SGS-22-340-Belvoir JA 2022-68-20220725_Redacted FINAL.pdf

Control No: MICC 2022-68

Contractor: Aleut O&M Services, LLC Program/Equipment: BASOPS

Justification Review Document for Other than Full and Open Competition - FAR Part 6

Program/Equipment: Base Operations (BASOPS) Contract for Fort Belvoir, VA

Authority: 10 U.S.C. 3204(a)(1) as implemented by FAR Part 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Amount: $28,000,000.00

Prepared by:

Contract Specialist Date: 01 March 2022

Contracting Officer:

Contracting Officer Date: 01 March 2022

Technical:

General Engineer/BASOPS COR Date: 19 May 2022

Requirements:

Deputy Director, DPW Date: 19 May 2022

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Program Manager:

Date: See Digital Signature

Small Business Specialist:

Division Chief:

Director, MICC-Fort Belvoir:

MICC Legal Counsel:

Director, FDO-Fort Sam Houston:

Alternate Advocate for Competition:

Director, Small Business Program:

Justification and Approval for Other than Full and Open Competition – FAR Part 6

1. Contracting Activity: U.S. Army Mission and Installation Contracting Command (MICC)-Fort Belvoir, 9410 Jackson Loop, Building 1425, Fort Belvoir, VA 22060.

2. Description of Action: Directorate of Public Works (DPW)-Fort Belvoir requests an increase to the contract ceiling for the Base Operation and Maintenance (BASOPS) Indefinite Delivery/Indefinite Quantity Contract No. W91QV1-18-D-0007, awarded to Aleut O&M Services, LLC, 5775 Mark Dabling Blvd 105, Colorado Springs CO 80919-2240. Approval to increase the contract ceiling by $28 million from $109,031,966.00 to $137,031,966.00 will allow for continuity of services and sufficient time to solicit and award a competitive follow-on contract on or before March 2024. The Government projects exercising of Option Year 4 using fiscal year 2022 (Army) Operations and Maintenance funds.

3. Description of Supplies/Services: The current BASOPS contract provides public works maintenance services to the entire Fort Belvoir installation. The BASOPS contract requires the contractor to provide all personnel, equipment, supplies, transportation, tools, materials, supervision, and other items and non-personal services necessary to provide installation operations support services at Fort Belvoir, VA.

Service includes providing all parts required for preventive maintenance and all repair parts required for demand maintenance. The Contractor must provide installation preventive maintenance services seven days per week, 365 days per year. In addition, the Contractor must also provide on demand repair services on a routine, urgent, and emergency basis. Preventive maintenance and recurring sustainment work performed on all real property facilities are to prevent, detect, and correct incipient failures.

Preventive maintenance activities include systematic and cyclic check, inspection, servicing, and repair of deficiencies of utility plants and systems, buildings, structures, and grounds facilities. These repairs may also include replacement of parts or components necessary to keep equipment and/or systems operating effectively. On demand repair service is performed in response to customer request for service in form of Demand Maintenance Orders (DMOs). DMOs are classified as: 1) Emergency, which immediate action is required to eliminate life threatening or serious injury hazards to personnel; 2) Urgent, upon which failure would soon inconvenience or affect security, health, or well-being of personnel, but does not immediately endanger personnel or properties; and 3) Routine, upon which failure to repair will result in measurable discomfort or inconvenience to the customer or waste resources or create the need for additional minor repairs. The period of performance remaining for the BASOPS Contract on Option Year 4 and FAR Clause 52.217-8-Option to Extend Services, are as follows:

Option Year 4 -- (21 September 2022 – 20 September 2023) 52.217-8 Option – (21 September 2023 – 20 March 2024)

BASOPS contract. The cost for this modification is $1,487,306.04 for Option Year 3, and $2,755,797.24 for Option Year 4. Upon exercise of Option Year 4 to include the additional buildings, the total contract cost will be $118,216,327.98. Therefore, it is impossible to exercise Option Year 4 without first increasing the ceiling of the contract.

There are several reasons for reaching the ceiling sooner than originally estimated.

One of the reasons for reaching the ceiling sooner than planned was the addition of the new wing of Building 2444, and Building 2492, which added a significant amount of square footage and equipment to the contract. Additionally, during the Base and Option Year 1, there was an influx of Project Work Orders (PWOs), which required contract modifications to increase the Project Work Order CLINs exceeding the original $6.5 million ceiling on these CLINs, as well as annual increases to the contract based upon the negotiated Collective Bargaining Agreement (CBA) wage increases. The increase for the PWO CLINs were $2,177,500 for the base year, and $2,250,300 for Option Year

1. The CBA increases resulted in an increase of wages in the amount of $1,321,971 for Option Year 1 and $1,002,750 for Option Year 2. In addition, new within scope changes have been identified for adding support for Buildings 808, 1195, Fisher House, along with updated State environmental requirements/regulations, that require additional street sweeping per month. These increases are estimated at $900,000 per year. Based upon the above-mentioned increases, the value of the six-month extension in accordance with FAR 52.217-8, is $13,443,467.62. Due to the above-mentioned modifications impacting the contract ceiling dollar maximum, $28,000,000 must be added to the ceiling, $14,234,367 additional is attributable to Option 4 (21 September 2022 - 20 September 2023), and $13,765,633 is attributable to the 52.217-8 Option (21 September 2023 – 20 March 2024) if exercised at the end of the contract. The remaining $3.5 million will address any further potential CBA adjustments or possible unplanned additions of other buildings to the contract.

The Mission and Installation Contracting Command, Installation Readiness Center, at Fort Sam Houston, will be leading the procurement effort for the follow-on BASOPS contract on behalf of the Fort Belvoir DPW. The Fort Belvoir DPW is expected to submit the requirement packages by September 2022, with contract award projected for September 2023. It will take a minimum of six to nine months to compete the base operations requirement to the point of award after receipt of a finalized requirement from the customer, which takes into account review of the solicitation file, posting the requirement, evaluation of proposals, and the remainder of the source selection process. Since the requirement is still being finalized, the final year option is necessary;

and the extension under 52.217-8 is necessary in the event of any unforeseen delays to the schedule to ensure continuity of operations, including but not limited to pre-award protests, a higher than anticipated number of proposals, or a high number of solicitation questions.

Due to the IDIQ's exhausted ceiling and the need to continue uninterrupted services, the only viable option at this time is to increase the ceiling in order to exercise the remaining option year until the follow contract is awarded by the Installation Readiness Center.

b. Alternatives.

1) Suspension of Operations. Suspension of operations is not a viable option.

The maintenance service provided by the current contract directly impacts multiple agencies’ missions located on Fort Belvoir. Suspending maintenance service will result in life, health and safety issues to include failure of buildings and their equipment; thus, jeopardizing missions of the occupants.

2) Re-compete bridge contract. Re-competing a bridge contract is not a feasible option due to the fact that the requiring activity has not completed the follow-on requirements package along with the time constraints associated with reaching the ceiling of the IDIQ at the end of the current Option Year on 20 September 2022. For complex acquisitions such as BASOPS services, a minimum of a thirty (30) day phase-in period is required for a new contractor; this start-up period shortens the time for approval, preparation, solicitation, and award to less than 4 months. With the cost of the contract more than $20 million per year, it is unrealistic to solicit for services of this magnitude, award, and transition to a new contract prior to 20 September 2022. Due to the magnitude and complexity of the requirement and the time available before the current Option Year expires on 20 September 2022, the incumbent contractor, Aleut O&M Services, LLC, is the only available source that can provide services until a new competitively awarded contract can be executed. Per current contract, the phase-in period (2-weeks) cost $17,470. This cost is expected to be higher if a contract is awarded to other than the incumbent contractor. In addition, re-competing the contract will require a significant degree of governmental resources to process the acquisition of a bridge contract.

c. Impact if justification is not approved. Failure to approve this action will result in a break of services of base operations and maintenance across Fort Belvoir, VA thus creating mission failures across multiple agencies. Mission critical facilities like Tyson’s Corner Communication Tower, Suitland Communication Tower, and INSCOM facilities may have building failures due to lack of maintenance services, thereby threatening national security.

6. Efforts to Obtain Competition: A Notice of Intent to Increase the Ceiling of Contract No. W91QV118D0007 was posted to SAM.gov as a Special Notice on 19 April 2022 with a closing date of 26 April 2022. No sources responded to the special notice to express interest in this acquisition.

a. Effective competition. This is a sole source action; therefore, effective competition is not applicable, see para 5 above.

b. Subcontracting competition. Aleut O&M is a Small Business and is not required to submit a subcontracting plan. However, the contractor agrees in execution of the contract that at least 50 percent of the cost of contract performance incurred for personnel shall be expended for employees of the concern, as stated in FAR 52.219-14 (Jan 2017)

7. Actions to Increase Competition: Competition is being sought to the fullest extent practicable by soliciting the follow-on contract as 8(a) small business set-aside, see paragraph 5(a). The follow-on contract solicitation is expected to start after September 2022. In the worst-case scenario where solicitation takes longer and award cannot be completed by September 2023, a 52.217-8 extension will be required to provide sufficient time to benefit potential offerors and provide for the best competition effort for the follow-on contract.

No other actions were taken to attempt to obtain competition for this contract. The incumbent contractor has the personnel on hand that can perform the required BASOPS services without the need for a phase-in period. Formal market research will be conducted as part of the follow-on contract effort.

8. Market Research: The Installation Readiness Center at Fort Sam Houston has been leading efforts to procure the follow-on contract for W91QV118D0007 in order to maintain continuity for future BASOPS requirements. The follow-on contract is anticipated to be set-aside 100% for 8(a) businesses.

In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance and Information (PGI) 206.302-1(d), a Notice of Intent to increase the ceiling was posted on SAM.gov on 19 April for 7 calendar days with zero (0) sources responding to the notice.

9. Interested Sources: See Paragraph 6 for the synopsis information. To date, no other sources have written to express interest in the acquisition.

Approval

Based on the foregoing justification, I hereby approve the increase for Fort Belvoir Base Operations Services Support, to contract number W91QV118D0007, on an other than full and open competition basis pursuant to the authority of 10 United States Code 3204(a)(1) as implemented in Federal Acquisition Regulation 6.302-1(a)(2)(iii)(B), Only one responsible source and no other supplies or services will satisfy agency requirements. The estimated value of the ceiling increase is $28 million and will support performance during Option Year 4 and FAR 52.217-Option to Extend Services, from 21 September 2022 through 20 March 2024. This approval is subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

WADE C. COLE

Senior Contracting Official U.S. Army Mission and Installation Contracting Command, JBSA Fort Sam Houston, TX