SOLE SOURCE JUSTIFICATION Utah Snow - Grounds.pdf

U.S. General Services Administration Rocky Mountain Region

Justification for Other than Full and Open Competition

41 U.S.C. 1901

Date: June 27, 2022

I. Agency Identification:

General Services Administration, Public Buildings Service

Rocky Mountain Region, Acquisition Division (8PQB)

Denver Federal Center, Bldg. 41, Rm. 288

Denver, CO 80225-0546

II. Nature and Description of Action Being Approved:

The General Services Administration, Public Buildings Service, Region 8 (hereinafter also referred to as “Region 8” or “GSA”), proposes to contract the requirements described herein by means of other than full and open competition.

Contracting by such means is authorized under 41 U.S.C. 1901 as implemented by FAR 13.106-1(b).

III. Description of Supplies or Services Required to Meet Agency Needs (including the estimated value):

Region 8 requires grounds maintenance and snow removal services at six federal buildings in Utah, i.e., Ogden

(James V. Hansen Federal Building and Forest Service Building) -- Salt Lake City (Wallace F. Bennett Federal

Building, Frank E. Moss U.S. Courthouse, and the Orrin G. Hatch U.S. Courthouse) – Provo (J. Will Robinson Federal

Building). The identified grounds maintenance and snow removal activities include all management, supervision, personnel, labor, materials, equipment, transportation, tools, supplies, and other direct costs to satisfactorily perform the work. The services require the contractor to haul and dispose (recycled to the fullest extent possible) of all debris, vegetative waste, and excavated material generated or removed in the performance of services.

Broadly, to successfully perform the required services, a contractor must have capabilities to satisfactorily perform the following requirements—

1. provide landscape erosion management;

2. provide trees and shrub maintenance, trimming, and pruning;

3. provide removal and pruning of damaged vegetation to preserve the longevity and health of the vegetation on the federal properties;

4. provide general maintenance of flowerbeds, plants, trees, shrubs, ground covers, and lawns;

5. provide mowing, edging, leaf removal, weed control, removal of debris from vegetation, irrigation services, aeration, and fertilization;

6. obtain approval from the Government prior to award of the contract (prior to the beginning of the anticipated contract performance period on August 1, 2022) without any transition period for the following:

a. product information,

b. safety plan,

c. snow removal work plan,

d. an annual fertilizer plan,

e. green purchasing practices,

f. chemical treatment plan,

g. material safety data sheets, and

h. a quality control program.

7. complete thorough review and inspection of all existing conditions at the federal properties prior to the August 1, 2022, to identify and report any deficiencies to the Government;

8. obtain from the Government background investigations and security clearances for all employees and subcontractor personnel by August 1, 2022;

9. ensure that its contractor personnel and subcontractor personnel for the work each have a favorable fitness determination to enter-on-duty or completed Tier 1 (National Agency Check with Written Inquiries) determination no later than August 1, 2022;

10. provide snow and ice removal services in Salt Lake City (Wallace F. Bennett Federal Building, Frank E. Moss U.S. Courthouse, and the Orrin Hatch U.S. Courthouse) on a 24/7 basis for snow and ice accumulations greater than 1 inch at the parking lots, driveways, loading docks, plazas, and perimeter sidewalks;

11. provide snow and ice removal services at in Ogden (James V. Hansen Federal Building, Forest Service Building) and in Provo (J. Will Robinson Federal Building) snow removal 7 days a week from 6:00 a.m. to 6:00 p.m. for accumulations greater than 1 inch.

The anticipated period of performance for this contract action basic requirement is six months from August 1, 2022, through January 31, 2023, with four (4), one-month options to extend the term of the contract as follows—

Option I: February 1, 2023 – February 28, 2023

Option II: March 1, 2023 – March 31, 2023

Option III: April 1, 2023 – April 30, 2023

Option IV: May 1, 2023 – May 31, 2023

The estimated value to perform the work, inclusive of options, is

IV. Statutory Authority Permitting Other than Full and Open Competition:

It is proposed to negotiate and award this acquisition under the authority of 41 U.S.C. 1901, as implemented by FAR

13.106-1(b). For purchases not exceeding the simplified acquisition threshold, “[c]ontracting officers may solicit from one source if the contracting officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand-name or industrial mobilization).” The contracting officer has determined only one source is reasonably available to provide these services because of the following circumstances—

i. only one known responsible source can provide the services required to bridge services for a six-month period and, as necessary, support with four (4) one-month options thereafter; and

ii. the Government received no expressed interest from the industry to perform the work for the grounds maintenance and snow removal activities.

V. A Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Requires Use of the Authority Cited:

In this matter the circumstances of the contract action result in only one source reasonably available to perform the work and requirements of the contract. The incumbent contractor, Terraworks, Inc. (hereinafter also referred to as

“Terraworks”), is the only source that is reasonably available to satisfy the Government’s requirements to perform the services between August 1, 2022 and January 31, 2023 with four (4), one-month option periods thereafter. The existing contract no. GS-08-P-17-JE-C-0009 with Terraworks expires July 31, 2022, and Region 8 plans to include future grounds maintenance and snow removal services as part of a total facilities solution in a procurement for a long-term contract. The extension to the existing grounds maintenance and snow removal services is necessary as part of the planning effort to align the facilities management and other facilities services with grounds maintenance and snow removal services. Thus, the best means, because of the short-term duration of the contract and the necessary qualifications is to bridge the required services, is a sole source contract awarded to the incumbent contractor.

The term of the contract transitions snow removal responsibilities in February 2023, which is in the middle of the snow season, and thus not a highly desirable contracting arrangement or situation in the industry. The short duration of the services makes this requirement significantly less attractive than other opportunities in the market for similar work. Based on no responses to the sole source announcement, the Government does not have a reasonable expectation of receiving any offers from sources other than Terraworks through a competitive acquisition. As the incumbent, Terraworks has a competitive advantage of prior mobilization and a working knowledge of the facilities and scope of services to successfully perform the work to meet the Government requirements. Terraworks has met performance expectations to deliver the grounds maintenance and snow removal services required at the various facilities in Ogden-Salt Lake City-Provo, Utah. Accordingly, Terraworks is uniquely positioned to perform the required grounds maintenance and snow removal services. This is confirmed by the lack of any response to the notice of proposed sole source action in the System for Award Management (SAM).

VI. A Description of Efforts to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable, Including Whether a Notice Was or Will Be Publicized.:

The Government issued a notice of proposed sole source action in the SAM in accordance with FAR Subpart 5.2 and received no responses. Terraworks is the only known source that is capable and available to perform the services required to meet the Government’s needs.

VII. A Determination by the Contracting Officer that the Anticipated Cost to the Government Will Be Fair and Reasonable:

The anticipated cost to the Government of these services, inclusive of options, being procured on a sole source basis is estimated to be The GSA contracting officer has determined that the anticipated cost to the

Government will be both fair and reasonable based on—

i. Knowledge of market conditions used to apply an escalation of prices under the existing contract, which was competed and determined to have pricing that was reasonable, realistic, and balanced;

ii. Considerations of appropriate risk premiums for the nature of the work, which Terraworks is largely expected to charge GSA even though the risks would to some extent fall on another contractor if it performed the work and not Terraworks. For example, as the incumbent performing the work, Terraworks may not incur the same extent of risk associated with mobilization, security clearances, developing a working knowledge of the facilities, and other general conditions to meet the Government’s requirements.

iii. Considerations of appropriate risk premiums that Terraworks is anticipated to include in the price for inherent risks associated with the general structure of the contract. For example, Terraworks clearly has the same risks related to the Government’s anticipated transition of services on February 1, 2023, prior to the end of the snow season, and the contract structure that includes options to extend the period of performance monthly for up to four months, as needed, after completion of the basic requirement.

The Government has pricing information from the monthly firm-fixed price paid by the Government for services currently performed by Terraworks. The previous monthly rates to perform the required services were obtained through a competitive process. The Government estimate is based on escalation of the prices paid under the existing contract that was awarded through a competitive process. At the time of award, the Government evaluated and determined the originally competed rates and labor mix supporting the proposed price for the existing contract were fair, reasonable, balanced, and realistic.

The Government estimate also includes an increase for the risk premium as discussed above in this section.

VIII. A Description of the Market Research conducted and the results or a Statement of the Reason Market Research was not Conducted:

The Government conducted informal market research based on a general understanding of the Utah market for grounds maintenance and snow removal services. The previous procurement effort in 2017 experienced noted difficulties in receiving interest from qualified small business concerns. Additional project constraints based on the current requirements and the specific and limited Government needs of this procurement indicate no sources with the necessary capability available to perform the work. The conclusion that no sources are available is reasonably supported by the results of the notice of proposed sole source contracting action posted through SAM. The Government invited all responsible sources interested in the requirement to submit a capability statement and proposal, but the Government received no responses from available responsible sources. Without any expressed interest from capable vendors, the Government’s best available option is to negotiate a sole source contract with Terraworks because it is the only reasonably available source.

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

None.

X. Listing of Any Sources Expressing an Interest in the Acquisition:

No other interested sources other than the incumbent contractor, Terraworks.

XI. 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 of Services Required:

Region 8 is promoting competition and small business participation in the subsequent acquisition through the total facilities solution requirement procurement that it is currently conducting. This sole source action permits GSA to continue meeting its needs while allowing for sufficient time and extending the period of performance for the subsequent acquisition.

XII. Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Dylan White GSA Contracting Officer

Date

June 27, 2022