ACC1925.pdf

CMO Control #: 14-194

W56HZV-09-A-0909/0012

Department of the Army Limited Source Justification for GSA Purchases above the Simplified Acquisition Threshold

1. Contracting Activity: Army Contracting Command - Warren (ACC-WRN) is the contracting activity for this action.

2. Description of Action: The proposed action is to be awarded to Baum, Romstedt, Technology Research Corporation (BRTRC), as a logical follow-on to current Mine Resistant Ambush Protected (MRAP) Operations Coordinator (MOC) contract W56HZV- 09-A-A909 Task Order (TO) 0012 which is set to expire on 31 December 2014. TO 0012 provides logistics operations and field support services consisting of logistics, program, operations, liaison, fielding and field support operations in both Contiguous United States (CONUS) and Outside the Contiguous United States (OCONUS) locations. This Limited Source Justification authorizes the use of sole source procedures for ACC-WRN to award a modification to extend the existing TO 0012, for six months with six one-month options. This extension will result in an increase to the maximum number of labor hours to the Time and Materials (T&M) and Firm-Fixed-Price (FFP)TO. BRTRC is a Blanket Purchase Agreement (BPA) holder under the OMNIBUS III Multiple Award Task Order (MATO) Contract W56HZV-09-A-0909. Fiscal Year (FY) 15 Army, Operations and Maintenance and Army Procurement funds will be utilized.

3. Description of the Supply or Service Purchased:

a. This proposed TO modification action increases the Period of Performance (PoP) from 01 January 2015 to 31 December 2015 by adding 12 months of performance, (a six-month base and six one-month option periods) 67,017 labor hours, associated Other Direct Costs (ODCs) and travel at an estimated value of $4,323,025. It is imperative that the current contractor continue performance under this TO to maintain continuity of current operations, preserve the current contractor knowledge base and to prevent a break in service. The Government does not have the organic ability to provide the services described below because it does not have adequate manpower or resources. The loss of these services will obstruct the completion of the MRAP mission, as explained in paragraph 5.c., below.

b. This requirement provides necessary logistics support across all configurations of the MRAP Family of Vehicles (FoV) for OCONUS missions in post Operation Enduring Freedom (OEF) and operations in CONUS. The MRAP vehicles provide the U.S. or coalition partners with platforms capable of mitigating the effects of Improvised Explosive Devices (IEDs), underbody mines, and Small Arms Fire (SAF) threats, which continues to be the greatest source of casualties in the Area of Responsibility (AOR). MRAP users in support of Afghanistan Security Forces are from numerous countries and multiple coalition partners are anticipated to remain in Afghanistan post December 2014. In addition, this requirement supports Comment [D1]: OPSEC carlo.a.daleo Highlight personnel that use MRAP vehicles in theater while engaged in a broad spectrum of operations and training that require a high level of readiness and protection.

c. The MOC contractor provides necessary logistics services for Route Clearance Packages (RCP) remaining in Afghanistan to support Afghanistan Security Forces in hostilities that are anticipated to continue beyond December 2014. Anti- Afghanistan Forces (AAF), which include all elements fighting U.S. and coalition personnel in Afghanistan, easily predict where U.S. and coalition personnel travel due to limited roadways in the country and frequently inflict casualties by using IEDs and complex attacks. RCP’s are made up of the MRAP FoV’s. OCONUS missions currently include Afghanistan, but the potential exists for support to the Global Response Force (GRF) in other OCONUS locations and Foreign Military Sales (FMS). To combat threats, RCP will remain in OCONUS for the near future to:

1) Conduct a key leader engagement or border flag meetings.

2) Deliver humanitarian assistance.

3) Work with the Security Force to locate high-value targets.

4) Escort Security Force and U.S. or coalition logistics patrols.

5) Conduct area or route reconnaissance.

d. The Route Clearance Vehicles (RCV) managed by Product Manager (PdM)

Assured Mobility Systems (AMS) are being positioned to deploy with the GRF and both PdM Vehicle Systems and PdM AMS, which have emerging FMS cases. In addition, both of these programs will require the MOC contractor for operational planning, deployment support and field operations support through December 2015.

e. The MOC TO ensures vehicles are mission capable by providing the mission capable reporting, planning and execution of the retrograde of vehicles, vehicle and material divesture activities, and vehicle Retrofit and Upgrade planning. These are critical Department of Army directed APO MRAP missions that must be achieved by FY17 and any break in service would affect this process and jeopardize the Army’s mission.

f. Services under the MOC TO also include tracking major activities performed in APO MRAP and support of the Operations Cell. The MOC contractor maintains and updates the Common Operation Picture Report (COP) for APO MRAP and is responsible for gathering information to provide the status of the MRAP vehicles during the distribution and re-distribution process. The contractor provides the Government with consolidated reports identifying the numbers of vehicles fielded by model name, by fielding location and current location. This information is vital to logistics efforts for APO MRAP. The MOC TO also supports the APO MRAP program in Afghanistan with the collection, analysis, and reporting of MRAP theater operations, and mission requirements. This includes collection and analysis of operational readiness data, MRAP mission data, supply and

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Highlight maintenance data, transportation data, support manpower data, and gathering theater strategic planning information. A very important APO MRAP activity is the coordination, shipment and storage of all Modification Work Order (MWO)-related material and coordination with the units on the installation schedule of MWO(s).

The MOC contractor for APO MRAP monitors, analyzes, and reports on the sustainment activities (supply and maintenance) for MRAP FoV and supports MRAP FoV retrofit activities

g. The breadth of this effort includes nine deployed personnel at three sites in

Afghanistan. The CONUS locations provide 12 positions for data collection, operations services and liaison activities at the Detroit Arsenal, Warren, MI, Fort Bliss, TX, and temporary duty to Letterkenny Army Depot, or other locations that may be added by the Procuring Contracting Officer (PCO).

h. Services under the MOC TO are provided to augment and supply capability for MRAP FoV logistics operations and field support services. Further, the MOC TO provides the MRAP APO services to secure logistic engineering analysis and obtain timely insight into MRAP fleet readiness, retrograde, and sustainment.

Currently, the ability to provide these services organically does not exist; therefore, contractor services must be procured. As explained below, the failure to maintain MRAP operational readiness capability will have an adverse impact on soldier welfare. If the services described above are not continued, MRAP vehicles will become non-mission capable, thus increasing the risk of serious injury and loss of life to US and Coalition personnel.

i. The MOC contractor maintains and reports daily on activities and information received from the Theater Lead and assures the Personnel Status Report (PERSTAT) and Synchronized Pre-Deployment & Operational Tracker (SPOT) databases are current and accurate. In addition, the MOC contractor submits a daily summary of any Serious Incident Reports (SIR) and Commander's Critical Incident Reports (CCIR), track pending and open Safety of Uses Messages (SOUMs), provide Safety Assessment Reports (SARs) and other safety notices against impacted vehicles.

4. Authority Cited: The authority cited is 40 U.S.C. 501 and FAR 8.405-6, Limited Sources Justification and Approval. This acquisition is conducted under the authority of the Multiple Award Schedule Program. The following justification is cited: FAR 8.405- 6(a)(1)(i)(C), “In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures.

The original order or BPA must not have been previously issued under sole-source or limited-sources procedures.”

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5. Reason for Authority Cited:

a. The subject extension modification will be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to the original order issued on a competitive basis under the GSA OMNIBUS III Multiple Award Schedule (MAS) BPA.

b. The original order was issued competitively to BRTRC on 24 March 2014, in accordance with applicable Federal Supply Schedule ordering procedures. All OMNIBUS III BPA holders were given a fair opportunity to be considered for the original order, in accordance with FAR 8.405-6 (a)(1)(i)(C). The additional effort to be performed during the proposed extension is in accordance with the scope of work of the originally competed TO. The Army Project Manager (PM) for MRAP made a conservative command decision to require only a nine-month period based on foreign policy and the political climate that indicated services would not be required after 31 December 2014. However, due to changes in the political climate and the Fragmentary Order (FRAGO) that required mission support for Operation Drumbeat continued services are required for vital logistics support for APO MRAP.

c. Any interruptions in this vital MRAP capability would have an adverse impact on

Soldier welfare due disruption of logistical, maintenance and repair support and degradation of the availability of mission capable vehicles managed by APO MRAP. TO 0012 currently provides APO MRAP with the capability to secure logistic engineering analysis and obtain timely insight into MRAP fleet readiness, retrograde, and sustainment operations. Along with safety and personnel accounting, the MOC contractor coordinates shipment and storage of all MWO-related material, monitors, analyzes and reports on the sustainment activities (supply and maintenance) for the MRAP FoV. In addition, the MOC contractor supports MRAP FoV retrofit activities. If the services rendered under TO 0012 cease to be available on 31 December 2014 when the TO is set to expire, MRAP vehicles will not be deprocessed or fielded. Additionally, MRAP vehicles will not have required safety and performance upgrades applied, and fielded MRAP vehicles will not receive routine and diagnostic maintenance and repairs when necessary. This would result in MRAP vehicles being unavailable or unsafe for MRAP users, which would increase the risk of serious injury and loss of life to U.S.

and Coalition personnel.

d. Economy. The subject extension is in the interest of economy because a change in personnel would result in an increase in costs incurred, based on the following:

1) If a new contractor were to assume the MOC mission, a cost would be associated with training a new contractor. The estimated time for a new contractor to fully assume the duties of the current MOC contractor is 60 days, which is based on the statistics from TO 0012 awarded on 24 March 2014. This carlo.a.daleo Highlight carlo.a.daleo Typewritten Text carlo.a.daleo Typewritten Text carlo.a.daleo Typewritten Text carlo.a.daleo Typewritten Text carlo.a.daleo Typewritten Text carlo.a.daleo Typewritten Text carlo.a.daleo Typewritten Text Comment[m6]: OPSEC carlo.a.daleo Typewritten Text carlo.a.daleo Highlight carlo.a.daleo Typewritten Text carlo.a.daleo Typewritten Text carlo.a.daleo Typewritten Text carlo.a.daleo Typewritten Text carlo.a.daleo Typewritten Text carlo.a.daleo Typewritten Text carlo.a.daleo Typewritten Text carlo.a.daleo Typewritten Text carlo.a.daleo Typewritten Text carlo.a.daleo Typewritten Text carlo.a.daleo Typewritten Text carlo.a.daleo Typewritten Text would result in the anticipated overlap of 21 personnel in CONUS and Theater.

The estimated cost associated with the anticipated overlap of personnel is $291,900. This estimate is based on adjustment of historical costs invoiced when implementing the current TO which includes labor and ODCs. In May 2014, the APO MRAP Deployment Process increased the time to qualify, train and deploy new contractors to ten weeks, which was due to new deployment requirements developed from new ASA(ALT) Policy. The estimate of a new contractor requiring the 70 days for deployments, is a 15% increase from the current environment, which in-turn would cost an additional $43,785.

2) The total cost associated with a new contractor, based on the above paragraph is

$335,685. This burden cost is approximately 8% of the total 12-month logical follow on costs. Based on their experience with the current effort, APO MRAP Cost Analysts predict no savings would be achieved through a competitive procurement for such a short period of performance which would require additional funding to support overlapping contracts to achieve success. Such an expense could not be recouped in such a short period of performance and cannot be justified from the original award.

3) Additionally, PdM Logistics, APO Procurement Specialist and APO MRAP Cost Analysts estimate the cost of conducting a competitive acquisition at $367,414 and 4,730 hours for this effort. This includes $372,488 or a minimum of 3,050 hours are needed for the acquisition source selection process at $81.87 per hour split between seven personnel on a part time basis. Additionally, 1,680 hours would be required to develop and process a competitive solicitation. Using a fully burdened rate of $70.06 per hour, the total cost for two full time personnel equals $117,701 for development and processing a competitive solicitation. These estimates are based on Government experience with the previous competitive proposal and knowledge of the cost of preparing, issuing, and the evaluation of a new competitive contract action, which can be approximately associated with a re-compete action.

4) The expertise and efficiencies developed by the current contractor would have to be acquired by a new contractor. Based on APO MRAP subject matter expertise and knowledge of the job efforts on the current task order, the Government estimates a new contractor would have a learning curve of 97.5% to obtain the same knowledge base of the current contractor. This learning curve will be spread across the 12 months of performance. The learning curve would require personnel training, contracting labor costs and additional labor incurred for an approximate total amount of $711,360. The APO MRAP cost estimating team used the current task order rates and the forecasted number of personnel to develop this conservative estimate. This learning curve estimate is based on all Contract personnel CONUS and OCONUS.

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e. Efficiency. The subject extension is in the interest of efficiency because any change in contractor would result in an estimated six-month delay of performance.

1) Based on its prior experience with this requirement, APO MRAP estimates it would take 11 months to complete a competitive award the competitive task order. If the process were started today to complete a competitive award the same process and Acquisition Lead Time (ALT) would be used resulting in an award date near 30 April 2015 resulting in a four-month break in service.

2) If the a new contractor was selected via competition, award would have to made by 17 September 2014 to allow for sufficient time for hiring, proper Security Clearance documentation, medical clearances/approvals, deployment training in-processing time, travel and knowledge transfer. Therefore, it would take a new contractor approximately three weeks to hire and staff new personnel. Once personnel were hired, a new contractor would require ten weeks for deployment time, one week for Individual Replacement Deployment Operations (IRDO) and one week for travel to Afghanistan. Afghanistan is reducing the contractor footprint and restricting additional personnel based on lodging availability and associated life support. Theater approval would be needed for the additional contractors, which might not be approved, depending on the “Mayor” at each location in Afghanistan. Based on previous experience, there would be a three to four week delay associated with the personnel deployed to Afghanistan due to the turnaround time for approval/disapproval, which would have to be obtained before any contractor is sent through IRDO. Once approved, IRDO takes five days to complete and travel to Afghanistan is another three to five days. The total estimated delay associated with transitioning to a new contractor is estimated at 15 weeks, or 105 days.

3) Once personnel arrive at the proper location in Afghanistan one to two weeks of concurrent training is needed, based on Contracting Officer’s Representative (COR) experience in Theater, to learn the systems and develop comprehensive knowledge of the support requirements. This is based on the latest APO MRAP experience and number of contractors in country to include turnover of Government Furnished Property (GFP).

4) For CONUS, in addition to the learning curve in paragraph d.4 above, personnel with high-level knowledge of logistics services and data collection would require approximately four weeks of CONUS training to obtain a working knowledge. .

Current staff would have to be pulled from already taxing workloads to fill the six-month gap, which would be impossible.

a) As described above the total delay associated with awarding the proposed extension to a new contractor would result in a significant delay due to acquisition time, deployment processing time, training, learning curve and knowledge sharing.

Considering all factors involved in awarding to a new contractor, that new award

Comment [m11]: OPSEC would have an adverse impact on the Soldier and the vehicles managed by the APO

MRAP.

6. Market Research:

a. As described below, APO MRAP conducted market research during April and May 2014 in support of this requirement after APO MRAP Leadership determined the continuation of this logistics support requirement would be needed past December 2014.

b. On 02 and 03 April 2014, Tank Automotive Research Development and Engineering Center (TARDEC) sponsored TARDEC Ground Vehicle Gateway, which was a forum for Government to provide Industry with future budget and military needs. In addition, it provided an opportunity for dialog on industrial capabilities. APO MRAP gathered information and talked with industry regarding engineering capabilities and expertise in Engineering and Logistics services. No additional sources other than mentioned below were identified for this effort.

c. Further, market research, last conducted 3 December 2013 by PdM MRAP personnel includes attending industry conferences, such as the Interservice and Industry Training, Simulation and Education Conference (I/ITSEC), and researching on-line magazines consisting of Army Technology, Army Magazine, Soldiers Magazine, Army Times, and Army AL&T, and review of various marketing publications from vehicle manufacturers discussing their product line and their vehicle capabilities, and having attended other industry conferences (Association of the United States Army, NDIA, and prior I/ITSEC). This research identified no other sources can meet the requirement other than the source mentioned below for this effort.

d. On 20 and 21 May 2014, APO MRAP logisticians attended the Michigan Defense Industrial Base Exposition held at the Macomb Community College Expo Center, in Warren, Michigan and sponsored by the National Defense Industrial Association (NDIA). This expo is a forum for Government and industry representatives to meet and discuss current products, capabilities and Government requirements. Industry representatives including Service Contractors were present. The APO MRAP personnel obtained information about industry products and capabilities from marketing presentations; displays and distribution of commercial literature and conversations with various companies. The information obtained from industry revealed no additional sources that can successfully staff and deploy personnel without a break in services to meet the required schedule.

e. A competitive acquisition was held and awarded on 24 March 2014. During this competition, five contractors submitted proposals under ACC-WRN’s Omnibus III BPA during the month of October 2013. With the continuation of this requirement, it is reasonably expected that a new award would be placed under the TACOM Strategic Service Solutions (TS3) contract scheduled for award in January 2015.

Similar results could be anticipated depending on the contractors that qualify for the knowledge based services.

f. Based on expert knowledge of the APO MRAP Logistics platform and continued collaboration efforts with the industry, APO MRAP’s Logistics personnel determined on 15 May 2014 that while other contractors may possess the knowledge base to fulfill this requirement, it would be unworkable to award a new contract, hire, train, and deploy (for OCONUS positions) a new contractor without a break in service.

g. Other companies that submitted proposals for the MOC award were, PD Systems, Camber, Tolliver, and Leidos. Another competition would have no benefit for the Government since the outcome would likely be the same. Again, these companies could be considered again but as stated in paragraph 5, e and f it is more economical and efficient to extend the current contract and a break in services would occur. The Logistics Product Manager’s expertise and the MRAP logisticians who participated on the source selection committee contributed to this market research outcome. The market research outcome specially shows no other contractor besides the current incumbent could successfully meet mission requirements without a break in service.

7. Other Facts: Procurement history: The competitive W56HZV-09-A-0909 Task Order 0012 was awarded 24 March 2014 for a PoP from 25 March 2014 through 31 December 2014. The two-year Service Contract was approved for this effort as documented on the original Request for Service Contract Approval signed by Program Executive Officer for Combat Support and Combat Service Support, Mr. Kevin Fahey on 17 July 2013. However, the political climate during the award of the competitive task order, did not allow for the award the two-year contract period of performance as originally anticipated. This is because services Theater Leads communicated to APO MRAP that services were not required after 31 December 2014. However, further Services will be required for Operation Resolute Support starting on 01 January 2015.

The Army has received this requirement in the form of a Warning Order.

Prior to that Contract W56HZV-12-C-0432 was awarded as a sole-source contract under Justification and Approval ( J&A) approved by Senior Procurement Executive, Ms. Heidi Shyu, on 09 August 2012 with a Pop beginning on 19 September 2012 through 31 December 2013 .

The contract was extended with a J&A signed by the Competition Advocate on 12 November 2013 for a Pop through June 30 2014 to allow for the competitive award in April 2014.

The Initial MRAP Joint Logistics Integrator (JLI) services were awarded under the Jacobs Engineering BPA W56HZV-04-A-0005 with a PoP beginning 30 November 2007 through 03 June 2009.

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The follow-on to the JLI services provided under the Jacobs BPA was competitively awarded to SAIC under BPA W56HZV-09-A-0003 with seven task orders and a PoP from 20 March 2009 through 18 September 2012.

8. Actions to Increase Competition: Actions to increase competition for this 12-month extension are impracticable and will not be pursued. Further requirements for the MOC are anticipated to be competed if the requirement exists past December 2015 is necessary. A Market Survey may be issued in November 2014 when the requirement is expected to solidify for any anticipated requirement beyond December 2015.

9. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification is accurate and complete to the best of my knowledge and belief.

Tuesday, 16 September, 2014

LTC JOEL D. FRANKLIN

Product Manager, Joint Logistics Army Project Office Mine Resistant Ambush Protected Vehicles

Date

10. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification is accurate and complete to the best of my knowledge and belief.

Tuesday, 16 September, 2014

LTC JOEL D. FRANKLIN

Product Manager, Joint Logistics Army Project Office Mine Resistant Ambush Protected Vehicles

11. Contracting Officer’s Best Value Determination: I hereby determine that this order represents the best value consistent with FAR 8.404(d) and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government’s needs.

16 September 2014

DAWN M. VANHULLE

Contracting Officer

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

16 September 2014

DAWN M. VANHULLE

Contracting Officer

Approval of Limited-Source Justification

Based on the foregoing justification, I hereby approve the procurement for MRAP MOC services totaling 67,017 labor hours for $4,323,025 pursuant to the authority of 40 U.S.C. 501 and FAR 8.405-6, subject to availability of funds, and provided that the supplies or services herein described have otherwise been authorized for acquisition.

Date: __23 Sep 2-14_______________ Signature: __________________

LA RUTH SHEPHERD

Competition Advocate