Justification and Approval Operation and Maintenance of Hawthorne Army Depot.pdf

Control No: 20-067 Contractor: SOC LLC

Supply/Service: Operation and maintenance of Hawthorne Army Depot Est Dollar Value:

JUSTIFICATION REVIEW DOCUMENT

FOR JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Supply/Service: Operation and maintenance of Hawthorne Army Deport

Authority: 10 U.S.C. 2304(c)(1)

Prepared by: Beau Bixler DSN: 793-5037 Contract Specialist Email: Beau.j.bixler.civ@mail.mil

Contracting Officer: Angela M. Calhoun DSN: 793-8525 Procuring Contracting Officer Email: angela.m.calhoun.civ@mail.mil

Technical:

Requirements:

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Program Manager:

Product Director Demil:

Legal Advisor:

Competition Advocate: Adelaide J. Tkatch DSN: 793-5313 Signature:

TKATCH.ADELAI

DE.J.1228712503

Digitally signed by

TKATCH.ADELAIDE.J.12287125

Date: 2020.06.04 13:37:14 -05'00'

(b) (4)

(b) (6)

Department of Army Justification and Approval for Other than

Full and Open Competition

1. Contracting Activity: U.S. Army Contracting Command – Rock Island (ACC-RI) Rock Island Arsenal, Rock Island, IL 61299-8000.

2. Description of Action: The Joint Munitions Command (JMC) requests a firm-fixed-price bridge contract modification to contract W52P1J-11-D-0002 with SOC LLC. ACC- RI projects award for Operations and Maintenance, Army and Procurement Appropriation, Army funds will be used. An acquisition plan is not required for a final buy out or one-time buy per Defense Federal Acquisition Regulation Supplement 207.103(d)(ii).

This action is a bridge modification to ensure continuation of critical services for JMC until ACC-RI awards the follow-on contract. The milestone for award of the follow-on contract is

3. Description of Supplies/Services: Hawthorne Army Depot (HWAD) is a government-owned, contractor-operated facility in Hawthorne, Nevada. This action will support the operation and maintenance of HWAD including; supply depot operations (SDO) (including receipt, issue, storage, and renovation), Demilitarization (Demil) of conventional ammunition, and other Performance Work Statements (PWS).

The Period of Performance (POP) for this action is

The proposed modification will not include an option provision. The POP extends beyond the estimated

The U.S. Government (USG) estimates a dollar value of which was developed based on historical cost information.

4. Authority Cited: 10 U.S.C. 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: As described at FAR 6.302-1(a)(2)(ii)(A), supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in substantial duplication of cost to the USG that is not expected to be recovered through competition.

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a. SOC LLC has been the operating contractor at HWAD for the past 39 years.

SOC has the operational knowledge required to maintain continuity of services during the bridge contract. SOC will continue to receive, issue, store and demil ammunition, provide support to the installation tenants, manage/store strategic stockpile items, and work to maintain the accountability of assets.

The HWAD is the largest of eight ammunition joint storage depots in JMC and the largest depot in the United States with over 7,600,000 square feet of covered storage.

b. As mentioned above, SOC has been the incumbent contractor for the past 39 years. As such, the USG sought to create a competitive environment for the follow-on contract action. Solicitation W52P1J-19-R-0069 was issued 16 December 2019 as a full and open competition and scheduled to close 18 February 2020. The USG held three industry days at HWAD which resulted in receipt of 825 questions from industry. The USG responded to inquiries by providing industry with 70 plus documents and 92 technical data packages.

As a result of the unexpected volume of questions received, the solicitation closing date has been delayed. As well, additional delays have been encountered due to COVID-19.

c. SOC LLC is currently executing a project to design and replace approximately

There are two transmission lines being replaced: 1) the 14 inch transmission main connecting the Station Reservoir to the Industrial Area, which is 64 years old; and 2) the 10 inch transmission main connecting the Water Treatment Facility to elevated Tank #5, which is 90 years old. Multiple delays have impacted the schedule for this project, including review of the design by the Nevada Agency for Safe Drinking Water, and ultimate release of the Request for Proposal (RFP).

SOC, as the current operating contractor, is uniquely familiar with operating and maintaining the existing water system infrastructure and is the only responsible contractor available at this time. Before the Government awarded SOC this water project, the Corps of Engineers – Sacramento District was found to be unresponsive and stated its inability to deliver a new water line

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(b) (4) design by . SOC was, and remains the only contractor capable of performing this work. SOC, as the prime contractor, has overseen the design of the new water lines by its sub-contractor, and is overseeing the design and build of the associated new water storage tank sub-system linked to the water lines.

6. Efforts to Obtain Competition: ACC-RI shall publish the notices required by FAR

5.201. Because this is a sole source action, effective competition is not applicable. The Government will achieve subcontracting competition by including FAR clause 52.244-5, Competition in Subcontracting in the contract, which states that “the contractor shall select subcontractors on a competitive basis to the maximum practicable extent.”

7. Actions to Increase Competition: The JMC and ACC-RI published a Request for Information (RFI) 15 January 2018 on Federal Business Opportunities (FedBizOpps)

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(b) (4) soliciting industry’s feedback for contract length, type, preferences for partnering, consolidation ideas, and consideration for any/all innovative ideas to make the installation more effective and efficient. As a result of the RFI, Question and Answer (Q&A), and Industry Days multiple documents were posted in FedBizOps/Beta.sam beginning 21 June 2018. The draft RFP was released 10 July 2019. Three, very well attended, Industry Days were held at HWAD in order to provide industry with RFP detail and tours of the facility. The RFP was released 16 December 2019. Seven amendments have followed which; answered industry questions, revised evaluation criteria, revised PWSs, and extended the proposal due date.

The USG expects to achieve effective competition by continuing to reach out to industry and providing the information necessary to support a complete and thorough response to solicitation. As a result of the RFIs posted and Industry Days held, over 825 questions were received concerning the physical and historical characteristics of HWAD, contents of the various PWSs, clarification of various aspects of the installation, operation, and size. In addition to the answers to the various questions, there were also several documents provided concerning environmental permits, various site and operation specific regulations, technical data packages, maps, and installation drawings.

8. Market Research: Market research performed to date indicates that there is adequate competition within the industry. The Government received responses to the initial RFI, and held three Industry Days at HWAD. The August 2018 event was attended by . The July 2019 event was attended by The January 2020 event was attended by The USG intends to continue the full and open competition as the acquisition strategy for the follow-on procurement.

9. Interested Sources: To date, no other sources have expressed a written interest in this requirement.

10. Other Facts:

Procurement History

SOC LLC (current Commercial and Government Entity (CAGE) code 5JUP3, formerly known as DZHC, CAGE code, 5U043 and DZB, CAGE code, 5U276) has operated and maintained HWAD the entire time it has been a Government-Owned, Contractor- Operated facility.

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Contract # Contractor Competition Status

Period of Performance

W52P1J-11-D-0002 SOC LLC, CAGE

code 5JUP3

Full & Open

DAAA09-99-D-0022

DZHC, CAGE

code, 5U043

Full & Open

January 1, 2000 - December 31, 2010 inclusive of two (2) – six (6) month extensions

DAAA09-89-Z-0001 DZB, CAGE

code, 5U276

Full & Open January 1, 1989 - December 31, 1999

DAAA09-80-C-3011 DZB, CAGE

code 5U276

Full & Open December 1, 1980 - December 31, 1988

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my

12. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. Basis for this determination will be a cost analysis in which certified cost or pricing data will be required.

Date: _________________ ____________________________

Angela M. Calhoun Contracting Officer

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Date: _________________ ____________________________

Angela M. Calhoun Contracting Officer

28 May 2020

28 May 2020 CALHOUN.ANGE

LA.M.1139283607

Digitally signed by

CALHOUN.ANGELA.M.113928360

Date: 2020.05.28 17:17:43 -05'00'

CALHOUN.ANGE

LA.M.1139283607

Digitally signed by

CALHOUN.ANGELA.M.11392836

Date: 2020.05.28 17:18:07 -05'00'

(b) (4)

Approval

Based on the foregoing justification, I hereby approve the procurement of Operation and Maintenance of Hawthorne Army Depot on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1) subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.