J&A_0160-17__W58RGZ-17-R-0063_JandA_03-09-2017_SIGNED_Rev.pdf

W58RGZ-17-R-0063

SOURCE SELECTION INFORMATION – SEE FAR 3.104

FOR OFFICIAL USE ONLY

FAR Part 6 Justification and Approval for Other than

Full and Open Competition

W58RGZ-17-R-0063

1. Contracting Activity: Department of the Army, Army Contracting Command- Redstone (ACC-RSA), CCAM-DPD, Redstone Arsenal, AL 35898-5000.

2. Description of Action: The Directorate of Manufacturing Process Production, Corpus Christi Army Depot (CCAD) requests approval to award a new one (1) year, firm-fixed-price (FFP) definitive contract with Global Finishing Solutions (Global), 12731 Norway Road, Osseo, WI 54758-7780. (Commercial and Government Entity ((CAGE) Code: 3GX14). This contract is for the procurement, fabrication and installation of a Paint Booth system for the Aircraft Corrosion Control Facility (ACCF) located within the Directorate of Manufacturing Process Production, CCAD. The Government projects a contract award date of 23 June, 2017, Fiscal Year (FY) 2017. The estimated contract completion date is 23 June, 2018. Capital Improvement Plan (CIP) funds will be used. The estimated contract completion date is 23 June, 2017 This procurement action is necessary to complete the requirement started by Aerospace Facilities Group (AFG) under FY 2012 contract (W912NW-12-C-0035), which was Terminated for Cause in accordance with Federal Acquisition Regulation (FAR) Part 12.403 due to AFG's failure to deliver the aircraft paint systems.

3. Description of Supplies/Services: The nature of the contractual action contemplated will be a new one (1) year FFP definitive contract for the procurement, fabrication and installation of a Paint Booth system for the Aircraft Corrosion Control Facility (ACCF) located within the Directorate of Manufacturing Process Production, CCAD. This requirement is for Global to supply a fully functional paint system for a total estimated value of $6,997,154.00. IAW the Statement of Work (SOW) scope, dated 6 Mar 2017, the Contractor shall fabricate, procure, install (including running utilities to equipment and installing equipment platforms), and make ready process painting, cleaning, and associated support equipment for the ACCF Military Construction Army (MCA) project number 55460. The ACCF will be a 77,765 square feet facility constructed in parking lot P at the intersection of Ocean drive and Fourth Street at CCAD Corpus Christi Texas.

a. NOMENCLATURE: Paint Booth System is comprised of:

Item Number Nomenclature Quantity 1 Paint Booths 6 2 Man lift System 12 3 Water Treatment Plant 1 4 Booth Monitoring System 6 5 Personal Protection System 1 6 Wash booth 3 7 Alodine Booth 1 8 Aircraft Scooter 1 9 Paint Mixing Room 3 10 Alan Bradly PLC 1 11 Fire Suppression System 1 12 Water Treatment Foundation 1 13 Installation 1

b. Part numbers not available until contract completion.

c. ESTIMATED CONTRACT VALUE: $6,997,154.00.

d. SOURCE: Global Finishing Solutions, LLC CAGE Code (3GX14).

e. DELIVERY SCHEDULE: 1 Year from Date of Contract Award, Estimated lead time 23 June 2017 (FY17) to 23 June 2018(FY18).

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

5. Reason for Authority Cited:

a. The proposed acquisition requires the use of cited statutory authority 10 U.S.C. 2304(c)(2) as implemented by FAR 6.302-2(a)(2) provides that “when the agency’s need for the supplies or services is of such an unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals, full and open competition need not be provided for.” The unusual and compelling urgency surrounding this re-procurement necessitates the use of this cited authority. A Statement of Urgency was completed on 15 Dec, 2016 by CCAD Director of Production Engineer. By awarding a sole-source contract to Global, the Government will avoid further serious financial injury such as:

i. Delays in schedule for Navy ACCF contract. The overall intent for the ACCF project was to integrate the Global design for the Paint Booth Installation. The ACCF schedule consists of three (3) phases. Phase one (1) consists of construction of facility shell and foundation. Phase two (2) consists of the integration of the Paint Booths and major components into the building structure. Phase three (3) consists of completion and commissioning of the building. Without the input of Global’s proprietary designs and specifications of its fabricated Paint Booths, the Navy’s contractor will lack the paint booths dimensions, footprints, utility connections, drop points and equipment foundation dimensions. Therefore, the ACCF Phase II will have to be de-scoped to allow the Navy contract to finish ACCF Phase III without causing an extensive Governmental delay to the ACCF contractor. If this were to happen, it will cause significant rework because major interior and exterior infrastructure changes will be needed to incorporate the new paint booths at a later time. It is not feasible for the Navy contractor to forecast the physical dimensions and demands (e.g.

electrical connections, exhaust venting, air supply, sub-floor prep for increased weight loads) for another contractor’s design. The Government is at a catastrophic risk of Commissioning the ACCF building without the paint booths because the construction cannot be delayed indefinitely. As a result, the Government will then have to begin a new acquisition in order to complete the installation of the Paint Booth system and its sub components. This will also negate all warranties for the ACCF building. Any issue arising in any part of the ACCF building would have to be addressed with Army funding. Currently, ACCF PHASE I estimated completion time frame is July, 2017.

ii. Duplication of material costs related to the termination of the previous contract. If the Government begins a new competitive competition, it will potentially lose $5,628,997.00 which was the amount paid for all the parts pre-fabricated under contract W912NW-12-C-0035. Global was the subcontractor under the original contract W912NW-12-C-0035 and has already completed the fabrication of the sub components for all paint booths and associated equipment. These parts are currently owned by Global, and have not been accepted by the Government. Given these unusual and compelling circumstances, if the Government were to re-compete this requirement now, there would be a substantial duplication of cost resulting in a significant loss of taxpayer dollars and causing a major delay in delivery/assembly/installation of the paint booths. Any other potential contractor would have to custom-build these paint booths and associated equipment from scratch, while Global already has fabricated all the components for the paint booths and associated equipment to the Government’s specifications. It is the Government’s understanding that Global also received partial payment in the amount of $5,628,997.00 from AFG towards its subcontract with AFG.

iii. Lost production income related to CCAD’s inability to paint the weapons systems, and having to contract out that aspect of the overhaul.

The cost of lost production would never be recouped and the number of fleet ready helicopters will be reduced greatly, negatively impacting the Army’s ability to execute its mission.

b. Based on 10 U.S.C. 2304(c)(2), as implemented by FAR 6.302-2(a)(2)-- “Unusual and Compelling Urgency” to avoid serious financial injury, the Government has determined that it is in the best interest of the CCAD mission to conduct the paint booth re-procurement by awarding a sole-source, one (1) year, FFP contract to the Original Equipment Manufacturer (OEM), Global Finishing Solutions, LLC (CAGE Code: 3GX14) 12731 Norway Road, Osseo WI 54758- 7780. They are the only qualified source due to the fact that they are currently in possession of the custom fabricated, commercial paint booths, associated equipment, and all technical data, blueprints, and drawings. As the OEM, Global is the only source uniquely qualified to perform the required work as it has access to the required blueprints, drawings, and installation practices, which are neither Government owned nor Government controlled. Failure to award a contract for this project will result in non-installation of paint booth equipment, causing significant delays and increased costs to the commissioning of the MILCON project. Furthermore, should this justification not be approved, the Army’s maintenance and overhaul capabilities will be greatly impacted. In addition, production delays for CCAD’s current operations will continue to be impacted as the existing aircraft paint facility deteriorates. CCAD’s ability to effectively control corrosion would be jeopardized due to a lack of painting capability, resulting in a mission failure.

6. Efforts to Obtain Competition:

a. Effective competition. No effective competition is anticipated for this acquisition based on the reasons set forth in paragraph 5. The immediate known requirement is for Global to supply and install a fully functional paint system as identified in paragraph 3. In accordance with FAR 5.202(a)(2), Solicitation W58RGZ-17-R-0063 will not be synopsized in FedBizOpps. Also, FAR 12.403(c)(2) provides that the government's rights after a termination for cause include all the remedies available to any buyer in the marketplace. Therefore, the government's preferred remedy will be to acquire paint booths as expeditiously as possible from the OEM.

b. Subcontracting competition. This contract will be a sole source, FFP contract with a large business, Global Finishing Solutions, LLC (CAGE Code:

3GX14) and this requirement exceeds $700,000 threshold, therefore, a Commercial subcontracting plan will be required. The Solicitation and the resulting contract will contain 52.219-9 (DEVIATION 2016-O0009), FAR 52.244- 5 (Competition in Subcontracting), DFARS 252.219-7003 (DEVIATION 2016- O0009) and DFARS 252.244-7000 (Subcontracts for Commercial Items) clauses to require the prime contractor to maximize small business participation in subcontracting.

7. Actions to Increase Competition: Due to the Unusual and Compelling Urgency associated with this re-procurement, and utilizing the remedies available to the Government per FAR 12.403(c)(2), the Government believes that the best option is to limit the requirement to Global, as they are the only source that can complete the work initiated under the previous one-time buy contract W912NW- 12-C-0035, given the constraints discussed in paragraph 5 above. The Government will receive technical data such as: test system assembly drawings, electrical ladder drawings, control loop drawings, software flow charts, listings and instrument tag list, at contract completion. Any future non-urgent requirements will be procured through full and open competition.

8. Market Research: Market Research has been conducted in accordance with FAR 10.002(b) by CCAD General Engineering, in the last 12 months. Research methods included the following:

a. Contact with knowledgeable persons in Government and/or industry regarding the commercial nature of this requirement and/or standard industry practices in this area of supplies/services. The Government spoke with the Navy’s current Project Engineer for the construction of the MCA ACCF Project Engineer at Corpus Christi Naval Air Station, a knowledgeable person in the Government, regarding the commercial nature of this requirement. Discussions included the cost and time involved for constructing new utilities, pouring concrete and Facilities related items.

b. Review of catalogs and/or other generally available product literature.

http://www.paint-booths.com (Dec/16); http://www.spraytech.com (Dec/16). The Government was able to find the differences between the different types of paint booths. The information was used to determine what type of paint booth would be effective for the required application.

c. Publicized in the 04 January 2017 AMCOM Competition Advocates Shopping List (CASL).

d. Based on the results of the above research, the following potential sources were identified. Market Research conducted in December, 2016 reviewed past documentation from Global Finishing Solutions (CAGE Code:

3GX14); regarding the commercial nature of this requirement. Market Research conducted in December, 2016 reviewed past documentation of Aerospace Facilities Group (CAGE Code 5AFV0); regarding the commercial nature of this requirement. It has been determined after market research that the government needs can be satisfied by commercial items, commercial items with customary or reasonable modifications, or non-developmental items. Based upon the above, the basic clauses and provisions prescribed in FAR Part 12 are sufficient for use in this acquisition and will be utilized.

e. Defense Federal Acquisition Regulation Supplement (DFARS) 205.205- 71, DFARS 206.302-1(d), and DFARS Procedures, Guidance and Information (PGI) 206.302-1(d) only apply to J&As citing FAR 6.302-1 as the authority for other than full and open competition. Because this is a FAR 6.302-2 J&A, a sources sought notice is not required and will not be published.

9. Interested Sources: To date, no other sources have written to express interest in this requirement. Solicitation W58RGZ-17-R-0063 will not be synopsized in FedBizOpps in accordance with FAR 5.202(a)(2). If the Government receives unsolicited proposals from additional sources, they will be evaluated and given due consideration.

10. Other Facts:

a. Procurement history: Contract W912NW-12-C-0035 was awarded to Aerospace Facilities Group, (AFG), (CAGE Code 5AFV0), 4080 Paradise Road Suite 15-128, Las Vegas, NV 89169, for the fabrication and installation of process painting, cleaning and support equipment to the ACCF at CCAD, Corpus Christi, Texas. Contract W912NW-12-C-0035 was a commercial, FFP contract, 100% Small Business Set-Aside, competitive solicitation awarded to Aerospace Facilities Group (AFG), on 27 September 2012, in the amount of $14,287,310.00.

The original contract delivery date was 30 September 2014. The installation portion of this contract was contingent upon completion of the ACCF under a Navy construction contract. This requirement was funded utilizing CIP funding.

Only one offeror (AFG) submitted a proposal. A Source Selection Evaluation Board then evaluated the proposal under lowest price technically acceptable source selection process. AFG’s proposal was determined technically acceptable and contract W912NW-12-C-0035 was awarded to AFG. A modification (W912NW-12-C-0035 P00003) was issued to AFG on 18 September 2015 to add Fire Suppression System Upgrade and Scrubber Foundation, which increased the total contract value from $14,287,310.00 to $14,451,935.00. On 4 August 2016 contract W912NW-12-C-0035 was Terminated for Cause due to the contractor’s failure to deliver.

b. Other Facts:

i. Per FAR 12.403(c)(2) (“The Government’s rights after a termination for cause shall include all the remedies available to any buyer in the marketplace.”) The Government will utilize, to the maximum, extent all the remedies available to any buyer in the marketplace.

ii. In accordance with FAR 12.403 and 52.212-4, the Government terminated for cause the original contract with AFG (W912NW-12-C-0035), as a result of nonperformance. Additionally, despite having never delivered or installed any of the paint booths under the prior contract, AFG nevertheless invoiced against the contract, and the Government erroneously made payments to AFG for supplies and services not performed or delivered in the total amount of $9,419,833.68 which in return the Government has not received any benefit and still has the requirement to expeditiously fulfill this need. In Essan Metallix Corp., B-310357, Dec. 7, 2007, 2008 CPD ¶ 5 at 2, the Government Accountability Office (GAO) recognized that “generally, the statutes and regulations governing federal procurements are not strictly applicable to reprocurements of defaulted requirements” and further explained that commercial reprocurements are not restricted by the “competition to the maximum extent practicable” limitation in FAR 49.402-6 that applies to noncommercial reprocurements, but rather, are governed by the provisions of FAR 12.403(c)(2). FAR 12.403(c)(2) provides: “The Government’s rights after a termination for cause shall include all the remedies available to any buyer in the marketplace. The Government’s preferred remedy will be to acquire similar items from another contractor and to charge the defaulted contractor with any excess re-procurement costs together with any incidental or consequential damages incurred because of the termination.” As the GAO explained, “These

FAR provisions allow the agency to purchase the needed supplies as expeditiously as possible while preserving the government’s right to seek excess re-procurement costs from the defaulted contractor.” Essan Metallix Corp, supra, at 2. Moreover, although the solicitation for the prior contract was released as a competitive, 100% small-business set aside, the original prime contractor, AFG was the only proposal received by the Government and, unbeknownst to the Government, AFG subcontracted all of the work to its subcontractor, Global, a large business, who is the OEM for the paint booths.

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.

Date: _March 9, 2017________ ____________________________

David Flores General Engineer

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.

Date: _________________ ____________________________

Forrest W. Kelman Chief, Equipment Engineering Division

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable based on use of techniques, which will include price analysis and sole source negotiations with Global Finishing Solutions (CAGE Code: 3GX14) Certified cost and pricing data will not be required per FAR15.403-1(b)(3) & (c)(3).

Date: _________________ __________________________

Luis J. Ferrer Contracting Officer

20170309

FLORES.DAVI

D.1256609513

Digitally signed by

FLORES.DAVID.1256609513

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=FLORES.DAVID.1256609513 Date: 2017.03.09 12:45:17 -06'00'

KELMAN.FORRES

T.W.1384010047

Digitally signed by KELMAN.FORREST.W.1384010047 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=KELMAN.FORREST.W.1384010047 Date: 2017.03.09 15:35:15 -06'00'

09 March 2017 FERRER.LUIS.J.

1183324973

Digitally signed by

FERRER.LUIS.J.1183324973

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=FERRER.LUIS.J.1183324973 Date: 2017.03.09 16:56:41 -06'00'

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

Date: _________________ __________________________

Luis J. Ferrer Contracting Officer

09 March 2017 FERRER.LUIS.J.

1183324973

Digitally signed by

FERRER.LUIS.J.1183324973

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=FERRER.LUIS.J.1183324973 Date: 2017.03.09 16:46:10 -06'00'

Approval

Based on the foregoing justification, I hereby approve the procurement of a new one (1) year FFP definitive contract for the procurement, fabrication and installation of a Paint Booth system for the Aircraft Corrosion Control Facility (ACCF) located within the Directorate of Manufacturing Process Production, CCAD 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 6.302-2(a) (2) - Unusual and compelling urgency, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

a. NOMENCLATURE: Paint Booth System is comprised of:

Item Number Nomenclature Quantity 1 Paint Booths 6 2 Man lift System 12 3 Water Treatment Plant 1 4 Booth Monitoring System 6 5 Personal Protection System 1 6 Wash booth 3 7 Alodine Booth 1 8 Aircraft Scooter 1 9 Paint Mixing Room 3 10 Alan Bradly PLC 1 11 Fire Suppression System 1 12 Water Treatment Foundation 1 13 Installation 1

b. Part numbers not available until contract completion.

c. ESTIMATED CONTRACT VALUE: $6,997,154.00.

d. SOURCE: Global Finishing Solutions, LLC CAGE Code (3GX14).

e. DELIVERY SCHEDULE: 1 Year from Date of Contract Award, Estimated lead time 23 June 2017 (FY17) to 23 June 2018(FY18).

Date:__________________ Signature: _____________________________

Shelley R. Muhammad Special Advocate for Competition

9 Mar 2017

MUHAMMAD.SHE

LLEY.R.123075712

Digitally signed by

MUHAMMAD.SHELLEY.R.1230757123

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=MUHAMMAD.SHELLEY.R.1230757123 Date: 2017.03.09 17:10:53 -06'00'