Justification and Approval for Other Than Full and Open Competition.pdf

Attachment: Justification and Approval for Other Than Full and Open Competition

CLASS JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION (J&A)

TO: Colleen Allen, M/AA

FROM: Jami J. Rodgers, M/OAA

SUBJECT: Class Justification and Approval for Other Than Full and Open Competition to Issue Bilateral Modifications To Implement the Foreign Service Pay Schedule and Overseas Comparability Pay for Incumbent USPSCs Under Existing Contracts with a Place of Performance at only Abroad at One or More Posts

1. This document sets forth the facts and rationale justifying the use of other than full and open competition, in accordance with AIDAR 706.3(b)(3)(ii).

This document was prepared by the Bureau for Management, Office of Acquisition and Assistance.

2. The nature and/or description of the action being approved:

This request is to authorize other than full and open competition to allow the bilateral modification of the class of awards to incumbent USPSCs with a place of performance at one or more posts “abroad”, meaning outside the U.S. and its territories and possessions, (aka hereafter, “USPSCs stationed abroad”)1. This class of contractors also equates to an existing USPSC procured under the FAA section 636(a)(3), or within the scope of any other statutory authority that allows for performance abroad, and the contractual place of performance is only abroad, whether at one or multiple posts.

These modifications are necessary to implement the Agency decision, approved by the Administrator for USAID (A/AID) on Oct. 12, 2023, as further clarified by a Memo approved by the Assistant Administrator for the Bureau for Management (AA/M) on October 24, 2024.

Pursuant to these Memos, this J&A is necessary to authorize contracting officers to prepare bilateral modifications, subject to the contractors’ agreement, to materially change the terms of existing awards to provide compensation for USPSCs stationed abroad using comparable class levels of the Foreign Service (FS) pay and step schedule. FS-based compensation will include compensation policies relating to overseas comparability pay (OCP) and related policies

1 Note: Neither FS-based pay nor OCP will be provided to USPSCs with a place of performance in the U.S. or worldwide, meaning in the U.S. and abroad. Such contractors will remain on the Civil Service General Schedule basis of pay.

including, step increase waiting periods, overall aggregate pay caps, and establishing premium pay caps with biweekly premium pay cap waiver authority. USPSCs in the class who are Resident Hire USPSCs are included in the class for FS-based pay; however they are ineligible for the OCP component.

In order for a USPSC to be included as a member of this class, the contracting officer must determine and document in the negotiation memorandum, that the USPSC contract meets the eligibility criteria for the class in accordance with the new policy in ADS 309.3.2, as also described above in this section 2.

3. Description of the supplies or services required, including an estimated value:

USAID hires USPSCs in various Missions, Bureaus, and Independent Offices (B/IOs) in support of the Agency’s operations and delivery of a wide range of foreign assistance programs. Without USPSC support for its programs, USAID would not be able to deliver critical assistance around the world, impairing the delivery of foreign assistance programs. USAID has experienced a significant rise in needs and expertise across the world resulting in overworked staff who are leaving USAID faster than USAID can hire. To lose any USPSCs due to the significant disparity in basic compensation between USPSC posted overseas and members of the Foreign Service would only exacerbate USAID’s staffing shortage. The lack of USPSC support would affect the immediate ability to deliver critical services that impact programs around the world, causing direct impairment to foreign assistance programs. This request is therefore to approve the non-competitive modification of the USPSC contracts stationed abroad to implement the A/AID policy change to use the FS pay structure.

The adoption of the FS salary schedule structure for the compensation of USAID’s USPSCs stationed abroad will parallel the Department of State (State) policy established in 2017 under 3 FAM 9000, which applies comparable class levels of the FS pay schedule for PSCs working overseas. By using the FS salary schedule for basic pay, including OCP as applicable, waiting periods for step increases, aggregate pay caps from 5 U.S.C., and biweekly premium pay cap waiver authority for USAID’s USPSCs abroad, the Agency seeks to reduce disparities in compensation for its USPSCs stationed abroad and those with State.

Currently, the USAID Acquisition Regulation (AIDAR) Appendix D, section 4(e). and Automated Directives System (ADS) 309.3.2 set the salary pay rate for all USPSCs regardless of the place of performance by using the Civil Service (CS) General Schedule (GS) base salary scale. Like FSOs, USPSCs stationed abroad are currently eligible for additive pay differentials and allowances at the country level as a result of USAID’s adoption of the Department of State Standardized Regulations (DSSR) for these differentials.

Use of Operating Expense (OE) and Program funds for using the FS salary scale with the OCP adjustment (plus step-increase waiting periods) to determine salaries for USPSCs abroad would be an additional cost to the Agency of an estimated $14,630 per USPSC (approximately $7.3 million in the aggregate) in Year One, and $26.3 million over the initial five years, in OE and

Program funds, depending on the funding source for each contract. For one year after implementation, M Bureau will monitor the application of premium pay caps (annual and biweekly) and waiver (biweekly) to determine if there is a significantly increased resource implication from the current estimate.

4. Statutory authority permitting other than full and open competition:

In accordance with AIDAR 706.302(70)(b)(3)(ii), these are for awards for countries, regions, projects, or programs for which the Administrator of USAID makes a formal written Determination and Findings (D&F), that compliance with full and open competition procedures would impair foreign assistance objectives, and would be inconsistent with the fulfillment of the foreign assistance program.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:

As already discussed in Section 3 above, without USPSC support for USAID’s foreign aid objectives abroad, USAID would not be able to deliver critical assistance around the world, thus directly impairing the delivery of foreign assistance programs. Without the ability to modify contracts for USPSCs stationed abroad on a sole source basis, USAID risks losing critical USPSC staff. USAID’s workforce is substantially augmented by USPSCs and they are crucial to the success of many of its foreign assistance programs. The loss of this staff would greatly impact USAID’s foreign assistance objectives. USAID has experienced a significant rise in needs and expertise across the world resulting in overworked staff who are leaving USAID faster than USAID can hire. To lose any USPSCs due to the significant disparity in basic compensation between USPSC posted overseas and members of the Foreign Service would only exacerbate USAID’s staffing shortage. The lack of USPSC support would affect the immediate ability to deliver critical services that impact programs around the world, causing direct impairment to foreign assistance programs. This request is therefore to approve the non-competitive modification of the USPSC contracts stationed abroad to implement the A/AID policy change to use the FS pay structure.

6. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was publicized as required by Federal Acquisition Regulation (FAR) 5.2 [AIDAR 705.2].

Efforts to solicit from other sources at this point of time would result in damaging time delays that would significantly waste Government resources. Applying full and open competition would be overly disruptive to the Agency’s continuity of operations, especially in its efforts to respond to acute foreign, humanitarian and post-conflict assistance in the countries where USAID operates. The existing USPSCs stationed abroad are uniquely situated and highly qualified to deliver critical services necessary for successful operation of USAID in delivery of its foreign assistance programs. USAID intends to continue maximizing full and open competition for its future USPSC requirements.

According to AIDAR 706.302-70(c)(3) and AIDAR 705.202(b)(1), when the authorities at 706.302-70(b)(3) are used, advance notice of proposed contract action is not required.

7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable:

The anticipated costs2 of this request are determined to be fair and reasonable because the new USPSC salaries, through contract modifications, will be comparable with the duties performed, and aligned with PSC compensation under the Department of State policy established in 2017 under 3 FAM 9000, which applies comparable class levels of the FS pay schedule for PSCs working overseas. FS salaries are authorized by Executive Order. Therefore, the proposed comparable salaries are determined to be fair and reasonable.

8. Description of the market research conducted, and the results or a statement of the reasons market research was not conducted:

Given the urgency to retain these critical services, market research was not conducted for each contract. However, market research and value determination for each original solicitation was based on analysis of the scope of services as they correlate to the skills and duties of the USPSC’s compensation as a GS-equivalent position under their existing award. The conversion of compensation to the FS-pay structure from the current GS basis will be conducted for each bilateral modification to an existing contract for a USPSC stationed abroad.

9. Other facts supporting the use of other than full and open competition:

This request is one critical solution among several others USAID is implementing to address its current USPSC staffing challenges. Without some immediate relief in addressing its USPSC staffing crisis, USAID will not have the staff to meet these demands, thereby directly impairing the delivery of foreign assistance programs. For example, at present, the Bureau for Humanitarian Assistance is already struggling to maintain its Response Management Teams and Disaster Assistance Response Team posture; to deliver critical humanitarian assistance globally;

and to maintain its daily operations, even the most critical. Complying with full and open competition procedures to just maintain its minimal staffing footprint would impair foreign assistance objectives, and would be inconsistent with the fulfillment of the Agency’s foreign assistance mandate.

10. Sources, if any, that expressed an interest, in writing, in the acquisition:

2 (Costs are estimated to be $14,630 per USPSC (approximately $7.3 million in the aggregate) in Year One, and $26.3 million over the initial five years.

No other sources expressed an interest, in writing, in this acquisition action since advance notice is deemed not appropriate or reasonable and is not required in accordance with AIDAR 706.302-70(c)(3) and AIDAR 705.202(b)(1).

11. The actions the Agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

The Agency intends to continue soliciting all future USPSC requirements using full and open competition.

12. Technical Certification:

In accordance with FAR 6.303-2(b), I hereby certify that the technical statements included above and which form a basis for the justification are complete and accurate.

Jami J. Rodgers, Director, M/OAA Date

13. Approved:

Colleen Allen Date Assistant Administrator Bureau for Management

This J&A is not/not effective if the Acting Deputy Administrator for Management and Resources does not sign the predicate Determination and Findings; provided further, the effective date of the J&A is the date the D&F is approved, should it be approved.

December 6, 2024

Digitally signed by JAMI JASIN RODGERS Date: 2024.12.06 14:52:04 -05'00'