JOFOC_Sixt_19LH5023D0004 (002).pdf
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- Attached to
- Acquisition of Passenger Transportation Services in Support of Senior High Level USG VIP visitor.
- Solicitation number
- 19LH5023D0004
- Issued by
-
Department of State
About this file
This document is a justification for other than full and open competition for a limited/sole source acquisition of passenger transportation services in support of a senior high level US government VIP visitor to Vilnius, Lithuania in July 2023. The Department of State requires transportation services from UAB Transporent/SIXT for the VIP visit, including sedans, SUVs, minivans, and cargo trucks. Due to security concerns and the short notice of the visit, full and open competition was not possible. SIXT will import vehicles and drivers from surrounding Baltic states to meet the demand of over 200 vehicles needed for the delegation. The total estimated cost is 2,937,600 EUR or $2,946,800 USD. The contracting officer determined SIXT's prices, which incorporate significant logistical challenges, to be fair and reasonable given the limited alternatives in Vilnius and high demand due to numerous delegations.
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Reference DOSAR 606.303-2
JUSTIFICATION AND APPROVAL
FOR OTHER THAN FULL AND OPEN COMPETITION, PRICE JUSTIFICATION (JOFOC)
ACQUISITION OF PASSENGER TRANSPORTATION SERVICES IN SUPPORT OF SENIOR HIGH LEVEL USG VIP
VISIT
1. I recommend that the Department of State use other than full and open competition for the acquisition of passenger transportation services in support of the VIP visit in Vilnius. The estimated cost is 2,737,600.00 EUR which is equivalent of 2,946,800.00 USD.
2. Nature and/or description of the action being approved.
Senior High Level USG Principal traveling with a delegation inclusive of support elements in: Security, Communications, Logistics and Operations.
3. A description of the supplies or services required to meet the agency’s needs.
The U.S. Embassy in Vilnius, Lithuania is contracting with the UAB Transporent / SIXT for transportation services in support of the VVIP visit in Vilnius, Lithuania in July 2023.
4. An identification of the statutory authority permitting other than full and open competition.
[ X ] 41 U.S.C. 253 (c) (2), FAR 6.302-2; Unusual and Compelling Urgency; (Based on the available time and urgency of the requirement as detailed below)
Security concerns prohibit sufficient advanced notification of VIP travel to allow for sufficient time to conduct full and open competition. The Department of State can only communicate with the staff at Posts abroad when authorization is given due to security concerns. They have an extremely short turnaround time when authorization has been granted for negotiations to commence and site selections to be finalized with both the local vendors and Posts before the actual Senior High Level USG VIP visit occurs. Security and logistical teams make determinations during the site survey as to which company is most suitable for performance of services in support to the Senior High Level USG VIP and his traveling staff. Consideration of the Senior High Level USG Principal and the location are taken into consideration as a determining factor.
The types of events, meetings, locations and availability of venues to support the Senior High Level USG VIP and the delegation are often times designated by the host countries.
Unique requirements for communications support are under severe time limitations and always a determining factor in the selection process as its capacity to be augmented to the unique requirements necessary to support certain Senior High Level USG Principals.
Many of the arrangements for services are often not confirmed until just before the actual visit. In addition to supporting a large delegation within a short time frame, last minute and frequent changes of the schedule often result in significant changes in how Posts work with the vendors. With the exception of a few trips, contracts are not permitted to be signed until the Department of State (Post) has written confirmation from all supporting agencies, which enables collection of funds from said agencies in the event of cancellation. This results in an unusual and compelling urgency in accordance with 41 U.S.C. 253
(c) (2), FAR 6.302-2.
These unique Senior High Level USG VIP travel requirements result in only a single or a very limited number of responsible sources with no other supplies or services capable of satisfying agency requirement in accordance with 41 U.S.C. 253 (c ) (2), Far 6.302-2.
5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.
Security and logistics are the Department of State’s primary considerations when procuring assembly of setup for the main event during the VVIP visit. The Department of State must be able to provide a safe and secure environment for VIP visitors. Frequently VIP visits are not announced or confirmed in sufficient time to conduct a competition, creating an urgent and compelling need. At other times, the security requirements and/or requirements of the host country government limit the acquisition to one or a small number of contractors.
The VIP visit information was not available in sufficient time thereby creating an urgent and compelling need.
Additionally, there are no companies within Vilnius who can handle the volume of vehicles and drivers needed to accommodate this large request on short notice. SIXT is large enough that it can request regional support from other Baltic states, and has the resources to house 200+vehicles and drivers. SIXT has provided vehicles during the Riga NATO Summit of 2006 and supports VIP travel throughout Europe. Vilnius has no other vehicle provider with these resources.
6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.
Due to urgency and exception in FAR 25.401(a)(5) this solicitation cannot be posted but the JOFOC will be published in Beta.SAM.GOV.
The GSO has spent months inquiring about the availability of transportation in Vilnius during the summit, but with 38 delegations in town resources are almost non-existent. Other companies will be used to supplement vehicles that SIXT cannot provide (Veltura and MG Logistics).
SIXT will import vehicles and drivers from surrounding Baltic nations. The usual GSO vehicle providers are small operations that operate very small numbers of vehicles. GSO will look at a second company to supplement SIXT as a provider. However, GSO is not aware of any company that can provide vehicles in the high numbers requested for this VIP visit.
7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.
The vehicle cost appears extraordinary, but discussions with SIXT have revealed the company will take on significant risk and overhead to provide vehicles, which results in the additional cost. Most vehicles and drivers will be imported from surrounding Baltic nations, incurring additional costs to house people and vehicles at a time where resources are scarce. Due to the nature of the VIP visit, hotel prices have tripled and quadrupled, leaving SIXT with extraordinary expenses. They will also have to rent multiple garages to house the vehicles. SIXT will need to guarantee availability of drivers and vehicles before the exact needs of the USG are know. The SIXT prices reflect these logistical challenges, as well as the high demand for contract vehicles in a city that can supply very few.
There are few other options. The company Veltura has agreed to provide some vehicles, but they are small and operation entirely within Vilnius.
Some comparison:
Veltura (30 vehicles total):
• Sedan (850 euro per day)
• SUV (1100 euro per day)
• 7 pax minivan (950 euro per day)
• 19 pax van (1200 euro per day)
MG Logistics (box trucks):
• Cargo truck (1300 euro per day)
In general, prices appear to be 2-3 times the cost for vehicle rentals prior to the VIP event. This is consistent with the increase seen in the cost of hotel rooms.
8. Any other facts supporting the use of other than full and open competition. NONE
9. A listing of sources, if any, that expressed, in writing, an interest in the acquisition. NONE.
10. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required. Post will do an assessment to determine if there is a need to establish an IDIQ for transportation services due to VIP visits.
CERTIFICATIONS
I certify that the information in this justification is accurate and contains complete data necessary to support the recommendation for other than full and open competition to the best of my knowledge and belief.
Phong Ngo Date
I certify that this justification is accurate and complete to the best of my knowledge and belief. Based on my assessment, I conclude that other than full and open competition is justified and the proposed price is fair and reasonable.
Shaun McGuire Date
July 18, 2023
File details come from the government source that posted it. Updated .