J_A_WRALC_CMS_3PL_REDACTED_FINAL_posted_Redacted1.pdf

The total obligated amount and ceiling amount of the contract is currently .

The total obligated amount and ceiling amount is increased by from to for Option Period 5 (6-month extension).

3. DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET AGENCY’S NEEDS:

The required contractual support services include providing WR-ALC with the necessary services for support of the WR-ALC mission, which is responsible for depot maintenance, engineering support and software development to major weapon systems (F-15, C-5, C-130, C-17 and SOF aircraft). The CMS 3PL concept includes improving logistics by controlling and reducing Hazardous Material (HM) and the generation of Hazardous Waste (HW), implementing customer driven standardization programs, and implementing purchasing methods and processes. In addition, the 3PL service provider will provide demand planning and forecasting, data management, order processing and fulfillment, procurement and purchasing, customer service, receipt, physical inventory management, storage, issue, issue center management; cart and Point of Use (POU) cabinet/locker management; delivery to the complexes, local transportation, HW disposal preparation; and HM tracking and environmental reporting for HM used by the customers at their maintenance activities.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1) or 41 U.S.C.

3304(a)(1). Only one responsible source and no other supplies or services will satisfy agency requirements without unacceptable delays (FAR 6.302-1, DFARS 206.302-1).

5. IDENTIFICATION CONTRACTOR’S UNIQUE QUALIFICATIONS OR NATURE OF

ACQUISITION THAT REQUIRES USE OF THE CITED AUTHORITY:

This contract was awarded as a single award Long Term Contract (LTC) type contract to Alliance Technical Services Inc. on 31 March 2020, who changed their name to Valiant Technical Services, incorporated by Modification P00020, effective 8 February 2022. Valiant Technical Services is currently performing at a satisfactory level.

Transition was expected to begin starting 1 February 2025, but more time is needed to make the follow-on award. Thus, DLA Distribution has opted to modify existing contract SP3300-20-C-5002 to allow for support with a six (6) month option period beginning on 1 July 2025 through 31 December 2025. The totality of the contract extension will not exceed six months.

Pursuant to the exception under FAR 6.302-1(a)(2)(iii), only Valiant Technical Services can provide the services at this time; award to any other source will result in unacceptable delays and cause disruption to WR- ALC’s mission, which is responsible for depot maintenance, engineering support and software development to major weapon systems (F-15, C-5, C-130, C-17 and SOF aircraft). The use of an existing contract will save the Government both time and cost considering the administrative cost of re-soliciting competitive proposals, the cost of additional training and obtaining security clearances, and an acquisition lead time of more than a year. The recompete follow-on is already on-going. Valiant has been performing the current efforts and has the necessary management, personnel, and expertise to perform the increased requirements while the competitive follow-on solicitation is finalized, transition completed, and all other internal Government functions are completed.

If the contract extension and increased contract ceiling are not incorporated, WR-ALC could not support the known and anticipated requirements of this contract, as well as any unplanned requirements. DLA Distribution would not have a contract vehicle to provide services within the scope of this contract to support DLA Aviation and WR-ALC’s mission which would be detrimental to the Whole of Government.

6. SYNOPSIS ANNOUNCEMENT/POTENTIAL SOURCES:

DLA Distribution will issue the appropriate notification of the Government’s intent to issue a sole source modification as required by FAR 5.201 and in accordance with procedures at FAR 6.302-1(d) to the Government’s Point of Entry (SAM.gov).

7. DETERMINATION OF FAIR AND REASONABLE COST:

Increasing the ceiling amount is the most advantageous method of fulfilling the Government’s need for uninterrupted support. The additional funding is determined fair and reasonable as the Government will utilize the same labor categories and labor rates negotiated under modification P00035 for the CMS/3PL support services CLIN. The Government will also utilize the same negotiated prices under the latest modification P00038 to create a prorated amount for the hazardous material, material support costs, equipment lease for on-base use, and travel and training, and contractor facility and equipment for off-base use CLINs. The 500X CLINs will be added to the contract and funded for six (6) months starting 1 July 2025 through 31 December 2025.

Cost realism analysis was previously conducted on the CPFF and CR CLINs. The rates and fixed fee utilized were previously determined to be fair and reasonable based on adequate competition in accordance with FAR 15.404-1(b)(2)(i) on contract SP3300-20-C-5002. Cost realism analysis was accomplished by reviewing and evaluating specific elements to determine whether the estimated proposed cost elements are realistic for the work to be performed; reflect a clear understanding of the requirements; and are consistent with the unique methods of performance and materials described in the technical proposal. For evaluation purposes, Valiant was provided with a Government Estimated Cost in the original competitive solicitation. Valiant was instructed to apply their G&A, Material Handling Rate, or other Indirect Rates supported by their accounting system to this estimated cost along with their fixed fee (CPFF CLIN only) to derive a Not-to-Exceed (NTE) amount. During contract performance, the contractor will be reimbursed for costs that are actual, allowable, and allocable to the contract. The contract award incorporated Valiant’s subcontractor’s (Chemico LLC) proposed capped G&A rate of and Fixed Fee percentage at for CLINs X002 – Hazardous Material (CPFF). Valiant’s proposed capped Material and Handling (M&H) rate of and Fixed Fee percentage at was incorporated into the contract award and applied to the subcontractor’s indirect rates and fee for CLIN X002. For the CR CLINs, there is no fee permitted.

8. DESCRIPTION OF MARKET RESEARCH:

Market research was conducted for the follow-on solicitation SP3300-24-R-5006 and this follow-on solicitation is currently undergoing evaluations. The award timeframe has been delayed due to lack of competitive quotes received and on-going negotiations with the sole offeror. Extending the current contract will enable sufficient time to finalize negotiations, award the follow-on contract, support a transition period, and enable necessary training for the awardee.

9. OTHER SUPPORTING FACTS:

Not applicable.

10. LISTING OF INTERESTED SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THE ACQUISITION:

Only one offer has been received in response to the follow-on solicitation. Additional market research does not have bearing on the extension of the contract, as the need is immediate and no other potential sources for this additional work can support in the timeframe and duration required.

11. ACTIONS THE AGENCY MAY TAKE TO REMOVE/OVERCOME BARRIERS BEFORE ANY

SUBSEQUENT ACQUISITION FOR THE SUPPLIES/SERVICES IS REQUIRED/MADE:

The action is for an extension modification of existing contract SP3300-20-C-5002, pursuant to FAR 52.217- 8 Option to Extend Services (Nov 1999). The recompete, follow-on action is currently in progress and is being processed under full and open competition. The current contract SP3300-20-C-5002 was competed and awarded under full and open competition procedures as well.

12. STATEMENT OF DELIVERY REQUIREMENTS:

The contract will incorporate and execute Option Period 5 for a total of six (6) months from 1 July 2025 through 31 December 2025. The totality of the extension will not exceed six (6) months.

13. TOTAL ESTIMATED DOLLAR VALUE OF THE ACQUISITION COVERED BY THIS

JUSTIFICATION:

The total value of Option Period 5 is for the six months.