Justification_for_Sole_Source_Redacted.pdf

IN REPLY REFER TO:

J&A Number: 18/15

Code: 450

31 Jan 2018

SOLE SOURCE JUSTIFICATION

JUSTIFICATION

1. Contracting Activity

Norfolk Naval Shipyard (NNSY), Contracting Department C450: Submarine and Availability

Support Division.

2. Description of the Action Being Approved

In accordance with FAR 13.501, NNSY C400 Contracting Department intends to award a sole source Service-Disabled Veteran-Owned Small Business (SDVOSB), Single-Award Indefinite

Delivery and Indefinite Quantity (IDIQ) contract with Firm Fixed Price Provision to Special

Tactical Services, LLC (STS). This action is necessary to acquire training for the evolution of military and civilian guard forces assigned to stand post in sensitive areas within the Controlled

Industrial Area (CIA) of NNSY in Portsmouth, VA. Authority to act under this Justification expires upon contract award or on 30 April 2018, whichever date occurs earliest.

3. Description of Supplies/Services

The NNSY must procure classroom and live fire range training through the Engagement

Simulation System (ESS). ESS addresses, but is not limited to the following focus areas: 1) tactical training in hostage situations, 2) containment of hostile intruders, and 3) searching for and recognizing bombs and Improvised Explosive Devices (IED’s). The ESS is considered High-Risk, and as such, Norfolk Naval Shipyard retains the right to assess the contract instructor’s background, and if appropriate, has the right of refusal, through the PCO, of any instructor considered unqualified or unsafe as dictated in NETCINST 1500.13A (Naval

Education and Training Command High-Risk Training Safety Program). Instructors shall utilize classroom ESS exercises using the Simunition® FX® training equipment and Simunition® FX® marking cartridges, or other ESS equipment and ESS weapon systems approved by NNSY. The

DEPARTMENT OF THE NAVY

NORFOLK NAV AL SHIPYARD

PORTSMOUTH, VIRGINIA 23709 -5000

ESS associated training equipment will be utilized by both student and aggressors to provide an accurate and up-to-date realistic ESS training environment.

The Single Award – IDIQ will contain a five (5) year ordering period; it will contain a one (1) year base period plus four (4) one (1) year option periods. The period of performance is anticipated to begin on 30 April 2018 and continue through 29 April 2023. The solicitation and resultant contract will also contain FAR 52.217-8, Option to Extend Services, thereby allowing for a six (6) month extension period if circumstances necessitate this option.

The total government estimated value of the contract is $1,791,363.17. The matrix below displays the estimated values for the five (5) year period plus the additional Option to Extend

Services estimate.

YEAR PRICE

Base Year - (2018-2019) $236,876.00

Option Year I - (2019-2020) $242,324.00

Option Year II - (2020-2021) $365,221.00

Option Year III - (2021-2022) $373,621.00

Option Year IV -(2022-2023) $382,214.00

Sub-Total $1,600,256.00

FAR 52.217-8 - (2023) $191,107.10

TOTAL $1,791,363.17

4. Statutory Authority Permitting Sole Source Award

The statutory authority permitting sole source award under this effort is 15 U.S.C. 657(f), which permits a contracting officer to award a sole source contract to a SDVOSB that has been determined to be “responsible” with respect to performance, and the contracting officer does not have a “reasonable expectation” that two (2) or more SDVOSBs will submit offers for the contracting opportunity.

5. Rationale Justifying Use of Cited Statutory Authority

The procurement of the services described above utilizing a sole source award to SDVOSB is appropriate and in accordance with FAR Subpart19.14, under the Veterans Benefit Act of 2003.

In accordance with FAR Subpart 19.1406 - the contracting officer does not have a reasonable expectation that offers would be received from two or more SDVOSB concerns; the anticipated award price of the contract, including options, will not exceed $4 million; the requirement is not currently being performed by an 8(a) participant under the provisions of FAR Subpart 19.8 and has not been accepted as a requirement by SBA under FAR Subpart 19.8; the service-disabled veteran owned business (listed below) has been determined to be a responsible contractor with respect to performance; and award can be made at a fair and reasonable price.

Contractor:

Special Tactical Services, LLC (STS)

209 Research Dr. Ste. 101

Chesapeake, VA 23320

STS is the only SDVOSB reasonably expected to respond to a solicitation regarding this requirement as observed from posted Sources Sought to fedbizopps.gov. STS’s completion of this training will have a direct effect on the civilian and military security personnel awareness and capability to secure NNSY under any threat to its people or perimeter.

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

In accordance with FAR part 10, Market research was performed through the review of a previous acquisition for similar requirements, discussions with the user and potential service providers, and internet searches using varying databases (e.g., google.com, dsbs.sba.gov, sam.gov). Market research has demonstrated that the required services are available on a commercial basis, and that the Government can obtain fair and reasonable pricing for all requirements in the Performance Work Statement (PWS).

Prior to posting the RFI on FBO, two Small Businesses (SBs) were contacted to obtain the interest level for this potential forthcoming requirement. The Request For Information/Sources

Sought (RFI) was posted to FBO from 21 Dec 2017 through 5 January 2018. Though two companies had previously expressed and interest, only one response was received from Special

Tactical Services, LLC (STS) (SDVOSB). The customer reviewed the RFI response received from STS and determined them capable of performing the requirement.

The other that had been contacted, did not respond. The Contract Specialist contacted them again via telephone to gauge their interest level in the instant requirement. After expressing interest again, they failed to follow up or provide any kind of response as they had affirmed. The

Contracting Officer does not have a reasonable expectation that this vendor, or any other vendors, would tender a proposal upon solicitation. Therefore, a search was conducted through dsbs.sba.gov to find, veteran owned, service-disabled veteran, and 8(a) SBs, and the like that could meet this requirement. After reviewing the SBs produced from the search, and speaking with several of the owners/representatives, it became more apparent that many SBs could not meet the requirement. One SDVOSB was contacted via telephone and indicated that they would provide, by email, information demonstrating their capabilities. That particular SDVOSB did later respond by email, however, they indicated that they were incapable of meeting all requirement aspects.

Based on the fact that STS was the only SDVOSB responsive to the RFI posted to FBO, capable of meeting the requirements, and there is not a reasonable expectation of obtaining two (2) or more responsible small businesses that can fulfill the requirements of this effort, it is in the

Government’s best interest to pursue a sole source SDVOSB for this requirement.

7. Determination of Fair and Reasonable Costs

In accordance with FAR 13.106-3(a)(2), the Contracting Officer will determine, prior to award, that the anticipated cost to the Government for the services covered by this J&A will be fair and reasonable based on the following: 1) market research, 2) historical comparison of the proposed price with the prices found on previous purchases, 3) a comparison with similar items in a related industry, and 4) comparison to the Independent Government Estimate (IGE).

8. Actions to Remove Barriers to Competition

For the reasons set forth in paragraph above, at this time, NNSY has no plans to compete future contracts for the types of services covered by this document. The Government will assess any future similar requirements for competition wherever feasible.