SDVOSB FAR-Part6-JA.pdf

Version – June 2021 CUI

FAR Part 6 Justification and Approval for Other than

Full and Open Competition

1. Contracting Activity: The Contracting Activity for this requirement is the Office of the U.S. Property & Fiscal Officer for Hawaii, Purchasing and Contracting (P&C) Division, 91-1179 Enterprise Ave, Bldg 117, Kapolei, HI 96707-2150.

2. Description of Action: This justification is in support of a new, single award, Firm- Fixed Price (FFP) contract to provide construction services to repaint Building 501 and repair gutters Buildings 501 & 502 at Hawaii Air National Guard (HIANG), 292 Combat Communications Squadron in Kahului, Maui, HI. The Government projects award for fiscal year 2022, funds type Operations and Maintenance, Air funds will be used. An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

P&C Division intends to execute a Service Disabled Veteran Owned Small Business (SDVOSB) direct award in accordance with FAR 19.1406 to Vares Contracting Inc.

3. Description of Supplies/Services: The purpose of this contract is to provide construction services to complete exterior preparation, priming and painting of Building 501 and repair/replace gutter system of building 501 and 502 as needed. Metal rain gutters at Buildings 501 and 502 are corroded and need replacement. Building 501 has a gutter system of approximately 600 linear feet, while buildings 502 has a gutter system of roughly 900 linear feet. Contractor to inspect the existing metal gutter system, determine which will be fully replaced or replaced by sections. Downspouts will be replaced with PVC to avoid future corrosion. The period of performance shall be for a period of 120 days.

4. Authority Cited: 41 U.S.C. §3304(a)(5), 15 U.S.C. §657f, as implemented by FAR 6.302-5 (Authorized or Required by Statute). Contracting Officer’s (CO’s) may use the non-competitive (sole source) procedures authorized in FAR 19.1406 Sole Source awards to service-disabled veteran-owned small business concerns.

5. Reason for Authority Cited: As described in FAR 6.302-5, full and open competition need not be provided for when a statute expressly authorizes or requires that the acquisition be made through another agency or from a specified source, or the agency’s need is for a brand name commercial item for authorized resale.

As described in FAR 6.302-5(b)(6) Application. This authority may be used when statutes, such as the following, expressly authorize or require that acquisition be made from a specified source or through another agency: Sole source awards under the Veterans Benefits Act of 2003 ( 15 U.S.C.657f).

15 U.S.C. §657f states, in part, “…a CO may award a sole source contract to any small business concern owned and controlled by a service-disabled veterans if-

(1) such concern is determined to be a responsible contractor with respect to performance of such contract opportunity and the contracting officer does not have a http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3 reasonable expectation that 2 or more small business concerns owned and controlled by service-disabled veterans will submit offers for the contracting opportunity;

(2) the anticipated award price of the contract (including options) will not exceed-

(A) $7,000,000, in the case of a contract opportunity assigned a standard industrial classification code for manufacturing; or

(B) $3,000,000, in the case of any other contract opportunity; and

(3) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price.

The proposed source for this acquisition is Vares Contracting Inc., 645 Komo Ohio St, Wailuku, HI 96793-2163; a registered and verified SDVOSB by VA Center for Verification and Evaluation (CVE). As an ABC-Licensed General Contractor, Vares Contracting Inc., is technically qualified through its experience providing general contracting services on the island of Maui. They have been determined responsible and capable based upon review of their previous work experience, financials, and various government sources such as SAM, FAPISS and CPARS. The estimated price is $150,000.00 and will be determined fair and reasonable based upon review of historic prices previously paid for similar services and comparison to the Independent Government Cost Estimate provided by the HIANG 154th Civil Engineering Squadron. Based upon having met all the criteria required under 15 U.S.C. §657f, the CO determines to award a contract to Vares Contracting Inc.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources deemed practicable, including whether a notice or will be publicized as required by subpart 5.2 and, if not which exception under 5.202 applies:

In accordance with the FAR 19.1406, Sole Source Awards to Service- Disabled Veteran- Owned Small Business Concerns, the CO’s determination whether to make a sole source award is a business decision. For the reasons stated herein, and specifically, in response to Paragraph 5, the undersigned CO has determined Vares Contracting Inc. is a qualified, responsible SDVOSB and that an award can be made at a fair and reasonable price.

A Notice of Intent to Sole Source announcing the contract action was posted to www.fbo.gov, the Government’s point of entry, on 08/23/2022. No responses were received. The Justification and Approval (J&A) document will be posted within 14 days after award, in accordance with FAR Subpart 6.305. The award synopsis will be posted to SAM.gov in accordance with FAR Subpart 5.301(d)(1).

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: Based on the authorities cited in this justification, a sole source award to Vares Contracting Inc. is proposed, and CO will ensure the final contract price is fair and reasonable through reviewing historical prices on existing contracts and comparing the costs to the Government estimate.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: There was no formal market research completed. The USPFO-HI Contracting & Purchasing Division is seeking capable construction contractors that are SDVOSB to meet P&C’s socio-economic goals for FY 2022. An SBA Dynamic Search on 8/16/2022 with the criteria description where the firm is service-disabled veteran owned; the firm is small in NAICS code 236220; the profile address is Maui (county) of HI; the profile location is in Hawaii; the profile status is active resulted in 1 profile, Vares Contracting Inc., matching the criteria (see attached SBA search 236220 and SDVOSB.pdf). In addition, CPARS was pulled for performance summary. Three summary reports for Vares Contracting Inc. indicate satisfactory performance. Vares Contracting Inc. has sufficient bonding capabilities for this project's anticipated amount. In February 2022 they recently bonded for a federal government project for $450,000. The initial market research was done to identify qualified Small Business concerns that were SDVOSB in the Maui county. They are verified in VIP, and the action is below the $3M threshold. While there are recognizably multiple firms capable of providing these types of services, the CO has determined to award this acquisition on a non-competitive basis under the authority of 15 U.S.C. §657f.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

None.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

Vares Contracting Inc. has expressed interest in writing in this acquisition. There were no other sources that expressed in writing an interest in the acquisition.

11. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to Competition before Making subsequent acquisitions for the supplies or services required: The agency will continually search VIP for any new SDVOSB concerns that are considered qualified within the NAICS 236220 services.

12. Contracting Officer or Designee’s Certification: I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Anthony G. Reyes Date Contracting Officer