REDACTED Justification and Approval for Other than Full and Open Competition.pdf

For Official Use Only

Control No: LRE FY20 Extension

Justification and Approval for Other Than Full and Open Competition

1. Contracting Activity: U.S. Army Corps of Engineers (USACE), Detroit District, 477 Michigan Avenue, Detroit, MI 48226

2. Description of Action: This justification and approval (J&A) is being prepared as a sole source modification to DK Security currently engaged under Contract No. W911XK16C0008 for continued Armed Security Guard Services throughout the St. Mary's Falls Canal in Sault

Ste. Marie, Michigan. The modification is to extend the contract for six (6) months in accordance with FAR Clause 52.217-8, Option to Extend Services, and will remain Firm

Fixed Price for continued services consistent with the current contract. The current contract's period of performance ends on 30 June 2020. The government intends to award a new Armed Security Guard Service Contract in FY20 under a 100% small business set-aside using FY20 facility funding.

3. Description of Supplies/Services: The required services for this modification will be continued from the original contract action and corresponding modifications which includes armed security guard services during daily operations (roving patrols, posted patrols, etc.), special event guard services, and corresponding equipment, training, qualifications, and management. The total value for the six (6) month extension includes labor, equipment, and special events with a total estimated value of $652,504.76 subject to revisions in wage rate changes.

4. Authority Cited: 10 United States Code section 2304(c)(l) as implemented in Federal

Acquisition Regulation 6.302-1(a)(2), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited:

(a) Background: The site of the armed security guard services is highly complex and includes two active navigation lock chambers, two inactive lock chambers, two hydroelectric power plants, an international dam, eight miles of pier face, Government buildings, shops, floating plant and utilities, and two public parks and a Visitor Center.

Additionally, construction of the New Lock at the Soo Mega Project is starting on site

April 2020. Nearly 100% of the iron ore mined in the United States transits the St

Mary's Falls Canal, and as such it is of vital strategic and economic importance to the

United States. DK Security is currently engaged under Contract No. W911XK16C0008 to provide armed security guard services to maintain this locale's overall infrastructure.

(b) Justification: 10 U.S.C. § 2304(c)(l) allows other than full and open competition if the services being procured are available from only one responsible source or a limited number of responsible sources and no other type of services will satisfy the needs of the agency. This statute is implemented in FAR 6.302-1. Here, exercising the option to extend services under FAR 52.217-8 is justified because ongoing necessary services would be otherwise be interrupted and only the incumbent contractor can provide those services within the required time. Furthermore, exercising the option to extend services, which was included in the initial contract award, is not the result of a lack of advance planning. DK Security is the incumbent contractor currently fulfilling the government requirement to maintain security onsite in order to maintain daily operations. These services are necessary to ensure the security of the facility. The phase in period for a new contractor is anticipated to take 120 days for these specialized services which includes hiring personnel, obtaining medical clearances, acquisition of equipment, completion of training, and development and approval of procedures. Given the planning, logistics, and phasing requirements for successful performance, it is not feasible, nor is it cost effective to award a new contract with full competition and have the new contractor in place before

30 June 2020. Thus, sole source award to the existing contractor providing Armed Guard

Security Services for a period not to exceed 6 months is justified.

(c) Alternatives: The only other alternatives are to outsource these specialized services to the private sector in order to cover the time frame using emergency acquisition procedures or seek assistance from other federal or military channels. The same anticipated 120 days to phase in would still apply causing a lapse in fully functional specialized armed guard services to take place before the current contract expires on 30

June 2020. Overall, these alternatives are not feasible as an inflated cost would likely ensue from the private sector, federal assets are not immediately available and would have to be hired and trained, the available military assets are likely actively engaged in

COVID-19 operations, and the timeframe is not feasible for full force protection.

(d) Impact: The Saint Marys Falls Canal Facility includes a combination of navigation locks , hydroelectric power plants, internationally owned and operated dam that regulates

Lake Superior water outflow, conjunction with 75 miles of Federal navigation channel, associated buildings and maintenance assets, and public parks and visitor center serving half a million visitors annually. Additionally an international highway bridge and international rail bridge pass through the facility. Nearly 100 percent of the iron ore mined in the United States passes through the facility, and 80 percent of the total tonnage is restricted to the Poe Lock chamber due to vessel size. A Department of Homeland

Security study estimated that a six month closure of the Poe Lock would result in a 6% nationwide increase in unemployment and gross domestic product contraction of 6%, with much more severe regional economic consequences. Secondary and tertiary effects of loss of other commodities including coal, stone, and grain would also have corresponding consequences. The two hydroelectric power plants provide 100% of the power used to operate the facility. Excess power is sold to the local utility and provides about 20% of the electric power for the Eastern Upper Peninsula, with significant replacement cost. The parks and visitor center are a regional anchor attraction for tourists, providing significant secondary income for related local and regional industries and businesses. This facility is of vital national strategic importance, with military presence specifically to protect trade and infrastructure dating from the mid-1600s to the

1950s. Between the 1950s and 1977 infrastructure protection was accomplished with

Federal Police. Since 1977, contract security guard services have been utilized to protect these strategic national assets. Leaving these assets unguarded would make them vulnerable to attack , damage, or tampering , and significantly increase response time during an intrusion. Utilizing existing employees whose contributions are primarily in administrative, operations, or maintenance functions as "eyes and ears" during a lapse of security service coverage would likewise increase vulnerability of the employees due to lack of appropriate training, lack of 24x7 facility coverage, and prolonged response time from local law enforcement.

6. Efforts to Obtain Competition: The current contract was awarded through a competition open to all small businesses. The work required in this option is included as part of the current contract and will not be further competed. The next contract for these services will be competed, as described in paragraph 7. In accordance with FAR

5.203(a), a Notice of lntent was issued on beta.sam.gov on 27 April 2020. Upon completion of the modification, IAW FAR 6.305(d), this J&A will be made publicly available.

7. Actions to Increase Competition: As the existing contract W911XK16C0008 was awarded with a base period of performance of one year with three one year extension options, the last performance day of the last extension option is 30 June 2020. A new service contract for Armed Security Guard Services is being pursued with tentative award before the 30 June 2020 date, considering overlap with the phase in period for the new contract is anticipated to take at least 120 days. Suggested sources have been contacted with notices required by FAR 5.201 being published in the form of a recent sources sought posting in February 2020 and a pre-solicitation notice posting in March 2020 on beta.sam.gov generating interested parties to engage contracting personnel.

8. Market Research: Armed guard services for the USACE Soo Area Office have been performed by small businesses for the past three (3) contracts, dating back to Fiscal Year

2010. Database searches conducted using NAICS Code 561512 indicate there are several small businesses who registered under this code and may appear to be capable of performing the required work. Further search revealed more than 300 small businesses were registered under the NAICS Code 561512 and are capable of providing armed services. Sources sought conducted 12 March 2019 resulted in six (6) responses; Norpro

Company (small, 8(a), SDB), Calderwood Products (small, 8(a), SDB, Whitestone

(large), STT Security (small), DK Security (small), and Redcon (Small, SDB). Sources sought closing 25 February 2020 resulting in nine (9) responses; Miller Protection

Services, Calderwood Products and Services, Northwest Michigan Council of

Governments, Paladin Defense Group, Inc., BCM Suisse - SMS Consulting SARL, Optimum Defense Services, STT Inc., BMT Consulting, and Redcon.

9. Interested Sources: Two (2) other firms have expressed recent interest by emailing the

Contract Specialist of the opportunity to include; Homeland Metro Protective Services and Fiore.

10. Other Facts:

a. Procurement history. As previously stated in the Market Research section of this document; previous three (3) contracts were 100% set-aside for small business;

GIBSON.DEREK.S

Digitally signed by

GIBSON.DEREK.SCOTT.1285079

COTT.1285079590 590

Date: 2020.05.01 08:41:12 -04'00'

20200501

HARRINGTON.JEFFRE HARRINGTON.JEFFREY.VICTOR

Y.VICTOR.1295746730 .1295746730

Date: 2020.05.01 08:02:53 -04'00'

WALLACE.ADAM.

WALLACE.ADAM.PAUL.12933865

PAUL.1293386532 32

Date: 2020.05.01 10:32:42 -04'00'

Digitally signed by

Date: 2020.05.01 08:41:32 -04'00'

Date: 2020.05.01 08:41:53 -04'00'

Approval

Based on the foregoing justification, I hereby approve the procurement as outlined in FAR

Clause 52.217-8 to exercise option of a six (6) month extension of the Armed Security Guard

Services located at St. Mary's Fall, Michigan on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(l), as implemented by FAR 6.302-1, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Signature: Date:

Derek S. Gibson

Contracting Officer