Convert_JA_Bridge_PORTS_JDK_signed_by_COR KO_06302014.pdf

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

In Reply

DCSO-E-14-0024

JUSTIFICATION AND APPROVAL (FAR 6.302-1)

FOR OTHER THAN FULL AND OPEN COMPETITION

Upon the basis of the following justification, I hereby approve the issuance of the contractual action described below using other than full and open competition, pursuant to the authority cited herein.

1. IDENTIFICATION OF THE AGENCY AND CONTRACTING ACTIVITY:

Requiring Activity:

Defense Logistics Agency (DLA) Information Operations (J62)

8725 John J. Kingman Road

Fort Belvoir, VA 22020-6220

POC: Mr. Don Smith

Telephone: (703) 767-9596

Email: don.smith@dla.mil

Contracting Activity:

DLA Contracting Services Office at Fort Belvoir (DCSO-F)

8725 John J. Kingman Road

Fort Belvoir, VA 22060-6221

POC: Mr. José M. Villanueva

Telephone: (703) 767-6826 jose.villanueva@dla.mil

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

This justification and approval authorized and approves the issuance of a sole-source contract award to Nelson & Associates (Carroll Nelson & Associates (CNA) to provide continuation of

Defense Logistics Agency -Paperless Ordering Receipt Transaction Screens (PORTS) effort on behalf of DLA Energy to allow for the continued performance of PORTS support services and the conduct of competitive source selection. Nelson & Associates (Carroll Nelson & Associates

(CNA)) currently performs this effort under GSA Contract GS-35F-0169R against which Task

Order SP4706-13-F-5019 was awarded. Task Order SP4706-13-F-5019 currently expires on June

30, 20 14. The Government intends to award a bridge task order for an additional six (6) months to provide for continued performance without a lapse in service. This effort requires a working knowledge of BEM key software including MPS3, a mathematical programming system facilitating DLA Energy’s annual fuel purchases. This knowledge and expertise does not reside within the Government. Therefore, a contractor must understand and be familiar with the PORTS application on to the first day of contract performance in order to provide full support. This bridge mailto:don.smith@dla.mil mailto:carlos.vidro@dla.mil contract will allow for continued performance of the current effort thus preventing interruption to the systems. The acquisition strategy for this effort is revised to be awarded in accordance with

FAR 12. This revision to convert this effort from a FAR 8 buy to a FAR 12 buy is due to GSA identifying concerns which are addressed in memorandum addendum to this justification and approval document (See Attached Addendum).

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

AGENCY'S NEEDS (INCLUDING THE ESTIMATED VALUE):

Defense Logistics Agency (DLA), Information Operations (J62), provides application maintenance and technical support to the Defense Logistics Agency Energy for their automated information systems. DLA Energy is responsible for world-wide energy and wholesale and retail fueling operations for the Department of Defense (DOD) and other federal agencies. DLA Energy and DLA Information Operations (J62) are involved in development and sustainment activities for

Contract Management, Application Operations, and Maintenance Support, Development Support of the Paperless Ordering Receipt & Transaction Screens (PORTS), the existing Requirements

Manager (RM) FoxPro application, the Bid Evaluation Model (BEM) Oracle application, the

Transportation Rate Information System (TRIS), and the WEB Distribution Plan Authority (WEB

DPA). All other support for this requirement is provided through DLA Information Operations

(J62).

The estimated price for this six (6) month bridge task order is $444,743.34 and the estimated price for inclusion of mission critical SCRs is $300,987.20, a total estimate price of $745,730.54.

However, SCR pricing will not be implemented at the time of the bridge award. SCR will be included as a modification and funded as required by the Government.

4. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER THAN

FULL AND OPEN COMPETITON:

In accordance with FAR 6.302-1 "Only one responsible source and no other supplies or services will satisfy agency requirements. CNA is the only source capable of providing the supplies or services at the necessary level of quality due to the government's immediate need for continuity and continued performance of PORTS. CNA is the only source capable of providing support for

BSM-Energy sustainment services which also includes Energy Convergence implementation transition and startup efforts. Because CNA is the current performer, CNA has the knowledge to meet the Energy Convergence requirements and schedule release dates.

Due to Energy Conversion transition efforts, the requirements office no longer requires the

PORTS and Web DPA requirements in the follow-on contract. Therefore, the requirements office is currently engaged in revising the Performance Work Statement (PWS) along with the

Independent Government Cost Estimate (IGCE) requirements to reflect the removal of PORTS and Web DPA from the follow on effort. These applications will be provided for within the

Energy Conversion effort independently.

CNA is the only source capable of fulfilling the Government’s immediate need for continuity and continued service prior to the June 30, 2014, expiration of Task Order SP4706-13-F-5019 with the required level of expertise, knowledge and level of quality

5. A DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF

THE AUTHORITIY CITED:

The DCSO-E has determined that CNA’s proposed pricing is consistent with the continuing need, considering level of effort and labor mix and that the prices utilized are commensurate with the terms, conditions and pricing of Contract SP4706-13-F-5019 which was awarded under the same terms and conditions as Blanket Purchase Agreement, SP4706-08-A-0003, Task Order SP4706-

08-F-0004, Task Order SP4707-12-F-9001 and applicable GSA Schedule contract pricing.

The rates for the performance of this bridge task order effort are based on the prevailing rates established under expired Task Order SP4706-08-F-0004, and expired 6-month Bridge Task Order

SP4707-12-F-9001 and the existing bridge task order SP4706-13-F-5019 which expires June 30, 2014. As Bridge Task Order SP4706-13-F-5019 was established based on the terms, conditions and pricing established under expired BPA SP4706-08-A-0003, Task Order SP4706- 08-F-0004, and the 6-month base period and 6-month extension under Task Order SP4707-12-F- 9001, issuance of this bridge task order is consistent with pricing for a six (6) month period of performance.

The pricing for both periods of performance under the expired task orders SP4706-08-F-0004, SP4707-12-F-9001 and expiring twelve (12) month bridge Task Order SP4706-13-F-5019 is

$444,743.34. The monthly price for both periods of performance under expired task orders

SP4706-08-F-0004, SP4707-12-F-900l and expiring 6-month Bridge Task Order SP4706-13-F-

5019 is $74,123.89. This monthly price will remain consistent for this bridge effort.

The proposed rates were checked against CNA's GSA Schedule GS-35F-0169R and were found inconsistent with the schedule rates. Inconsistency is due to the fact that CNA's GSA schedule

GS-35F-0169R rates have not been updated on the GSA Advantage website to reflect their current schedule rates due to on-going internal administrative issues with GSA. On June 19, 2014, Ms.

Anne Miller, a GSA Contracting Officer, wrote an email to the Contract Specialist (CS) and advised that she was in the process of resolving the GSA price schedule issue.

Although, the proposed labor categories and rates for the six (6) month bridge are not consistent with CNA’s current GSA schedule, the six (6) month rates are consistent with the rates established in predecessor expired Task Order SP4706-08-F-0004 during the performance of the final option period, the expired 6-month extension under Task Order SP4707-12-F-9001 and the twelve (12) month performance under Bridge Task Order SP4706-13-F-5019. The Contracting officer has determined this action is in the best interest of the Government and that the prices are fair and reasonable prior to award. DLA intends to establish the bridge based on pricing established in the preceding contracts and expiring Task Order SP4706-13-F-5019.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE

INCLUDING WHETHER A NOTICE WAS OR WILL BE PUBLICIZED AS REQUIRED

BY FAR 5.2:

On June 25, 2014, the Contract Specialist (CS) consulted with DLA Small Business Office which revalidated the population of the market which consists of four (4) potential offerors in addition to the incumbent under the North American Industry Classification System (NAICS) 541511. These offerors are:

22nd Century Technologies, Inc. (SBA certified 8(a) Small Disadvantage Business)

Tera Think (Native American-Small Business)

Horizon Industries, Limited (Small Disadvantaged Business (SDB)

UTAAG LLC (Minority Women Owned Small Business)

These same vendors were identified when the Statement of Capability (SOC) was issued and conducted during the periods of April 5, 2013 –April 19, 2013 and May 7, 2013 –May 22, 2013.

Based on consultation, the market place population remains unchanged with four vendors in addition to the incumbent. This J&A document will be posted in accordance with FAR 6.305 (d).

7. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE:

The Government Independent Estimate (IGCE) was derived based on historical pricing for performance under SP4706-13-F-5019 and other contractor pricing from the GSA Schedule.

Expiring Task Order SP4706-13-F-5019 was awarded $Jul 1, 2014 for a 6-month Based Period of performance price of $444,743.34 and a 6-month extension price of $444,743.34 for a total price of $889,486.68. Because this planned contract actions is for the award of the continuation of these efforts under Task Order SP4706-13-F-5019, DCSO-F anticipates pricing consistency between the expiring task order and the planned proposal submission. DCSO-F will perform price analysis as cited and prescribed at FAR 12.209. The Government will use price analysis techniques consistent with FAR 15.404-1 in order to determine fair and reasonable price.

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS:

DCSO-F issued a Statement of Capability (SOC) during the periods of April 5, 2013 –April 19, 2013 and May 7, 2013 –May 22, 2013. The market place population remains unchanged with four vendors in addition to the incumbent.

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

COMPETITION:

Allowing the current effort to expire will result in unacceptable negative mission impact in support of conducting the fuels mission in support of the warfighter and for the Energy Convergence implementation. The applications supporting the petroleum acquisition process account for purchases in excess of $18.1 billion in product costs.

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

WRITING, AN INTEREST IN THE ACQUISITION:

See paragraph 6, above, for a vendor listing.

11. 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 OR SERVICES REQUIRED:

DLA will implement competitive procedures for the follow-on post-Energy Convergence support and will maintain oversight and surveillance within the marketplace to benefit from changes in the environment. In addition, regarding the solicitation of a follow-on effort, a small business set aside is recommended based on the confirmation of the Market Research revalidated by DLA

Small Business Office.

12. REQUIRED CERTIFICATION:

Requirements/Technical Certification: I hereby certify that the support data provided for which I am responsible and which form a basis to this justification are complete and accurate.

CRAIG LOCKARD DATE

Contracting Officer’s Technical Representative

DLA J62BGA

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

JIMMY D. KELLY DATE

Contracting Officer

DLA Contracting Officer Services Office – Fort Belvoir