PR16269374 - JOFOC Baghdad.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SECTION 1: IDENTIFICATION OF THE AGENCY AND THE CONTRACTING

ACTIVITY

Department of State Contracting Activity

Acquisition Management ☐ Foreign Service Institute ☐ Office of Foreign Missions ☐ U.S. Mission to the United Nations ☐ Overseas Post

Requiring Activity US Embassy Baghdad, FAC

SECTION 2: NATURE AND/OR DESCRIPTION OF THE ACTION BEING

APPROVED

Approval is requested to solicit and award on a sole-source basis a Firm-Fixed-Price contract to Sigma International Construction LLC, Gainesville, Virginia (SIGMA) for the supplies and/or services described in Section 3 on behalf of the Requiring Activity.

SECTION 3: DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS

The requirement is for construction services for the development of the former West End camp area at the Baghdad Embassy Compound into a dedicated LE parking area, O&M equipment parking area, container yard, and HAZMAT yard.

The contractor shall provide all labor, logistics, equipment, materials, and supervision required to redevelop a USG owned site to enable the relocation of all provisions from a leased site identified as Texas Lot. These provisions include hazardous material functions, locally employed staff parking, operations and maintenance equipment parking, waste accumulation and processing, and container storage. Major work includes but is not limited to existing foundation removals, site surveying, grading, storm water pipe installations, manhole installations, catch basins, and reinforced concrete pavement.

The performance period for this work is estimated to be 340 calendar days from the Notice to Proceed.

The estimated value for the entire performance period is $4,500,000.00.

SECTION 4: IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING

OTHER THAN FULL AND OPEN COMPETITION

This acquisition is conducted under the authority of 41 USC 1901, as implemented by FAR12.102 (Restricting competition) specifically, this authority permits contracting on a sole-source basis.

SECTION 5: DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S

UNIQUE QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES

USE OF THE AUTHORITY CITED

Sigma International Construction LLC is uniquely qualified to provide these services based upon the following:

They have recent and directly related project experience at the Baghdad Embassy Compound (BEC) and have provided architectural and engineering services that match those required for this work. This experience has also provided them with fully vetted staff capable of beginning work immediately after a Notice to Proceed is provided.

Sigma also has one of only two known concrete batch plants operating in the International Zone (IZ). This provides them with the ability to avoid Government of Iraq approvals and inspections otherwise required for all materials being brought into the IZ.

This rapid production and delivery method reduces risk of unusable concrete deliveries due to overhardening while awaiting lengthy inspections. In addition to owning and operating a concrete batch plant, Sigma owns or has access to the heavy equipment necessary for the demolition, excavation, and trenching work required.

SECTION 6. DESCRIPTION OF EFFORTS TO ENSURE THAT OFFERS WERE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE,

INCLUDING WHETHER A NOTICE WAS OR WILL BE PUBLICIZED AS

REQUIRED BY FAR SUBPART 5.2 AND, IF NOT, WHICH EXCEPTION UNDER

FAR 5.201 APPLIES

The Government will not publicize the requirement pursuant to FAR 5.101(b)(2), as applicable under the RFO, because this acquisition will be conducted under the simplified procedures of

RFO 12.201-1.

Procedures for Foreign Acquisitions are provided in DOSAR 605.202-70.

Notwithstanding the foregoing, the Government will make this justification publicly available following award in accordance with applicable posting requirements.

SECTION 7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT IS FAIR AND REASONABLE

The Contracting Officer has determined that the anticipated cost in the amount of USD 4,500,000.00 to the Government of the supplies/services covered by this J&A will be fair and reasonable based on comparison to substantially similar work recently performed at the BEC and the independent government cost estimate from the Baghdad Embassy Facility Management office. By signing the justification, the Contracting Officer makes a determination that the cost to the Government is expected to be fair and reasonable.

SECTION 8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED (SEE

PART 10) AND THE RESULTS OR A STATEMENT OF THE REASON MARKET

RESEARCH WAS NOT CONDUCTED

Market research was conducted using recent acquisition pricing for concrete, and local research into the cost per cubic meter of concrete. Post has established that two (2) construction companies, Sigma International Construction LLC and Kaso Group have batch plants inside the International Zone (IZ). Kaso Group is involved in the major high-rise project inside the IZ and would not have the capacity to support the urgent and dedicated needs of this project. Other batch plants outside of the International Zone are not feasible due to the current security situation.

SECTION 9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER

THAN FULL AND OPEN COMPETITION

Diplomatic Security continues to assess Baghdad as a CRITICAL Threat location for terrorism directed at or affecting U.S. Government interests. Crime and lawlessness remain a serious threat throughout the country. In Baghdad, organized crime, uncontrolled militia activity, and corruption remain formidable obstacles to free enterprise and business. Terrorist attacks throughout Iraq have continued to decline but have not entirely subsided, and the region has experienced waves of increased attacks recently due to regional conflict flaring up. Foreign and local groups remain capable of conducting deadly attacks throughout the country and continue to threaten our interests. These security conditions have limited the Government's ability to coordinate a site survey and ensure quick access for a contractor's workforce to the Embassy.

We can ameliorate some of these concerns by utilizing the batch plant inside the IZ which has restricted access.

Delays associated with the vetting and security processing of the non-vetted staff of another company and the risks associated with additional delays imposed by the Government of Iraq when bringing materials into the International Zone present a significant cost impact to the U.S.

Government associated with a delay in the closure and lease termination of the Texas Lot.

SECTION 10. LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN

WRITING, AN INTEREST IN THE ACQUISITION

To date, no other sources have written to express interest

SECTION 11. STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE

TO REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY

SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR SERVICES REQUIRED

This is expected to be a one-time procurement with unique requirements and in accordance with Mission Iraq cost containment efforts. Past and future similar work requirements have had and are expected to have, reduced site work and allow for competitive acquisition.