19-JA-FEACQ-0004_AsugiSewage_redacted.pdf

J&A No. 19-JA-FEACQ-0004

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity Naval Facilities Engineering Command Far East (NAVFAC FE), Public Works Department (PWD) Atsugi, Facilities Engineering and Acquisition Division (FEAD), Acquisition Branch

2. Description of the Action Being Approved Approval is sought for authority to issue a sole source award for Sewage Collection and Transportation Services and other related services at the U.S. Naval Air Facility, Atsugi, Japan to JC Co., Ltd, whose address is 2-1-2 Kawaraguchi, Ebina City, Kanagawa Prefecture, Japan.

3. Description of Supplies/Services The proposed contract is for sewage pumping, collection, disposal and transportation services, and for cleaning of sewage utility systems at the U.S. NAF Atsugi, Japan. The resulting contract will include a Base-Period (one year) and four (4) one-year Option Periods for a total of 60 months. The total estimated price of the proposed contract, including the base year and all option years is approximately as indicated in the table below.

Estimated Dollar Value FY19 FY20 FY21 FY22 FY23 Total

Recurring Non-

Recurring

Total

The requiring technical activity (RTA) has confirmed the requirement and the availability of funds for this requirement.

4. Statutory Authority Permitting Other Than Full and Open Competition

The statutory authority provided under 10 U.S.C. 2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1 permits other than full and open competition when only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rational Justifying Use of Cited Statutory Authority This is a follow-on requirement which is currently being satisfied through an existing contract, N40084-14-D-8705, by the above-named contractor JC Co., Ltd. The current contract is a single award, multiple-year, performance-based service contract, comprised of Firm-Fixed-Price Recurring Work and Indefinite Delivery Indefinite Quantity Non-Recurring work, and was awarded on 12 May 2014. The contract includes a base period and four annual option periods.

The total value of the current contract is ¥143,090,225/$1,381,458.83 for the total 60 month time period. The current contract final option period expires on 31 May 2019.

Per the RTA, the current contract N40084-14-D-8705 and the following three contracts N62836- 00-D-08704, N40084-06-D-8701 and N40084-11-D-0076, were all awarded to the same contractor, i.e., JC Co., Ltd. Historically, the only offer received from industry to satisfy these requirements has come from JC Co., Ltd. The RTA’s market research into the reason for this shows that there is only one local government approved source for the services required under this J&A in Atsugi. According to the RTA, in accordance with the Sewage Act (Act No. 43 of 1983), a septic tank cleaning company must be granted permission from the mayor or head of the city, town, or village who has jurisdiction over the area where the company performs the work.

For NAF Atsugi, the mayor of Ayase City has such jurisdiction. As such, the RTA contacted Ayase City directly and learned that JC Co., Ltd. has been the only company with permission to perform sewage collection and disposal services in the Atsugi area since 1970.

Based upon the foregoing, only JC Co., Ltd. can satisfy the agency’s current requirement for sewage pumping, collection, disposal and transportation services, and for cleaning of sewage utility systems at U.S. NAF Atsugi, Japan.

6. Description of Efforts made to Solicit Offers from as Many Offerors as Practicable In an effort to solicit offers from as many offerors as practicable the RTA contacted Ayase City to determine if there were additional sources that could meet the current requirement. Ayase City indicated that since 1970 only JC Co., Ltd. has been granted permission to perform sewage collection and disposal services in the NAF Atsugi area.

In addition to the foregoing, on 24 January 2019, N40084-19-T-8904; Sewage Collection and Transportation Services and Other Related Services at the U.S. NAF Atsugi, Japan, was synopsized on Asia Navy Electronic Commerce On-Line (Asia NECO). The synopsis requested that all interested parties respond within 7 days after date of publication of the synopsis. The synopsis also included the following:

This contract action is for services which the Government intends to solicit and negotiate with only one source under the authority of FAR 6.302-1. JC Co., Ltd. is the only eligible contractor with permission to perform and furnish effort including labor, material and facilities for the sewage collection and disposal services for NAF Atsugi area. By the Sewage Act (Act No. 43 of 1983) issued by the Government of Japan, the septic tank cleaning company must poses the permission from the mayor or head of the city, town, or village who has jurisdiction over the area where the company performs work.

NAVFAC FE, PWD Atsugi did not receive any responses to the above-referenced synopsis. As a result of the foregoing no additional market research was conducted.

7. Determination of Fair and Reasonable Cost The Contracting Officer has determined the anticipated cost to the Government for the services covered by this J&A will be fair and reasonable. Contract award will be made based upon the price only. The requirement has been met via the current contract for a period of five years.

Historical work, requirements data, and pricing are available to serve as a basis for cost and price to ensure fair and reasonable pricing.

8. Actions to Remove Barriers to Future Competition NAVFAC FE will continue to perform market research with Ayase City to determine if any other companies have been granted permission to perform sewage collection and disposal services in the NAF Atsugi area. In the event another source of these services becomes available NAVFAC FE will re-assess the feasibility of full and open competition for future such requirements.