JA SP330023R5006 Redacted.pdf

CUI

DEFENSE LOGISTICS AGENCY

DISTRIBUTION

5430 MIFFLIN AVENUE

NEW CUMBERLAND, PENNSYLVANIA 17070-5008

Template v2.0, Effective July 25, 2022 CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY:

DLA DISTRIBUTION ACQUISITION OPERATIONS (J7)

5430 MIFFLIN AVE, SUITE 3102A

NEW CUMBERLAND, PA 17070-5008

Contracting Officer: ______________________ Name Email Address

Acquisition Specialist: __ _______________ Name Email Address

2. NATURE/DESCRIPTION OF ACTION BEING APPROVED: (Inclusive of contract type)

This is a single/sole source action, that will utilize the procedures in FAR 15 and be awarded as an IDIQ D-type contract with a hybrid CLIN structure to Advanced Technology Logistics, Inc (ATL). The majority of the costs fall under the Firm-Fixed Price (FFP) labor CLIN (estimated at if all options are exercised), but the IDIQ will also include a Cost-Plus Fixed Fee (CPFF) CLIN for Surge and Sustainment/OT (estimated at if all options are exercised), and Cost Reimbursement (CR) lines for Travel/Training (estimated at if all options are exercised) and Material Support Costs (estimated at if all options are exercised). Use of a sole source contract is in the best interest of the agency concerned.

Expected Number of quotes/offers: One (1)

Contract SP3300-21-D-5004 was awarded to ATL on 17 September 2021 for labor and logistics support at DLA Distribution Norfolk, Portsmouth, VA, and DLA Land & Maritime at Norfolk Naval Shipyard, Portsmouth, VA. The contract was protested to the SBA, and ATL was determined to be an other than small business for purposes of the award, and thereby ineligible for further task orders or periods of performance. An early recompete was performed, resulting

Controlled By: DLA Distribution J7 CUI Category: SSEL Distribution/Dissemination Controls:

FEDONLY

POC:

in a new award, SP3300-23-D-5002, issued on 5 April 2023. The new award was protested and is under a stop work order while corrective action is taken.

The requirements are currently being fulfilled by the ATL task orders under IDIQ SP3300-21-D- 5004, which have been extended for an additional six (6) months, to end on 31 August 2023.

After this date, there will be a lapse in service unless an interim/bridge award is awarded to ATL.

This interim/bridge contract is estimated at for a six (6) month base period of performance and two (2) six (6) month option periods.

3. DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET AGENCY’S

NEEDS:

DLA Distribution Norfolk at Portsmouth Naval Shipyard, Virginia, and DLA Maritime Norfolk at Norfolk Naval Shipyard, Virginia, require a bridge contract for performance of labor and logistics support services. This support is currently provided under Contract SP3300-21-D-5004.

The current task orders issued under this contract will end on 31 August 2023.

DLA Distribution Norfolk 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., Norfolk Naval Shipyard (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 Maritime Norfolk’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., Norfolk Naval Shipyard and Naval Station Norfolk) primarily at building 1500 located on the Norfolk Naval Shipyard.

The Contractor shall provide supervision, labor, material handling equipment, fuels, organic transportation, and travel, to perform supply management, logistics, administrative functions, receipt processing, storage and warehousing, issue and delivery of material. DLA Distribution Norfolk at Portsmouth Virginia and DLA Land and Maritime Norfolk currently uses NAVSEA’s Material Access Technology (MAT) System and Automated Request for Kitting (ARK) when applicable to perform the requirements in this PWS. Distribution Standard System (DSS) is also used for minimal functions. The Government will not provide any direct supervision to the Contractor employees. The Contractor shall ensure contractor employees are cross-trained to move between the functional requirements of this PWS as workload dictates.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

The statutory authority permitting other than full and open competition is:

_X_ 10 U.S.C. 2304(c)(1) or 41 U.S.C. 3304(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements (FAR 6.302-1, DFARS 206.302-1)

5. DEMONSTRATION OF CONTRACTOR'S UNIQUE QUALIFICATIONS OR

NATURE OF ACQUISITION THAT REQUIRES USE OF THE CITED AUTHORITY:

The current contract was awarded to ATL, and overall, they are performing at a satisfactory level. At the inception of the contract, a small business protest was received and upheld, in which ATL was determined to be an other than small business for purposes of the award. The SBA ruling placed a limitation on the contract, whereby ATL could not be issued task orders for any additional periods of performance. Under the current task orders, performance period one (1) has been extended for six (6) months utilizing FAR 52.217-8 Option to Extend Services. However, due to the small business decision, there are no further extension capabilities, and the only option is to issue a bridge contract to support the requirements in the interim while issues on the recompete award are resolved. The small business ruling only applies to the current contract, not to a new contract. Additionally, the bridge contract is being issued as a small business set-aside in lieu of an 8(a) set-aside.

The follow-on IDIQ was awarded to Lakota Solutions, LLC (Lakota), on 5 April 2023, and two

(2) protests were received. Therefore, the Lakota award was issued a stop work order while the protests were resolved. At this point, corrective action is being pursued, however, the government anticipates receiving subsequent protests that will cause substantive delays in either resuming the follow-on award or issuing a new award.

Pursuant to the exception under FAR 6.302-1(a)(2)(iii), only ATL is capable of providing the continuation services at this time; award to any other source will result in unacceptable delays and cause a disruption to DLA Distribution and its customers. Utilizing the existing contractor will save the Government time and the cost of additional training and obtaining security clearances. To order this bridge/interim contract through a competitive solicitation, an acquisition lead time of more than a year would be required. ATL has the necessary management, personnel, and expertise to perform the bridge/interim effort while the competitive follow-on issues are resolved, and transition completed.

6. SYNOPSIS ANNOUNCEMENT/POTENTIAL SOURCES:

DLA Distribution will issue the appropriate notification of the Government’s intent to issue a sole source contract as required by FAR 5.201 and in accordance with procedures at FAR 6.302-1(d) to the Government’s Point of Entry System (beta.sam.gov).

7. DETERMINATION OF FAIR AND REASONABLE COST:

Price analysis shall be conducted to determine that the awarded price is fair and reasonable.

However, if necessary, the Government may conduct cost analysis in accordance with FAR 15.404-1(c) to ensure that the Government is awarding a contract at a fair and reasonable price.

In accordance with FAR 15.404-1(d), Cost Realism Analysis will be conducted on any Cost Reimbursement CLINs. Cost Realism Analysis is conducted to review and evaluate specific elements of each offeror’s proposed cost estimate to determine whether the estimated proposed cost elements are realistic for the work to be performed; reflect a clear understanding of the requirements; and are consistent with the unique methods of performance and materials described in the offeror’s technical proposal.

8. DESCRIPTION OF MARKET RESEARCH:

Market research was conducted for the follow-on solicitation SP3300-22-R-5006 in June 2022 which determined that there was a reasonable expectation of receiving competitive offers on the recompete. Competition was received on the follow-on and an award was ultimately made to Lakota. However, as the requirement covered under this J&A is for a bridge/interim contract, market research was not performed for this specific requirement.

9. OTHER SUPPORTING FACTS:

Not applicable.

10. LISTING OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THE ACQUISITION:

In accordance with FAR 6.302-1(a)(2), the services required by the agency are available from only one responsible source, and no other type of supplies or services will satisfy agency requirements. The only source that is able to provide the services required is ATL, as they are currently performing the functions.

11. ACTIONS THE AGENCY MAY TAKE TO REMOVE/OVERCOME BARRIERS

BEFORE ANY SUBSEQUENT ACQUISITION FOR THE SUPPLIES/SERVICES IS

REQUIRED/MADE:

A competitive 8(a) set-aside was utilized for the follow-on contract and competition was obtained.

12. STATEMENT OF DELIVERY REQUIREMENTS:

The period of performance for this effort shall be for a six (6) month base period and two (2), six

(6) month option periods. Performance will commence on 1 September 2023 and run through 28 February 2025, if all option periods are awarded. In accordance with FAR 52.217-9 ATL will be notified within 30 days of contract end if the option will be exercised. The option periods will only be executed if absolutely necessary. DLA Distribution will diligently work to get the corrective action completed and either restart the current award or make a new award as expeditiously as possible.

13. TOTAL ESTIMATED DOLLAR VALUE OF THE ACQUISITION(S) COVERED BY

THIS JUSTIFICATION:

The total dollar value for this contract (if all options are awarded) is estimated at and will utilize Defense Working Capital Funds (DLA Distribution) and NAVSEA reimbursable funds (DLA Land & Maritime).

ENDORSEMENT

TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION (FAR 6.303-1(c)):

I certify that the facts, representations, and any supporting data under my cognizance which are included in this justification and its supporting acquisition plan which form a basis for this justification are complete and accurate.

Technical Cognizance:

(Requirements originator)

COR

Name Title Phone Signature Date

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-1(a)(2)):

I certify that this justification, including its supporting acquisition plan, is accurate and complete to the best of my knowledge and belief.

Contracting Officer

LEGAL REVIEW

The foregoing justification has been reviewed for legal sufficiency.

Associate Counsel

APPROVAL OF THE JUSTIFICATION: (FAR 6.304(a)(2):

Competition Advocate