Justification and Approval Supply 3 Aug 12 Redacted.pdf

FOR OFFICIAL USE ONLY

Justification for Other Than Full and Open Competition

I. Contracting Activity

Department of the Air Force, 633d Contracting Squadron, 74 Nealy Ave., Joint Base

Langley Eustis, VA is the contracting organization responsible for the Justification for

Other Than Full and Open Competition. The Procuring Contracting Officer is Ms.

Cynthia E. Lewandowski, DSN 574-2544.

Purchase Request Number: F2Q3362209A001

II. Nature and/or Description of the Action Being Processed

This is a Justification and Approval (J&A) limiting competition for the procurement of

Supply, Central Issue Facility, and Asset Management services at Ft. Eustis on sole source basis to the Diverse Technology Korps of Chesapeake, VA for forty-five (45) days. This will be a new firm fixed price purchase order awarded to a Service-Disabled

Veteran-Owned Small Business (SDVOSB).

III. Description of the Supplies/Services Required to Meet the Agency’s Needs

The existing supply, central issue facility and asset management services provide support for the training and garrison missions on Fort Eustis. The supply service is responsible for ordering/supplying Class 9 parts for unit level maintenance of mission critical Army vehicles and equipment. The central issue facility issues and receives all equipment provided to Army students attending schools and permanent party Soldiers assigned on Fort Eustis. Asset management is responsible for reporting all property and equipment transactions and information into the property books for command accountability.

The services described above are critical to the Army meeting both its’ training and force support and deployment missions. In view of the current contract ending 31 July 2012, 733d LRD will be unable to continue providing logistic services to our customers without using some form of contract vehicle. LRD’s staff consists of four (4) Air Force Civilians and no uniformed personnel. The requirement is estimated to need approximately 44 personnel to perform these functions safely, efficiently and without interruption.

Attempts to get Borrowed Military Manpower resulted in only getting three Airmen whom would have to be trained on the Army’s automation systems required in performance of the services. In short, LRD’s mission would fail thereby, causing the

Army’s mission to fail to meet its’ Soldier training and force support and deployment requirements.

IV. Statutory Authority Permitting Other Than Full and Open Competition

10 USC 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(iii)(A) and (B

10 USC 2304(c)(2), as implemented by FAR 6.302-2(b)(1) and (2) in

V. Demonstration That the Contractor’s Unique Qualifications or Nature of the Acquisition

Requires the Use of the Authority Cited Above

Mission critical services must be maintained to avoid mission failure. The current contractor Northrop Grumman Technical Services (NGTS) submitted a proposal and was thought to be the only source for this service. A local contractor Diverse Technology

Korps, who showed interest in the previous solicitation and is a local service disabled veteran owned small business was contacted on 28 July regarding the resolicitation posted to GSA for 12 months of Supply Services. The contractor displayed knowledge that the existing contract was ending on 31 July 2012 and stated that he could ensure continuity of services. He stated that he was a former employee of Northrop Grumman and was very knowledgeable of the requirements. The contractor was immediately asked by this office to provide market research and a rough order of magnitude to include pricing data. Diverse Technology Korps appears to be the only alternative source and is in a unique position to provide these services due to intimate knowledge of the requirement and physical proximity to the service location.

VI. Description of Efforts Made to Ensure That Offers Are Solicited From as Many Potential

Sources as Deemed Practicable

A funding shortfall was identified with such short notice that the existing contract

W911SE-07-D-0016 2A06 could no longer continue. This unforeseeable funding shortfall has created unusual circumstances that could not been avoided or averted.

Delay in the award of this contract will cause serious harm financially and mission failure to Ft. Eustis, and the Government.

Other Actions The Government is currently procuring these sources utilizing GSA. A sources sought notice was posted on 21 May 2012 through 26 May 2012 and followed with a solicitation based on the results of the aforementioned sources sought notification.

Only one response to the actual solicitation was obtained. Due to the one response and in compliance with the “Better Buying Power” memorandum written by Dr. Carter more time must be given to ensure the government is maximizing competition. During the forty-five (45) days that this approval will grant, competition will be extended to provide the best value to the government while maintaining uninterrupted service.

VII. Determination by the Contracting Officer That the Anticipated Cost to the Government will be Fair and Reasonable

The costs associated with this action were negotiated with Diverse Technology Korps.

The current pricing was compared to rates paid to NGTS for the same or similar services at Fort Eustis. Substantial and relevant cost and pricing data exists to make a determination of fair & reasonableness.

The pricing that was submitted by NGTS far exceeded the government’s budget constraints and in no way could be considered fair and reasonable. The final negotiated proposal submitted by NGTS was 33% above the IGE priced at $477,410 and could not be justified. The local contractor Diverse Technology Korps located in Chesapeake, VA was contacted and stated that they could perform the service without delay. Pricing was obtained for market research purposes which yielded pricing estimate under $400,000.

Funds are available up to $400,000 which was secured prior to the governement estimate being completed to expedite this urgent request. The $400,000 amount was a rough guess prior to a formal IGE being completed. Negotiations were conducted with DTK based on their submitted pricing. The negotiations resulted in a final price of

$367,805.70. The resulting price is 2.55% above the government estimate of

$358,426.66 and under the circumstance, requested quick turnaround required and impact to the mission this price has been found reasonable.

VIII. Description of the Market Research Conducted and the Results, or a Statement of the

Reasons Market Research Was Not Conducted

Market research has been conducted for this service utilizing a sources sought. One attempt to procure these services was made but only one offer was obtained. The resolicitation changes the set aside from HUBZONE to Small Business to ensure ample competition is available. Market research has yielded many interested parties for conducting this service within the small business metric. This action will ensure these interested parties have ample time to prepare proposals in response to a new RFP from the government.

IX. Any Other Facts Supporting the Use of Other Than Full and Open Competition

A full package to reacquire these services was provided on 13 July 2012. The aggressive timeline was caused by a last minute Army funding shortfall. Procuring services of this size and scope in such an aggressive timeline is not without risk. This risk was realized when only one offer was obtain in response to the government solicitation. Acquiring these services without delay is of the utmost importance and essential to ensuring continuation of the Fort Eustis training and garrison missions. The sole sourceing of this effort allows for a thoroughly competed solicitation to be accomplished.

Had this action not been completed a complete shut down of warehouse, CIF, and property book functions would have ensued. The impact of a warehouse shutdown would be costly and create substantial backlog for government operations on Fort Eustis.

Garrison obtains parts for vehicle maintenance among other items from this warehouse.

Mission critical equipment would have remained unusuble or unsafe during a shutdown.

Additionally the central issue facility issues equipment in support of the training mission at Fort Eustis. Any impact to the training mission would result in a ripple effect causing continued delays for the forseeable future and a substantial cost to the government if training requirements could not be completed within the government’s firm training schedule.

X. List of Sources, if any, That Expressed Interest in the Acquisition

Northrop Grumman has repeatedly stated their willingness to extend services at Ft.

Eustis. Diverse Technology Korps also contacted this office to declare interest in the follow on supply services that would be required at Fort Eustis. During the conversation with Diverse Technology Korps they conveyed a desire to perform these services and fully understood the timeline in which they would be required.

XI. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome Any

Barriers to Competition Before Making Subsequent Acquisitions for the Supplies or Services

Required

This action will allow for a resolicitation that maximizes competition set aside for small businesses. This is a necessary step due to the unforseeable funding shortfalls that have occurred on the existing requirement.

XII. Contracting Officer’s Certification

The Contracting Officer’s signature on the Justification Review Document evidences that she has determined this document to be both accurate and complete to the best of her knowledge and belief.

XIII. Technical/Requirements Personnel’s Certification

As evidenced by their signatures on the J&A signature page, the technical and/or requirements personnel have certified that any supporting data contained herein which is their responsibility is both accurate and complete.

COORDINATION AND APPROVAL DOCUMENT

(also known as Justification Review Document)

CONTRACTING ACTIVITY: 633 CONS

PROGRAM/PROJECT: LRD Supply and Warehouse Support

AUTHORITY: 10 USC 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(iii)(A) and (B)

10 USC 2304(c)(2), as implemented by FAR 6.302-2(b)(1) and (2)

ESTIMATED CONTRACT COST: $367,805

TYPE J&A: Individual

COORDINATION DATE

FRANK L. REEVES

Contracting Officer’s Representative, GS-12, 757-878-2823

CYNTHIA E. LEWANDOWSKI

Contracting Officer, GS-13, 757-764-2544

CHARLES A. EVITTS, Lt Col, USAF

Commander, 633rd Contracting Squadron