JA SRTS Greece Ceiling Increase_vF Redacted.pdf

CUI

SOURCE SELECTION INFORMATION See FAR 2.101 and 3.104

Controlled by: USTRANSCOM Controlled by: Directorate of Acquisition CUI Category/ies: SSEL Limited Dissemination Control: FED ONLY

POC:

JUSTIFICATION AND APPROVAL (J&A)

USTRANSCOM JUSTIFICATION FOR

OTHER THAN FULL AND OPEN COMPETITION

STEVEDORING & RELATED TERMINAL SERVICES (S&RTS)

PIRAEUS, THESSALONIKI, AND ALEXANDROUPOLIS, GREECE

HTC711-19-D-R005

CONTROL NUMBER: 22-24

1. CONTRACTING ACTIVITY.

United States Transportation Command (USTRANSCOM), Directorate of Acquisition, Specialized Transportation and Support Division (TCAQ-R), 508 Scott Drive, Building 1900W, Scott AFB IL 62225-5357.

2. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED.

This action will result in a modification to increase the Ports of Piraeus, Thessaloniki, and Alexandroupolis, Greece Stevedoring and Related Terminal Services (S&RTS) contract ceiling.

The reason for this increase is due to a

. This increased demand for strategic sealift support will increase expenditures on this contract beyond what was originally forecasted. As a result

, the contract ceiling will be increased by an additional $3,600,000.00, extending the ceiling from $6,999,999.00 to $10,599,999.00 to accommodate current and anticipated operations through the term of the contract.

3. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

The Military Surface Deployment and Distribution Command (SDDC) th Transportation Brigade, th Transportation Battalion requires continued S&RTS support under this contract.

This S&RTS contract provides vessel loading, vessel discharging, cargo receipt and disposition, cargo staging, transfer of cargo, tallying and checking, customs clearance, yard management, and handling of Government-provided securing material for Department of Defense (DoD) sponsored cargo through the Ports of Piraeus, Thessaloniki, and Alexandroupolis, Greece in support of national and strategic military interests of the United States.

U.S. Army Europe-Africa (USAREUR-AF) is expanding its strategic posturing of for , which has tcburkag Cross-Out tcburkag Cross-Out tcburkag Cross-Out tcburkag Cross-Out tcburkag Cross-Out attributed to the increase in contract utilization. With upgrades to the in 2019 and 2021, the Port of permits . Due to the efficiencies gained by using the Port of , specifically reducing transit times and sealift cost savings, the USAREUR-AF announced the Port of will

. The Government did not anticipate the expanded use of Greece, specifically the Port of , in support of the exercises. In addition, the Port of remains

. Greece is also a North Atlantic Treaty Organization (NATO) ally partner, and an increase in engagement will strengthen the relationship and military cooperation between the United States, NATO, and Greece.

Based on a broadening strategic footprint, including an increase in military operational requirements and exercises through the Ports of Greece, the support for current and ongoing missions is a necessity, and any interruption to service would be detrimental to the DoD. Failure to increase the contract ceiling value would degrade the SDDC capability to provide support for military unit deployments and exercise execution. An interruption in service jeopardizes the secure deployment of military personnel and cargo during required missions, military exercises, and any unforeseen emergency. This contract ceiling increase is required to ensure the Government is capable of continued performance at a high operational tempo in theater.

4. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION.

The statutory authority permitting the use of other than full and open competition is 10 U.S.C.

2304(c)(1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, as implemented under Federal Acquisition Regulation (FAR) 6.302-1.

5.

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF

THE AUTHORITY CITED.

In accordance with (IAW) FAR 6.302-1(a)(2)(iii)(B), services may be deemed as available from the original source in the case of a follow-on contract for the continued provision of highly specialized services when it is likely award to any other source would result in unacceptable delays to fulfill the age increasing the ceiling of the current contract would result in unacceptable delays to the Government.

A firm fixed-price Indefinite Delivery Indefinite Quantity (IDIQ) contract, HTC711-19-D-R005, was awarded to Geranoi Arapis EE, with a contract start date of 16 December 2018. The contract is currently in Option Year 3 with a Period of Performance (PoP) of 16 December 2021 through 15 December 2022. The final option expires 15 December 2023. The services being provided are in support of the SDDC As of 15 December 2021, the Government has obligated of the current $6,999,999.00 ceiling. The total expected expenditure by the end of the contract is $10,599,999.00. Modifying the contract to increase the ceiling by $3,600,000.00 is expected to cover the expenses of the unforeseen increase in requirements.

Geranoi Arapis is the only responsible source capable of providing the S&RTS services necessary to ensure mission success without unacceptable delays IAW FAR 6.302- 1(a)(2)(iii)(B). Services are needed at the Ports of Piraeus, Thessaloniki, and Alexandroupolis, Greece. Specifically, services at the Port of , Greece are needed to support

. Given the timeframe of these exercises, there is insufficient time to resolicit the requirement via full and open competition. Doing so wo requirements and impede the success of large-scale military exercises and missions.

The Port of is one of the premier strategic seaports in the south of Europe;

therefore, retention of the incumbent contractor is key to support the increased requirements with no disruptions. The Port of is in an , . Due to , procurement of is difficult. The Government and current Contractor have established a strong relationship, providing a consistent labor pool that performs operations safely during high tempo operations. In addition, the Contractor clearly understands mission requirements to meet performance thresholds, enabling the success of large-scale military exercises and missions.

Performance by any other Contractor would require a transition period after award to prepare for performance, establish labor, and stage Contractor-supplied equipment at these three ports in Greece. Based on the anticipated timeline needed for re-procurement, the associated timing of such a transition period would overlap with several key deployments and exercises which cannot endure uninterrupted support. In turn, failure to increase the contract ceiling through the end of the contract period (i.e., 15 December 2023) would degrade the SDDC th Transportation Brigade, overall readiness level. An unacceptable delay or interruption of services jeopardizes support and the secure deployment of military personnel and cargo during missions and any unforeseen emergencies.

Adding to the uncertainty of the future of this region, the is in the process of being privatized. The purchase announcement is planned for July 2022 with an anticipated finalization of the sale an estimated six months thereafter (~January 2023). Multiple companies are currently known to be in competition for the sale, . Depending on the outcome of the sale, future use of the may be impacted, making it difficult to anticipate and plan future requirements beyond Option Year 3 and Option Year 4 of this contract. After the impact of the port privatization is realized, the follow-on contract, if needed, can be planned, allowing for an adequate transition.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICAL.

A full and open competitive Request for Proposal (RFP) will be made for the follow-on contract, if necessary. Competitive offers were not sought specifically for this proposed ceiling increase.

Notice of this action will not be posted IAW FAR 5.202(a)(12) as the proposed contract action is by a Defense agency and the proposed contract action will be made and performed outside the United States and its outlying areas, and only local sources will be solicited.

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE.

At time of award, prices were determined fair and reasonable IAW FAR 13.106-3(a)(1) and (a)(2)(vi). No other market conditions exist that alter the determination that the price is fair and reasonable.

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS OR A STATEMENT OF THE REASONS MARKET RESERACH WAS NOT

CONDUCTED.

No additional market research efforts were conducted specifically for this action.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION.

None.

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

ACQUISITION.

None.

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

OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE MAKING ANY

SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR SERVICES REQUIRED.

A full and open, competitive RFP will be made for the follow-on contract.

12.

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.

MEGHAN M. STEWART DATE

Contracting Officer

13. TECHNICAL/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.

MELISSA ROMAGNO DATE

Functional Services Manager

CONTRACTING ACTIVITY: United States Transportation Command, USTRANSCOM/TCAQ-R, 508 Scott Drive, Building 1900W, Scott AFB, IL 62225-5357

PROGRAM/PROJECT: Greece S&RTS

AUTHORITY: 10 U.S.C. 2304(c)(1) Only one responsible source

ESTIMATED CONTRACT COST: $10,599,999.00

TYPE OF J&A: Individual

TYPE OF CONTRACT: Firm Fixed Price, IDIQ Contract

REVIEW AND APPROVAL:

ADAM Q. HEMKEN

Competition Advocate

28-Feb-2022

28-Feb-2022 tcburkag Cross-Out