, each of those shipments would have to be bid separately and the cost of each shipment would not necessarily be consistent with the rates on ATAC III. A break in service would result in a lack of consolidation and inflated freight costs to meet the transportation requirements set forth in the Performance Work Statement (PWS), and therefore, resulting in a negative cost impact to the Navy with utilizing the tenders process.

(5) A bridge contract would also allow the incoming contractor time to coordinate a transition with the outgoing contractor. The transition would allow the incoming contractor time to coordinate with the Navy’s Information Technology (IT) system, and prepare the proper staffing requirements to ensure seamless operations so there is no break in service until the transition is complete.

(6) There is not sufficient time to solicit and award a contract to a new contractor prior to the estimated award date for the solicitation currently being prepared for this requirement. Even if there were, it is not feasible to award to a new contractor and mobilize transportation resources and ensure service coverage for all origin and destination sites, including scheduled and irregular routes, for the period of time between the expiration of the current contract and award of a follow-on contract. The incumbent contractor has the necessary resources (subcontracted carriers) in place to perform all of the transportation requirements. Therefore, extending the current contract with 1st Coast Cargo Inc. is necessary and the most advantageous to the

Government.

6. D ESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

S OLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICAL.

A full and open competitive Request for Proposals will be made available for the follow-on contract, anticipated for release in April 2021. The Government will ensure that offers are solicited from as many potential sources as is practicable.

7. D ETERMINATION BY THE CONTRACTING OFFICER THAT THE

A NTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE.

After receipt of a proposal, the Contracting Officer will make this determination by comparing proposed prices with prices obtained through the calculation of an Independent Government Cost

Estimate, in accordance with FAR 15.404-1(b)(2), for the same or similar items and/or historical prices paid under previous contracts. Based on this approach, the Contracting Officer anticipates that a fair and reasonable price will be obtained.

8. D ESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

R ESULTS OR A STATEMENT OF THE REASONS MARKET RESERACH WAS NOT

C ONDUCTED.

No additional market research efforts were conducted for this extension because market research was conducted on 12 January 2021 for the follow-on requirement which confirmed these services are readily available in the commercial marketplace. The extension will allow the

Government sufficient time to produce, implement and award a new acquisition. Also, an extension will allow the Government sufficient time to transition the outgoing contractor with the incoming contractor. Due to the complex Navy IT requirements, sufficient transition time is imperative to ensure there is no break in service.

9. A NY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

O PEN COMPETITION.

None.

10. A LISTING OF SOURCES, IF ANY, THAT EXPRESSED AN INTEREST IN THE

A CQUISITION.

On 13 October 2020, a Request for Information (RFI) was posted to beta. SAM for the follow-on contract, ATAC IV. That RFI has resulted in the following companies showing interest in this requirement:

A technical capability assessment has not been finalized for the RFI responses.

11. A STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE

O R OVERCOME ANY BARRIERS TO COMPETITION BEFORE MAKING ANY

S UBSEQUENT ACQUISITION FOR THE SUPPLIES OR SERVICES REQUIRED.

USTRANSCOM will continue to explore the feasibility, time, effort, and costs involved to implement alternative sources for ATAC III.

12. C ONTRACTING OFFICER’S CERTIFICATION.

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

JAMES T. CARLISLE

Contracting Officer

13. T ECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION.

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

NANCY POWERS

Director, Repairables Distribution Division, NAVSUP

14. W RITTEN DETERMINATION OF THE APPROVING OFFICIAL IDENTIFYING

T HE CIRCUMSTANCE THAT APPLIES TO THE ACTION.

Based on the above cited justification, I hereby determine the circumstance in FAR 6.302-

1(a)(2)(iii)(B) applies to this justification for other than full and open competition.

KERI A. LINDSCO

Competition Advocate