N0018918R0105_REDACTED_MHRT_JA_SDVOSB.docx

J&A NUMBER

J&A Number: 18164

DEPARTMENT OF THE NAVY

NAVSUP FLEET LOGISTICS CENTER NORFOLK

1968 GILBERT STREET SUITE 600

NORFOLK VA 23511-3392

IN REPLY REFER TO

12 July 2018

SOLE SOURCE JUSTIFICATION

1. 1. Identification of the Agency and Contracting Activity:

a. Agency Name: Coastal Riverine Group One (CRG ONE) 2520 Midway Road, Suite 200 Virginia Beach, Virginia 23459

2. Description of the Action Being Approved.

In accordance with FAR 19.1406; this requirement will be procured as Sole Source under Service-Disabled Veteran-Owned Business (SDVOSB) Set-Aside to ITA International. This is a new requirement to obtain Maritime High Risk Support services are designed to support various aspects of CRG ONE’s and Navy Expeditionary Combat Command’s (NECC) training missions.

3. Description of Supplies/Services.

The Coastal Riverine Force (CORIVFOR) represents a unique capability within the Navy and, as such, squadrons require specialized/advanced training at the individual and unit levels prior to deployment. Coastal Riverine Group ONE (CORIVGRU ONE) units maintain a presence in U.S. Central Command, FOURTH Fleet, SIXTH Fleet, SEVENTH Fleet CTF-75 and CTF-80. CORIVGRU ONE established a Training Evaluation Unit (N7/TEU) to support Coastal Riverine Squadron (CRS) Unit Level Training (ULT) and advanced tactics training requirements for one Active Component (AC) and two Reserve Component (RC) squadrons. The N7/TEU is the sole unit providing the requisite training to West-coast based CORIVRONs, CORIVGRU ONE Detachment Guam, High Value Unit San Diego, Bangor and Waves prior to deployment. Due to the nature of the evolutions conducted, a majority of the training events are deemed High Risk Training (HRT), as defined by OPNAVINST 1500.75 and NECCINST 1500.13 series. N7/TEU is manned with a mixture of military personnel with extensive expeditionary backgrounds and individuals who have no background Coastal Riverine operations. This creates a dynamic situation where there is a lack of continuity and consistency of effort over the long term. This lack of a consistent instructor/trainer base, especially as it relates to HRT, drives the need to augment the training force with contractor personnel to assist with basic to advanced training requirements. CORIVGRU ONE N7/TEU is located aboard Navy Out-Lying Field (NOLF) Imperial Beach. This is the administrative and curriculum headquarters for the N7/TEU and where the majority of classroom instruction and practical exercise training is conducted. The majority of N7/TEU field exercises/training and weapons/convoy training is conducted typically at various military ranges in Southern California (CA). N7/TEU personnel travel to required sites to execute training and, upon completion, return to N7/TEU.

This procurement is to obtain Maritime High Risk Support services from ITA International, a Service Disabled Veteran Owned Small business. The contract will be a Firm-Fixed Price contract type with a (1) one-year Base period and (2) two additional option periods at a value of $XXXXXXXXXXX. The period of performance will begin on 16 September 2018 and end on 15 May 2021 if all options are exercised.

The Independent Government Estimate (IGE) for this procurement, including base and option periods, is $XXXXXXX CRG ONE based the IGE on technical expertise, market research of similar efforts, and historical rates from a previous procurement. In addition, CRG ONE added an additional 2.1% CPI escalation to Option 2 and Option 3. This is under the current CPI rate of 2.5%. The following chart lists the estimated price for with an (8) eight-month Base period and (2) two additional option periods.

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The base period for this requirement will be funded with FY18 Operations & Maintenance Navy (O&MN) funds. These funds are currently available. Accordingly, the resultant purchase order will be issued subject to the availability of funds. Options will be funded with the appropriate FY O&MN funds.

4. Statutory Authority Permitting Sole Source.

The statutory authority permitting procurement program for small business concerns and controlled by service-disabled veterans is 15 USC 657f (a)(1), sole source contracts. A contracting officer may award a sole source contract to any small business concern owned and controlled by Service-Disabled Veterans if such concern is determined to be a responsible contractor with respect to performance of such contract opportunity and the contracting office does not have a reasonable expectations that 2 or more small business concerns owned and controlled by Service-Disabled Veterans will submit offers for the contracting opportunity as implemented by FAR 6.302-5(b)(6).

5. Rationale Justifying Use of Cited Statutory Authority.

In accordance with FAR 19.1406, the initial market research process revealed there were no other SDVOSBs to satisfy this procurement in a timely manner, and there is no reasonable expectation of receiving two or more SDVOSBs. ITA International is currently performing the same work for CRG TWO and has the capability to perform this requirement without the need of a transition, and they already possess the knowledge of CRG and NECC with regards to this support. This procurement is valued under $4 million and these services are not currently being performed by an 8(a) participant under the provisions of Subpart 19.8 or have been accepted as a requirement by SBA under Subpart 19.8.

ITA international is not a registered 8(a) participant and is a SDVOSB participant within the Service-Disabled Veteran-Owned Small Business Concerns Program. ITA International has been determined to be a responsible contractor with respect to performance and award can be made at a fair and reasonable price in accordance with FAR 13.106-3(a)(2).

The negative impact of delayed support would be detrimental to the Government, as CRG ONE has identified this need and is aligning themselves with their counterpart CRG TWO. Without this alignment the ability to deploy with continuity in training support can cause confusion and endanger life while executing their critical missions. Therefore, the authority requested by this J&A is critical and necessary in order for the Navy to continue its mission without incident.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

The Contracting Officer utilized various market research methods, including internet, Electronic Document Access (EDA), and conducted a Dynamic Small Business Search, to locate capable vendors of providing the required support services.

Since the Contracting Officer conducted adequate market research, which located a Service Disabled Veteran Owned Small Business who was determined capable of performing and support and is currently performing the same requirement for CRG TWO it was determined that it was unnecessary to conduct a Sources Sought, as it was unlikely that there would be two or more companies capable of providing the same continuity of service.

These services are classified under the North American Classification System Code 541330 (Maritime Engineering Services), with a size standard of $38M.

7. Determination of Fair and Reasonable Cost.

A determination of fair and reasonableness of price will be based on the Procuring Contracting Officer’s price analysis IAW FAR 13.106-3; comparison of the contractor’s quote to previously paid invoicing, previous pricing history, published price list of the same or similar items, comparison to an Independent Government Estimate, and comparison to similar items in the commercial marketplace.

8. Actions to Remove Barriers to Future Competition.

This requirement is anticipated to be awarded by no later than 07 September 2018 and will be synopsized as a Service-Disabled Veteran-Owned Small Business (SDVOSB) Set-Aside as Sole Source. Any future contracts that result from this requirement will be competed appropriately.

9. CONTRACTING POINT OF CONTACT

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

Signature Name (Printed) Phone No. Date

Requirements Cognizance:

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Signature Name (Printed) Phone No. Date

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief. To the extent that the J&A/LSJ value is between $150K and $700K, the Contracting Officer’s signature below also represents approval of the J&A/LSJ.

Signature Name (Printed) Phone No. Date

CONTRACTING ACTIVITY COMPETITION ADVOCATE REVIEW

To the extent that the J&A/LSJ value is between $700K and $13.5M, the Competition Advocate’s signature below also represents approval of the J&A/LSJ.

Signature Name (Printed) Phone No. Date

Source Selection Information – See FAR 2.101 and 3.104 4 image1.emf