JA_TRLS_COVID_BETASAM_Redacted.pdf

DEFENSE THREAT REDUCTION AGENCY

8725 JOHN J. KINGMAN ROAD, STOP 6201

FORT BELVOIR, VA 22060-6201

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. Nature and/or Description of Action

The Defense Threat Reduction Agency (DTRA) contracting activity proposes to procure without full and open competition. This Justification and Approval for Other Than Full and Open

Competition (J&A) will modify the single award indefinite delivery/indefinite quantity (IDIQ) contract number HDTRA1-18-D-0010, awarded 18 September 2018 to Culmen International, LLC (Culmen), for Threat Reduction Logistics Services (TRLS). The modification would allow issuance of a task order not to exceed $23,000,000 through an undefinitized contract action

(UCA). The UCA applies to the task order only. This action however will increase the total value of the IDIQ (HDTRA1-18-D-0010) from $150,000,000 to $173,000,000.

This Task Order would acquire personal protective equipment (PPE), biosafety and security

(BS&S) and laboratory diagnostics, supplies, kits, and equipment during the COVID-19 outbreak for twenty three partner countries. The cost to complete this work is estimated at

$20,027,158 but proposed and negotiated costs could be up to 10% higher, therefore this J&A seeks authority to award an action up to $23,000,000. All work will be completed during the period of performance of the current contract and within one year of task order award.

2. Description of the Supplies/Services Required

The nature of the supplies and services required by the DTRA Cooperative Threat Reduction

(CTR) program for this anti-COVID-19 effort is for the procurement and delivery of commercial items for PPE, BS&S and laboratory diagnostics, supplies, kits, and equipment, and ancillary services for some items (installation and training), during the COVID-19 pandemic.

Purchase and shipping origination are to be determined (TBD). It is anticipated that all materiel will be directly shipped to OCONUS locations, however there may be cases where temporary staging in Culmen warehouses is required. Any installation required will occur at the final destination. The CTR project team developed the estimates with the assumption that all costs related to equipment would be the same in each partner country. The Independent Government

Cost Estimate (IGCE) assumed 3% of equipment costs (estimated unit prices x notional quantities) for shipping costs, 10% of equipment costs for program management costs

(including ancillary services), and 2% for inflation. These values were added together and then multiplied by 23 (the number of requests for assistance from partner nations received) to arrive at the total estimated value of the effort. These figures and ratios for shipping, program management and inflation are consistent with costs historically experienced by CTR on other equipment procurements and are standard estimates used by the CTR cost estimating team.

3. Statutory Authority

Pursuant to FAR 6.302-2, the need for the subject supplies is unusually and compellingly urgent.

Delay in effecting this change would seriously hinder the U.S. Government’s and our partners’ efforts to control the COVID-19 pandemic and risk a significant increase in the associated death toll. There is inadequate time to plan and conduct a limited competition given the required time of 30 days after receipt/commitment of funds, to obligate the CTR BTRP funds. Additionally, the requirements will not be firm until the Government inputs the requirements into the

CTR/TRLS ordering, shipping and procurement management/reporting system (Mercury) which was specifically built and tailored to the unique needs of CTR. The TRLS contractor is the only source with this CTR-designed ordering system that ensures compliance with all regulatory, statutory and DTRA requirements applicable to the CTR program. Only upon

DTRA’s entry of specific equipment quantities and delivery locations into Mercury will the

Government and Culmen be able to determine more precise and accurate estimated costs. The statutory authority for this non-competitive action is derived from 10 U.S.C.

2304(c)(2), implemented by FAR 6.302-2, Unusual and Compelling Urgency.

4. Applicability of Authority

Under contract HDTRA1-18-D-0010, Culmen provides dedicated, customized Threat Reduction

Logistics Services to CTR. The contract scope is for global materials transit for items required to implement CTR program activities, customs clearance, personnel travel/events support, document translation, language interpretation and surge support capability.

Procurement of supplies is not a primary purpose of the contract, but is included in the scope as needed to support the major scope areas above. There is still inadequate laboratory and technical capacity to perform diagnostics on potential COVID-19 samples. Without proper and timely diagnosis, the response effort cannot adequately address or control the outbreak of COVID-19.

Culmen remains immediately poised to respond to this requirement. Awarding this work to another contractor through competition cannot be done within the required delivery timeframes.

Additionally, since the CTR performer/implementing contractors all use the TRLS contract as their primary single shipper, awarding this action through a competition to a CTR performer/implementing contractor would create multiple redundant contracts for procurement of commercial goods, increasing costs unnecessarily, as the performer contractor’s indirect costs and profits would be applied in addition to the costs borne by Culmen for warehousing and shipping. Culmen performs this type of work for CTR seven days a week and is the only source with the immediate global supply chain relationships, logistics know-how and systems needed to order, track, ship and report for CTR on this scale within the urgent timeframe required.

The need for this support is dire for the immediate containment of the pandemic to protect US public health, security, and economic interests and prevent loss of life. CTR is already providing emergency supplies of these consumable to multiple partners through the TRLS contract and the current ceiling will be insufficient to support these needs at their current rate.

5. Effort to Solicit Potential Sources

DTRA conducted extensive market research prior to the initial award of this contract, which was awarded using full and open competition in late 2018. Due to the urgency of this requirement, there is inadequate time to conduct a comprehensive market survey to identify potential sources at this time. However, even without that, it is already well known that normally, many suppliers would be capable of providing these types of commercial products to DTRA.

The constraint on sources stems from the urgency of the requirement and the extreme supply shortages, logistics disruptions, pricing instability and demand spikes currently occurring for

PPE worldwide.

Additonally, Culmen is the only company with an existing ordering, shipping and supply capability specifically tailored to CTR’s needs (the TRLS Mercury system) and already under contract. They are the only source with immediate capability to locate and order these products, warehouse them as needed, and deliver them to locations anywhere in the world, while complying with complex international export, licensing, tax, reporting and other legal and regulatory requirements under which the CTR program operates.

6. Fair and Reasonable Costs

DTRA has recent pricing data from Culmen, which has provided information on direct and indirect rates that will be directly applicable to this action. Culmen’s contract type is cost reimbursement and they have a cost estimating and accounting system fully compliant with

Defense Contract Auditing Agency (DCAA) requirements and applicable cost accounting standards. They use competitive procedures to the maximum extent possible in purchasing/subcontracting. The Contracting Officer has determined that these factors, plus the established marketplace for these items, availability of pricing information, and recent experience on the DTRA TRLS contract will allow determination of a fair and reasonable price as required by FAR 6.303-2(a)(7). All cost and price analysis techniques required by FAR 15.4 and DFARS 215.4 will be adhered to in definitizing the price of the IDIQ ceiling increase and task order.

7. Market Research

Extensive market research has been conducted prior to award and during the life of this contract, and DTRA continues to monitor market capabilities. Culmen provides the only source for performing this work within the required timeframe, given their worldwide logistics system/network, specifically tailored to the CTR program, that is already in place and available to DTRA. This is known without conducting additional market research, since the TRLS contract was just awarded in the Fall of 2018 through a full and open competition and Culmen is the sole contract holder of the CTR Single Shipper contract and is the only source in the world that manages the CTR-designed and compliant Mercury system. Given the scope, complexity and timeliness in which our partner nations need assistance, the TRLS contractor is the most effective and efficient way to begin providing assistance and the only qualified source.

8. Other Facts

The ongoing COVID-19 Pandemic makes it difficult and highly risky for DTRA to enter into a new contract with a new logistics provider.

9. Interested Sources

As detailed above, there are no other sources capable of providing DTRA with the supplies and services needed for this effort in the required timeframe.

10. Subsequent Actions

This is a unique, stand-alone response to ongoing pandemic and volatile world events. No follow-on actions specifically relate, other than those covered in this justification, are known or anticipated.

Technical Certification

I certify that the data and information forming the basis for this justification are accurate and complete to the best of my knowledge and belief.

Program Manager

Contracting Officer Certification

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

Contracting Officer

General Counsel Coordination

This justification is legally sufficient

Attorney

Approval

Based on the above justification, I hereby approve accomplishment of this acquisition by means other than using full and open competition.

Competition Advocate

Head of Contracting Activity