Justification_W564KV-22-C-0057_drayage services germany_redacted_103124_Redacted.pdf

Control Number: T 24 0030

(Source Selection Information See FAR 2.101 and 3.104 4)

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Justification and Approval for Other than Full and Open Competition – FAR Part 6

1. Contracting Activity: 409th Contracting Support Brigade (CSB), Theater

Contracting Center (TCC), Kaiserslautern, Germany, Unit 23163, APO AE 09227.

2. Description of Action: Installation Management Command – Europe (IMCOM – E)

G4/GSE Furnishings Management Office (FMO) requests approval for a modification to extend the period of performance of Contract award W564KV-22-C-0057 a further three (03) months to continue drayage services, including transportation, delivery and pick-up of furniture and appliances, in Germany. Furthermore, FAR Clause 52.217-8, Option to Extend Services, will be incorporated into the Contract award through this modification. Thus, this modification proposes to add a total of nine (09) months to the current period of performance.

The current contract, W564KV-22-C-0057, is a Firm Fixed Price (FFP) Contract type with a period of performance presently ending on 29 October 2024. The anticipated modification will remain FFP on the contract. Fiscal Year 2025 Operation and Maintenance (O&M) funding will be used for this extension modification.

3. Description of Supplies/Services: The Government award contract W564KV-22-

C-0057, on 30 August 2022, to Fuduric GmbH & CO. KG (Fuduric GmbH). This procurement requires a contractor to perform delivery/pick-up of temporary and permanently issued furniture and appliances on loan to authorized military and civilian personnel stationed on and around US Army Garrisons in Germany. Drayage distribution services include installation and removal of domestic appliances for the Army in Europe Army Family Housing (AFH) and Unaccompanied Personnel Housing (UPH). The procurement also requires a contractor to augment the Government workforce in performing warehouse tasks at the local FMO warehouses to include cleaning of furniture and appliances, minor repair of furniture, assembly of new furniture, and movement and storage of furniture and appliances within the warehouse.

The requested increase for this justification is 3,700,156.44€ ($4,000,601.63). The value of this modification is broken down as follows:

; 30 October 2024 – 29 January 2025 (three

(03) month extension)

; 30 January 2025 – 29 July 2025 (six (06) months under FAR Clause 52.217-8)

The following Background information describes the current services that this contract modification would continue to support:

Drayage services are provided to customers which include accompanied families (multi services), logistically supported civilians and their families, and

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unaccompanied personnel in both barracks and off-post dwelling units. If services are not provided, IMCOM – E will not be in regulatory compliance and the Army will experience a dramatic increase in associated costs while also negatively impact the ability of the United States European Command (EUCOM) to complete Permanent Change of Station (PCS) for individuals and families in and out of the European Area of Responsibility (AOR).

The Army will be unable to house inbound customers until Household Goods (HHG) shipments arrive and are delivered to the dwelling unit. This lack of support would cause a dramatic increase in costs to the Government due to the increased costs with extended stays in temporary lodging.

Costs to stay in Temporary Lodging Allowance (TLA) will experience at least 50% cost increase due to being forced to say in lodging without the drayage and furnishings support that is normally afforded to both Inbound and Outbound personnel. This increase in costs could be in the millions of dollars being that ALL inbound and outbound personnel will be affected.

Customers who require furnishings items exchanged, such as, inoperable appliances, could require relocation to Temporary Lodging due to the government’s inability to provide serviceable items which are considered basic necessities authorized according to Army Regulation (AR) 420-1 and

CTA 50-909.

PCS of service members may be impacted by delaying reporting dates due to the lack of furnishings support available in Europe.

Construction and renovation projects will be delayed and experience increased costs associated with not being able to provide furnishings to the buildings. Construction projects and major renovations that have been authorized furnishings within the project may be delayed due to lack of furnishings.

Local Housing Offices will not be able to assign housing due to the lack of permanent issue items such as refrigerators, ranges, washers, etc. Inbound and Outbound customers are authorized temporary loaner furniture as they arrive in country and are assigned housing as well as upon departure prior to vacating their dwelling unit.

AMC furnishings projects out of U.S. Army Corps of Engineers Support Center – Huntsville (CEHNC) will not be completed. CEHNC is to provide furnishings directly from Huntsville which arrive in containers and are usually offloaded at the FMO location or arrive at GSE in Sembach. Services are then requested from the Drayage Contractor for transport from the FMO to the units where they are delivered, assembled, and/or installed. New residents will not be able to occupy these units until permanent issue/duration of tour items are available. Costs for the supply items are covered in the DD 1391 as part of each individual project.

FMOs at each garrison will no longer be able to provide services to their customer base which will essentially create a “Work Stoppage” for FMO operations. An actual “Work Stoppage” would be realized due to the lack of a contracted service provider to perform these essential services. This includes

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the lack of augmented labor, cleaning of furnishings, and any additional needed processing. Issues, Pick-ups, exchanges, installs, and un-installs will stop until a proper contract vehicle is in place in order to provide these critical services.

Under Contract award W564KV-22-C-0057, the Contractor is responsible for coordinating transportation of furniture and appliances across the entirety of Germany to military and civilian personnel. The Contractor coordinates the transportation and delivery from a total of 10 FMO warehouses located throughout Germany. In addition, the Contractor is required to provide augmentation in Government warehouses necessary to receive, clean, inventory, and prepare Government-owned furniture and domestic appliances for re-issue. Of the 10 FMO warehouses, the Contractor provides both drayage services and warehouse augmentation from eight (08) and warehouse augmentation from the remaining two

(02) FMO warehouse. The Contractor performs the services in accordance with the responsibilities outlined in the Performance Work Statement (PWS) while adhering to German transportation regulations.

Presently, this is the only procurement vehicle available to support IMCOM – E’s mission. The Government relies on the Contractor to plan and coordinate deliveries and pick-ups from across the eight (08) FMO warehouses based on weekly schedules issued at each location, which is also susceptible to changes, including volume increases, address revisions and date/time rescheduling. As part of the contract requirements the Contractor is responsible for supplying all the vehicles necessary for the transportation of all the Government’s furnishings and appliances.

Contract W564KV-22-C-0057, was awarded with the following 26-month period of performance:

Base Year – 31 August 2022 to 29 August 2023 Option Period I - 30 August 2023 to 29 August 2024 Option Period II – 30 August 2024 to 29 October 2024

Concerns rising from unknown variables associated with the effects the CoVID-19 pandemic was creating on commodity prices and labor costs across many global markets as well as the uncertainty that one (01) Contractor would be able to provide services to all US Army Garrisons in Germany ultimately led to the decision to shorten the requirement’s period of performance. Given the instability of the economic environment at the time, the period of performance was shortened to alleviate the high risk created by the precarious global conditions, while also allowing for data collection concerning resourcing/staffing and pricing to navigate market conditions as we reprocure future drayage services in Germany.

Since the award of Contract W564KV-22-C-0057, the economies worldwide have stabilized and data collected through market research for the follow-on procurement has confirmed market sources are not only capable of providing support with one

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The traditional procurement lead time was initially anticipated for this contract award and the customer did plan for this time. However, through the requirement’s development and analysis of the current contract design and performance, it is noted that the follow-on contract would require a revision to the planned strategy, scope and solicitation structure to reduce risk of claims by a future contractor. This work in the pre-award phase of the follow-on contract is in effort to mitigate contract performance issues and/or claims on the on the follow-on contract.

Fuduric GmbH, the current Contractor, has the base and facility access for their entire staff of personnel. The skilled workforce understands and meets performance and training requirements to address the logistics and repair requirements. To satisfy full performance for this requirement, a contractor would require 60 days to prepare their personnel to be fully capable of meeting contract requirements.

Therefore, it is not feasible that should a new contractor be awarded the follow-on requirement, that a new contractor would be postured to fulfill the contract requirements by the end of the current contract (29 Oct 2024.) Furthermore, there are several reasons supporting an extension of three (03) months to the period of performance of Contract award W564KV-22-C-0057, as well as the inclusion of FAR Clause 52.217-8, Option to Extend Services, to allow for an additional six (06) months of performance, if needed. As discussed below, the Contractor is uniquely qualified to provide these services to IMCOM – E and award of the interim requirements discussed below is appropriate in the interest of economy and efficiency.

Uninterrupted performance of services by skilled and certified technicians of various appliance Original Equipment Manufacturers.

Logisticians knowledgeable of the government infrastructure; government data tracking software/systems, performance criteria and regulations governing the PCS support authorized for military and civilians in the European theater.

Base access for contractor personnel.

The mobilization period new contractor to begin on site full performance to include badging for base and facility access, processing/approval of various technician certifications, as well as clearances for access to software/systems.

Fuduric GmbH is currently providing services under Contract W564KV-22-C- 0057 and has unique knowledge of the current Government infrastructure, distribution requirements, inventory capabilities and transportation methods that position itself to effectively meet mission needs.

Fuduric GmbH possesses the qualifications and personnel required to perform this requirement and can continue performance without interruption if a modification is approved and executed. No other Contractor can meet a similar timeline. Fuduric GmbH is currently providing the services for all FMO Warehouses and modifying this award would allow those services to continue uninterrupted.

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Fuduric GmbH, as the incumbent, will not need to expend resources to continue performing the required services considering its performance under the current Contract. Attempting to award to another Contractor other than the incumbent prior to the current Contract’s expiration on 29 October 2024, would result in a break in service and would lead to mission failure.

A new Contract would necessitate the awardee have time and financial resources to get their employees in place to provide the services under the terms and conditions of the Contract. Significant delay would occur if the subject, interim requirement is competed via full and open competition, resulting from resourcing the contract, obtaining base and facility access, workforce orientation/training for performance compliance and meeting logistics requirements with an authorized vehicle fleet. All this would be necessary for compliance with regulations associated with supporting the military and civilian PCSs within the European AOR.

IMCOM – E submitted a timely acquisition package to the Contracting Office for the follow-on competitive action for these services. As previously indicated due to changes in the scope, the solicitation and specifically a change in strategy of contract type, the ability to provide a new competitively awarded contract prior to expiration of this contract is not feasible. To preserve the long-term support to our military and civilians within the European theater a modification extending Contract award W564KV-22-C-0057 is logical, economical, and efficient. Significant delay would occur if the subject, interim requirement is competed via full and open competition prior to implementing the changes to the scope, solicitation and contract type.

It is anticipated that it will take until 29 January 2025 to award the Contract.

Additionally, the new Contract will require a 60-day phase-in period to allow the new Contractor sufficient time to bring new employees on board, meaning full performance likely will not be possible under the new Contract until about 28 February 2025 at the earliest. During this time IMCOM – E still requires full performance of services to ensure their mission is successful. This modification will ensure continued services to the Government while the completion of this follow-on contract occurs.

Moreover, this extension would provide the necessary time to complete the procurement process for the follow-on Contract award via full and open competition and mitigate the possibility for performance issues under the new procurement. The incumbent contractor, Fuduric GmbH, has proven they can provide reliable services to support IMCOM – E. Fuduric GmbH holds significant knowledge and experience with this requirement. Fuduric GmbH is performing satisfactorily, continuity will remain intact through the three (03) month extension and for the six (06) months under FAR Clause 52.217-8 should it be exercised, and there is no risk for a break in service. For these reasons, a modification is justified, and documentation will be included in the contract file.

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A break in service would present unacceptable complications and expenses to the drayage requirements currently handled by IMCOM – E. A break in services would prevent IMCOM – E from performing its mission of ensuring no interruption in transportation, delivery and pick-up of furniture and appliances within the German AOR for all DoD military and civilian personnel. As previously stated, readjustments to the Acquisition Strategy and the Source Selection method, as well as re-writes to the Solicitation led to a delay in procuring follow-on services was unavoidable due to the time it took to develop this requirement, based on current market conditions and practices.

Fuduric GmbH have provided drayage services under W564KV-22-C-0057 since the award of the contract on 30 August 2022. Fuduric has assets readily positioned to support the IMCOM – E mission, including resource and logistics network, to provide local drayage distribution services for Government-owned furniture and domestic appliances. Fuduric GmbH possesses the specialized and technical expertise for drayage services and is already positioned in Europe to support IMCOM – E’s mission to manage, provide, distribute and maintain all furniture and appliances that are owned by the U.S. Government that are used by U.S. Government personnel that are stated within Europe.

6. Efforts to Obtain Competition: Presently, work is underway on a follow-on project, Solicitation W564KV-24-R-0071. The Government intends to solicit this follow-on effort competitively through local sources. The follow-on requirement is excepted from synopsis per the exception found at FAR Part 5.202(a)(12).

This justification will be posted in accordance with the requirements of FAR Part

5.201 and 6.305.

The follow-on source selection process will follow the sequence and aim to meet the milestones listed as follows:

Receive Senior Contracting Official (SCO) Approval on Solicitation – 31 October 2024

Issuance of Solicitation – 31 October 2024 Source Selection Training – 07 November 2024 Solicitation Closing Date – 02 December 2024 Technical Evaluation & Price Fair and Reasonableness Analysis – 04

December 2024 Source Selection Evaluation Board Report Review – 12 December 2024 Source Selection Decision Document – 12 December 2024 Drafting Combined POM/PNM and Award – 16 December 2024 Concurrent Review of Award and Evaluation Documents – 18 December

COD Review of Award and Evaluation Documents – 06 January 2025 Legal Review of Award and Evaluation Documents – 13 January 2025 Receive SCO Approval on Award – 21 January 2025

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9. Interested Sources: As part of the Market Research for the current follow-on effort, PAN409-23-P-0000 002056, a Sources Sought posted on 23 July 2023. The Sources Sought returned five (05) responses from interested Contractors. These contractors: however, would need the time for the 60-day phase-in, so they would not be able to fulfill the contract immediately and are not capable of providing these services by 29 October 2024. Otherwise, no potential sources have expressed any interest in supporting the continuation of services. This justification will be posted in accordance with the requirements of FAR Part 5.201 and 6.305.

10. Other Facts:

a- Procurement history.

The current Contract – W564KV-22-C-0057, awarded 30 August 2022 with a 26-month period of performance (31 August 2022 to 29 October 2024), including all option years. The total contract amount is 9,168,000.00€ ($10,068,048.28). Full and open competitive solicitation.

Previous Contract – W564KV-17-D-2000, awarded 01 February 2017 with a five (05) year ordering period (01 February 2017 to 31 December 2021).

The contract included FAR Clause 52.217-8, thus allowing an extension of the ordering period to 30 June 2022. The total contract amount was 22,459,894.00€ ($24,983,196.89). Full and open competitive solicitation.

b- Other facts. Milestones for the follow-on procurement are available at

Attachment 1.