CUI_DPG JA 2024_46-Redacted_Redacted.pdf

Control No.: MICC 2024-46

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

1. Contracting Activity: United States Army Mission and Installation Contracting Command - Dugway Proving Ground (DPG), 5330 Valdez Circle, Mail Stop 1, Dugway Proving Ground, UT 84022-5001

2. Description of Action: The United States Army Installation Management Command (IMCOM) Dugway Proving Ground (DPG) Garrison, Department of Public Works (DPW) at DPG, Utah, requests approval of a $7.5 million, 4-month extension of the period of performance for the Base Operations Support Services (BOSS) Indefinite Delivery Indefinite Quantity (IDIQ) Cost-Plus-Fixed-Fee (CPFF) contract (W911S8-18-D-0014) with Chenega Facilities Management, LLC (Chenega), 5726 W. Housman Rd, Ste. 100, San Antonio, TX 78249-1651. The four-month extension will include a two (2) month period and two (2) one-month options. This is an interim action to allow continued performance with the incumbent contractor. The current contract ends on 20 June 2024 and the follow-on requirement is in the process of an 8(a) competitive procurement. An extension to the current contract is needed to allow incoming and outgoing contractors to conduct a 60-day transition. The Government projects award of this extension NLT 30 April 2024. The extension will be incrementally funded through task orders using appropriate Fiscal Year (FY) Operations and Maintenance Army (OMA) funds.

3. Description of Supplies/Services: The BOSS requirement supports base operations and maintenance services at DPG, Utah. Areas of service covered by this requirement includes: Grounds Maintenance, Facility Engineering Services, Engineering Resource Management, Operation and Maintenance of Utilities Systems, Maintenance of Roads and Structures, Family Housing Operations, Systems Maintenance & Repair, Locksmith Services, Fuel & Heating Oil Distribution, Industrial Wastewater Treatment Plant, Sanitary Landfill Operations, Warehousing & Supply, Cathodic Protection, Locksmith Services, Sanitary Wastewater Treatment & Collection System, Water Systems & Distribution Services, Repair or Modification to existing Interior & Exterior Work, and other miscellaneous work (i.e., special events).

Period of Performance:

Option Period 9: 21 JUN 2024 – 20 AUG 2024 Value: $3,750,000 Option Period 10: 21 AUG 2024 – 20 SEP 2024 Value: $1,875,000 Option Period 11: 21 SEP 2024 – 20 OCT 2024 Value: $1,875,000

Total Value: $7,500,000

4. Authority Cited: 10 U.S.C. §3204(a)(1), as implemented by FAR 6.302- 1(a)(2)(iii)(B), Only one responsible source and no other supplies or services will satisfy agency requirements for the continued provision of highly specialized services when it is likely that award to any other source would result in unacceptable delays of 6-10 months in fulfilling the agency’s requirements.

5. Reason for Authority Cited: Pursuant to FAR 6.302-1(a)(2)(iii)(B), when the supplies or services required by the agency are available from only one responsible source, or for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for, and services may be deemed to be available only from the original source for the continued provision of highly specialized services when it is likely that award to any other source would result in unacceptable delays in fulfilling the agency’s requirements. As part of an overall standardization process for Base Operations requirements, IMCOM normalized the various contract labels, such as BOSS, to a single naming convention of BASOPS.

Additionally, the Performance Work Statement (PWS), evaluation criteria, and Contract Line Item Numbers (CLINs) were revised to comply with a standard format which created a 14 month delay that has impacted subsequent reviews and approvals of the acquisition strategy and solicitation. No other contractor can assume the current BOSS mission with full performance by 21 June 2024 without interrupting ongoing Test Center Operations.

a. Background:

1) Solicitation, W911S6-16-R-0002, received two proposals. An award was made, W911S6-17-D-0003, to Chenega on 20 June 2017. DPG Services JV LLP (DPGS), (a joint venture between R.L. Hueston, LLC and C. Martin Company, Inc.)

filed a protest with the Government Accountability Office (GAO) (Docket B-414868) on 28 June 2017 disputing the award. The Contracting Officer (KO) determined corrective action, including termination of the contract, W911S6-17-D-0003, was appropriate to address the grounds of the protest and ensure that the Government’s needs were met and accurately reflected. GAO subsequently dismissed the protest as academic because of corrective action taken by the Army.

2) The KO re-awarded the BOSS contract, W911S8-18-D-0014, on 12

February 2018 to Chenega, as an IDIQ CPFF contract as a result of a competitive 8(a) procurement for a five (5) year period of performance (POP) consisting of a base period of 10-months and four 1-year option periods. Modification P00028 was executed on 20 September 2022 to exercise FAR 52.217-8, Option to Extend Services, for an additional six-months. The BOSS contract supports facility operations and maintenance services for the DPG Major Range and Test Facility Base (MRTFB) mission which directly supports fielding of the latest technology improvements for the Army’s critical warfighting equipment. Modification P00030, under the authority of FAR 6.302-1, was executed on 26 June 2023 to extend the contract by an additional 12-month period.

3) The initial projection for award of the follow-on BOSS contract by the MICC Installation Readiness Center (IRC) was estimated at 20 November 2022. The MICC- IRC, IMCOM, and DPG DPW worked together to develop the requirements package, including standardizing the PWS, the Independent Government Estimate, and evaluation criteria to reflect current requirements. However, there were continuous delays in completing pre-solicitation documentation due to the coordination of the information between the organizations and reviews for final documents. Due to the

3) Conduct a competitive acquisition for a bridge contract. A competitive bridge contract with a $ million value would require a minimum of six-months to solicit, evaluate, negotiate, award a new contract, phase-in a new contractor, transfer, and account for the large inventory of Government Furnished Property (GFP), verify data, obtain security clearances, and allow for familiarization with ongoing operations. The mobilization to a remote location, phase-in and GFP transfer costs for a short-term competitive bridge would result in a substantial duplication of cost of $ to $ million to the Government, that is not expected to be recovered in an interim action. The expiration of the current contract on 20 June 2024 does not allow sufficient time to accomplish a competitive award. Any contractor other than the incumbent does not have sufficient equipment or trained manpower readily available on short notice for the remote worksites on DPG to seamlessly assume the performance of these ongoing operations. Award to any other source would result in unacceptable delays ranging from 6-10 months in fulfilling the DPG DPW requirements. Furthermore, this action is a temporary solution to facilitate the changeover of this requirement to the competitive award. Therefore, this alternative is not viable.

4) Extension of the current contract. Negotiating an extension to the current contract with the incumbent is the only viable solution to provide continuity of base operations support without jeopardizing life, health, and safety of DPG personnel.

Award to any other source would result in a delay in fulfilling the agency’s base operations support requirements and would not be in the best interest of the Government.

c. Impact if not approved: Disapproval of the J&A will result in a lapse in service, DPG DPW’s failure to execute its mission, and life, health, and safety issues. As discussed above, attempting to compete this requirement would result in unreasonable delays and would cause mission failure for DPG DPW due to the lack of services. An award to any other source would result in a substantial duplication of costs of $ to $ million to the Government. These costs would include mobilization of a new vendor to a remote location, phase-in of the new vendor, and the transfer of Government Furnished Property between vendors; and then likely incurred again when the follow-on contract is awarded in less than one-year.

6. Efforts to Obtain Competition: The Contracting Officer will publish the notices required by FAR 5.201 and any bids or proposals received shall be considered.

a. Effective Competition: This is a sole source action; effective competition is not applicable.

b. Subcontracting Competition: The current contractor, Chenega, is a small business; therefore, a subcontracting plan is not required. The contractor is subject to the limitations on subcontracting which the Government will not pay more than 50 percent of the amount for contract performance to subcontractors that are not similarly situated entities. All subcontracts shall be competed, and maximum opportunity given to small businesses and socio-economic concerns when utilized. This action is an interim solution until the follow-on contract is completed.

7. Actions to Increase Competition: This is an interim action to allow continued performance with the incumbent contractor during the time necessary to solicit, evaluate, negotiate, and transition the competitive award. Nevertheless, a sources sought notice was posted to the System for Award Management (SAM.gov) website on 11 April 2023. This resulted in five interested vendors at that time. With the transition of this requirement to MICC-IRC, another sources sought was posted in the December 2023 time period. A technical capabilities review was completed on 19 January 2024 based on the following companies’ responses: Chenega Tri-Services, LLC; Cromedy Construction; ASRC Federal Facilities Logistics, LLC; Six Mile, LLC; Innovative Consulting & Management Services, LLC; and Oready, LLC. A sources sought notice was not posted for the sole source extension. A waiver to posting the sources sought notice requirement to Increase the Contract Value of the BASOPS Contract was approved by the MICC Deputy to the Commanding General, which is in the contract file.

On 16 April 2024, a notice of intent to sole source was posted to SAM.gov for seven days. No vendors responded to the notification.

8. Market Research: Market research was conducted by the MICC-IRC in accordance with FAR Part 10 and in accordance with Defense Federal Acquisition Regulations Supplement (DFARS) 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance, and Information (PGI) 206.302-1(d). Searches under NAICS Code 561210 identified 16,302 companies with active registrations. Of this number 2989 companies were SDVOSB, 3,783 were WOSB, 8,900 were SDB, 2,143 were 8(a) certified business concerns, and 1,262 were HUBZone. Market research conducted by the acquisition team was deemed sufficient for the type and magnitude of the services being required. The Government was able to ascertain the sufficiency of the marketplace to provide the services required, the NAICS Code to be utilized, and the recommended set-aside.

9. Interested Sources: As described in paragraph 7 and 8 above, there is sufficient interest in the follow-on requirement presently being worked. However, due to the nature of this required contract extension and the conditions imposed, the interested parties cannot be considered at this time.

10. Other Facts:

a. Procurement History: The BOSS requirement has historically been awarded to small businesses with the recent history awarded under the Small Business Administration (SBA) 8(a) program with a CPFF contract type.

b. Contract DAAD09-00-C-0001 was awarded on 16 December 1999 to VT

Griffin Services Inc., doing business as Griffin-Albers, as a Firm-Fixed-Price (FFP) and Cost Reimbursable contract as a result of a competitive Small Business Set- Aside (SBSA) procurement for performance from 01 January 2000 to 30 June 2008.

c. Solicitation, W911S6-07-R-0003, received three competitive 8(a) proposals and award, W911S6-08-C-0003, was a definitive Fixed Price Incentive Fee (FPIF) contract to C. Martin Company on 08 May 2008 with an award value of $86.56 million for performance from 01 July 2008 to 30 June 2015.