JA_Verona_6-Month_Redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

August 12, 2019 19-0031

Justification for Other than Full and Open Competition

1. Summary/Introduction:

The Defense Logistics Agency Energy (DLA-E), a Major Subordinate Command of DLA, is the contracting activity for environmental remediation services at Defense Fuel Support Point (DFSP) Verona, NY. 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 the extension provision in contract clause Federal Acquisition Regulation (FAR) 52.217-8 Option to Extend Services which was not evaluated at the time of contract award. The clause 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 TK&K Services, LLC (TK&K), the incumbent, for environmental remediation services at DFSP Verona, NY.

The current contract is a requirements type. The anticipated value for the six-month extension is $374,588.49, increasing the total contract value from to . The period of performance of the option is August 31, 2019 to February 29, 2020.

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 Verona under FAR 6.302-1 – Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. Under the circumstances and as explained below, TK&K is the only responsible source capable of performing services at DFSP Verona; 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.

Defense Fuel Support Point (DFSP) Verona, NY is an . However, the site requires continuing environmental contaminant mitigation and monitoring. As the responsible party, DLA must ensure that the environmental assets (i.e. monitoring wells, government-furnished equipment, structures, fencing) are protected and managed while in Caretaker status at DFSP Verona, NY. All tasks ensure environmental that compliance oversight is maintained for . The environmental remediation services performed under the current contract at DFSP Verona include but are not limited to: Site investigation in accordance with (IAW) DoDI 4715.18 Emergent Contaminants (EC) to identify potential areas of past firefighting foam discharges and mitigate source areas and impacts to soil and ground water; the installation of monitoring wells to sample groundwater, soil, and sediments for perfluoronated compounds (PFC); provide ground maintenance tasks within DFSP Verona to ensure the site is maintained for current and future environmental services. Because the Government has a continuing need for remediation

Justification for Other Than Full and Open Competition (Cont’d)

(SP0600-14-D-5424 – TK&K)

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).

Additionally, a new contractor would need to familiarize themselves with all the environmental work . 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 $374,588.49. $358,048.20 FY19 Defense Environmental Restoration Account (DERA) funds and $16,540.29 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, SP0600-14-D-5424, for these services was competitively awarded to TK&K on August 7, 2014. The total dollar value of the current contract is .

In order to meet the at DFSP Verona, it is that the environmental remediation systems are . Under this contract, TK&K is responsible to provide all materials, labor, and equipment to perform the following tasks:

1) Project Management

2) Remedial System O&M

3) Site Monitoring

4) Analytical Testing

5) Reports

6) Assessment

7) Remediation

8) On-Site Extraordinary Support

9) Off-Site Extraordinary Support

10) Compliance Services

11) Emergency Response Event Evaluation

12) Environmental Caretaker Activities

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 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. In addition, on June 12, 2019, a

(SP0600-14-D-5424 – TK&K)

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 June 26, 2019.

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 Verona is dependent upon the environmental remediation services currently being provided by the incumbent, TK&K. , DLA’s permit from the Air Force requires these services. There are significant national and local community interests related to the ongoing regulatory driven activities at DFSP Verona. These services to support the

. DLA’s requires aggressive remediation actions and coordination with multiple agencies at the federal, state, and local levels. TK&K is currently in rapid response mode to define the nature and extent of Emergent Contaminants as well as conducting source removal and performance monitoring activities. The existing work force is trained and able to conduct operations

Additionally, TK&K 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. .

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 June 12, 2019, 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 June 26, 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 September 1, 2014 through August 30, 2019. The $solicitation contained FAR clause 52.217-8 - Option to Extend Services (Nov 1999), 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 $374,588.49. This price is composed of the rates of the current contract and was evaluated as fair and reasonable using

(SP0600-14-D-5424 – TK&K)

. The IGCE for a re-solicited procurement estimates the six-month extension performance period for the same services at

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 June 12, 2019, a sources sought notice 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 June 26, 2019.

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

(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.

Please refer to Section 5.

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

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 June 12, 2019 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 Verona. 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

(SP0600-14-D-5424 – TK&K)

competition, and a new contract is anticipated to be awarded on or before February 29, 2020, with performance beginning on March 1, 2020.

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

I have reviewed and concur with this Justification.

Assistant Counsel DLA Counsel-Energy

Approved:

Contracting Officer Environmental Services Bulk Petroleum Supply Chain Services