POSC Bridge 2 JA Other than_.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND PACIFIC

258 MAKALAPA DR STE 100

JBPHH HI 96860-3134

IN REPLY REFER TO

J&A No. 23-007

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Department of the Navy, Naval Facilities Engineering Systems Command (NAVFAC) Pacific.

2. Description of the Action Being Approved.

Award of a bridge contract on a sole source basis to JJLL, LLC, a Joint Venture comprised of J&J Worldwide Services (J&J) and Jones Lang LaSalle (JLL), for the Philippines Operations Support Contract (POSC) in the Republic of the Philippines for Marine Corps Forces, Pacific (MARFORPAC) and Special Operations Command, Pacific (SOCPAC)/Pacific Command Augmentation Team – Philippines (PAT-P). The Request for Authorization of a Bridge Contract was approved on 18 January 2023.

3. Description of Supplies/Services.

The POSC services include Management and Administration, Commercial Telephones, CATV and Other Services, Security Operations, Airfield Facilities, Passenger Terminal and Cargo Handling, Ordnance Handling and Transportation Management, Material Management, Supply Services, Morale, Welfare and Recreation Support, Galley, Billeting Management, Facility Management, Facility Investment, Utilities, Base Support Vehicles and Equipment, and Environmental.

The period of performance for this new bridge contract is a maximum of 12 months with an estimated dollar value of $15,600,000. The period of performance includes a five (5) month base period from 01 April 2023 to 31 August 2023 plus one (1) seven (7) month option period, which includes one (1) two (2) month demobilization, to commence during the Option or earlier as directed. The estimated cost for this bridge contract was derived from historical data, including the current POSC contract N62742-17-C-3580 and the current bridge contract N62742-22-C-3590.

The resultant contract will be funded by the following type of FY23 funds:

- FY23 Operations and Maintenance Funds, Special Forces

4. Statutory Authority Permitting Other Than Full and Open Competition.

The statutory authority permitting other than full and open competition is 10 USC 3204(b)(B), as implemented by the Federal Acquisition Regulation (FAR) 6.302- 1(a)(2)(iii), “Only one responsible source and no other supplies or services will satisfy agency requirements”.

5. Rationale Justifying Use of Cited Statutory Authority.

a. Pursuant to 10 USC 3204(b)(B) and FAR 6.302-1(a)(2)(iii), JJLL, LLC, the incumbent contractor, is the only source capable of performing the required POSC services without unacceptable delays, disruption to services, and substantial duplication of costs. As discussed in detail below, based upon corrective action being taken by NAVFAC Pacific in response to a General Accountability Office (GAO) level protest, transition requirements, and additional costs that would be incurred by the Government, only JJLL, LLC can meet the agency’s requirements for continuous base operation support services.

b. The requirement for this sole source contract has arisen as a result of corrective action being taken by NAVFAC Pacific in response to a GAO Protest (Docket B-

420539.4 & .5). NAVFAC Pacific originally initiated a competitive solicitation for POSC services in 2021 that resulted in an initial award decision on 27 January 2022 to Amentum Services, Inc. In response to the initial award decision, NAVFAC Pacific received a timely GAO Protest (Docket B-420539.1, .2, & .3) on 16, 22 & 28 February 2022 that resulted in a stay on contract performance.

NAVFAC Pacific submitted a notice of intent to conduct corrective action to GAO on 30 March 2022, resulting in the dismissal of the GAO protest on 04 April 2022. Following corrective action, NAVFAC Pacific upheld its decision to award to Amentum Services, Inc.

c. On 23 August 2022 and 03 October 2022, NAVFAC Pacific was notified that a timely GAO Protest (Docket B-420539.4 & .5) was filed that resulted in a stay on contract performance. As a result of the timely GAO protest filed on 23 August 2022, NAVFAC Pacific awarded a sole source bridge contract to the incumbent, JJLL, LLC, on 29 September 2022. GAO held an alternative dispute resolution (ADR) outcome prediction meeting with the protester, the agency, and the intervener on 17 November 2022. On 21 November 2022, NAVFAC Pacific submitted a notice of intent to conduct corrective action to GAO, resulting in the dismissal of the GAO protest on 23 November 2022. Contract No. N62742-22-C- 3590 dated 29 September 2022 is the current bridge contract for the Philippines Operations Support Contract (POSC III) and will expire on 31 March 2023. Due to corrective action in response to the GAO Protest and the need for continuation of POSC services in the Republic of the Philippines, NAVFAC Pacific identified the requirement for a sole source bridge action.

d. An interruption of POSC services would injure the Government due to the critical nature of the functions supported by these services. The POSC services include Management and Administration, Command and Staff, Public Safety, Airfield Facilities/Air Terminal, Ordnance, Supply and Material Management Services, Morale, Welfare and Recreation Support, Galley, Billeting Management, Facility Support, Utilities, Base Support Vehicles and Equipment, and Environmental.

These services support the MARFORPAC and SOCPAC PAT-P. An interruption of any duration in these services would adversely impact force readiness and operational capability of the U.S. military forces, and thus, U.S. national security interests in Asia and the Southeastern Pacific.

e. It would not be feasible to solicit competitive proposals on a full and open basis for the required bridge contract services prior to the expiration of JJLL, LLC’s current contract. The required POSC services are complicated, extensive, and multifaceted. JJLL, LLC is uniquely qualified to perform the limited duration of the proposed bridge contract. Unlike any other potential source, JJLL, LLC currently possesses the on-site workforce and equipment required to perform the required support services. JJLL, LLC currently maintains an extensive workforce consisting of hundreds of employees, including managerial positions. JJLL, LLC also currently has in place millions of dollars’ worth of equipment used in the performance of these services, including an array of vehicles. With this existing workforce and equipment currently in place, JJLL, LLC is capable of fully meeting the requirement of the proposed bridge contract and executing the aforementioned highly specialized services.

f. Any contractor other than JJLL, LLC would require an extended mobilization period which would result in an unacceptable delay and/or interruption of services in meeting this requirement. NAVFAC Pacific has estimated that any other contractor would normally require at least three months to properly transition, badge and train the incoming workforce. Transition would also encompass, at a minimum, the purchase/lease of equipment (normally the incumbent’s), stand-up of a local office, re-location of any off-island key personnel and a wall-to-wall inventory. In this regard, it is noteworthy that the Republic of the Philippines is a remote location and that any equipment not already available in the Republic of the Philippines would have to be shipped by sea. In sum, award to a contractor other than JJLL, LLC creates a substantial risk of unacceptable delay.

g. Further, award of the required bridge contract to any other source would result in the potential duplication of costs that is not expected to be recovered through competition for the limited duration required. Because the contract is a Cost-Plus- Incentive Fee contract, all allowable transition costs incurred by a new contractor would be borne by the Government. There is a substantial risk that these costs could be higher if award were made to a source other than the incumbent. For example, JJLL, LLC may not be willing to sell its equipment to a likely competitor under the planned full and open competition for the intended long-term follow-on contract. Should that occur, the Government would bear substantial costs for the procurement and shipment of any new equipment.

Likewise, personnel costs for any off-island hires could be expected to be higher due to the limited duration of the maximum twelve (12) month bridge contract.

h. As NAVFAC Pacific is currently engaged in a competitive source selection which will culminate in award of the successor POSC, pursuing award of the bridge action to any source other than the incumbent would result in two simultaneous competitive source selections for the same underlying requirement; this would necessarily result in unavoidable duplication of cost and effort to the government with no expectation of recovery of that cost.

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

It is not practicable for any company other than JJLL, LLC to provide the required services for the reasons discussed in paragraph (5) above. The follow-on procurement is currently suspended while corrective action takes place due to a GAO protest. Market research was conducted in accordance with FAR Part 10 to gauge vendor interest and capabilities, determine if commercial services are available to meet the Government’s needs, and identify small business concerns capable of satisfying the requirement. Due to the location of the contract (outside of the United States), per FAR 19.000(b)(1)(ii), use of small business programs is not required.

A Sources Sought notice was issued on the Contract Opportunities website at SAM.gov on January 18, 2023, with a closing date of January 26, 2023. As of the closing date, eight (8) responses were timely received. Of the eight (8) firms, five (5) were Large Businesses; one (1) was a Woman-Owned Small Business (WOSB); one (1) was a Veteran-Owned Small Business (VOSB); and one (1) was a firm with multiple categories (i.e. (8(a)), Small Disadvantaged Business (SDB), HubZone, and WOSB). The responses received demonstrated that multiple unrestricted sources exist. However, due to the remote location and contract type, the small business firms were deemed to not have the experience or capability to be awarded a cost reimbursement contract covering multiple annexes.

Upon approval of this J&A, the Request for Proposal will be issued to JJLL, LLC as they are deemed the only firm capable of meeting the Navy’s POSC service requirements within the constrained time period.

This justification shall be made publicly available within 14 days after contract award to satisfy 10 U.S.C. 3204(f)(1)(A).

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 because it will be based on current contracted rates.

8. Actions to Remove Barriers to Future Competition.

As recounted above in paragraph (5), performance under a competitively solicited contract has been delayed due to the corrective action being taken in response to a GAO protest (Docket B-420539.4 & .5). The prior bridge contract (N62742-22-C-3590), period of performance 01 October 2022 – 31 March 2023, allowed time for GAO to make a decision on the GAO protest. The outcome of GAO’s ADR required the Government to conduct corrective action. The proposed bridge contract, estimated period of performance 01 April – 31 August 2023 with a 7 month option, allows time for corrective action to be taken and a new award decision to be made for the follow-on competitive procurement.

Revised November 2022 1 of 2

JUSTIFICATION AND APPROVAL #

CONTRACT #_N62742-23-R-

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS/FUNCTIONAL LEAD 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/Requirements Cognizance:

Signature Name (Printed) Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Signature Name (Printed) Date

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

Signature Name (Printed) Date

ECH III CHIEF OF CONTRACTING OFFICE ENDORSEMENT

Signature Name (Printed) Date

2/1/23

1/30/23

2/8/23

Revised November 2022 2 of 2

Signature Name (Printed) Date

ASSISTANT COMMANDER FOR CONTRACTING APPROVAL

Upon the basis of the above justification, I hereby approve the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 3204 (b)(B).

Signature Name (Printed) Date

2/13/23