Limited Sources Justification F.pdf

DEPARTMENT OF TRANSPORTATION

FEDERAL HIGHWAY ADMINISTRATION

LIMITED SOURCES JUSTIFICATION

1. Identification of the agency and the contracting activity - FAR 8.405-6(c)(2)(i)

Federal Highway Administration (FHWA) Headquarters, Office of Acquisition and

Grants Management, 1200 New Jersey Avenue, S.E., E65-101, Washington, DC 20590.

2. Nature and/or description of the action being approved – FAR 8.405-6(c)(2)(ii) This is a Limited Sources Justification and approval to increase the ceiling by $684,277 and extend the period of performance by 21-months under the General Service Administration (GSA) Contract 47QRAA18D008A Order 693JJ319F000054, Nichols Consulting Engineers, Chtd., for the continued operation of the FHWA Long Term Pavement Performance (LTPP) Program’s Materials Reference Library (MRL) at its current location in Reno, Nevada.

3. Description of the supplies or services required to meet the agency’s needs (including the estimated value) – FAR 8.405-6(c)(2)(iii) The MRL is a storage facility used to store highway materials consisting of asphalt cement, portland cement, natural aggregates, a combination of these materials in both loose and core form and a film storage facility for the purpose of pavement evaluation.

Materials in the MRL are stored in a static state and are made available for the evaluation and verification of new pavement designs and material tests that are expected to result in substantial improvement to highway infrastructure performance.

The current Contractor can provide the services at the level of quality required by FHWA.

Throughout the period of performance, the Contractor has provided exceptional service.

Additionally, the Contractor proficiently coordinates with the LTPP Data Collection Contractor to receive shipments of new material as well as coordinates with the LTPP Central Laboratory Testing Contractor to supply the batches of materials for testing in a timely manner. The Contractor also effectively investigates changes to the test assignments in the Materials Tracking System with the LTPP Technical Services Support Contractor to make required corrections. The Contractor properly uses and maintains the Government Furnished Equipment (GFE), has developed an organizational system to group similar materials to map their location within the warehouse, to include updating and publishing MRL inventory.

The total estimated amount of this anticipated modification is $684,277 to be expended over a 36-month period of performance.

4. Authority and supporting rationale – FAR 8.405-6(a)(1)(i)(C)

The authority to enter into this Order modification on a limited sources basis is FAR 8.405-6(a)(1)(i)(C). The modification must be issued on a sole-source basis in the interest of economy and efficiency. This modification is a logical follow-on to an Order already issued under a GSA contract. The Order was previously issued as a Small Business Set-Aside under GSA Small Business Schedule 871-7, Construction Management and Engineering Consulting Services Related to Real Property. All Vendors under the Schedule were given a fair opportunity to be considered for the original Order.

Rent has increased substantially in the Reno, Nevada area. This is due in part to technical companies purchasing and leasing land as well as inflation. The rent increase will have a significant impact to the operations at the MRL if not addressed with an Order ceiling increase. The Contractor has requested an equitable adjustment to compensate for the rent increase as this increase is an unforeseeable circumstance. The Leaser is offering a three-year lease, which would require a 21-month Order extension. The current Order ends February 18, 2024, which is the 60th month of the current 60 month Order. The new lease would start in the 46th month of the current Order, the 60th month of the current Order would be month 15 of the new lease. Thus, at the end of the requested 21-month extension - would be month 36 and the end of the three-year lease, in November 2025.

The Leaser is not prepared to accept 15-month lease which is the end of the current Order. Relocating the MRL will increase the Contractor’s commute time and would ultimately reduce support operations at the MRL to provide the supplies and services required. This does account for the lengthy process to install pallet racking systems, obtain a building permit for structural racking and fire inspection. It would be expected that the MRL would operate at a slower pace due to the reduced accessibility of pallets that have been relocated. The rationale to grant the equitable adjustment for the rent increase and Order extension:

Moving costs would be substantial; remaining at the current location would provide a savings to the Government.

Continuity of services is critical as the (1) LTPP Data Collection Contractor supplies shipments of new material to the MRL and the (2) LTPP Central Laboratory Testing Contractor relies on the MRL to supply the batches of materials for testing. Therefore, this impacts two additional FHWA contracts.

The MRL must also keep the test assignments and shipments current in the Materials Tracking System with the collaboration of the LTPP Technical Services Support Contractor.

5. Determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 8.404(d). – FAR 8.405-6(c)(v)

The ordering activity has concluded that the Order represents the best value (as defined in FAR 2.101) and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government's needs. Although GSA has already negotiated fair and reasonable pricing, ordering activities may seek additional discounts before placing an order (see 8.405-4).

6. Description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted. – FAR 8.405-6(c)(vi).

The Office of Infrastructure Research and Development conducted market research to explore leasing options in the greater Reno, Nevada area to relocate the MRL. The market research concluded the following:

There are limited facilities currently available in the greater Reno, Nevada area.

The facilities that are available come with a higher lease rate and a one-hour commute from the Contractor’s office in Reno, Nevada.

Lease rates comparable to the current lease rate, would require relocating to rural California - a three-hour commute from the Contractor’s office in Reno, Nevada.

7. Other facts supporting the justification – FAR 8.405-6(c)(vii)

To relocate the MRL would be a substantial cost. Moreover, relocating the MRL will increase the Contractor’s commute time and would ultimately reduce support operations at the MRL to provide the supplies and services required to the Government, including the LTPP Data Collection Contractor, the LTPP Central Laboratory Testing Contractor, and the LTPP Technical Services Support Contractor.

8. 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 is made. – FAR 8.405-6(c)(viii)

The Program Office knows of no barriers to competition; therefore, there is no known need to remove or overcome any such impediments.

9. Contracting Officer Certification – FAR 8.405-6(c)(ix)

I certify that the information provided in this justification is accurate and complete to the best of my knowledge and belief.

06/08/2022 Tamiko Aikens Date

Contracting Officer

10. Technical or Requirements Personnel Certification – FAR 8.405-6(c)(x)

I certify that any supporting data (e.g., verifying the Government's minimum needs or requirements or other rationale for limited sources) and which form a basis for the justification is accurate and complete to the best of my knowledge and belief.

______________________________________________ __6/30/2022_________ Larry Wiser, Contracting Officer’s Representative Date The Office of Infrastructure Research and Development

Approvals Signature Page

Based upon the preceding information, I hereby recommend approval of this Justification for Other than Full and Open Competition to issue an Order modification to Nichols Consulting Engineers, Chtd. for Long Term Pavement Performance (LTPP) Materials Reference Library

(MRL).

Bob P. Brown, Team Leader Date FHWA Office of Acquisition and Grants Management

06/08/2022 Tamiko Aikens, Contracting Officer Date Acquisition and Grants Operations Division FHWA Office of Acquisition and Grants Management

ROBERT PATRICK BROWN Digitally signed by ROBERT PATRICK BROWN Date: 2022.07.01 07:41:25 -04'00'