JA_DOMESTIC_APPLIANCES_REPAIR_SERVICES_AREA_GERMANY_FINAL.pdf

JUSTIFICATION REVIEW DOCUMENT

FAR SUBPART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS – SOLE SOURCE JUSTIFICATION AND APPROVAL

Program/Equipment: IMCOM-E GSE/G4, Furnishings Branch, Domestic Appliances Repair Services, Area Germany

Authority: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 as implemented by FAR Subpart 13.5.

Amount: 991,921.13 € / $1,096,166.57

Three (3) month Bridge 564,056.57 € / $ 623,335.81 One (1) month Option 142,621.52 € / $ 157,610.25 One (1) month Option 142,621.52 € / $ 157,610.25 One (1) month Option 142,621.52 € / $ 157,610.25

Prepared by: Bryan A. Salas DSN: 483-5518 Contract Specialist Date: 02 May 2016 Email: bryan.a.salas2.civ@mail.mil

Contracting Officer: Benjamin M. Kamp DSN: 483-5174 Contracting Officer Date: 02 May 2016 Email: benjamin.m.kamp.civ@mail.mil

Technical: Heide Stroehl DSN: 544-4610 Contracting Officer Representative Date: 22 March 2016 Email: heide.stroehl.ln@mail.mil

Requirements: Juan L. Bryant DSN: 544-4612 Chief, Furnishings Management Section Date: 22 March 2016 Email: juan.l.bryant.civ@mail.mil

Reviews: I have reviewed this justification and find it adequate to support sole source.

Program Manager:

Signature: ____________________ Date: ___________________ Typed Name: JUDITH A. TEAGUE DSN: 544-4401

Legal Counsel:

Signature: ____________________ Date: ____________________ Typed Name: CPT S. CHASE ALLEN DSN: 483-5154

FAR Subpart 13.5 Simplified Procedures for Certain Commercial Items – Sole Source Justification and Approval

1. Contracting Activity: 409th Contracting Support Brigade, Theater Contracting Center

2. Description of Action: IMCOM-E, GSE/G4, Furnishings Branch requests a time-and-materials contract with Protec E. KFR. The Government projects award for 13 May 2016 and fiscal year 2016, E33H and QHFM funds will be used.

An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

(Insert approval authority title) approved an acquisition plan in accordance with DFARS 207.103(d)(i)(B) on (insert date).

The required acquisition plan in accordance with DFARS 207.103(d)(i)(B) is currently awaiting (insert approval authority title) approval.

3. Description of Supplies/Services: The Domestic Appliance Repair Contract provides repair services for all eligible Army Family Housing (AFH) and Unaccompanied Personnel Housing (UPH) customers and Civilians issued Government-owned stoves, washers, dryers, refrigerators/freezers, and dishwashers.

Period of Performance:

Base Period: 13 May 2016 to 12 August 2016 564,056.57 € / $623,335.81 Option Period 1: 13 August 2016 to 12 September 2016 142,621.52 € / $157,610.25 Option Period 2: 13 September 2016 to 12 October 2016 142,621.52 € / $157,610.25 Option Period 3: 13 October 2016 to 12 November 2016 142,621.52 € / $157,610.25

4. Authority Cited: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 (or 41 U.S.C. 1903 for Special Emergencies) as implemented by FAR Subpart 13.5:

Unusual and compelling urgency Exclusive licensing agreements Industrial mobilization

Other: Only one responsible source and no other supplies or services will satisfy agency requirements

5. Reason for Authority Cited:

(1) This “bridge contract” is intended to be a short term stop-gap measure while the new “follow-on” contract is competed and awarded. It is anticipated that the follow-on contract will be awarded approximately mid-August. Therefore, the bridge contract needs to span at least those 90 days between the expiration of the current appliance maintenance contract and the award of the follow-on. In addition to that 90 days, we are including a 1 month option to allow for delay in the award of the follow-on. Finally, we are including an additional two 1 month options to allow for the mandatory phase in period of 60 days, as listed in the PWS of the follow-on, to transition between the bridge contract and the follow-on (this phase in period will not be required if the incumbent is selected for the follow on). The minimum requirement of the Government is to continue repair services uninterrupted at the same level provided by the current contract. At this time, the incumbent Contractor is the only source that can satisfy this requirement without degradation in performance or a break in service. The current Contractor has the immediate resources to provide the continued services, with the necessary transportation, equipment, supplies, approved staffing with security/background checks, installation access and expertise to perform these services without any interruptions. No other service and/or supply can satisfy the Government’s need. In addition, the short 90-day duration of this requirement, coupled with the 60-day phase in period would discourage most, if not all, new contractors from performing this service as they could potentially not be awarded the follow-on and then they would only work the phase in period where they would not realize full revenues and profits as the incumbent would still be performing some of the work.

(2) The proposed Contractor is:

PROTEC E. KFR.

Im Weidenklingen 12, 69483 Wald-Michelbach, DE

CAGE Code DN994

(3) It was determined that the proposed Contractor can satisfy this requirement because, as the incumbent Contractor, PROTEC E. KFR has performed this service satisfactorily for the US Government since September of 2012. The previous contract was awarded as a 1 year IDIQ contract with two 1 year options.

Before expiration of the second option year a Task Order was issued with a PoP ending May 12 2016. Therefore, this proposed action will pick up performance at the end of that POP, and will start May 13, 2016.

(4) The wide range of appliances being repaired under the current requirement, the high initial investment for parts, tools, and labor, and the long phase-in period is why no other service can satisfy the Government’s need. The requirement to provide soldiers, the civilian workforce and their family members with 220V domestic appliances, with power requirements too large for transformers, or which perform poorly on power transformers, such as refrigerators, ranges, dishwashers, washers and dryers, for the duration of their overseas tour is a key task for the IMCOM-E, GSE/G4, Furnishings Branch.

The solicitation for the follow-on contract was scheduled to be released in February 2016, with an expected date of award of 12 May 2016. Exploration of various acquisition strategies that would encourage competition, yet achieve the best value to the Government, coupled with subsequent market research to validate the acquisition strategy and contract composition, further delayed the acquisition process. While these steps were necessary to obtain the most favorable, sustainable, and legally sufficient contract conditions to the Government, they put a stop to the progress of the follow-on contract and created the necessity for the bridge contract. Market research results indicated that a solicitation period of 30 days would yield multiple offers.

The solicitation for the follow-on is almost ready to be released. Both peer review and legal review have been completed and award is anticipated before the end of Fiscal Year 2016. Given these facts, the total PoP for the bridge is anticipated to be sufficient for both award of the follow-on and any phase in period as required.

Alternatives to a sole-source bridge contract include a break in services, re-competing the entire requirement, and ad-hoc buys. A break in services is not a viable option. It would cause a backlog of unrepaired appliances at the local Government FMO’s, a rapid increase of Drayage Cost and severe space problems at the Government FMO’s. An alternative strategy, Repair-by-Replacement, where defective appliances would be replaced from existing inventory and the defective appliances stored until the replacement contract is in place, was explored as well.

Both of these strategies would have the negative effect of creating an artificially high number of defective appliances at the beginning of the new Domestic Appliance Repair contract for the Contractor to complete, and would quickly deplete inventories of new appliances, forcing the Government to purchase additional new units or leaving service members, civilians and their families without household appliances. Not being able to support the repair of these appliances severely degrades the U.S. soldier’s quality of life and IMCOM-E’s mission.

Competing the bridge contract with the current performance work statement (PWS) would not result in an improvement in competition over sole-sourcing due to the bundled nature of the requirement and the resulting misalignment with local business capabilities. Historically, there have been only two firms, one being the incumbent, large enough to perform all tasks successfully. More significantly, it is unrealistic to expect a new Contractor to ramp up to perform these services for a 90 days Bridge Contract, with less than 30 days to hire employees, lease office space to be able to support all the Garrisons in Germany. Market research performed showed no firms other than the incumbent that would commit to bidding on the Bridge Contract.

“One time buys” and/or use of “in-house” assets is also not a viable solution.

Garrison DPWs are not staffed to support the services supported by this contract.

DPWs using their GPC card to purchase repair services, or with funding by IMCOM- E GSE/G4, Furnishings Branch for individual repairs will cost significantly higher than using a contract vehicle.

6. Efforts to Obtain Competition:

N/A – No competition sought due to the fact there is an urgent need for this service.

The Government concluded that the schedule and performance risks associated with competing a short-term contract is too high and may cause a break in service and unacceptable delays that could consequently result in a mission failure across Germany.

7. Actions to Increase Competition:

N/A – The solicitation of the follow-on Domestic Appliance Repair Contract is in process, and will be released soon. This will be a full and open competition to maximize competition.

8. Market Research:

Market research was not performed as no contractor except the incumbent could begin performance by the PoP start date of May 13. A new contractor would have to hire additional personnel in the different service areas. Personnel hired would need background checks and security clearances. They would need to phase in and start learning the process for ordering parts, using the computer system, etc. Since this would be impossible to accomplish before the start of the PoP, it was determined that no firms other than the incumbent would provide a quote on the Bridge Contract.

9. Interested Sources:

N/A

10. Other Facts:

a. Procurement History:

W564KV-12-D-0015, awarded 13 September 2012, after full and open competition, 2 offers.

W564KV-12-D-0001, awarded 27 December 2011, Sole-Source Bridge contract

W912CM-06-D-0012, awarded 1 July 2006, after full and open competition, 2 offers.

DAJA22-01-D-0016, awarded May 2001, after full and open competition, 2 offers

DAJA22-96-D-0043, awarded April 1996, after full and open competition, 2 offers.

As detailed in section 5, the circumstances which preclude competition for the Bridge Contract is the high initial investment, the time required for transition, and the short duration of the contract (3 month with 3 ea 1-month Options).

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.

Typed Name: Juan L. Bryant Date:

Title: Chief, Furnishings Management Section Signature:

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.

Typed Name: Judith A. Teague Date:

Title: Chief (Acting), IMCOM-E Housing Division Signature:

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this action will be fair and reasonable. This determination will be made using the following: price analysis cost analysis IGCE audit:

other:

As a part of this analysis, certified cost or pricing data is not required because the item and/or services being acquired are considered commercial. However, in order to determine that the offeror has submitted sufficient information to evaluate, through price analysis, the reasonableness of the price of such services, the Contracting Officer may request the offeror to submit prices paid for the same or similar commercial items under comparable terms and conditions by both Government and commercial customers. And, if the Contracting Officer determines that the information provided is not sufficient, other relevant information regarding the basis for price or cost, including information on labor costs, material costs and overhead rates may be requested IAW 41 U.S.C. 3501.

Typed Name: Benjamin M. Kamp Date:

Title: Contracting Officer Signature:

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

Typed Name: Benjamin M. Kamp Date:

Title: Contracting Officer Signature:

Approval Based on the foregoing justification, I hereby approve the procurement of Domestic Appliances Repair Services on a sole source basis pursuant to the authority of the Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 as implemented by FAR Subpart 13.5, subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Typed Name: Paul G. Michaels, eJD Date:

Title: Special Competition Advocate Signature:

DSN 5444401: 5/6/2016