Tatitlek_Fully_Signed_J_A.pdf

JUSTIFICATION FOR SOLE SOURCE 8(a) CONTRACT EXCEEDING $22 MILLION FAR PART 19.805-1(b) and 19.808-1(a)

1. Identification of the agency and the contracting activity:

In accordance with Federal Acquisition Regulation (FAR) 19.805-1(b), 19.808-I(a) and 6.303-2(d), upon the basis of the following justification, the Bureau of Administration, Office of Acquisition Management (AQM) proposes to enter into a sole source 8(a) contract for the proposed contractual action based on the fact that the Small Business Administration (SBA) has accepted the requirement on behalf of a concern owned by a Native American Corporation for Facilities Support Services. The total estimated cost for this requirement is $250,000,000.00 which includes one base year plus seven (7) option years.

2.. Nature and/or description of the action being approved.

The Department of State (DoS) Bureau of Administration (A) needs support contractors to provide consolidated facilities management services in the metropolitan Washington DC area and at other DoS domestic locations. Building operations include maintenance, repair/replacement, preventive maintenance, installation and alternation of building equipment and systems; plumbing, mechanical, electrical, fire suppression systems, fire extinguishers, energy management, water treatment, and buildings architectural systems;

building custodial services; pest control; grounds maintenance; snow removal; reimbursable facility alterations; and other related services.

Recently, the facility maintenance program was tasked with reducing their operations by 20- 40% due to the budget shortfalls. In order to achieve these reduction targets without having a devastating impact on the facility maintenance operations the acquisition strategy is to consolidate these contracts into separate Indefinite Delivery Indefinite Quantity (IDIQ) contract(s).

AQM recently conducted an audit on FMS contracts AQM and FMS conducted some informal audits on their operations to see what the biggest cost drivers within their portfolio were and what other areas was causing inefficiencies. The findings showed that one of the biggest cost drivers was that there were multiple contracts with different contracts for the same types of services. By having multiple contracts there was a redundancy in positions. For example, there were multiple contracts and for each contract there is a Program Manager.

Program Managers tend to be on the higher pay scale so by reducing these contracts into one contract for the DMV area we will be able to remove all of the excess Program Managers positions.

This consolidation will also allow the selected contractor for the facilities mentioned below to pool their resources to help reduce costs. Currently each contract has its own trade professionals (HVAC mechanic and Engineers) even if there might not be a need for these personnel to be at each of these locations on a full time basis. For example there are multiple HVAC mechanics and Engineers under each contract. Since equipment and HV AC systems don't tend to go out on a daily basis it is not cost efficient to just have these trade employees for each location. By consolidating these contracts this will allow the contractor to reduce some of these positions and float the remaining employees. HVAC mechanics and Engineers tend to be on higher end of the pay scale. The current commercial practice is to have companies on call for these services when the need arises to avoid having to pay these companies full time.

These informal audits also revealed that the competition for the current contracts led to underbidding of contract pricing due to lack of detail in the SOW and the program offices inability to articulate the requirements. Facility Maintenance services encompasses many different task and job functions so it is complicated for the program offices to properly annotate the level of detail needed for a company to properly bid on the contract. This then forces the companies who bid to make assumptions on the level of work that will be required by the program office which in return often leads to poor performance. With a full and open competition the Government loses the ability to have one on one conversations with the contractor which is necessary when the level of work is not properly captured.

Prior contract history also shows that competition doesn't always result in lower cost for these services due to the Service Contract Act (SCA) wage rates and the pre-negotiated Collective Bargaining Agreement (CBA) rates. Contractors can't go any lower than these wages and if the contractor doesn't pay a competitive salary in a competitive market this can lead to high turnover. This then results in a loss oftime and money because then the contractor will then have to hire new employees and the government will have to process the appropriate clearances for these employees.

AQM intends to compete these services in the future. The intention with the sole-source contracts is to address the issues associated with FMS and the expiration dates of the existing contracts and orders. During the sole-source period of performance, the DoS intends to refine its requirements and identify the amount of resources needed to conduct a full-scale competitive acquisition. The consolidation effort will have no impact on the small business community. The vast majority of the FMS contracts are already under the Small Business Administration (SBA) 8 (a) program.

Delineated in the tables below is the breakdown of the selected contractors and the contracts that will be consolidated under their perspective IDIQ.

a. AQM recommends Tatitlek Technologies (ITI), a subsidiary of Tatitlek Corporation, an Alaska Native Corporation (ANC) to support the DoS FMS needs in the metropolitan Washington DC area. The following existing contracts will be consolidated under the Tatitlek Technolo ies IDIQ:

Harry S. Truman Building (HST), Blair House (BH), National Foreign Affairs Trainins Center NFATC , SA-OI, ICC, SA-20, and Potomac Annex! Contract NumberrrO Number DOS Facility i Service Provided Current Vendor

IsAQMMAllC0037/SAQMMAl5F0635 l SA-DI/ICe! Lamping NVE Lamping-8(a)r SAQMMAIlD00981 SAQMM-AI4F~-1 SA-GI/ICC t- Custodial Actions Faciliti-es M~agement - 8(·~-··\I- SAQMMAl4F2933 !. .. .__

! SAQMMAIlD0080/SAQMMA15F2987 rsA-oWcci--- O&M Crockett Facilities - 8(~L . _ SAQMMA12D0097/SAQMMA16f'2549 --.L SA-2D O&M Cr.2ckett - 8(a2 i SAQMMAllC00371 SAQM-M-A-lS-F-06-3-S"--'-1--H-ST-"j--L-amping r--- '-"-S-A-Q-M-M-A-I--lD-O-O-79-1-S-A-Q-M-MAlSF4222--Lr--H-S-T-r---O-&-'M-" --.!'__o -E--M-C-O-R--iarge~;-ne-ss-"-O_--;

SAQMMA13DOI04119AQMM18F0127 _~ HST l- Custodial i R&R - 8(a) i SAQMMAllC00371 SAQMMAlSF063S ! BH L Lamping -NVE~:- 8(a) 00__ -, 11--SA-Q-M-M-A-I-I-D-OO-7-9/-S-'A-Q-M-M--A-l-SF-4-2-22--+I--B-H-----1 O&M EMCoi---------

100 SAQMMA13DOI04119AQMM18F0127 i~-~-r Custodial "__ l3:&~-=-~~_-=--__-_===.~! SAQMMAllDOOIO/SAQMMAI6F07i3-T-i--JFATC r"----'::..::C:::.:'FM i EMCOR --- SAQMMA13D00331 SAQ-M-M-A-I-S-FOS-37---•..---- Potomac L-.1 O&tlr-"-;~-----~IVoE, Inco-~08(;;)-0---------'"

Annex --------.~--..--'CFM --Complete Facility Maintenance *O&M -- Operation and Maintenance

3.An identification of the statutory authority permitting other than full and open competition.

Award under Section 8(a) ofthe Small Business Act is authorized by Statute 15.U.S.C.

637(a) as prescribed at FAR 6.302-5(b) (4) and SBA's acceptance ofthe requirement on behalf of a firm owned by an Indian tribe or Native American Corporation.

The decision by the contracting officer to utilize the 8(a) program is recognized in FAR 5.202(a)(4) as being authorized by statute. Section 8(a) of the Small Business Act permits award to tribal rules firms on a sole source basis.

4.A demonstration that the proposed contractor's unique qualifications or the nature of the acquisition requires use of the authority cited.

The identified Indian Tribal 8(a) company, to Tatitlek Technologies Inc., 561 East 36th Avenue, Anchorage, AK 99503-4137, DUNS: 808113562, CAGE: 4WZG2 has been determined to be small under NAICS Code 561210 (Facilities Support Services), and eligible for award under Section 8(a), ofthe Small Business Act.

In order to help mitigate any risk, Tatitlek Technologies' Inc. past performance was verified to see ifthey were able to manage multiple federal facilities. Tatitlek Technologies' past performance showed that they have extensive experience providing facilities maintenance services for multiple federal agencies.

5.A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer has determined that the anticipated price(s) will be fair and reasonable based on utilization of labor rates and other costs established under predecessor contracts and the Government Independent Government Cost Estimate (lGCE

In addition, the sponsoring office's concurrence with the total number of full time equivalents (FTE), labor, travel, and other requirements is critical to the process, as the Contracting Officer will utilize this information, as well as any audited/accepted indirect rates to ultimately determine that the total estimated cost is fair and reasonable.

Tatitlek Technologies' Inc. rates will also be compared to the rates that were established on other DoS facilities maintenance contracts and DoS will also utilize GSA's rates to further verify that our rates are consistent with awarded rates for these types of services.

By signing the justification, the Contracting Officer makes a determination that the labor rates to the Government are expected to be fair and reasonable.

6. A description of the market research conducted (see Part 10) and the results or a statement of the reason market research was not conducted.

Market research revealed that there were sufficient Native American Tribally-Owned Companies and Alaskan Native Corporations to fulfill the FMS requirements. Additionally, AQM/FMS conducted market research related to each company's facility clearance (i.e., a TOP SECRET Defense Security Service (DSS) Facility Clearance is a requirement) and the company's past performance history and relevant experience in the service areas. Based on the market research, AQM and FMS matched the best-suited companies to the sole source procurements.

Tatitlek Technologies' Inc. has extensive experience performing Consolidated Facilities Management Services. As a result of the market research, the DoS determined that Tatitlek Technologies' Inc. is qualified to support its FMS program.

Any other facts specified by the agency head as required in support of this justification.

In accordance with FAR 19.805-1 (b)(2) and relevant past performance history for similar services, the Contracting Officer determined a Native American Corporation, 8(a) sole source direct award to Tatitlek Technologies' Inc. would best meet the Government objectives. An IDIQ that allows for Firm-Fixed-Price, Cost Reimbursement, Time-and- Material, and Labor Hour Orders will be issued for this effort with a base period of one year and four option periods of one year each.

CONTRACTING OFFICER

SIGNATURE:

Alexander Mavroukakis Contracting Officer Office of Acquisition Management

APPROVALS

May 30,2018

Date

OFFICE OF SMALL DISADVANTAGED BUSINESS UNIT

SIGNATURE:

Director - OSDBU Office of Small Disadvantaged Business Unit

BRANCH CHIEF

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{~)~~tUI'110 nn . Carroll

V Branch Chief Office of Acquisition Management

DIVISION CHIEF

SIGNATURE:a- ------ -.

Office of Acquisition Management

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PROCURING ACTIVITY COMPETITION ADVOCATE

SIGNATURE:

~(lJ~ VincentJ. Sanchez Competition Advocate Office of Acquisition Management

APPROVALS (Continued)

Date

HEAD OF THE PROCURING ACTIVITY

Cathy J. Read Director Office of Acquisition Management