Memo for File - Limited Source Justisfication Memo_Redacted.pdf

DDEFENSE LOGISTICS AGENCY

DISTRIBUTION

430 MIFFLIN AVENUE SUITE 3102A

NEW CUMBERLAND, PENNSYLVANIA 17070-5007

MEMORANDUM FOR RECORD

SUBJECT: Sole Source Contract # SP330015M0016

REFERENCE: FAR 13.106(b)(1)(i)

1. Identification of the Agency and Contracting Activity

DLA Distribution, DLA Distribution J7 BLDG 430 Mifflin Ave New Cumberland PA 17070

2. Describe the contract action, to include the dollar value and the type of limited justification.

This is a sole source action to be awarded as an extension of contract SP3300-15-M- 0016 with USA Waste of California doing business as (d/b/a) Stockton Scavengers Association (CAGE 4PMF1). The contract was awarded as Firm-Fixed Price for Refuse Collection services located at DLA Distribution San Joaquin at Tracy, CA (DDJC). The extension will be in accordance with FAR 52.217-8, “Option to Extend Services” clause that is included in the contract but was not evaluated as part of the original contract award. The current total obligated amount for contract SP3300-15-M-0016 is contract will be extended for up to an additional three (3) months.

3. Description of the Supplies/Services

The Contractor shall provide all solid waste collection and off-site disposal services at DDJC as set forth in contract SP3300-15-M-0016 and in the Statement of Work (SOW).

The DDJC site at Tracy, CA is approximately 448 acres and is located two miles southeast of Tracy, CA. The intent of this non-personal services contract is to extend continuity for basic site maintenance and upkeep.at DDJC. Detailed task specifications and requirements for contractor performance are provided in the SOW. Detailed task specifications and requirements for contractor performance are provided in the Statement of Work (SOW). The Government intends to extend the period of performance for an additional three months at an estimated

. The cost is estimated because the contractor is only paid based on the

430 MIFFLIN AVENUE SUITE 3102A

NEW CUMBERLAND, PENNSYLVANIA 17070-5007

weight of solid waste they collect. This amount was

4. Justification Rationale for Use of Sole Source

Option Period Four for SP3300-15-M-0016 will expire on March 31, 2020. A follow-on contract for refuse collection services is being sought through the use of a long term contract. The procurement package for the long-term solution is complete. However, there were delays in the development of the procurement package to updates to current equipment listings, equipment metric data necessary to maximize competition.

Therefore, extending the period of performance of SP3300-15-M-0016 for an additional three months in accordance with FAR 52.217-8 “Option to Extend Services” enables seamless mission support by the incumbent contractor while finalization of the enterprise contract is completed. Any other alternative would create unacceptable delays in performing these services for DLA and potentially compromise mission support. The disruption of services through a competitive procurement would create substantial costs to the Government. Therefore, full and open competition is not feasible.

5. Market Research and Interested Sources

Not Applicable

6. Determination

Contract SP3300-15-M-0016 was awarded on a competitive and the prices were determined to be fair and reasonable based on adequate price competition in accordance with FAR 13.106-3(a)(1). Award to another source would result in a substantial duplication of cost to the government that is not expected to be recovered through competition in addition to experiencing unacceptable delays in fulfilling the agency’s requirements and creating potential health hazards. Therefore, in accordance with FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements (Citation: 10 U.S.C. 2304(c)(1)), USA Waste of California d/b/a Stockton Scavengers Association is the Only One Responsible Source known that will satisfy Agency requirements for continued services.

7. Other Supporting Facts

Not Applicable

430 MIFFLIN AVENUE SUITE 3102A

NEW CUMBERLAND, PENNSYLVANIA 17070-5007

8. Fair and Reasonable

Exercising the Option to Extend Services clause is the most advantageous method of fulfilling the Government’s need for uninterrupted refuse collection services, price and other factors considered. The proposed prices for all years have remained steady since contract award. There has been no substantive change in the requirement for this type of service, and in accordance with FAR 52.217-8, the option is only

An informal market analysis of prices was performed and revealed that the prices previously submitted by USA Waste of California d/b/a Stockton Scavengers Association during the length of the contract to be competitive with similar types of contracts and labor categories in the region. The Contract Specialist consulted data available to the Government, such as the IHS Global Insight, which projected a in price for the period of performance incorporated by the modification.

The contract unit prices for the period of performance authorized by the modification, which is a in price. The market survey indicates the rates and prices for this option period and corresponding extension are competitive. Therefore, the Contracting Officer determined the current pricing for the refuse collection services to be fair and reasonable.

9. Certification, Review, and Approval