J&A - 17D06 San Joaquin 20200107 redacted.pdf

Justification and Approval for other than Full and Open Competition Extension of Services, San Joaquin, CA

1. Contracting Activity: DLA Disposition Services, J-76

2. Description of Action: Contract SP4500-17-D-0006 was awarded on 08 FEB 2017 to Black Gold Industries with an effective date of 1 APR 2017. The contract has a 30 month base period. Due to delays in awarding the renewal contract, the contract will be extended three months, resulting in an expiration date of 31 March 2020, with an

3. Description of Supplies/Services: Work will consist of the removal, transportation and disposal of RCRA hazardous wastes, non-RCRA wastes, State-Regulated wastes, Non-State Regulated wastes, Universal Wastes, Compressed Gas Cylinders, and Polychlorinated Biphenyls (PCBs) located on military installations in and around San Joaquin, CA. The Contractor agrees to provide all services necessary for the transportation, final treatment, disposal, and/or recycling of the items listed in the schedule in accordance with (IAW) all local, state, and federal laws and regulations, and the terms and conditions of this contract. These services shall include all necessary personnel, including applicable Subcontractors, labor, transportation, equipment, and the compilation and submission of all documentation required by this contract. All items, regardless of the condition, are being discarded by the Government and will require recycling or disposal as identified via the ordered Contract Line Item Numbers (CLINs).

4. Authority Cited: 10 U.S.C. 2304(c)(2), Unusual and Compelling Urgency as authorized by FAR 6.302-2.

5. Reason for Authority Cited: 10 U.S.C. 2304(c)(2), as implemented by FAR parts 5.202(a)(11) and 6.302-2, Unusual and Compelling Urgency is cited. Not extending the services would cause unacceptable delays in fulfilling the Government’s requirement for these services. See 10 U.S.C.

2304(c)(2) or 41 U.S.C. 3304(a)(2). The proposed contract modification will be issued pursuant to the authority of FAR 52.217-8, Option to Extend Services, which is included in the current contract.

The Government has a need to extend the contract by three additional months to allow sufficient time to award a replacement contract. The San Joaquin, CA regional contract requires uninterrupted hazardous waste disposal/management services to meet their mission, and to remain environmentally compliant and safe. Changes in pre-award requirements for this action would require a longer period of time to provide the services required and would result in a break in service for the customer. A break in service would result in serious financial injury to the Government. Any disruption to the services currently being performed under contract SP4500-17-D-0006 would lead to a disruption or mission failure.

The generators require uninterrupted hazardous waste disposal/management services to meet their mission, and to remain environmentally compliant and safe. A new solicitation for this action would require a longer period of time to provide the services required and would result in a break in service for the customer. A break in service would result in serious financial injury to the Government. Any disruption to the services currently being performed under contract SP4500-17-D-0006 would lead to a disruption or mission failure. Without contract coverage the area is at a high risk of compliance issues regarding the regulatory storage time limits, as they already have a significant amount of hazardous waste requiring removal. These are critical services, as no hazardous waste products may exceed ninety

(90) calendar days total storage time period for shipment to an off-site disposal facility. If the ninety

(90) calendar day regulatory timeframe is exceeded, the installation may be subject to fines up to $70,117.00 per day per individual location by the Environmental Protection Agency (EPA). In addition to storage issues the area would be at risk of not being able to immediately respond to spills, which could lead to environmental issues, fines, and higher cleanup/remediation costs.

6. Efforts to Obtain Competition: It is not practical, nor in the Government’s best interest, to award a bridge contract for the interim period between the end of the current contract and the award of the follow-on procurement. The process does not allow sufficient time to acquire services for the interim period. Given the current procurement lead time it is not possible to award the replacement contract or a short term bridge contract prior to 30 December 2019. Black Gold Industries (BGI) is the only responsible source that can currently continue to meet the Government’s need for critical hazardous waste removal and disposal services. BGI is the incumbent contractor, and already has personnel and equipment mobilized to perform the required work during the interim period. Transferring this work to another contractor would incur substantial duplication of cost and adversely impact required performance timeframes.

7. Price/Cost Consideration: The extension will be at the rates specified under the base period of the contract. The prices were competed and evaluated at the time of award. The prices were solicited, evaluated, and determined to be fair and reasonable under the 8(a) Business Development Program procedures. An informal analysis indicates that there are no changes in the economy that would lead to substantially lower pricing.

8. Market Research: It is determined that a market survey is impractical, as it would not generate any additional sources capable of satisfying the requirements within the urgent time extension required. In addition, a new IDIQ contract will replace the current contract SP4500-17-D-0006 with BGI. As listed above, BGI currently has personnel and equipment mobilized to perform the required work during the interim period. BGI has the knowledge and experience required to maintain uninterrupted hazardous waste services. Transferring this work to another contractor would incur substantial duplication of cost and adversely impact the requirement performance timeframes. Any disruption in the current performance timeframes could adversely affect the mission and could put this at risk of EPA storage violations. No hazardous products may exceed ninety (90) calendar days; total storage time prior to shipment to an off-site disposal facility. If the ninety (90) calendar days; regulatory timeframe is exceeded, the installation may be subject to fines up to $70,117.00 per day.

9. Actions Being Taken to Overcome Barriers to Competition: A competitive solicitation with exclusions replacement contract is in process and will be awarded as soon as practicable. The replacement contract requirement is in the process of being solicited.

10. Other Facts: N/A

11. Requirements Certification: I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

s9d3528 Cross-Out

Larry Leach Environmental Protection Specialist

12. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief. I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Approval

Based on the foregoing justification, I hereby approve the procurement of a 52.217-8 Extension of Hazardous Waste Services on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(2), subject to the availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Erik Rundquist Contracting Officer Acquisition Hazardous Division DLA Disposition Services