LSJ_-68HERD23F0207_-_Bluewater_Federal_Solutions_AAC_Signature_9-29-2023_1.pdf

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

WASHINGTON DC 20460

OFFICE OF MISSION SUPPORT

LIMITED SOURCE JUSTIFICATION UNDER THE AUTHORITY OF FAR 8.405-6

FEDERAL SUPPLY SCHEDULES

EPA TASK ORDER NO. 47QRAA20D001S/68HERD23F0207

This acquisition is to be conducted under the authority of the Multiple Award Schedule (MAS) Program/Federal Supply Schedule (FSS). This document sets forth the justification for award on a limited source basis requirement per Federal Acquisition Regulation (FAR) 8.405- 6(a)(1)(i)(B) – “Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.”

1. Identification of the agency and contracting activity.

The requiring activity is the United States Environmental Protection Agency (EPA), Office of Air and Radiation (OAR), Office of Transportation and Air Quality (OTAQ), Testing and Advanced Technology Division (TATD) in Ann Arbor, Michigan. The contracting activity is EPA Office of Acquisition Solutions (OAS), Information Technology Acquisition Division (ITAD) in Research Triangle Park, NC.

2. The nature and/or description of the action being approved.

This action is a request for approval of a Limited Source Justification (LSJ) for the Sole Source Award of a six (6) month extension (October 1, 2023 through March 31, 2024) with three (3), one (1) month option periods to EPA Task Order No. 47QRAA20D001S/68HERD23F0207.

Utilizing the three (3), one (1) month option periods would extend the task order through June 30, 2024. The task order shall be extended on a limited source basis to Bluewater Federal Solutions, Inc., 4420 Albemarle Point Place, Suite 200, Chantilly, Virginia, in accordance with (FAR) 8.405-6(a)(1)(i)(B). This is done to provide the continuation of on-site Information Technology & Telecommunication support services for EPA’s National Vehicle and Fuel Emissions Laboratory (NVFEL) in Ann Arbor, Michigan. EPA’s current (NVFEL) services are being provided under Bluewater Federal Solutions’ task order GS-06F-0603Z/EP-G17C- 00197.

Previously, a six (6) month extension utilizing FAR52.217-8, Option to Extend Services (NOV 1999) was exercised, extending the task order from July 1, 2022, through December 31, 2022. At present, there is a six (6) month, with three (3) one (1) month option periods, extension to task order, extending it from January 1, 2023, through Sept 30, 2023. During this extended performance period, the requirement was competed amongst Contractors holding a federal supply schedule listed under the GSA VETS 2 GWAC. The competition was specifically set aside for a Service-Disabled Veteran-Owned Small Business (SDVOSB) because it was found compatible in GSA’s scope review and per EPA’s Office of Small and Disadvantaged Business Utilization (OSDBU) guidance a Sources Sought was posted on this GWAC. This was to determine if there were two or more small businesses that could meet the government’s requirement. EPA released a Sources Sought on GSA VET 2 GWAC on November 8, 2022. Four (4) responses were received on November 16, 2022. After reviewing each response independently, and considering FAR 19.502-2(b) and 19.203, it was determined on December 2, 2022, that at least two responsible SDVOSB concerns, holding a GSA VETS 2 GWAC could meet the government’s requirement. On December 12, 2022, the Form 1900-37 was approved by EPA OSDBU stating an intent to post the requirement on the GSA VETS 2 GWAC. The requirement was posted to GSA VETS 2 GWAC under Solicitation No. 609410 on February 21, 2023. A total of four amendments were issued on the solicitation. Amendment one extended the closing date out to March 23, 2023, amendment two, revised the Solicitation Instruction and Price Matrix, amendment three, extended the deadline for solicitation questions out to March 15, 2023, and amendment four, was utilized to post the questions and answers, revised Attachment 1 – Performance Work Statement (PWS), Attachment 3 – Price Matrix, and the solicitation instruction to extended the closing date out to March 29, 2023. Only one (1) SDVOSB contract holder responded to the request for proposals. The CO charged the Technical Evaluation Panel (TEP), on April 4, 2023, and the Consensus meeting was held on April 25, 2023. After a thorough evaluation the Technical Evaluation Panel report dated, June 13, 2023, determined that the offer did not satisfy the requirements of the solicitation.

Based on OSDBU recommendation, additional efforts are underway to identify socio-economic firms to fulfill this requirement. It is anticipated that this requirement will be competed under the 8(a) Stars III GWAC in an attempt to find additional socio-economic sources. EPA intends to utilize this LSJ to extend the current firm-fixed price task order. The re-competition for these services is scheduled to be completed during this extension period.

This extension will prevent a lapse in critical IT & Telecommunication services to the National Vehicle and Fuel Emissions Laboratory (NVFEL) while this office processes the re-competition and awards the follow-on task order. A lapse in contractual support would have a significate adverse impact on EPA.

3. A description of the supplies or services required to meet the agency’s needs (including estimated value).

The NVFEL is a state-of-the-art facility that provides emissions testing services for motor vehicle, heavy-duty engine, and non-road engine programs in support of federal rulemakings, enforcement actions, and test procedures development. Testing activities include but are not limited to certifying that vehicles and engines meet federal emissions and fuel economy standards, testing engines for in-use compliance, and analyzing fuels, fuel additives, and exhaust compounds.

The Contractor shall continue providing uninterrupted IT and Telecommunication services to facilitate the EPA’s ability to continue the advancement of emissions testing and provide critical data to leadership to enhance the Government’s ability to make decisions that protect people and the environment from significant risk.

This extension shall be comprised of a six (6) month base (October 1, 2023, through March 31, 2024), with three (3), one (1) month option periods, until the follow-on order can be awarded.

The estimated total value for this effort is approximately $1,305,461.09.

4. Authority and supporting rationale.

This acquisition is being conducted under the authority of FAR 8.405-6(a)(l)(i)(B):

This justification cites FAR Subpart 8.405-6(a)(l)(i)(B) Only one source can provide the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized. This document contains sufficient facts and rationale to justify the use of FAR Subpart 8.405-6(a)(l)(i)(B) as the authority for this action. The limited source is requested because there is only one company, Bluewater Federal Solutions, Inc., that can immediately meet the specifications outlined in the EPA OAR/OTAQ/TATD statement of work for EPA Task Order No.

47QRAA20D001S/68HERD23F0207.

The nature of NVFEL's work demands a level of quality that is significantly higher than standard IT services. The laboratory conducts critical emissions testing, data analysis, and research that directly impact environmental and public health policies. The Contractor services encompass complex technical support, data analysis, and system integration of both cutting edge and antiquated technologies that may no longer be supported by the original equipment manufacturer. Any compromise in the quality of IT services could have far-reaching consequences. For example, disruption to application services or mission critical systems in the testing environment can affect the integrity of test results which can lead to test invalidation, delays in vehicle certifications all the way up total disruption of the workforce and the mission of all branches in the Ann Arbor EPA location.

All of which impact the vehicle manufacturer industry, and ultimately the populace’s ability to procure vehicles. Therefore, it is imperative that the government engage a source with current knowledge of the NVFEL IT infrastructure and polices that can consistently deliver services at the level of quality required. Bluewater is the only service provider with this pre-existing knowledge and experience.

A new contractor cannot begin performing under the contract without a significant transition period.

Contractors can expect that there will be a longer learning curve. The laboratories that are supported by this requirement are unique. The NVFEL is comprised of two highly secure buildings located adjacent to one another. The NVFEL’s Information Technology (IT) infrastructure is comprised of two distinct networks that support each location; the Program Management Network (PMN), that provides administrative services to the workforce, and the Laboratory Network System (LNS), that facilitates scientific research unique to this one-of-a-kind laboratory. The NVFEL is a distinctive and unparalleled laboratory, operated by the U.S. Environmental Protection Agency (EPA), specializing in the rigorous testing and evaluation of vehicle and engine emissions and fuel economy. It is distinguished by its state-of-the-art equipment, comprehensive testing capabilities, and its pivotal role in formulating, implementing, and enforcing national emissions and fuel economy standards to mitigate environmental impact and protect public health. The innovative research, meticulous testing protocols, and commitment to environmental excellence that characterize the NVFEL affirm its status as a one-of-a-kind institution, playing an indispensable role in advancing sustainable and eco-friendly transportation solutions.

The Contractor services in support of the scientific work performed by the federal workforce make it virtually impossible for a new awardee to meet the requirements of the Government without first undergoing a transition period from one Contractor to the next in accordance with FAR 52.237-3 Continuity of Services, as it is vital to the Government that IT & Telecommunication support continues without interruption. Furthermore, forgoing a transition period would be catastrophic as a new Contractor would not have had the opportunity to learn the intricate nature of the laboratory network and test sites, which could lead to an absolute network failure. Therefore, awarding the contract to a new Contractor to merely fill the gap between the expiration of the current contract and the newly awarded contract using full and open competition for several months will cause significant delays, disruption of service while the new Contractor attempts to gain the necessary expertise, transition delays, and duplication of costs since the new contract will be awarded in the coming months requiring a proper transition.

Should a contract be awarded in haste and the Contractor performance be subpar due to no transition period, approximately 450 government employees working at the NVFEL could be negatively impacted as the data center technology that supports their work may become unavailable in the event of a network failure. Contractor mission critical activities include ensuring Ann Arbor proprietary application services, network connectivity, data storage services, and test systems are available prior to operational work hours every day. The contractor then debugs problems with file services, test site applications, database systems, telecommunication equipment to ensure the workforce is not impacted as problems arise. A network shutdown caused by either the expiration of the current task order or awarding a new contract to a company with an inadequate transition period would be catastrophic and would negatively affect the EPA’s ability to perform the work outlined in 40 CFR, Part 86, Subpart B and F. Performing emissions testing on motor vehicles, heavy-duty engines, non-road engines, and developing federal rulemakings, enforcement actions and test procedures significantly relies on IT & Telecommunication technology. In short, the workforce and $30 million worth of laboratory equipment, and $2 million worth of data center technology could be impacted.

Lastly, and significantly, a lapse in services would adversely impact the Government’s efforts to meet the requirements of Executive Order 13990: Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis (2021), which requires Federal agencies to:

Immediately review, and take action to address, Federal regulations promulgated and other actions taken during the last 4 years that conflict with national objectives to improve public health and the environment; ensure access to clean air and water; limit exposure to dangerous chemicals and pesticides; hold polluters accountable, including those who disproportionately harm communities of color and low-income communities;

reduce greenhouse gas emissions; bolster resilience to the impacts of climate change;

restore and expand our national treasures and monuments; and prioritize both environmental justice and employment.

In addition, the LNS environment is vastly different from traditional office computing. The LNS constitutes an enterprise infrastructure with direct support to testing and test processes, with only limited connectivity to the PMN. Within the LNS is a fit for purpose data center with traditional storage, networking, virtualization, and compute resources. External to the data center are isolated testing environments facilitating testing equipment and data processing. Each isolated environment is unique from the others, designed to specifications provided by automotive vendors with dedicated links back to the LNS in a wheel and spoke fashion. Testing environments require constant communication with test site coordinators to ensure the continuity of ISO 17025 with data integrity interquel to NVFEL’s mission. Again, the uniqueness and complexity of the laboratories and work associated with this contract merely to cover the gap in services until the new contract is competed would lead to unacceptable delays in services, transition delays, duplication of costs when transitioning to the newly competed contract, and an inability for the EPA to meet its regulatory requirements.

Bluewater Federal Solutions, Inc. is the incumbent contractor and has been providing quality on-site IT & Telecommunication support services to the EPA NVFEL. This extension is required to mitigate any hindrance or disruption of Contractor services, or failure of daily operations within the facility and laboratory. Such a lapse in service would adversely impact the agency and result in EPA’s failure to perform mission critical duties. Based on the above, the circumstances surrounding this LSJ meet the standards to award a sole source extension contract to cover the gap between the expiration of the current contract and the award of the new contract using full and open procedures.

5. Determination of Contracting Officer that the Order Represents the Best Value to Government Consistent with FAR 8.404(d).

The Contracting Officer’s intent is to extend the period of performance and to incorporate a supplemental agreement in which the Government and the schedule holder mutually agree to the task order extension at the current rates as agreed to by Bluewater Federal Solutions, Inc.

The Contracting Officer has determined that the negotiated price of any contract action executed under this justification is fair and reasonable in accordance with the FAR and GSA requirements. Other Direct Costs (ODC’s) were negotiated and approved before award and reestablished prior to the current extension.

The Contracting Officer has determined that the order under this Limited Sources Justification will represent the best value to EPA as the agreed to prices will be based on Bluewater Federal Solutions, Inc’s current GSA FSS prices and rates. The Contracting Officer will ensure the order represents the best value and results in the lowest overall cost alternative to meet the Government’s needs. To determine that the extension represents the best value the Contracting Officer and requesting activity reviewed previous invoices, compared pricing to the Independent Government Cost Estimate (IGCE), and ensured pricing was in accordance with the vendor’s published GSA prices. Pursuant to FAR Subpart 8.404(d), Multiple Award Schedule offers are listed as fixed prices and GSA has already determined Schedules prices and rates to be fair and reasonable.

6. A description of the market research conducted among schedule holders, and the results of the research.

In accordance with FAR 10.002, market research was conducted by the program office to determine the availability of contractors able to meet EPA’s needs. A Request for Information (RFI) was posted to SEWP (Request # 207343) on August 18, 2021, using NAICS 541519 to see if there are interested parties through this acquisition tool. In total, 131 SEWP contract holders were contacted. One Contractor responded with a request for “extension due to contract holders with more time due to year end contracting season.” An extension was provided until September 16, 2021; however, no vendor responded.

Additionally, as a service to GSA customers, GSA offers a free scope compatibility review/analysis. To take advantage of this opportunity a scope review application was completed and submitted for GSA to provide comments in August of 2021. The findings were that the Alliant 2 GWAC is compatible to the performance work statement. However, GSA determined that Alliant 2 only had one small business and multiple large businesses that were compatible with the scope of work. Therefore, EPA’s OSDBU recommended that we seek other small business contract vehicles that could perform this requirement.

In October of 2022, a scope review application was submitted to GSA to determine if the VETS 2 or 8(a) STARS III GWACs are compatible with the performance work statement.

On October 25, 2022, GSA completed the evaluation. The findings of that review were that both GWACs are compatible.

To provide the opportunity to small business, the Government published a sources sought (RFQ1595213) on November 8, 2022, to ascertain the capability of SDVOSB, holding a schedule with the VETS 2 GWAC, to meet the requirement. Four Contractors responded to the market research request on November 16, 2022. After evaluating each response independently and considering FAR 19.502-2(b) and FAR 19.203, it was determined on December 2, 2022, that at least two SDVOSB concerns, each holding a GSA VETS 2 GWAC, were potentially capable of meeting the requirements described in the performance work statement. Subsequently, the requirement was competed under Solicitation No. 609410 on February 21, 2023, as a set aside under the GSA VETS 2 GWAC vehicle and one response was received. That offer did not meet the requirements of the request for proposal.

In light of the Government’s inability to award the new contract under the GSA VETS 2 GWAC solicitation, and in order to maintain critical services to the Agency while procuring the new requirement, ITAD posted a Notice of Intent to Sole Source a three (3) month extension (October 1, 2023 through December 31, 2023) with three (3), one (1) month option periods to SAM.GOV on July 31, 2023, under Notice ID GS-06F-0603Z/EP-G17C-00197. The notice closed on August 14, 2023.

Due to the results of the recompete under the GSA VETS 2 GWAC vehicle, ITAD posted a second Notice of Intent to Sole Source a four (4) month extension (October 1, 2023 through January 31, 2024) with five (5), one (1) month option periods to SAM.GOV on August 23, 2023, under Notice ID GS-06F-0603Z_EP-G17C-00197 to allow time for the recompete to be awarded. The notice closed on September 6, 2023.

Based on a second GSA scope review conducted in October of 2022 that found the PWS compatible with the work performed in the 8(a) STARS III GWAC, and OSDBU’s input, the program office’s intent is to now compete and award through GSA’s 8(a) STARS III GWAC which is a Best-in-Class GWAC and has been deemed a suitable GWAC to likely yield acceptable proposals.

As of the date of submission of this justification, the Agency has not received any inquiries from interested parties and/or firms pertaining to these services. Therefore, the Market research determined that Bluewater Federal Solutions, Inc. is best suited for continuing to provide services and support during the extension. The follow-on procurement is a competitive action, and the Agency plans to issue a solicitation on GSA’s 8(a) STARS III GWAC in November 2023.

7. Any other facts supporting the limited source justification.

N/A

8. A statement of the actions, if any, the agency will take to remove or overcome any barriers that led to restricted consideration before any subsequent acquisition for supplies and services is made.

It is the policy of this office to follow the requirements of FAR 8.405-1 and 8.405-2 when making FSS program requirements. However, in this instance, the requirements at hand can only be met by limiting sources in accordance with FAR 8.405-6(a)(1)(i)(B).

The Agency is actively removing and overcoming barriers that directly led to restrictions documented in this justification. For example, after consulting with OSDBU, it was determined that the requirement should be competed amongst a best-in-class GWAC that contained multiple small business contract holders, which would increase competition by utilizing a larger pool of contractors. This LSJ only purports to cover the gap between the end of the current contract period of performance and when the new follow-on contract is awarded to ensure that there will be no laps in critical support to EPA’s mission.

PROGRAM OFFICE DIVISION DIRECTOR’S CERTIFICATION

I certify that the supporting information contained in this Limited Source Justification is complete and accurate.

Joshua Young, Acting Director Date Information Management Center Division Director National Vehicle and Fuel Emissions Laboratory (NVFEL)

REVIEW

CONTRACTING OFFICER’S DETERMINATION

I certify that this justification for other than full and open competition is accurate and complete to the best of my knowledge and belief.

Marsha Johnson Date Contracting Officer Telecom Team Information Technology Acquisition Division (ITAD)

I certify that this justification for other than full and open competition is accurate and complete to the best of my knowledge and belief.

Rodney-Daryl Jones, C.P.M. Date Director of Information Technology Acquisition Division (ITAD)

COMPETITION ADVOCATE REVIEW

I certify that this justification for other than full and open competition is accurate and complete to the best of my knowledge and belief.

Tommie L. Madison, Jr. Date Competition Advocate Office of Acquisition Solutions (OAS)

REVIEW