Justification Approval for Ceiling Increase.docx

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION

1. I recommend that the Department of State use other than full and open competition to increase the current contract ceiling from $20M to $35M for the support contract provided by Site Solutions Worldwide under contract SAQMMA08D0054.

The requiring office is the Bureau of Diplomatic Security, Office of Management Services, Contract and Procurement Division, 1801 N. Lynn Street, Arlington, VA 22209.

1. Nature and/or description of the action being approved.

The current contract was awarded on April 17, 2008 with a base period and four option years. If all options were exercised the period of performance would have provided continued sustainment support through the contract expiration date of August 14, 2013, with an expected total contract value of $20M.

However due to an unexpected and substantial increase in protective program requirements the current contract ceiling will be reached by May 2011. This has resulted from increased responsibilities of Diplomatic Security to provide security assistance for National Security Events such as: the Annapolis Peace Conference, G-20 Conference and visiting foreign dignitaries travel to the United States of America.

The purpose of this J&A is to increase the contract ceiling price through the end of Option Year III period of performance, which expires on August 14, 2012. The work to be performed during this period is solely to complete the residual work already placed on contract that will be required prior to the award of a new contract.

Based on projected mission and workload requirements, Diplomatic Security projects a ceiling increase of the contract value by $15M for a total contract value of $35M that will accommodate the completion of the residual work.

1. A description of the supplies or services required to meet the agency’s needs.

The Site Solutions contract provides command post facilities, sleeping rooms for Department personnel, and limited additional support such as parking to support the Bureau of Diplomatic Security. Site Solutions negotiates with hotels, with the advantage of industry knowledge, to obtain low rates often below the market place, to obtain the support required. The resources expended against this contract are paid to the hotels by the vendor at negotiated rates. The vendor receives commissions from the hotels based upon industry practice. This contract does not provide payment directly to Site Solutions for labor or ODCs they have expended to provide service to the Government.

1. Identification of the statutory authority permitting other than full and open competition.

This request is made pursuant to the authority of 10 USC 2304(c)(l), as implemented by FAR 6.302-1 (a)(2)(iii)(B), "Only one responsible source and no other supply or services will satisfy agency requirement when it is likely that award to any other source would result in unacceptable delays in fulfilling the agency's requirements."

1. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

Pursuant to the cited authority, full and open competition need not be provided when it is likely that award to any other source "would result in unacceptable delays in fulfilling the agency's requirements", FAR 6.302-l (a) (2) (iii) (B). Failure to retain the current contractor throughout the current contract duration would result in harm to government operations due to the following issues:

1. The current vendor has negotiated prices with hotels in the NYC area to support UNGA through the life of the contract.

1. Contractor support personnel with DS experience in UNGA, National Security Event requirements and infrastructure that are critical to program stability.

1. The learning curve that is required to bring in a new contractor would cause a negative impact on the mission.

1. Consistency and prevention of unacceptable delays in providing protection details are crucial to the mission.

DS’s ability to meet our increasing mission requirements would be at undue risk and shall jeopardize our ability to maintain operational capabilities if we do not increase the ceiling of the current contract with the current contractor. The work to be performed during the period is solely to complete the residual work already placed on contract that will be required prior to the award of a new contract.

1. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

N/A

1. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The work to be performed under this J&A is still within the original period of performance of the contract. The Contracting Officer will utilize the current contract rates and any other necessary cost and pricing data to ensure the cost to be fair and reasonable.

1. A description of the market survey conducted and the results or a statement of the reasons a market survey was not conducted.

N/A. The purpose of this action is to provide continued contractual coverage for the support of DS Programs. The work is within the original period of performance and the ceiling is being increased to complete orders already on contract through Option Year III.

1. Any other facts supporting the use of other than full and open competition.

N/A

1. A listing of sources, if any, that expressed, in writing, an interest in the acquisition.

None

1. A 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.

The follow-on action will be full and open competition. The increase in workload leading to the sudden approach to the contract ceiling has resulted in this request for increase in ceiling to complete contract orders and support to the end of Option Year III period of performance.