JA_Warehouse_ROTA_FOR_FEDBIZ_OPS_02AUG13.doc

J&A No: 13-032

DEPARTMENT OF THE NAVY

NAVSUP FLEET LOGISTICS CENTER SIGONELLA

NAVAL REGIONAL CONTRACTING DETACHMENT NAPLES

PSC 817 BOX 50

FPO AE 09622-0050

IN REPLY REFER TO:

J&A No: 13-032

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

The United States Navy NAVSUP Fleet Logistics Center Sigonella, Naval Regional Contracting Detachment Naples, Italy.

2. Description of the Action Being Approved

This document authorizes the establishment of a two (2) month period of performance extension, and two additional one-month option periods, to be exercised only if necessary, to an Indefinite-Delivery-Indefinite-Quantity Firm-Fixed Price (IDIQ FFP) contract, number N68171-07-D-0002 awarded to Transportes Internacionales Ferris, S.A., AV Crucero Baleares, S/N, 11520 Rota, Spain, on 30 September 2006 on a competitive basis.

Rota Metro Housing Department located at the U.S. Naval Station (NS), Rota, Spain, is responsible for servicing members of the Force, stationed at U.S. Naval Station, Rota, Spain, and at the three (3) NATO Support Elements located in Lisbon, Madrid and Valencia. One single contract is contemplated since Naval Support Elements (NSE) Valencia and Madrid, Spain, and NSE Lisbon, Portugal have very small housing offices, just one or two persons each, and therefore do not have the necessary manpower to manage this type of contract. By awarding one consolidated contract, this will allow the NSE offices previously cited to receive warehouse services, and thus assist their customers. The billing and payment procedure will also be streamlined since NS Rota, Spain is set-up to provide these services and has the necessary personnel readily available.

This requirement is for Warehouse Logistics, Delivery, Pick-up, Storage, and Appliance Repair Services for all furnishing assets under the cognizance of the Rota Metro Housing Department. All furniture and appliances are to be stored and maintained in proper working condition.

3. Description of Supplies/Services

(a) As mentioned above, contract N68171-07-D-0002 was awarded on 30 September 2006 with performance starting on 01 October 2006 and ending on 30 September 2007, with four one year option periods. The contract was awarded as an Indefinite-Delivery-Indefinite-Quantity Firm-Fixed Price (IDIQ-FFP) type contract with performance at the following locations: Naval Station (NS), Rota, Spain; Navy Support Element (NSE), Madrid, Spain; Navy Support Element (NSE), Valencia, Spain; and, Navy Support Element (NSE), Lisbon, Portugal.

(b) Under contract N68171-07-D-0002, the Contractor is required to provide personnel, equipment, tools, supplies, services, materials and warehouse storage space, for the performance of work to all Housing furniture and appliances, including appliance/furniture delivery/pick-up services, packing/unpacking, assembly/disassembly, cleaning, installation/ removal of the AFN satellite system, uploading/loading containers, marking of inventory, operation of the Electronic Family Housing automated computer program, and other minor operations as directed by the Contracting Officer Representative.

3. Description of Supplies/Services (Cont’d)

(c) Contract N68171-07-D-0002 was structured with a twelve month base period and four (4) additional one-year options, the

Federal Acquisition Regulation (FAR) clause 52.217-8 “Option to Extend Services” (NOV 1999) was also included and evaluated at time of award. After the entire base period and all option periods were utilized, the contract was extended several times as per the Table 1 below. The contract may be summarized as follows:

Table 1

Est.Total Awarded Amount in $*

Actual Usage/Value EURO €

Total Available Ceiling

EURO €

Six (6) Month Extension pursuant to FAR 52.217-8

Mod. P00010 01 Oct 2011–31 Mar 2012

TOTAL AWARDED AMOUNT includes FAR 52.217-8 (6 months)

Six (6) Month Bridge Mod. P00012 01 Apr 2012–30 Sept 2012

Four (4) Month Bridge

Mod. P00013 01 Oct 2012–31 Jan 2013

One (1) Month Bridge

Mod. P00014 01 Feb 2013–28 Feb 2013

Three (3) Months Bridge

Mod. P00014 01 Mar 2013–31 May 2013

One (1) Month Bridge

Mod. P00015 01 Jun 2013–30 Jun 2013

One (1) Month Bridge

Mod. P00016 01 Jul 2013–31 Jul 2013

Two (2) Month Bridge

Mod. P00017 01 Aug 2013 – 30 Sept 2013

One (1) Month Bridge

(if necessary) 01 Oct 2013 – 31 Oct 2013

One (1) Month Bridge

(if necessary) 01 Nov 2013 – 30 Nov 2013

TOTAL CONTRACT AMOUNT INCLUDING EXTENSIONS

- All of the above $ calculations were calculated using FY13 Budget Exchange Rate (BER) of $1 USD = 0.7241 EURO

*THIS SECTION LEFT INTENTIONALLY BLANK DUE TO INFORMATION CONTAINED HEREIN IS

SOURCE SELECTION SENSITIVE

3. Description of Supplies/Services (Cont’d)

- The above table reveals that the requiring activity has never exceeded the actual usage in any of the years, and has always remained under the estimated contract ceiling. In fact, by extending the contract for an additional two (2) months, and two additional one-month option periods if exercised, the Government will still not exceed the total ceiling for the period covering 01 Aug 2013 through 30 Sept 2013, (and 01 Oct 2013 through 30 Nov 2013, if exercised) of ………………. = ……………………... Therefore, modification P00017 will extend the current contract period of performance by two (2) months; and incorporate provisions for two (2) additional one-month option periods with no increase to the total contract ceiling amount.

4. Statutory Authority Permitting Other Than Full and Open Competition 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1, Only One Responsible Source And No Other Supplies Or Services

Will Satisfy Agency Requirements

5. Rationale Justifying Use of Cited Statutory Authority The reason for requesting an additional extension of two (2) plus and two additional one-month option periods, to be exercised only if necessary, is explained below:

Since the last contract extension Solicitation for Warehouse Svcs, Rota, Spain, # N68171-13-R-0003, was issued on 29 March 2013 using full and open competition under and pursuant to FAR Parts 12 and 15.

THIS SECTION LEFT INTENTIONALLY BLANK DUE TO INFORMATION CONTAINED HEREIN IS

SOURCE SELECTION SENSITIVE

This contract is critical, and NS Rota, NSE Valencia, NSE Madrid, and NSE Lisbon, cannot have a disruption in services. The current contract expires on 31 July 2013. As mentioned above, this contract provides moving and handling and appliance repair services to four sites on the Iberian Peninsula encompassing almost 1,400 economy leases, 800 on base government owned homes in Rota and 18 transient and permanent party barracks in Rota. Any break in these services would have a significantly detrimental impact on PCS moves, lease contract issues, HHG deliveries/pick ups, claims for personal losses due to unrepaired appliances, and therefore on force readiness. In addition, Rota is already receiving furnishings to support FDNF requirements and the Contractor is currently a key player in the receipt, marking and storage of these materials. Any delay in service could potentially impact Rota’s ability to receive the first home ported ship in January 2014.

5. Rationale Justifying Use of Cited Statutory Authority (cont’d)

THIS SECTION LEFT INTENTIONALLY BLANK DUE TO INFORMATION CONTAINED HEREIN IS

SOURCE SELECTION SENSITIVE

At this time there is no other contractor capable of performing the required services besides the incumbent, Transportes Internacionales Ferris, S.A for this two (2) month period. The incumbent contractor already has all the equipment, facilities, and personnel to immediately perform the services. They have a stable network in Spain and Portugal and have good business relationships capable to respond within the timeframe of this extension, to perform satisfactorily, over the entire areas. Any other contractor that could potentially perform services in the area would require at least 2-3 months to organize their network to satisfy the requirements given the geographic locations for performance. Additionally, Ferris’ employees have undergone the requisite security checks to perform these services. Awarding this bridge to another company would cause a disruption in service because of the time it takes for a company to staff and equip to meet the requirement and to vet the employees. This sole source modification/bridge contract to contract N68171-07-D-0002 will be issued to the incumbent contractor to extend the period of performance of services for an additional two (2) months, with two additional one-month option periods, to be exercised only if necessary, commencing 01 August 2013 through 30 September 2013.

The customer has a continuing need for the services beyond 31 July 2013 expiration, and NAVSUP FLCSI Det Naples does not anticipate that the competitive award of a follow-on contract and potential transition to a new contractor will be completed before 31 July 2013. Consequently, this document anticipates the sole source extension of the current contract through 30 September 2013, and include two additional one-month option periods that if exercised, would extend services through 30 November 2013, utilizing the same terms and conditions as are presently in effect so that the follow-on contract may be competitively awarded. There are no other associated costs as the quantities established via the previous modifications up to P00016 have not been fully used and are still available for the two month extension from 01 August 2013 to 30 September 2013. There is currently ………………. = ……………….. in available ceiling remaining, and since contract award the total estimated ceiling has never been exceeded, see Table 1 above.

5. Rationale Justifying Use of Cited Statutory Authority (cont’d) The anticipated/revised plan of action and milestones (POAM) for the competition and award of the follow-on contract is as follows:

Action

Action Required By

Tentative Date

Posting on EuroNeco –

RFP Issued –29 March 2013 Closes - 29 April 2013

Contractor 08 April 2013

* THIS SECTION LEFT INTENTIONALLY BLANK DUE TO INFORMATION CONTAINED HEREIN IS

SOURCE SELECTION SENSITIVE

5. Rationale Justifying Use of Cited Statutory Authority (cont’d) As can be seen from the POAM above, due to the milestone events that still need to be accomplished before contract award, the NAVSUP FLC Sigonella Det Naples contracting office will not be able to award this contract before the expiration date of 31 July 2013, much less allow for the 30 days phase in period THIS SECTION LEFT INTENTIONALLY BLANK DUE TO INFORMATION CONTAINED HEREIN IS SOURCE SELECTION SENSITIVE

No funds will be obligated by issuance of modification P00017 extending the contract for two (2) months, actual funds will only be obligated on all individual delivery orders issued against this contract.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable

There were no efforts made to solicit any offerors nor was market research performed for this J&A since the incumbent contractor is the only company at this time that can perform immediately and thus prevent any disruption in services. However, the Government has competed the follow-on contract for these services, see paragraph 5 above.

7. Determination of Fair and Reasonable Price

The prices of this extension will be the same as those under the current contract. These prices were previously determined to be fair and reasonable via competition and the Contracting Officer has not noted any changes to the prevailing market conditions for these specific services obtained under this contract that would otherwise indicate that the current contract prices are still considered fair and reasonable.

The Contractor has agreed to the extension with no increase to the Firm Fixed Prices under the current contract. The prices under the current contract were determined to be fair and reasonable by the Contracting Officer at the time of award.

8. Actions to Remove Barriers to Future Competition

See paragraph 5 above.

9. Contracting Point of Contact The contracting point of contact is Ms Mina De Stefano, who may be contacted at telephone (39) 081-568-4083, facsimile (39) 081-568-4069, or via e-mail at Mina.DeStefano.it@eu.navy.mil.

10. Additional Information

(a) For the reasons described above, the Contracting Officer has determined that the use of a sole-source contract is in the best interests of the Government, this will provide the Contracting Officer with sufficient time to clarify discrepancies found with the three (3) offers received, re-evaluate the offers received, allow for the phase-in/phase-out and thus award a contract to the best offeror.

(b) Transportes Internacionales Ferris, S.A is registered with Service Award Management (SAM), registration expires on 17 April 2014 and has no active exclusion records.

(c) Transportes Internacionales Ferris, S.A does not appear on the “Past Performance Information Retrieval System – Statistical Reporting”, as of 17 July 2013.

(d) Pursuant to FAR 9.104-1, the Contracting Officer has determined Transportes Internacionales Ferris, S.A to be a responsible contractor.

(e) The Contractor has successfully performed for the past seven (7) years under the current contract and has provided approx. …………*………………… worth of warehouse moving and appliance repair services within that time. Transportes Internacionales Ferris, S.A. has performed in an outstanding manner and continues to do so, as confirmed by the COR, and the annual CPARS reports.

(f) The Contractor will be notified of this extension as soon as this J&A is approved and signed by all parties,

(g) Pursuant to FAR 9.104-1, the Contracting Officer has determined Transportes Internacionales Ferris, S.A. to be a responsible contractor.

Source Selection Information See FAR 2.101 and 3.104

PAGE

Source Selection Information See FAR 2.101 and 3.104

_1017646533.doc