SSJ re. Ceiling Increase.pdf

U.S. Department of Transportation (US DOT) IDIQ Contract #DTPH5615D00001 Pipeline and Hazardous Materials Safety Administration (PHMSA) Sole Sources Justification for increasing Ceiling

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (SOLE SOURCE JUSTIFICATION)

FOR INCREASING DOLLAR CEILING OF A LABOR HOUR CONTRACT

IDIQ Contract #DTPH5615D00001

National Pipeline Mapping System(NPMS) Repository

This Sole Source Justification(SSJ) is prepared pursuant to the authority of 41 U.S.C.3304(a)(1) as set forth under FAR Part 6.302 - Circumstances permitting other than full and open competition, subsection FAR Part 6.302-1 - Only one responsible source and no other supplies or services will satisfy agency requirements, FAR Part 16 - Time-and-Materials, Labor-Hour, and Letter Contracts. Further, the sections follow the content required by FAR Part 6.303-2.

1. Agency & Contracting Authority:

Acquisition Services Division Pipeline and Hazardous Materials Safety Administration (PHMSA) Department of Transportation Washington, DC 20590

2. Nature of Action Being Approved:

This action is to increase the contract ceiling on a labor hour contract [Contract Number DTPH5615D00001, titled National Pipeline Mapping System (NPMS) Repository, Contractor Name:

Michael Baker International Inc. (Michael Baker)]. The current contract has an expressly stated ceiling of $11mil. Although the Period of Performance(PoP) of the contract has 4 more option years, the contract is about to reach its dollar ceiling soon after the end of the current option year which ends on May 31, 2021. PHMSA has a need to increase the contract ceiling by $4mil. (resulting in an overall contract ceiling increase from $11mil. to $15mil.) and exercising option year 5.

PHMSA’s long term need is to obtain contractor support of the current work, and to develop and implement significant modifications to NPMS Information Collection (NPMS IC). The need for development and implementation of NPMS IC follows Office of Management and Budget’s (OMB) approval of revision of the system in January 2020. To meet this long-term need, PHMSA will need to make significant investments on contractor support in the coming years (estimated over $10mil.).

PHMSA understands that this triggers competition requirements pursuant to FAR Part 16.601(e)(3), Far Part 6.303, Competition in Contracting Act (CICA) - 41 U.S.C. 253, and GAO protest decisions.

Accordingly, PHMSA has started work on the re-competition process. PHMSA anticipates being able to post a procurement forecast for the re-competition in the coming weeks. This procurement forecast will inform the contractor community of the upcoming re-competition so that they can prepare accordingly.

Pipeline and Hazardous Materials Safety Administration (PHMSA) Sole Sources Justification for increasing Ceiling

While the ceiling increase on the current contract, and the re-competition, are 2 separate actions, PHMSA understands their interrelated nature. Accordingly, PHMSA has been simultaneously working to prepare the pertinent re-compete documents like SOW, etc. PHMSA’s intent for raising the ceiling is to ‘bridge the gap’ between the end of the current contract and the beginning of the next re-competed contract. It is a short-term solution to obtain services during an interim period until a new contract can be established.

The resulting award will be a modification to increase the ceiling to $15mil. on contract number DTPH5615D00001 with Michael Baker. As in previous years, Task Orders may be issued under this contract on a fixed-price or labor hour basis. This contract was competed in 2015 and was not awarded under sole-source procedures.

3. Description of Supplies or Services:

PHMSA created the National Pipeline Mapping System (NPMS) program in 1999. At the center of the program is a dataset which contains locations and attributes in a Geographic Information System (GIS) format for hazardous liquid (HL) and gas transmission (GT) pipelines and liquefied natural gas (LNG) plants. The dataset contains pipeline data from approximately 1,600 pipeline operators totaling over 300,000 miles of gas transmission pipeline and over 223,000 miles of hazardous liquid pipeline. 49 CFR 191.29 and 195.61 require hazardous liquid and gas transmission pipeline operators, as well as liquefied natural gas plant operators, to submit geospatial data to the NPMS.

The contractor-staffed National Repository accepts data submissions from pipeline operators in geospatial and other spatial formats as outlined in the NPMS Operator Standards Manual. Data submissions may include new data, data edits, data removals or verification of existing data accuracy for each or all pipeline facility locations or attributes.

As in the past year, under the increased ceiling, Michael Baker will continue to provide PHMSA with a combination of services for PHMSA’s NPMS Repository. Task Orders will include (but may not be limited to) the following:

− Processing of Pipeline, Liquefied Natural Gas (LNG) Plant, and Breakout Tank (BOT) Data − Maintenance and Development of Mapping Applications and System Support;

− GIS Analyst PHMSA HQ and Regional Support; and − Travel

Other National Repository responsibilities include (but not limited to):

o Creating custom stand-alone tools with fully-developed user interfaces to automate data processing.

o Assisting with integrating tabular datasets as events along the geospatial pipe centerlines. Many datasets that PHMSA wishes to integrate require substantial manual work. Some are not geospatially-enabled, and even when coordinates are available, the

Pipeline and Hazardous Materials Safety Administration (PHMSA) Sole Sources Justification for increasing Ceiling data may need to be moved to fall on a pipe segment. The integrated data must be maintained when the segmentation or position of the underlying pipe segment changes.

o Maintaining the current website and applications and developing new features or stand-alone applications.

o Providing GIS support to PHMSA staff, including 24/7 support in the event of an emergency.

o Documenting procedures and developing standards.

o Disseminating NPMS data to qualified parties in adherence with PHMSA’s security protocols

4. Statutory Authority (including the proposed contractor’s unique qualifications or the nature of the acquisition that requires use of the authority cited)

In accordance with 41 U.S.C. 3304(a)(1), as set forth in FAR Part 6.302-1, PHMSA has determined that Michael Baker is the “Only one responsible source and no other supplies or services will satisfy agency requirements” for continuity of services. This requires an increase in ceiling and exercising of option year 5. The current contract (DTPH5615D00001) was awarded in accordance with the applicable competition procedures, and was not previously issued under sole-source or limited-sources procedures.

Under the current contract, PHMSA has six (6) years invested with Michael Baker. The Michael Baker staff has participated in multiple activities and acquired hands-on knowledge and experience regarding PHMSA’s requirements. This institutional hands-on knowledge and experience of supporting PHMSA’s unique requirements is valuable for continuity of support.

PHMSA understands that other vendors may be capable of providing this support. PHMSA also understands that the increase in ceiling triggers competition requirements. Accordingly, PHMSA is working to re-compete this requirement. However, the complexity of the NPMS and associated contract requires additional time for the re-competition process to be completed. In the meantime, exercising option year 5 and increasing the ceiling by $4mil. is necessary to ‘bridge the gap’ between the end of the current contract (because of reaching contract ceiling) and the beginning of the next re-competed contract. It is a short-term solution to obtain services (for business continuity purposes) during an interim period until the re-competition process can be completed and support can be transitioned to the new contract.

Under the unique circumstances, where PHMSA has a continuing need for contractor support, but the new contract is yet to be awarded, not increasing the ceiling would result in a gap in service. For a system like NPMS with its high number of users (both federal and non-federal) and federally mandated data collection and support for emergency response, a gap in service can have significant detrimental impact.

Pipeline and Hazardous Materials Safety Administration (PHMSA) Sole Sources Justification for increasing Ceiling

NPMS is a complex system with multiple components, which are vital to PHMSA’s mission.

Terminating the Michael Baker contract as soon as it reaches the current ceiling of $11mil., would cause a critical gap in service, and a significant drop in quality of public service provided by PHMSA, which will impact mission critical services provided by PHMSA to the public.

PHMSA requires ongoing support, and a gap in service while waiting for the results of the re-competition and new award, would result in substantial and unacceptable delays. This ceiling increase and exercising of option year 5, allows the Government to retain knowledge and skills gained under the current contract, and to leverage its buying power to gain best value and receive high quality services. Upon taking the cost of gap in service and detrimental impact on mission critical functions into consideration, PHMSA has determined that increasing the ceiling and exercising option year 5, provides best value to the government as well as for the public. Under the current circumstances, Michael Baker will be able to support PHMSA’s critical services related to NPMS at a reasonable cost for option year 5.

For the aforementioned reasons, PHMSA has determined that currently, Michael Baker is the “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Synopsis and Other Efforts for Identification of Sources:

Pursuant to FAR Part 6.305(a), this SSJ will be made publicly available via posting on Contract Opportunities (formerly FedBizOpps) website.

Further, for the re-compete, PHMSA plans to post a procurement forecast in the coming weeks.

6. Determination of Fair and Reasonable Anticipated Cost

The costs proposed by Michael Baker for option year 5 are less than the independent government cost estimate.

Further, per FAR Part 16.601(c)(1), PHMSA understands that “A [labor hour] contract provides no positive profit incentive to the contractor for cost control or labor efficiency. Therefore, appropriate Government surveillance of contractor performance is required to give reasonable assurance that efficient methods and effective cost controls are being used.” Following this, PHMSA will continue to administer the contract accordingly to ensure that the hours billed by the contractor, and the associated costs, are fair and reasonable.

7. Description of Market Research

As stated in sections 2, 3 and 4, of this document, PHMSA is currently working on the re-competition process. To aid with market research, prior to competition, PHMSA plans to conduct a request for information (RFI). The RFI will help PHMSA streamline the requirements to ensure that a fair competition is conducted.

8. List of Other Interested Sources

Pipeline and Hazardous Materials Safety Administration (PHMSA) Sole Sources Justification for increasing Ceiling

To aid in identifying the interested sources, prior to competition, PHMSA plans to conduct a request for information (RFI).

9. A statement of the actions PHMSA plans to take to remove or overcome any barriers to competition before any subsequent acquisition

As stated in section 7 above, PHMSA plans to conduct an RFI. PHMSA anticipates that the responses to the RFI will assist PHMSA with structuring the next contract, as well as take appropriate actions, to remove or overcome any potential barriers to competition.

10. Technical Personnel Certification - FAR Part 6.303-2(c):

The signature below of the technical representatives certifies that the supporting technical data specified in this document is complete and accurate, and justify the acquisition of the aforementioned services from Michael Baker International Inc.

11. Contracting Officer Certification – FAR Part 6.303-2(b)(12)

The Contracting Officer’s signature below certifies that the justification is accurate and complete to the best of her knowledge and belief.

12. Approval of Advocate for Competition for the procuring activity FAR 6.304(a)(2)

The signature of PHMSA’s Competition Advocate [PHMSA’s Chief Financial Officer (CFO)] below approves this justification.

Pipeline and Hazardous Materials Safety Administration (PHMSA) Sole Sources Justification for increasing Ceiling

CERTIFICATION:

I certify that the facts and representations under my cognizance which are included in this Justification, along with any other supporting data, which form a basis for this Justification are complete and accurate.

Leigha Gooding Date PHP-6 Operations Systems Division [Technical Personnel]

Amit Joshi Date PHF-30 Information Resources Management [Technical Personnel]

CONTRACTING OFFICER CERTIFICATION:

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

Mahua Mazumdar Date [Contracting Officer]

CHIEF OF CONTRACTING OFFICE APPROVAL:

I approve this Justification as being accurate and complete to the best of my knowledge and belief.

Yolanda (Loni) Chinn Date Director, Acquisition Services Division [Chief of Contracting Office]

COMPETITION ADVOCATE APPROVAL:

I approve this Justification as being accurate and complete to the best of my knowledge and belief.

Jonathan(Jon) Gatti Date PHMSA’s Chief Financial Officer (CFO) [PHMSA’s Competition Advocate]