SP4702-20-C-0002_Redacted.pdf

Source Selection Information – See FAR 2.101 and 3.104

DDEFENSE LOGISTICS AGENCY

DLA CONTRACTING SERVICES OFFICE - COLUMBUS

3990 EAST BROAD STREET

COLUMBUS, OHIO 43213-1152

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. IDENTIFICATION OF THE AGENCY AND CONTRACTING ACTIVITY

Requiring Activity:

Defense Logistics Agency (DLA) Information Operations at Fort Belvoir (J62BGB) 8725 John J. Kingman Road Fort Belvoir, VA 22020-6220

Contracting Activity:

DLA Contract Services Office Columbus 3990 East Broad Street Columbus, OH 43213-1152 POC: Mr. Eric Heil Telephone: (614) 692-8634

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

This Justification and Approval (J&A) seeks authority to issue a sole-source contract for the maintenance of Automated Fuel Handling Equipment (AFHE) to the incumbent task order holder, ENGlobal Government Services, Inc. (hereinafter referred to as ENGlobal) that will bridge the task order N65236-12-D-4825/0012 (hereinafter referred to as Task Order 0012).

Task Order 0012 expires on 12 December 2019. The bridge contract will have a period of performance from 13 December 2019 through 12 March 2021, with a three-month transition option to be exercised, if required; and the bridge action will incorporate the provisions, terms, and conditions of the current task order, 0012. Funding will be Defense Working Capital Fund support for the DLA Energy supply chain.

3. A DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS/ESTIMATED DOLLAR AMOUNT

The AFHE system is a distributed digital control system with real-time data acquisition/control and inventory management. Its primary purpose is to automate both fuel transfer and inventory functions in order to reduce the risk of spills and leakage of petroleum products, thus reducing the risk of polluting the environment. This system includes the automation of valves, fuel transfer pumps, tank gauging, metering systems, and pipeline instrumentation. These assets are technically complex, and involve an array of physical equipment integrated into fuel storage

Justification and Approval for AFHE Maintenance and Support tanks and interconnecting infrastructure (pipeline, pumps, valves, weapon systems refueling apparatus on piers, and inventory level monitoring sensors) with software components supporting a central management of fuel movement.

ENGlobal is currently performing maintenance of AFHE deployed world-wide under task order 0012, which was originally issued against the Naval Information Warfare Center (NIWC) Indefinite Delivery Indefinite Quantity (IDIQ) contract, N65236-12-D-4825. This contract, along with N65236-12-D-4824 and N65236-12-D-4826 were multiple award task order contracts (MATOCs) for the installation, engineering, and maintenance of the AFHE system, as well as all tank gauging and hydrant operations for the Department of Defense (DoD).

The current NIWC MATOCs were issued and are being administered by the Department of the Navy. The Department of the Navy continues to support all of the aforementioned services, but the program management of these requirements has recently been transferred from the Department of the Navy to DLA Energy, and as a result, DLA Contracting Services Office – Columbus (DCSO-C) will assume contract development and administration responsibilities for all future fuel related requirements.

DCSO-C will be issuing this bridge contract for continued AFHE maintenance services, but not for services relating to installation and engineering of the AFHE system. This proposed bridge contract will be a continuation of maintenance services provided by ENGlobal, which have been provided by ENGlobal since April 2016. The total estimated value of the proposed bridge contract is and will follow the same cost structure currently implemented in Task Order 0012. The bridge contract will provide continuous maintenance support for AFHE to the Joint Forces until the follow-on fixed price contract can be competitively solicited and awarded under full and open competition. The target award date of the follow-on action that will follow this requested bridge contract is 12 February 2021.

4. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER THAN

FULL AND OPEN COMPETITION

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), as implemented by the Federal Acquisition Regulation (FAR) 6.302-1, only one responsible source is capable of satisfying the Agency’s requirements.

5. DEMONSTRATION THAT PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF ACQUISITION REQUIRES USE OF

AUTHORITY CITED

ENGlobal is currently performing AFHE maintenance services under task order 0012.

ENGlobal, KBR Wyle Technology Solutions, LLC, and BAE Systems Technology Solutions & Services, Inc. were all awarded MATOCs for all services (installation, engineering, and maintenance) of the AFHE system. Under these MATOCs, each contract holder had received a fair opportunity for each competed task order. Although the AFHE maintenance requirement was competed against the three MATOC holders, ENGlobal has received the award for every task order for maintenance.

DLA, and the DoD as a whole, do not possess the manpower or expertise to support and maintain these systems organically, so the Government must rely on contracted services to maintain the AFHE system. Without this support, capabilities cannot be maintained at required operational readiness rates, creating non-mission capable (NMC) statuses of critical equipment at as many as 23 major DFSPs where AFHE is deployed. As a result, the Government has relied upon ENGlobal to support these systems for the past 15 years, and they have performed exceptionally well in meeting and fulfilling all contractual requirements. Because this is a complex system that requires a high level of skill and a large infrastructure to maintain, fielding the manpower alone for this requirement will take several months. If the Government were to compete this bridge requirement, the time involved to get this service to an operational level would lead to a prolonged break in service. That break in service would cripple worldwide fueling operations to the DoD and would severely degrade the warfighter and its global mission.

Awarding this bridge contract to the incumbent task order holder will prevent a break in this critical service to the global DoD fueling mission, and will provide the Government the time needed to properly solicit and award the follow-on multiple award IDIQ contract under a fully competitive basis.

ENGlobal currently has an established management and support infrastructure in place and is fully operational; its highly trained technicians are already located in theatre; and the highly complex supported systems are understood and well maintained by ENGlobal. An attempted implementation of the necessary support elements by a contractor other than ENGlobal—within the time-frame required to ensure continuity of support—will create an excessive expense to the Government, if such a transition were to even be possible. Any delays created by awarding to a new vendor will result in a lapse in services, causing equipment within the AFHE system to become (NMC), which will lead to a degradation or possible cessation (due to state/local operational permit conditions) of refueling and fuels management activities at affected Defense Fuel Support Points (DFSPs). This will severely degrade the mission posture of the Joint Forces as it relates to weapon systems refueling and prepositioning of fuels to meet mission demands.

NMC equipment within the AFHE system will result in severe capability degradation that could impede Service refueling operations, and/or result in a violation of state and local requirements for automated monitoring of petroleum storage facilities. Without fully mission capable equipment, the Joint Forces will be unacceptably compromised and at risk of total mission failure caused by an inability to refuel ships and execute other materiel transfers essential to the continuity of weapons systems operations throughout the DoD Energy Supply Chain.

Additionally, awarding this bridge action to any contractor other than ENGlobal would result in significant risk and unacceptable delays in fulfilling the AFHE maintenance requirement to support the Joint Forces. If DLA were to award this bridge action to a vendor other than ENGlobal, it would also need to pay transition costs to the new vendor. The Government estimates transition costs of approximately $500,000 that are not expected to be recovered through competition if the bridge contract is awarded to a company other than ENGlobal.

Furthermore, DLA is actively planning and preparing the follow-on acquisition, which will be awarded under full and open competition and includes a transition period if the incumbent- is not awarded the contract. Given that this bridge contract is needed to cover the period until the follow-on is awarded, it would not be fiscally responsible to potentially pay transition costs twice. i.e., under the bridge contract and/or the follow on competitive acquisition. Thus, it is reasonable to conclude that there would be substantial duplication of cost to the Government if a contractor other than ENGlobal were to be awarded this bridge contract. See FAR 6.302- 1(a)(2)(iii)(B).

5a. DEMONSTRATION THAT BRIDGE CONTRACT IS NOT THE RESULT OF LACK

OF ADVANCE PLANNING AND ACTIONS TAKEN TO AVOID BRIDGE

CONTRACT(S IN THE FUTURE.

The previous MATOCs covered the installation, engineering, and maintenance of the AFHE system under a single IDIQ and this strategy is no longer appropriate for the current environment. When this requirement was transferred to DLA Energy, they determined it was in the Government’s best interest to split this requirement into two separate contracts, one for the installation and engineering of the AFHE systems and one for the maintenance of the AFHE systems. This decision has resulted in a significant amount of re-structuring of tasks under the appropriate requirement. Additionally, DLA J62B, in collaboration with DCSO-C, also decided that a cost type contract would no longer be the most advantageous procurement vehicle for these requirements. These decisions to change the contract type and scope have had a substantive impact to the acquisition strategy and has resulted in changing the acquisition plan to award two separate Firm Fixed Price (FFP) IDIQ contracts in order to sustain these requirements moving forward. This change has also added a significant amount of time to field this requirement competitively; time that is no longer available to sustain this requirement at a mission capable level. Nonetheless, DCSO-C did award a multiple award IDIQ contract for the installation and engineering portion of the AFHE systems on 12 June 2019, under full and open competition.

However, DCSO-C is currently in the pre-solicitation process for the competitive procurement of maintenance for the AFHE equipment and does not expect to solicit and award a competitive contract that will be able to support the AFHE maintenance requirement by 13 December 2019.

The transfer of this requirement from the Navy to DLA as well as the changes to the award structure and contract type eliminated the possibility of putting a new award in place for the maintenance requirement before the end of the period of performance under Task Order 0012.

This bridge contract will provide the necessary time needed for DCSO-C to continue the on-going coordination with the customer, complete the pre-solicitation activities, and ultimately award for AFHE maintenance under full and open competition.

This bridge acquisition will support the follow-on acquisition which will be awarded under full and open competition. Full and open competition is sought for the follow-on acquisition in the interest of maximizing competition, which is consistent with Federal and Defense guidance and policy. The proposed bridge contract will provide DLA J6 Information Operations and DCSO-C the necessary time to continue to execute the appropriate strategy necessary to maximize competition, and to further develop program efficiencies and security requirements for the follow-on contract.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE

Although, there are currently three large businesses capable of performing AFHE related services, only the incumbent has all the manning and expertise needed to meet this specific bridge requirement without the need for a transition period which would result in an unacceptable delay to the Government.

There are no potential sources, other than ENGlobal, who are able to provide support to the AFHE maintenance effort in the timeframe needed by the government. This is mostly due to the requirement for other sources to include a complete transition period in order to ramp-up activities in time to ensure a continuity of support if this action were competed. Under this requirement, continuity of services is vital and using competition to award the proposed bridge contract would require significant time, costs, and resources by both the Government and Industry, which would result in a major break in support to worldwide Joint Forces refueling and fuel prepositioning operations.

Due to the information stated above, ENGlobal will be the only contractor solicited for this requirement. This action will be synopsized in accordance with FAR 6.305(a) and FAR 6.305(d).

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

The Contracting Officer will determine that the apparent awardee’s proposed price is fair and reasonable prior to award. The Contracting Officer will evaluate ENGlobal’s proposed price, considering their level of effort and labor mix using the proposal analysis techniques at FAR 15.404-1 in order to make a determination of fair and reasonable pricing. Certified Cost or Pricing data will not be required because this is service is commercial; however, the Contracting Officer will require data other than certified cost or pricing data (FAR 15.403-1(c)(3) and FAR 15.403(a)(1)(ii)), if deemed necessary.

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS

Market research has revealed no potential sources capable of providing support to the AFHE maintenance effort starting 13 December 2019 other than ENGlobal, due to timeframe needed for a transitioning vendor to establish programmatic and managerial controls as well as global pre-positioned resources. On 5 June 2019, DCSO-C issued a RFI to the three current incumbent MATOC (N65236-12-D-4824/4825/4826) holders that support the different energy projects.

They consisted of the incumbent, ENGlobal; KBRWyle Technology Solutions, LLC; and BAE Systems Technology Solutions & Services, Inc. The RFI asked pointed questions to clarify timelines related to bridging the current task orders under each MATOC.

After analyzing the responses, it was determined that no other vendor could provide the service in the time necessary to allow for continuity and support to our customer. While there are other contractors that can provide this service, the significant lead time to not only staff the appropriate positions, but also to complete a proper change-over required for them to be fully immersed in the day-to-day activities, would be significant. It would require an extended amount of time for the contractors to staff and fill the positions, which does not even take into account the extra time to solicit, review, negotiate, and award a competed bridge contract. This added time would result in significant risk and unacceptable delays to this program, and more importantly, a break in support to the Joint Service warfighters.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION

AFHE is a distributed digital control system with real-time data acquisition and control with sophisticated inventory management functionality. It automates both transfer and inventory functions in order to reduce the risk of spills and leakage of petroleum products, thus reducing the risk of environmental pollution at DLA Energy inventory sites, and it will require support until a follow-on contract is awarded. If that support does not continue throughout the transition, DLA will experience untenable risk of spills and leakage of petroleum products and resupply missions within the DLA Energy supply chain.

Task Order 0012 under contract N65236-12-D-4825 was awarded under full and open competition. DLA plans to award a follow-on contract for AFHE Engineering, Installation, and Maintenance support within the next 17 months.

10. A LISTING OF THE VENDOR SOURCES, IF ANY, WHICH EXPRESSED IN

WRITING AN INTEREST IN THE ACQUISITION

1) BAE Systems Technology Solutions & Services Inc.

2) ENGlobal Government Services, Inc.

3) KBRWyle Technology Solutions, LLC

11. A STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE

OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT

ACQUISITION FOR THE SUPPLIES OR SERVICES REQUIRED

J62B and DLA Energy have worked the requirements management process in order to update and approve AFHE maintenance requirements. This will help ensure the delivery of a capability that meets the intended fuel mission performance, as stipulated by the warfighter user needs.

While the AFHE system that occupies the fuel handling footprint will require integration into the sites’ other fuel handing, storage, and distribution functions (such as fuel tanks, pipeline arrays, pier operations, rail car and truck rack facilities, and connecting equipment)—at a minimum the development of interfaces to fueling equipment—steps taken to position DLA to leverage new functionality for this purpose in the future have been largely successful.

In an effort to establish a basis for a competitive acquisition, DLA Energy provided a high-level Initial Capabilities Description (ICD) for this requirement. The ICD supported the execution of a Request for Information (RFI). RFI responses received in January 2019 confirmed interest of the incumbent and two other contractors with similar AFHE maintenance experience.

The follow-on contract will be solicited and awarded on a full and open competition basis, and market research for the acquisition has already been initiated. To overcome barriers to competition, the Government intends to finalize a requirements/capabilities statement that will fully support a competitive acquisition, solicit the capabilities competitively, and then competitively acquire the required services/support no later than FY2021.

The following actions have been taken to increase competition for the follow-on AFHE maintenance contracts:

1) A Sources Sought announcement for the follow-on acquisition to N65236-12-D-4825 was posted on 18 January 2019 and transmitted to the Government Point of Entry (GPE), FedBizOpps website. The Government received seven (7) responses from industry in which many indicated a strong interest in the follow-on acquisition.

2) An Industry day was held 7-8 February 2019, attended by seven (7) vendors who indicated strong interest in competing to support AFHE maintenance on a fixed-price basis inclusive of cyber-security provisions not represented in the current contract.

Ongoing discussions to define and refine solicitation terms to support fixed-price solicitation of services inclusive of emergent requirements are ongoing with a target completion date of December 2019.

These efforts refine and clarify the follow-on solicitation and give industry opportunities to plan and prepare for the formal RFP release. Finally, the follow-on solicitation will be awarded under full and open competition.

12. CERTIFICATIONS

Date: 2019.09.27 11:01:55 -04'00'

Requirements / Technical Certification:

I hereby certify that the supporting data for which I am responsible and which form a basis for this justification are complete and accurate.

Date Program Manager, Energy Apps, J62BGB

Contracting Certification:

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

LINARD.JAMES.K.1230

167628

Digitally signed by

LINARD.JAMES.K.1230167628

Date: 2019.09.27 14:39:02 -04'00'

JAMES K. LINARD Date Contracting Officer DLA Contracting Services Office – Columbus

Competition Advocate Certification:

I hereby certify and approve this justification.

ASSUNTA BONANNO Date DSCO Competition Advocate DLA Contracting Services Office

BONANNO.ASSUNTA.1229

097675

Digitally signed by

BONANNO.ASSUNTA.1229097675

Date: 2019.10.02 16:37:02 -04'00'