2.04 JA 23-047 Justification Redacted.pdf

Document Number: J&A 23-076

Source Selection Information – See FAR 2.101 and 3.104

SOLE SOURCE JUSTIFICATION

1. Identification of Agency and Contracting Activity.

The requiring activity is Commander, Navy Recruiting Command (CNRC) and Navy Talent Acquisition Group (NTAG) Empire State, of New York, NY. The contracting activity is Naval Supply Systems Command (NAVSUP) Fleet Logistics Center (FLC) Norfolk, Contracting Department, Philadelphia Office, of Philadelphia, PA.

2. Description of the Action Being Approved.

This is a follow-on contract to a non-competitive sole source action for the provision of E-Z Pass Automated toll services that are currently performed under contract N0018922PZ006. Contract N0018922PZ006 was awarded on 12 Sep 2021 on a sole source basis as a firm fixed-price (FFP) contract to City of New York (CAGE code: 074S4), doing business as MTA Bridges and Tunnel. The firm is an other-than-small business; specifically, MTA is a U.S. Local Government. The existing contract will expire on 04 November 2023. The contract has a 6-month base period of 05 Nov 2021 through 04 May 2022, followed by three (3), six-month option periods thereafter pursuant to FAR 52.217-

9. The instant requirement will be procured using the procedures of FAR Part 12 and Subpart 13.5 Simplified Procedures Commercial Items, and the resultant purchase order will be price on a firm-fixed-price basis.

3. Description of Supplies/Services.

The proposed acquisition is to acquire automated toll services for the existing E-Z Pass account (E-Z Pass Account Number 6574871) for Government owned vehicles in support of NTAG Empire State’s local recruiting mission requirements. NTAG Empire State’s area of responsibility includes parts of New York and New Jersey. NTAG recruiting personnel are required to travel significant distances within this area in the performance of their official duties, which includes the use of New York and New Jersey highways and interstates, many of which charge tolls.

NTAG requires toll payment services in order to complete mission requirements. E-Z pass services fits into the Navy’s mission for the following reasons: efficiency, cost management, flexibility and mobility, and time savings. The anticipated requirement will result in the award of a single, Firm-Fixed-Price (FFP) purchase order.

The instant requirement is for a base period of six 6-months followed by three (3), 6-month option periods thereafter pursuant to FAR 52.217-9. The base period of the resultant contract will be funded with fiscal year 2024 Operations & Maintenance, Navy (O&MN) appropriations. These funds are currently not available. Options will be funded utilizing O&MN appropriations of the fiscal year in which the option period is exercised.

The independent government estimate (IGE) for this requirement is . The six-month base period will be from 5 Nov 2023 to 4 May 2024. If all options are exercised, the contract will expire on 4 Nov 2025. A breakdown of the funding per fiscal year is shown below.

FY24 FY225 Total

O&MN

The IGE was derived using historical usage over the past two years and projected usage over the two-year period of performance utilizing current toll rates set by law on the E-Z Pass NY websites. The tolls in New York City alone can range from $2.45-$11.84 for cars (dependent on vehicle size and axel limitations), which can be verified via the MTA Toll rate link: https://new.mta.info/fares-and-tolls/bridges-and-tunnels/tolls-by-vehicle/cars. By renewing the existing transponders held by NTAG Empire State, the Government will obtain discounts for using automated toll payments (EZ Pass) on the Verrazano-Narros Bridge, Henry Hudson Bridge, Cross Bay Veterans Memorial Bridge and Marine Parkway-Gil Hodges Memorial Bridge, and Bronx-Whitestone, Throgs Neck, and Robert F. Kennedy Bridges; Hugh L. Carey and Queens Midtown Tunnels. Additionally, the Government will be relieved from any administrative burden of cash receipts and voucher records requiring the cash receipts, thus leading to substantial time and money savings for the Government.

4. Statutory Authority Permitting Sole Source.

The statutory authority permitting this sole source action is 41 U.S.C. 1901, simplified acquisition procedures - a sole source acquisition using simplified acquisition procedures for the acquisition of commercial items, as implemented by FAR 13.501(a).

5. Rationale Justifying Use of Cited Statutory Authority.

The statutory authority permitting sole source applies to the proposed procurement, because of the contractor’s unique qualifications. MTA Bridges and Tunnels is a division of the Metropolitan Transportation Authority (MTA) in New York, responsible for operating and maintaining several major bridges and tunnels in the New York City metropolitan area. As such, MTA Bridges and Tunnels is the sole authority overseeing the operation of the following transportation facilities in which NRC recruiters have to travel in order to reach their destination. These included the Robert F.

Kennedy Bridge, Throgs Neck Bridge, Bronx-Whitestone Bridge, Verrazzano-Narrows Bridge, Marine Parkway-Gil Hodges Memorial Bridge, Cross Bay Veterans Memorial Bridge, Henry Hudson Bridge, Queens Midtown Tunnel, and Hugh L. Carey Tunnel,, etc.

MTA Bridges and Tunnels collects tolls using various methods including E-Z Pass network in order to operate their toll system, which allows account holders to pay tolls at an expedited rate, reducing travel times, and provides discounts up to 50% to account holders on tolls compared to those paying with cash in the range of ($5.09 - $20.35).

Toll rates are established through a combination of legal and regulatory processes and can vary depending on the jurisdiction in has the power to establish and adjust toll rates within certain parameters set by law or regulation. The instant requirement is a follow-on to a sole source action, N0018922PZ006. MTA is the only provider who can provide the necessary services within the state for the use of local area toll highways and bridges.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable, including a Description of Market Research, if applicable, and a List of Interested Sources, if any.

The proposed contract was synopsized at the Governmentwide point of entry on 26 May 2023, and only MTA expressed an interest in this requirement. No additional market research was conducted, because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than MTA to provide the required supplies and services.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined that the anticipated cost to the Government of the supplies/services covered by this Justification will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAVSUP FLCN Philadelphia office has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, NAVSUP FLCN Philadelphia office will assess whether competition for future requirements is feasible.

In accordance with DFARS 206.303-2(b)(i) and PGI 206.304(a)(S-70)), a sources sought notice was issued on 26 May 2023. To date, no other sources expressed an interest in the requirement. In addition, and IAW DFARS 213.501(a)(i), a copy of the previous justification was included in the review package to assist the approval authority in determining whether the planned actions to remove any barriers to competition cited on the previous justification were completed.

The circumstances requiring the acquisition being conducted pursuant to FAR 13.501(a) remain unchanged. Any subsequent follow-on requirements will be handled on a case-by-case basis. Market Research will be conducted for any future requirements to determine if there are any potential sources for competition.

9. Contracting Point of Contact.

The point of contact at NAVSUP Fleet Logistics Center Norfolk, Philadelphia Office is Elido Villa, who can be reached by e-mail at elido.villa.civ@us navy mil.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance that 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:

Requirements Cognizance:

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

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 Justification value is >$250K and <$750K, the Contracting Officer’s signature below also represents approval of the document.