2nd_J A_BE_SECURE_-_fbo_posting.pdf

JUSTIFICATION AND APPROVAL (J&A)

TO: Erik Singer, Contracting Officer, USAID/Philippines

CC: Agency Competition Advocate

FROM: Joanne Dulce, Alternate Contracting Officer Representative, USAID/Philippines

DATE: 10 September 2014

RE: Water Security for Resilient Economic Growth and Stability (BE SECURE), AID-492-C-13-00015

SUBJECT: Justification for Other than Full and Open Competition under the Expedited

Acquisition and Assistance Procedures for Activities and Programs Related to

Typhoon Yolanda Recovery and Reconstruction

Request approval of this Justification for use of Other than Full and Open Competition pursuant to the authorities under the EPP “Expedited Acquisition and Assistance Procedures for Activities and Programs Related to Typhoon Yolanda Recovery and Reconstruction” (the “Expedited

Procedures Package”), approved on December 13, 2013. Approval of this J&A constitutes the

Justification for Other than Full and Open Competition as required by Tab 2 (Class

Determination and Findings for the Authorization of Other than Full and Open Competition in the Solicitation, Award and Modification of Contracts) of the EPP.

a) Nature and/or description of the action being approved.

This is a request to increase the total estimated cost (TEC) of the BE SECURE Contract by $2.9 million from $18.7 million to $21.6 million. This TEC increase to $21.6 million is within the funding amount approved in the Activity Approval Document on June 14, 2012.

b) A description of the supplies or services required to meet USAID’s needs (including the estimated value).

On July 17, 2014, USAID/Philippines approved a J&A under the EPP in order to expand Be

Secure to include the typhoon-affected areas of Leyte province. However, at that time, additional funds were not available to expand the statement of work. Fortunately, in the intervening time, USAID/Philippines has received supplemental funding that may be used to support additional interventions with respect to Typhoon Yolanda recovery assistance. Under this request, the TEC of the contract will be increased in order to fund such disaster-related activities, valued at an estimated $2.9 million.

Justification and Approval

BE SECURE

These activities will result in increased sustainable access to water and wastewater services to be achieved by strengthening the enabling environment for sustainable water supply and wastewater treatment service delivery as well as strengthening water supply and wastewater treatment service providers for sustainable service delivery. Examples of specific tasks to be carried out include: mobilize financing for sustainable water supply and wastewater treatment service delivery, strengthen data and information management on water supply sector performance, and increase water supply and wastewater treatment service provider capacity in disaster risk reduction and climate change adaptation.

Additionally, to increase resilience to climate-related water stress and hydrological extremes, the project will strengthen analysis, communication and use of water resource, weather and climate data and improve capacity for long-term water resources security. Specific tasks to be undertaken include: improve understanding of areas at risk to climate-related stresses, improve analysis and sharing of water resource, weather and climate data, improve capacity of decision-makers to utilize water resource, weather and climate data, improve understanding of areas at risk to climate-related stresses, improve climate change and DRR inputs to planning at provincial or municipal scales, and reduce risks associated with impacts of hydrological extreme events.

All such activities are within the scope of BE SECURE.

c) Identification of statutory authority permitting other than full and open competition.

AIDAR 706.302-70 and 40 U.S.C. §113; See Action Memorandum entitled “Expedited

Acquisition and Assistance Procedures for Activities and Programs Related to Typhoon Yolanda

Recovery and Reconstruction,” approved December 13, 2013.

d) A discussion of the proposed contractor’s unique qualifications or the nature of the acquisition that requires use of the authority cited.

The BE SECURE Contract was competitively awarded to AECOM based on the results of a full and open procurement process. Since its award on July 8, 2013, AECOM has proven that they are efficiently implementing the project, making advances on water security, climate change, adaptation, and disaster risk reduction activities. The Contractor has also established critical partnerships and relationships with key local and national stakeholders in the recovery effort.

They have also initiated capacity building and mentoring efforts and facilitated private-public partnerships that will increase access to water supply and sanitation services in disaster-affected areas As such, AECOM has a unique working and technical relationship already established disaster-affected areas.

Pursuing a full and open competition would result in unacceptable delays and duplication of costs to the government for a project already under implementation since procurement action will require a minimum of six (6) months to complete. In addition, an award to a new implementing partner will mean unacceptable delay and substantial additional costs due to the time needed for startup activities that include relocation manning problems, preparation of management plans, and other organizational activities. It will also mean the need for the new implementing partner to build new partnerships, working relationships, and gain trust and confidence of partners.

Employing another contractor for these tasks would imply a duplication of costs for the following: (a) air fare to the Philippines, (b) recruitment/advertising of positions, (c) office space rental, (d) vehicle purchase, (e) project start up and mobilization staff hours, (f) purchase of office equipment and supplies, (g) staff hours for workplan and monitoring and evaluation planning, and (h) stakeholder and government consultations and meetings.

Additionally, since the current project has already invested significant time and resources into conducting stakeholder consultations, developing close working relationships with local and provincial government officials, and coordinating with the multitude of other donors involved in the recovery effort; a new contractor would have to devote significant staff time and resources to re-create these relationships and information that already exist under the current contract. In many cases, these strong working relationships that give AECOM the ability to operate in the complex environment, were developed over months of work with the Rehabilitation and

Recovery Cluster system that was established just days after the typhoon. A new contractor would not be able to recreate or develop the same knowledge of the recovery process, be privy to the same stakeholder consultation information, or been part of the on-the-ground recovery planning process.

Finally, given the very complex working environment in Leyte and the fact that the current contractor already has established the necessary contacts to conduct the proposed work;

introducing yet another contractor to the recovery environment will create confusion and frustration among local officials. Local government officials have been overwhelmed with the coordination effort between various national government agencies, as well as donor agencies and private organizations all undertaking recovery projects. If USAID were to add another contractor who needs to establish the same working relationships that AECOM already has, it will be challenging for them to get appointments as the officials already assume they have a relationship for water, sanitation and climate change work funded by USAID with AECOM.

The reasons cited above make AECOM uniquely qualified to continue implementation of the

Project under the expanded geographic scope. A full and open competition for these services would result in delays in the critical recovery process and duplicative costs for the government.

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

The BE SECURE Contract was competitively awarded to AECOM based on the results of a full and open procurement process. The Request for Proposal (RFP) was posted on www.fbo.gov on

February 1, 2013. Proposals were received from four offerors as of the closing date of March 15, 2013.

http://www.fbo.gov/

Per FAR 5.202(a)(11), the proposed contract action is made under the terms of an existing contract that was previously synopsized in sufficient detail to comply with the requirements of

FAR 5.207 with respect to the current proposed contract action.

Pursuant to AIDAR 705.202(b) (FAR 5.202) information regarding the contract action was not publicized as advance notice is not appropriate or reasonable because the proposed action is subject to 706.302-70(b)(3).

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

The Contracting Officer determines that the anticipated cost to the Government for the activities will be fair and reasonable based on cost information in the current BE SECURE Contract and the Government’s independent cost estimate. Anticipated cost for the activities to expand the geographic scope in Leyte is included in Attachment A, Table 1.

g) A description of the market research conducted (see FAR Part 10) and the results or a statement of the reason(s) market research was not conducted.

The BE SECURE Contract was awarded based on the results of a competitive procurement process. Full solicitation was posted in www.fbo.gov and competitive proposals were received and AECOM was selected as the implementing contractor for this contract.

A review of the Mission’s existing implementation mechanisms (contracts and grants/cooperative agreements) along with the current contractors/implementing partners, both local and US partners, showed that AECOM, is the only known USAID contractor, that is currently in country implementing a comprehensive program that includes water and sanitation infrastructure rehabilitation and recovery, as well as climate change activities. Market research was conducted on the submitted budget and the budget was found to be comparable to other rates for the same services. Specifically, the costs for the proposed work are in line with the market value for these services.

In addition, for reasons cited in (d) above, opening this action to full and open competition will result in unacceptable delays and duplication of costs to the government for a project already under implementation. See Attachment A, Table 2 for an estimation of duplication of costs.

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

None.

i) A statement of the actions, if any, USAID may take to remove or overcome any barriers to competition before any subsequent acquisition of the supplies or services required.

The Mission will ensure that all subsequent requirements for these goods or services will be competed to the extent practicable.

file:///C:/Users/AbCastillo/Downloads/www.fbo.gov

RECOMMENDATION

It is recommended that you approve this justification for use of other than full and open competition pursuant to the EPP approved on December 13, 2013. Approval of this J&A constitutes the justification for other than full and open competition as required by Tab 2 (Class

Determination and Findings for the Authorization of Other than Full and Open Competition in the Solicitation, Award and Modification of Contracts) of the EPP.