A02_FAR-Part6-JA-W15P7T10DD409-0008_Signed_(Mark_for_Redaction)_v.2_(002)_Redacted.pdf

Control No: JA-19-B-510 Contractor VSE Corporation

Program/Equipment: Depot Maintenance Support Services

FOR OFFICIAL USE ONLY

FAR Part 6 Justification and Approval for Other than

Full and Open Competition

1. Contracting Activity: U.S. Army Contracting Command - Aberdeen Proving Ground (ACC-APG), ATTN: CCAP-CCB, 6565 Surveillance Loop, Bldg. 6001, Aberdeen Proving Ground, MD 21005-1846.

2. Description of Action: The U.S. Army Reserve requests a Cost-Plus-Fixed-Fee (CPFF) modification to contract W15P7T-10-D-D409 Task Order (TO) 0008 with VSE Corporation (VSE), 2550 Huntington Avenue, Alexandria, VA 22303. The Total Estimated Cost Plus Fixed Fee will be increased by $3,244,111.05 from $38,108,522.26 to $41,352,633.31. This requirement is in accordance with Performance Work Statement (PWS) paragraph 3.7 – Refurbishment Support (Surge Requirement) for performance during the remaining period of Option 2. The Government projects this modification will be awarded September 2019. Fiscal Year (FY) 2019 Operations and Maintenance (OMA) funds will be used to fund this additional cost.

W15P7T-10-D-D409 Task Order (TO) 0008 was awarded under the Rapid Response

– Third Generation (R2-3G) Indefinite Delivery Indefinite Quantity (IDIQ) contract vehicle in accordance with FAR Part 16.505 ordering procedures. R2-3G’s ordering period expired on 28 October 2017. Therefore, the contract vehicle is no longer viable for competition among its eighteen (18) prime contractors alone. As such, this Justification and Approval (J&A) is being executed in accordance with FAR Part 6, Justification and Approval for Other than Full and Open Competition versus FAR Part 16, Exception to Fair Opportunity Justification.

3. Description of Supplies/Services: On 06 July 2017, ACC-APG Division B competitively awarded Request for Task Execution Plan (RTEP) 1015 to VSE under the Rapid Response – Third Generation (R2-3G) Indefinite Delivery Indefinite Quantity (IDIQ) contract. The Period of Performance (PoP) consisted of a twelve (12) month Base Period (06 July 2017 – 05 July 2018), a twelve (12) month Option Period 1 (06 July 2018 – 05 July 2019) and a twelve (12) month Option Period 2 (06 July 2019 – 05 July 2020). The current effort will provide the U.S. Army Reserve with additional manpower to meet Government surge requirements for refurbishment support, in accordance with the PWS, for Army Reserve equipment through Maintenance, Repair, and Overhaul (MRO) and Corrosion Protection and Control (CPAC) procedures. The Government’s requirements that will be provided under this Task Order are as follows:

The addition of CLIN 2004 for Surge Labor support provides the U.S. Army Reserve with the capability to support additional emerging requirements to rebuild mission essential equipment in order to sustain the U.S. Army Reserve readiness posture and respond rapidly to emerging threats (additional details in paragraph 5 below).

Program/Equipment: Depot Maintenance Support Services

TASK ORDER SUMMARY

Period of Performance Current Value Current Increase to Cost

New Task Order Value

Base Period 06 July 17 – 05 July 18 $7,686,471.21 $7,686,471.21

Option Period 1 06 July 18 – 05 July 19 $17,919,372.82 $17,919,372.82

Option Period 2 06 July 19 – 05 July 20 $12,502,678.23 $3,244,111.05 $15,746,789.28

Total $38,108,522.26 $3,244,111.05 $41,352,633.31

TASK ORDER SUMMARY OF LOE

Period of Performance Current LOE Current Increase to LOE

New Task Order LOE

Base Period 06 July 17 – 05 July 18 109,440 109,440

Option Period 1 06 July 18 – 05 July 19 216,960 216,960

Option Period 2 06 July 19 – 05 July 20 109,440 93,405 202,845

Total 435,840 93,405 529,245

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

5. Reason for Authority Cited: The proposed action must be accomplished through other than full and open competition in accordance with FAR Part 6.302-2 because the Army’s need for the services is of such and unusual and compelling urgency that the Government would be seriously injured unless the Army is permitted to limit the number of sources from which is solicits proposals to meet the U.S. Army Reserve’s essential surge requirements. The services rendered under this Task Order allows the U.S. Army Reserve to maintain and sustain all assigned equipment and material to the highest Army maintenance standards. Critical to this process is the ability to integrate balance between preparation and sustaining of new systems; extending the life cycle of aged systems; meeting the day-to-day equipment readiness requirements of two-level maintenance (field and sustainment); and preparing for the next deployment.

Operational requirements have refocused priorities per the Army Reserve Command Training Guidance (CTG) Supplemental Training Year (TY) 2019 Memorandum, published by , U.S. Army Commanding, on 30 November 2018. This Memorandum requires the U.S. Army Reserve to rapidly provide additional and improved capabilities to equipment readiness. In addition, operational focus has continually changed based on emerging threats. As a result of

Program/Equipment: Depot Maintenance Support Services this direction, there is a need to increase the induction of additional surge equipment into the Army Reserve Equipment Engineering Maintenance and Logistics Readiness Support Program which, while within the scope of the PWS, will require an increase to the Task Order’s level of effort and costs to actuate this surge requirement.

VSE is already tasked with refurbishing Army Reserve equipment including trucks, trailers, construction equipment, water and petroleum systems, combat service vehicles, heating and air condition systems and communications equipment. This is being accomplished through Maintenance, Repair, and Overhaul (MRO) and Corrosion Protection and Control (CPAC) procedures. More importantly, VSE is currently producing and refurbishing the M872A3 Trailer Fleet which are a series of 40-foot, 34-ton flatbed trailers that can carry a wide variety of cargo with its large cargo bed on a three axle, twelve wheel suspension. However, to meet Army surge requirements, one-hundred fifty (150) M872A3 trailers must be delivered to Ready Force X (RFX)/Focus Ready Units (FRU) by the end of fiscal year (FY) 2020. These refurbishments are required to fill critical shortages of the M872A3 in order to meet upcoming deployment missions. The current manpower requirements of Option 2 of the TO are not sufficient to meet the Army’s deadline.

The Government risks serious injury without the refurbishment of the essential equipment reference above, to include the M872A3 trailer. The equipment readiness rate would be severely degraded which would translate into a strategic risk and an Army force which is not combat ready and globally responsive. The Warfighters depend on cutting edge equipment that provides an advantage over the enemy when out in the field and they cannot risk manning aging equipment at a time when there is a great demand for Army forces. The inability to transfer vital cargo and the absence of fundamental equipment makes the Warfighters susceptible to injuries and fatalities.

Likewise, if this request is not approved, the mission of the Lieutenant General’s Memorandum would not be entirely fulfilled.

Providing fair opportunity to compete a new requirement is anticipated to take approximately 115 calendar days (based on RS3 Program Milestones), not including the amount of time required to transition in a possible new Contractor for the remaining nine (9) months of performance under this task order. The Army Reserve would need to develop a requirements package (est. 20 days), receipt of proposal (est. 30 days), evaluation of proposals (est. 30 days based on number of proposals received), discussions and evaluation addendums (est. 25 days), award decision (est.

10 days). As a final point, the current surge requirements are an extension to the depot maintenance support services already being performed by VSE under Task Order 0008. There is no benefit to separating out and transitioning the refurbishment support to a new contractor.

Due to the refurbishment work VSE is already undertaking on MS872A3 trailers, transferring the surge M872A3 trailer work to a new contractor for the short duration of this requirement would also result in duplicative costs. VSE purchases the trailer frames through DRS Technologies who is contracted by the United States Army Tank-

Program/Equipment: Depot Maintenance Support Services automotive and Armaments Command (TACOM) to provide the frames for production.

$100,000 in purchase requests are already in the works to purchase parts under CLIN 2015 – Other Direct Costs. Additionally, several seed trailers and frames have already been purchased and are currently disassembled at VSE’s facility. The Government would pay approximately $3,500.00 per trailer load with the associated frame and parts, to have it transferred to another contractor site. This cost is based on charges that the Army Reserve has historically incurred to relocate trailers. Due to the decline in Army Reserve readiness rates for the M872A3 asset, there is not sufficient time left under Option Period 2 for the transition of seed trailers and parts, valued at an estimate of $3 million dollars, and to establish a new frame contract under a new contractor. This would further diminish Army Reserve readiness rate for this asset.

As required by the PWS, VSE already possesses the Contractor-Owned/Contractor- Operated (COCO) maintenance facilities which are geographically located within two-hundred (200) miles of a multitude of Army Reserve equipment stored at the equipment concentration sites (ECS) listed in the PWS. The refurbishment contractor’s ownership of such facilities is critical because it provides the most cost effective means of transporting equipment to and from the owning unit’s Area Maintenance Support Activity (AMSA) to the ECS locations. Additionally, the Government has provided VSE with support equipment and material to perform the current effort. The Government does not have additional GFE readily available to support a concurrent refurbishment effort with a second contractor. VSE’s team has the requisite platform technical expertise; producing zero defects and performing within budget throughout the duration of the current and previous POPs. A risk analysis has determined that the Government can expect the same performance throughout the performance of the surge requirements.

6. Efforts to Obtain Competition: In accordance with FAR 5.202(a)(2), this action will not be synopsized. A “sources sought” notice was posted to FedBizOpps on 24 July 2019. Additional details are under the below paragraphs 8, “Market Research,” and 9, “Interested Sources.”

a. Effective Competition: Because this is a sole source action, effective competition is not applicable.

b. Subcontracting Competition: The Contractor has subcontracted 20% of the current TO to small businesses.

7. Actions to Increase Competition: This Task Order was awarded competitively under the Rapid Response – Third Generation (R2-3G) Indefinite Delivery Indefinite Quantity (IDIQ) contract vehicle. For this action, the Government conducted Market Research to identify all potential sources for the addition of CLIN 2004 for Surge Labor support by posting a “sources sought” notice on FedBizOps (www.fbo.gov) under the solicitation number “W15P7T10DD409_0008.” The results of the Market Research can be found below in paragraph 9. The follow-on contract will be competed as a competitive Task Order under the Responsive Strategic Sourcing for Services (RS3)

Program/Equipment: Depot Maintenance Support Services

Contract. The acquisition requirements package (ARP) for the follow-on requirements is currently in the pre-development phase. The follow-on Task Order is expected to be awarded no later than 06 June 2020 to allow for a 30-day transition-in period.

8. Market Research: A “sources sought” notice was posted on FedBizOps on 24 July 2019 with a suspense date of 07 August 2019 to garner interest in this requirement.

Two (2) companies responded with an interest in performing the requirement, but did not address the Government’s prerequisite to “fulfill the attached requirements within the designated period of performance without a transition in plan.” Because of this, the Government was unable to ascertain whether the interested companies would be able to successfully provide the required surge labor support.

9. Interested Sources: Market Research was conducted by posting a “sources sought” notice on FedBizOps on 24 July 2019 with a suspense date of 07 August 2019. Two (2) responses were received in response to the “sources sought” notice from who indicated their interest in this requirement. Although both vendors responded stating their interest in the requirement, neither addressed the Government’s prerequisite requirements as indicated in paragraph 3 above.

10. Other Facts:

a. Procurement History

Contract: W15P7T-10-D-D409, Task Order 0008 Contractor: VSE Corporation Award Date: 06 July 2017 Competitive Status: Full and Open Competition

On 06 July 2017, ACC-APG Division B competitively awarded Request for Task Execution Plan (RTEP) 1015 to VSE under the Rapid Response – Third Generation (R2-3G) Indefinite Delivery Indefinite Quantity (IDIQ) contract.

W15P7T-10-D-D409 Task Order (TO) 0008 was awarded under the Rapid Response – Third Generation (R2-3G) Indefinite Delivery Indefinite Quantity (IDIQ) contract vehicle in accordance with FAR Part 16.505 ordering procedures.

R2-3G’s ordering period expired on 28 October 2017. Therefore, the contract vehicle is no longer viable for competition among its eighteen (18) prime contractors alone. As such, this Justification and Approval (J&A) is being executed in accordance with FAR Part 6, Justification and Approval for Other than Full and Open Competition versus FAR Part 16, Exception to Fair Opportunity Justification.

Program/Equipment: Depot Maintenance Support Services

11. Technical 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.

12. 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.

Program/Equipment: Depot Maintenance Support Services

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. The Government will complete a cost analysis of VSE’s proposal and negotiate, if applicable, in order to determine a fair and reasonable price for the proposed effort. As part of this basis, certified cost and pricing data will be required in accordance with FAR 15.403-4(a)(1).

Typed Name:

Signature:

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: Keiana D. Clarke Date:

Title: Contracting Officer Signature:

Program/Equipment: Depot Maintenance Support Services

Approval

Based on the foregoing justification, I hereby approve the procurement of Depot Maintenance Support Services for the estimated amount of $3,244,111.05 on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(2) as implemented by FAR Part 6.302-2 - Unusual and Compelling Urgency, subject to availability of funds, and provided that the services or property herein described have otherwise been authorized for acquisition.

Cynthia A. Jackson Date:

Command Advocate for Competition Signature: