J_A 6.302-1 SP330016D5001 Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY:

DLA Distribution-J7, 430 Mifflin Ave, Suite 3102A, New Cumberland, PA 17070.

2. NATURE/DESCRIPTION OF ACTION/CONTRACT TYPE (INCLUDING ESTIMATED VALUE

AND PERIOD OF PERFORMANCE):

Request approval to issue a modification to contract SP3300-16-D-5001, for the extension of labor and logistics support services. This action is a non-competitive performance period extension of an existing contract performed by SAWTST, LLC for DLA Distribution Norfolk (DDNV) at Portsmouth, VA, and DLA Land & Maritime at Norfolk Naval Shipyard (NNSY), Portsmouth, VA. The extension increases the current performance period (Option Year 4) from by to .

3. DESCRIPTION OF SUPPLIES/SERVICES:

DLA Distribution intends to extend labor and logistics support services under SP3300-16-D-5001 for an additional six months in support of DDNV at Portsmouth, VA, and DLA Land & Maritime at NNSY, Portsmouth, VA, in accordance with FAR 52.217-8 Option to Extend Services. The contract’s period of performance ends on 31 December 2020. The current contract provided for a one-year base period and four, one-year option periods, with the fourth option period exercised on 1 January 2020 and expiring on 31 January 2020. The requirement covered by this option fulfills an existing need of the Government.

DDNV at Portsmouth, Virginia’s primary mission is to plan, program, manage, and execute efficient and effective receipt processing, storage and warehousing operations, material issue and transportation and shipping in support of Naval Sea Systems Command NAVSEA corporate shipyard customers (e.g., NNSY and Naval Station Norfolk (NSN)). The work to be performed is in a distribution and warehousing environment-providing support to corporate shipyard customers. The required services are commensurate with workload and/or available funding.

DLA Land & Maritime at NNSY’s primary mission is to plan, program, manage, and execute efficient and effective requisition processing, clerical, technical support and information technology support to Naval Sea Systems Command (NAVSEA) corporate shipyard customers (e.g., NNSY and NSN) primarily at building 1500 located on the NNSY.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1). Only one responsible source/a limited number of responsible sources and no other supplies or services will satisfy agency requirements without unacceptable delays (FAR 6.302-1).

Due to unanticipated acquisition process delays, it has become necessary to modify existing contract SP3300- 16-D-5001 to provide an extension of necessary services for a six (6) month period to provide DDNV at Portsmouth, VA, and DLA Land & Maritime at NNSY, Portsmouth, VA the time needed to transition to a new competitive contract. The current labor and logistics support services requirement expires on 31 December 2020. Pursuant to the exception under FAR 6.302-1(a)(2)(iii), only SAWTST, LLC is capable of providing the services; award to any other source will result in unacceptable delays and cause disruption to the missions of DDNV at Portsmouth and DLA Land & Maritime at NNSY. Moreover, for other potential sources to fulfill this immediate need through a competitive solicitation, an acquisition lead-time of 255+days, to include a 120-day transition period, would be required. Accordingly, the most effective course of action is to issue a modification to contract SP3300-16-D-5001 utilizing the contract clause FAR 52.217-8.

Doing so will ensure continuation of these critical services while allowing adequate time for DLA Distribution to establish a competitive environment for these services.

SAWTST, LLC is a responsible source that currently understands the service requirements of the performance work statement and will ensure an effective transition of necessary services to a new source, obtained through competitive solicitation process, currently in progress.

5. IDENTIFICATION CONTRACTOR’S UNIQUE QUALIFICATIONS:

SAWTST, LLC is the only source capable of realistically providing this requirement without a break in services. This proposed contract continuation action is for non-personal services whereby the current contractor, SAWTST, LLC, already possesses personnel with necessary clearances. Maintaining this staff will save the Government the cost of additional training and security clearances as well as time. As stated previously, to fulfill this immediate need through a competitive solicitation, an acquisition lead-time of 255+days, to include a 120-day transition period, would be required. SAWTST, LLC has been performing the current effort and has the necessary management and expertise to continue to perform services and provide continuity until a contract awarded competitively can be put in place

6. SYNOPSIS ANNOUNCEMENT/POTENTIAL SOURCES:

On 30 November 2020, a notice of the Government’s intent to issue a sole source modification as required by FAR 5.201 and in accordance with procedures at FAR 6.302-1(d) was performed.

7. DETERMINATION OF FAIR AND REASONABLE COST:

To determine whether the contractor’s proposed price is fair and reasonable, the Contract Specialist and Contracting Officer will review the proposed price against current market research information available as well as government estimated costs. The price to the Government for the six-month extension is

; and is aligned with current contract costs. Additionally, option period four contract prices were determined fair and reasonable at option exercise. The costs associated with this extension are merely a continuation of current option year four schedule pricing. The direct labor rates and indirect rates for the proposed extension of services reflects those rates.

8. DESCRIPTION OF MARKET RESEARCH:

Based on present circumstances as outlined in the preceding paragraphs of this document, conducting market research to seek competition, or another method of acquiring these services, is not a meaningful action. The time it would take to perform the research, solicit, award, and mobilize a contractor for the interim period incorporated by modification (six-months) would cause unacceptable delays. However, the Contract Specialist performed an informal market survey to ensure that the prices for the extension are the best available prices in the current market. GSA Schedules of two independent contractors were analyzed and compared to the pricing from SAWTST, LLC. The analysis determined that the price for the modification from SAWTST is the best available price.

Additionally, market research will be performed by DLA Distribution as part of the procurement process for the follow-on competed action. SAWTST, LLC is the only company capable of performing this effort without any break in services, providing continuity and stability to the Government. SAWTST, LLC’s staff have their security clearances and are fully trained. While other companies can perform labor and logistics support services, they would require a phase-in period of 120-days to meet security and training requirements.

9. OTHER SUPPORTING FACTS:

N/A

10. ACTIONS TAKEN TO REMOVE BARRIERS TO COMPETITION:

APPROVAL OF THE JUSTIFICATION – FAR 6.304

Phone Date Competition Advocate