LSJ 09-A-0021 0013 Extension 4 Redacted 15 Nov 2022 (3).pdf

JUSTIFICATION REVIEW DOCUMENT

FAR 8.405-6 LIMITED SOURCES JUSTIFICATION UNDER THE

GENERAL SERVICES ADMINISTRATION FEDERAL SUPPLY

PROGRAM

Program/Equipment: The Security Assistance Management Directorate (SAMD) - Product Assurance, Production Engineering, Systems Engineering, Test and Evaluation, Technical Data Management and Product Assurance / EXPRESS Technical Domain.

Authority: Title Ill of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251, et. Seq) and Title 40 U.S.C 501, Services for Executive Agencies, as implemented by FAR 8.405-6(a)(1)(i)(C). In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule (FSS) order provided that the original order was placed in accordance with applicable FSS ordering procedures. The original order or Blanket Purchase Agreement (BPA) was not previously issued under sole-source or limited sources procedures.

Amount: $1,344,382.08

Prepared by: Greg McPherson DSN: 788-6484 Contracting Officer's Representative Date: 26 Oct 2022 Email: gregory.w.mcpherson4.civ@army.mil

Contracting Officer

Delvin L. Sullivan DSN: 788-0739 Contracting Officer Date: 26 Oct 2022 Email: delvin.l.sullivan.civ@army.mil

Technical: LeAnn Garcia 256-313-6461 Logistics Management Specialist Date: 26 Oct 2022 Email: leann.a.garcia.civ@army.mil

Requirements: Daniel Hernandez 256-842-6079 Chief, Non-Standard Missile Division Date: 26 Oct 2022 Email: daniel.hernandez.civ@army.mil

CUI//SP-SSEL

(Source Selection Information - See FAR 2.101 and 3.104-4)

CUI

OCT 2022

1 Controlled by: AMCOM-SAMD Controlled by: AMAM-SAT-MS CUI Category: CTI Limited Dissemination Control: DL ONLY

POC: LeAnn Garcia, 256-313-6461

Reviews: I have reviewed this justification and find it adequate to support limiting competition.

Legal Counsel:

Typed Name: Jonathan P, Summers

DSN: 256-842-0541

Signature: Date:

Advocate for Competition:

Typed Name: Virginia A. Rosacia

DSN: 876-4639

Signature: ------------------------------------- Date:

FAR 8.405-6 LIMITED SOURCES

JUSTIFICATION UNDER THE GENERAL

SERVICESADMINISTRATION FEDERAL

SUPPLY SCHEDULE PROGRAM

1. Contracting Activity: Department of the Army, Army Contracting Command-Redstone (ACC-RSA), CCAM-MLP, Redstone Arsenal, AL 35898-5000.

2. Description of Action: The Security Assistance Management Directorate (SAMD) requests approval to award a contract modification, non-competitively, to Torch Technologies, Inc. (further referred to as Torch), 4090 Memorial Parkway S, Huntsville, AL 35802-1382, Commercial and Government Entity (CAGE) Code: 3CBV3, Federal Supply Schedule (FSS) GS-23F-0321N, under United States Army Aviation and Missile Command (AMCOM) Expedited Professional Engineering Support Services (EXPRESS) Program Blanket Purchase Agreement (BPA) W31P4Q-09-A-0021 task order 0013 to increase hours, ceiling, and period of performance (PoP) from 05 November 2022 through 04 May 2023 to ensure coverage through award and potential protest (three month base and three month option). The not-to-exceed ceiling amount on the task order is $26,162,628. The current total obligation amount is $25,860,687.63 which leaves a remaining not to exceed ceiling balance of $301,940.37. The estimated amount for the 6 month extension is $1,344,382.08 which will increase the ceiling amount by $1,042,441.71. The estimated labor hours for this extension are 9,903 and there are 1,956 hours remaining on contract; therefore, an additional 7,947 labor hours would be needed for the extension. The anticipated award date for the follow-on task order is 3 Nov 2022.

The modification of W31P4Q-09-A-0021 Task Order (TO) 0013, technical support for SAMD, will allow continuous support while the follow-on requirement is being completed under the EXPRESS BPA contract. The original award was a fixed price level of effort requirement. The current funding available for this effort will be Foreign Military Sales (FMS) Case Funds as well as FMS Administrative (FMS-Admin). The FMS country/case/ line(s) are as follows: UAE (AE-UDP-011), Bahrain (BA-ULD-002), Spain (SP-WBH-006), Japan (JA-UWO-003), Egypt (EG-VBS-0005, EG-VIN-003, EG-VIS-002, EG-VDX-013), and Turkey (TK-VDO-001). FMS Cases and FMS-Admin funds are not source directed.

Extension requirements to this contract have come about for different reasons. Due to the abrupt departure of the AMCOM SAMD Subject Matter Expert (SME) who was thoroughly familiar with these requirements and responsible for developing the Performance Work Statement (PWS), another SME had to be identified and brought up to speed in order to complete the PWS. The delay in the development of the PWS consequently caused a significant delay in the development and submission of the Contract Requirements Package to the ACC. In addition, the National COVID -19 health pandemic caused a shortage of personnel on both sides to coordinate and work on this effort.

A summary of the actions covered by this LSJ is provided below:

Hours Estimated Value

PoP Extension

Extension #1 11,913 $1,555,663.24 16 Mar 2021 – 16 Sep 2021 Extension #2 13,427 $1,757,039.26 17 Sep 2021 – 16 Mar 2022 Extension #3 16,241 $814,164.89

$1,356,941.49 17 Mar 2022 – 2 June 2022 (3-mo Base) 3 June 2022 – 4 Nov 2022 (5-mo Option)

Extension #4 (current action)

9,903 $672,191.04 $672,191.04

5 November 2022 – 5 February 2023 (3mo Base) 6 February 2023 - 4 May 2023 (3-mo Option)

Total 51,484 $6,828,190.96

3. Description of Supplies/Services: This task order is to provide Technical Support Services in monitoring, assessing, coordinating, analyzing and integrating component programs and activities in SAMD. SAMD’s mission is to provide aviation and missile weapon system support to US foreign allies. SAMD has a requirement for technical support to meet contractual obligations for the procurement, delivery and sustainment of U.S. Army Aviation and Missile Command (AMCOM) systems entered into via the FMS process between the U.S. Government (USG) and numerous foreign governments. This includes the technical support requirements for the SAMD managed missile weapon systems, their associated support/test equipment, and repairable secondary items. The requested modifications to the TO allow continuous support of technical support services in the areas of Product Assurance, Production Engineering, Systems Engineering, Test and Evaluation, Technical Data Management and Product Assurance.

4. Authority Cited: Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251, et. Seq) and Title 40 U.S.C 501, Services for Executive Agencies, as implemented by FAR 8.405-6(a)(1)(i)(C). In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with applicable Federal Supply Schedule ordering procedures. The original order or BPA was not previously issued under sole-source or limited-sources procedures.

5. Reason for Authority Cited: This LSJ regarding Torch, 4090 Memorial Parkway S, Huntsville, AL 35802-1382, Commercial and Government Entity (CAGE) Code: 3CBV3, Federal Supply Schedule (FSS) GS-23F-0321N supports the authority cited above in that this LSJ to increase hours, ceiling, and PoP. The relationship between the follow-on and the limited sources ceiling increase is logical because it is a continuation of the same, already existing effort/scope, which was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original TO of W31P4Q-09-A-0021/0013 was competitively awarded using a Small Business Set-Aside on 17 September 2015 for a period of five years, through 16 September 2020, as a Firm-Fixed-Price Level of Effort Contract. This is the fifth time FAR 8.405-6(a)(1)(i)(C) has been utilized. Due to past history of recompetes there have been protests every time this requirement has been competed and this sole-source extension is necessary to bridge the gap with the expected protests. Torch has the required personnel in place and would eliminate duplication of efforts. In addition, it is anticipated that it would take approximately three to six months to train and familiarize a new contractor with policies, procedures and regulations that are uniquely specific to SAMD FMS technical services. If this PoP extension and ceiling increase are not approved, there will be a degradation of support capabilities and failure to perform the Performance Work Statement (PWS) requirements which will hinder SAMD support to our foreign allies. Therefore, it is not efficient to award this action to a new contractor as it is only required for a short time.

Due to the short-term performance requirements, many additional costs beyond those associated with labor would be considered (i.e. TDY, security clearances, etc.). It would not be cost effective, nor efficient, to award a new task order before the anticipated award date. Torch’s experience in executing the requirements detailed in the PWS is unique. Torch currently provides highly specialized technical support services by providing technical expertise in support of the performance of life cycle producibility and systems engineering analysis to ensure material production capabilities for the Chaparral, HAWK and other SAMD supported missile systems. This support also includes design, development, and delivery of prototype modification kits in support of FMS-altered end item requirements. Technical support provides for the evaluation of alternative system/subsystem components to determine their suitability for use as replacements for unavailable/obsolete items required by foreign military customers. Torch also possesses the applicable working knowledge of Security Assistance/Security Cooperation rules, regulations, processes, and procedures associated with FMS.

Numerous factors attributed to the delay in procurement and execution of this contractual action that resulted in this follow-on requirement, mainly the COVID-19 pandemic and subsequent nationwide shutdown as well as lost of AMCOM SAMD Subject Matter Expert (SME). Due to the abrupt departure of the AMCOM SAMD SME who was very familiar with these details and requirements and responsible for developing the Performance Work Statement (PWS), another SME had to be identified and brought up to speed to complete the PWS. The delay in the development of the PWS consequently caused a significant delay in the development and submission of the Contract Requirements Package to the ACC. Also, the pandemic caused work stoppages because of employee absentees due to COVID-19 exposure and subsequent/required quarantines, illnesses, death, and hospitalizations.

Also, the virtual work environment did not catch up to the shutdowns until months after the contagion started, causing a shortage of personnel on both sides to work on this effort that is critical to meeting the mission requirements of SAMD. The impact to foreign allies to try to mitigate and recover from a break in service would result in costly delays and the inability to provide support to FMS customers.

The anticipated award date for the re-compete contract is on or about 30 December 2022 as well as all funding to ACC by 11 November 2022.

Alternatives:

Suspend Operations: Currently, if this LSJ to increase hours, ceiling, and PoP is not granted, there are no other alternatives except to suspend operations until the new TO is awarded. As previously mentioned, failure to provide expert technical support for FMS customers will negatively impact SAMD’s mission. SAMD has legally binding international agreements for the procurement, delivery and sustainment of AMCOM systems entered into via the FMS process between the USG and numerous foreign governments. This LSJ to increase hours, ceiling, and PoP is critical to continuing to meet US allies’ defense needs and ongoing FMS technical activities. If a lapse of service is experienced, it will force the immediate withdrawal of contractor personnel from critical missions and impact contractor technical services to multiple countries/ missions, damaging the current foreign relations and programs operating under this TO. It is anticipated that without the approval of this LSJ to increase hours, ceiling, and PoP, there will be a significant break in service. The impact of any break in service incurred by these foreign countries and programs could be damaging to foreign military safety as these technical services are intimately supporting FMS sales and the foreign countries’ ability to purchase the products and support they need for their defense and potentially the defense of the United States of America. As these services are directly related to the ongoing foreign relationships throughout the world, the USG cannot entertain the possibility of losing these relationships. Torch is the only immediate company capable of providing the required support during the ongoing competition of the follow-on task order. As a result, the suspension of operations is not a viable alternative. The functions procured under this task order are specialized and the USG does not possess the staff to provide support. The use of in-house personnel/expertise is not an option, there are simply not enough qualified USG personnel to perform the services delineated in the PWS.

6. Efforts to Obtain Competition:

a. Effective Competition. SAMD submitted Contract Requirements Package (CRP) to ACC-RSA on 08 Aug 2021. However, until the re-compete is awarded and based on the above mentioned facts, it is not feasible to utilize another source for this extension since only Torch personnel have the immediate in-depth knowledge and experience necessary to meet the TO requirements in the time available. There are no efforts to obtain competition for this extension at the current time. In accordance with FAR 8.404(a), this action is exempt from pre-award synopsis requirements.

b. Subcontracting Competition. FAR Clause 52.244-5, Competition in Subcontracting is included in the basic contract. Since the Subcontracting Plan is already prevalent on the BPA, it is not required at the TO level. All contract clauses currently contained in the BPA will still be in effect.

7. Actions to Increase Competition: This proposed action is a bridge modification with the incumbent. In the interest of economy and efficiency, it would be neither cost effective nor realistic to expect another contractor to perform during the brief interim period between the end of the current TO and award of the re-compete. There are currently twenty EXPRESS BPA holders in the Technical Domain which will compete for the new task order; therefore, no additional actions are currently being taken to increase competition.

8. Market Research: In accordance with FAR 10.002, market research was conducted by the Contracting Officer’s Representative for W31P4Q-09-A-0021/0013 and SAMD Non-Standard Missile Systems Division Chief. The market research conducted on 24 October 2022 revealed that a re-compete of this effort in the necessary timeframe was not realistic or feasible. Both program experience and personal knowledge were used to determine that no other source is capable of mobilizing in time to meet the requirement within the needed timeframe. FAR Part 12 will not be used in this effort; however, in accordance with FAR Part 8.402(a), GSA provides agencies with a simplified process for obtaining commercial supplies and services and the guidelines and clauses are contained in the EXPRESS BPA.

9. Other Facts:

Procurement History:

The original TO W31P4Q-09-A-0021/0013 was competitively awarded using a Small Business Set-Aside on 17 September 2015 for a period of five years, through 16 September 2020 as a Firm-Fixed-Price Level of Effort Contract (238,733 labor hours, and a Not to Exceed (NTE) ceiling price of $27,601,969.07).

A contracting officer signed modification 65 for contract W31P4Q-09-A-0021 TO 0013 which was awarded 11 August 2020 to extend the contract from 16 September 2020 to 16 March 2021 in accordance with FAR 52.217-8.

Modification 72 for contract W31P4Q-09-A-0021 TO 0013 was awarded 16 March 2021 via a LSJ to extend the contract through 16 September 2021 in accordance with FAR 8.405-6(a)(1)(i)(C), no change to hours or ceiling were made.

Modification 80 for contract W31P4Q-09-A-0021 TO 0013 was awarded 15 Sep 2021 via an Amendment to the prior LSJ that extended the PoP from 16 Sep 2021 through 16 Mar

2022 in accordance with FAR 8.405-6(a)(1)(i)(C). No changes to hours or ceiling were made.

Modification 87for contract W31P4Q-09-A-0021 TO 0013 was awarded 16 Mar 2022 via an Amendment to the prior LSJ that extended the PoP from 17 Mar 2022 through 4 Nov 2022 in accordance with FAR 8.405-6(a)(1)(i)(C).

Other facts: No other facts are available.

10. 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 knowledge and belief.

HERNANDEZ.DA Digitally signed by

HERNANDEZ.DANIEL.102120138

Date: Signature:

Date: 2022.10.26 14:46:02 -05'00'

Daniel Hernandez Chief Non-Standard Missile Division

11. 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 knowledge and belief.

HERNANDEZ.DA Digitally signed by

HERNANDEZ.DANIEL.102120138

Date:

Date: 2022.10.26 14:46:20 -05'00'

Signature:

Daniel Hernandez Chief Non-Standard Missile Division

12. Fair and Reasonable Cost Determination: I hereby determine that the modification to extend the period of performance represents the best value to the Government in accordance with FAR 8.405-6(c)(2)(v). Additionally, I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. Determination of fair and reasonable costs or price will be based on the GSA negotiated rates established under the basic contract awarded as a result of a Small Business Set-aside Competition. Certified cost or pricing data will not be required based on the exception set forth in FAR 15.403-1(b)(3).

The determination will be made using the GSA negotiated rates established under the basic contract.

SULLIVAN.DELVIN. Digitally signed by

SULLIVAN.DELVIN.LEE.1112294925

Date: Signature: LEE.1112294925 Date: 2022.10.26 23:08:54 -05'00'

Delvin L. Sullivan Contracting Officer

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

Date: Signature:

Delvin L. Sullivan

Contracting Officer

Approval

As mentioned above in JRD, the total estimated cost/price of the instant action authorized by the LSJ is $1,344,382.08.

Based on the foregoing justification, I hereby approve limiting sources in the acquisition of Technical Support Services for SAMD, these services include Product Assurance, Production Engineering, Systems Engineering, Test and Evaluation, Technical Data Management and Product Assurance pursuant to the authority of Title III of the Federal Property and Administrative Services, Act of 1949 (41 U.S.C. 251, et Seq.) and Title 40 U.S.C. 501, Services for Executive Agencies, as implemented by FAR 8.405-6(a)(1)(i)(C), “In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule (FSS) order provided that the original order was placed in accordance with applicable FSS ordering procedures. The original order or BPA was not previously issued under a sole-source or limited-sources procedures”, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition."

Date: Signature:

Joseph A. Giunta Jr.

Senior Contracting Official (SCO) Army Contracting Command-Redstone