r_J A_14-18_W81GYE-07-D-0021.pdf

JUSTIFICATION AND APPROVAL

USTRANSCOM JUSTIFICATION FOR

OTHER THAN FULL AND OPEN COMPETITION

NON-TEMPORARY STORAGE

(W81 GYE-07-D-0021)

1. CONTRACTING ACTVITY

United States Transportation Command (USTRANSCOM), Directorate of Acquisition, Specialized Transportation and Support Division, 508 Scott Drive, Building 1900W, Scott AFB

IL 62225-5357.

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

Modify firm fixed price contract W81GYE-07-D-002 to allow for an additional period of performance of six months (1 March 2014- 31 August 2014) in accordance with Federal Acquisition Regulation (FAR) 52.217-8.

3. DESCRIPTION OF THE SERVICES REOUIRED TO MEET THE AGENCY'S

NEEDS

As a component ofUSTRANSCOM, the Military Surface Deployment & Distnbution C(JIIIIIIlllld (SDDC) has a requirement for comprehensive non-temporary storage (NTS) services for the containerized storage of personal property and related services to include services necessary for non-temporary storage of retrograde containerized shipments of entitled military and civilian DOD personnel household goods (HHG) and unaccompanied baggage (UB) entering the Eastern United States (CONUS) from Europe, the Middle East, and Africa This requirement is currently supported by Guardian Moving and Storage Co., Inc., under contract W81GYE-07-D-002. lbe contract was awarded by SDDC-AQ in March 2007 and administen:d by SDDC until Novemba 2013. Administration of the contract transferred to USTRANSCOM on 22 Novembe£ 2013 and is set to expire on 28 February 2014.

SDDC originally intended to continue supporting this requirement through the use of Tender of Service (TOS) agreements upon expiration of the current FAR contract. USTRA.ll,jSCOM would administer the current contract until expiration, with future support provided entirely by SDDC via TOS agreements. Shortly after transferring the current contract to USTRA.'i"SCOM, however, SDDC specifically requested review of the requirement as to whether TOS agreements or a FAR contract was most appropriate for supporting the NTS requirement. On 18 Dea:mber 2013, SDDC and USTRANSCOM's acquisition team met and determined a FAR contract would be more appropriate for the follow-on requirement because a FAR contract would allow the greatest opportunity for competition, provides protection to the Government via inueased contractor accountability, and is overall better suited for this requirement. SDDC abandoned its plan to issue TOS agreements for "llilS requirement support and USTRA.ll,jSCOM immediately initiated the acquisition process for a competitive follow-on contract. The complexity and dollar value of this follow-on procurement, however, requires more time than remains on the cum:lll:

contract, which is set to expire 28 February 2014. As a result, the current contract will be extended for six months, from I March 2014 through 31 August 2014 to meet SDDC's needs fur continued non-temporary storage support and avoid any interruption in services.

This proposed extension, a continuation of the current requirement 1.llldel" FAR clause 52217-8 - Option to Extend Services included in the contract, is within the scope of the contract and is in accordance with the performance work statement (PWS). lbe total estimated value of this proposed action is based on the rates specified in the contract and estimated storage volume for the final period of performance. The Contracting Officer intends to extend the current contract by unilateral modification for the entire six-month period allowed by the tams of the contract.

4. STATUTORY AUTHORITY PERMITIING OTHER THAN FULL AND OPEN

COMPETITION

10 USC 2304(c)(l) as implemented by FAR 6.302-1- Only one responsible source and no other supplies or services will satisfY agency requirements.

5. DEMONSTRATION THAT THE NATURE OF THE ACOUISIDON REQUIRES

USE OF THE AUTHORITY CITED

Based on the customer's requirements for the period I March 2014 through 31 August 2014, only the incumbent contractor, Guardian Moving and Storage Co., Inc. (Guardian) is capable of providing the services needed during this period. Performance of this service requires the contractor to provide DoD-approved storage facility space sufficient to continually store up to fifteen million (15,000,000) gross pounds of personal property, to include the performance of administrative functions related to receiving and shipping HHGIUB lAW the Defense Transportation Regulation (DTR), DoD Personal Property Consignment Instruction Guide (PPCIG), and other applicable Government regulations. The Contractor also provides support for tracking and verifYing storage and shipment entitlement lAW the Joint Fedaal Travel Regulation (JFTR), Joint Travel Regulation (JTR), and all related DoD military service supplements. The contractor is also required to utilize the Transportation Operational Personal Property Standard System (TOPS) developed by the DoD to process non-tempormy storage of HHGIUB into and out of storage, to produce non-temporary storage contractor invoices, to produce required DD Forms 1164, and to book shipments with the lowest-wst freight transportation service providers pre-approved by SDDC, for the movement of HHGIUB. As such, performance of the responsibilities necessary to support this requirement requires the use of specialized facilities to meet minimum Government standards, as well as significant familiarity with applicable regulations and Government-pro\oided information tedmology systems.

Further, with existing services set to expire I March 2014, no contract or TOS agreement is currently in place to provide support for NTS requirements. Retrograde HHG shipments ~ill continue to arrive in the Eastern United States as they are shipped to CONUS according to DOD service member and civilian entitlement. No alternate facilities are available fur the storage and associated administration of these HHG shipments and procuring an alternative solution on such short notice is not feasible given the specific requirements noted above and the time ne<> • • y for an alternative service provider to train and prepare to support the NTS requirement. As such, failure to extend the current contract would cause a lapse in service and would result in receipt of incoming retrograde HHG shipments with no available storage destination.

Based on the Government's analysis, a new contractor would require significant investment (approximately in order to establish operations sufficient to meet the requirements of the Government for this 6-month period, including establishment of a DoD approved facility within 50 miles of the Port of Norfolk, VA and in compliance with DoD fire protection standards, recognized national and local fire ordinances and codes, National Fire Protection Association recommendations and standards, and the requirements ofOOD 4500.9R, Appendix D. Further, a new contractor would be required to hire or train paiiOillld capable of assessing and monitoring storage entitlements specific to the DoD lAW the DTR, PPCIG, JFfR, and JTR; and to administer transportation-related operations via the DoD-specific TOPS system.

Based on the Government's analysis, the DoD-specific nature of these requirements and filcility and location requirements preclude any companies other than the incumbent contractor :fium performing this work without excessive cost and duplication of effort, which would result in prices exponentially higher than those available to the Government under the current contract.

The Government, therefore, would have to pay the contract price of over plus a premium of as much as for this short contract extension. There is no need for the Government to incur this substantial duplication of cost that is not expected to he recovered through competition.

6. DESCRIYfiON OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE

The proposed extension will be exercised in accordance Vlrith FAR 52.217-8 of the existing contract. This action was not synopsized in accordance with FAR 5.202(aXII). Based on the information contained in paragraph five of this document, it is in the Government's best interest to extend the current contract to avoid substantial duplication of cost. The follow-on effort will be synopsized in accordance with FAR 5.201(b)(1Xi) and the Government intends to~ this requirement on a full and open basis.

7. DETERMINATION BY THE CONTRACTING OFFlCER THAT THE

ANTICIPATED COST TO THE GOVER,.'IIMENT WILL BE FAIR AND REASONABLE

In accordance with FAR 52.217-8, continued services will be at the rates specified in the current contract. The current contract was priced through Option Period 6. At time of contract award, prices were determined fair and reasonable and current market research indicates that the existing pricing is lower than comparable rates for .11o1'S services thereby protecting the Government from unfair prices during this contract extension.

8. DESCRIYfiON OF THE .MARKET RESEARCH CONDUCfED A.llffi THE

RESULTS

Market research was conducted in accordance with FAR Part 10 for the original acquisition and recently prior to execution of this J&A. A TOS announcement was posted on 11 September 2013 to solicit proposals for NTS Transportation Service Providers (TSP). The notice generated 3 responses from the industry. After review it was determined that all 3 respondents were technically capable of meeting the DoD requirements as proposed in the TOS. USTRANSCOM intends to post a Request for Information (RFI) and conduct further tnaiket research to assist in developing an acquisition strategy which promotes the greatest opportunity for competition utilizing FAR procedures. A competitive procurement is expected for the follow-on acquisition and the Contracting Officer will issue a synopsis to advise industry of the pending acquisition and solicit inquiries from interested vendors. Market Research indicates, however, the time required to develop and execute a competitive acquisition, as well as evaluate potadial competitive solutions, precludes a competitive acquisition as a viable option fur the 6-month period of performance covered by this J &A without substantial duplication of effort and cost that would not be recovered through competition.

9. OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION

None.

10. A LISTING OF THE SOURCES, IF A...lllY, THAT EXPRESSED. IN WRITING, AN

INTEREST IN THE ACOUISITION

Arven Moving & Storage Systems, Inc.

15025 Farm Creek Drive Woodbridge, VA22191

Harrison's Moving & Storage Co., Inc.

1 010 Cavalier Blvd.

Chesapeake, VA 23323

Guardian Moving & Storage Co., Inc.

1901 Light Street Baltimore, MD 21230-4928

11. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY

SUBSEQUENT ACOUISffiON FOR THE SUPPLIES OR SERVICES REQUIRED

USTRANSCOM is currently working the follow-on competitive procurement. The proposed extension will allow the continuation of sen.ices until a new contract is awarded Market research, which included proposals and inquiries received in response to the TOS Agreanent posted by SDDC, indicated multiple firms were interested in competing in the follow-on procurement and given appropriate time for operational establislunent could compete fur the follow-on contract award. The solicitation for the follow-on contract is expected to be issued in

April 2014, is not expected to create any barriers to competition, and the Gonmmeut fully anticipates future follow-on procurements will allow for full and open competition.

12. CONTRACfiNG OFFICER CERTIFICATION

I certify that the data supporting the use of other than full and open competition is liCCUlll1e and complete to the best of my knowledge and belief.

IS TINA R. SCHNEIDER

Contracting Officer

25 tlb ltf

DATE

13. TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION

I certify that the data supporting the recommended use of other than full and open competition is .,......,~ ... complete to the best of my knowledge and belief.

DATE

Program Manager, SDDC-PP

CONTKACI1NG AcriVITY: USTRANSCOM

PROGRA.~: Non-T empmary Storage (II.'TS)

AlJTIIORITY: FAR 6.302-l, Only one respoDSible source and no other supplies or services "'"ill satisfy agency requirements

ESTIMATED COI\IRACf COST:

TYPE OF J&A: Individual

RE\'IEW A. "'iD APPROVAL:

<A R. SCHNEIDER

Chief; Specialized Services Branch

Office of the staf'fJlldgeA(l¥ ~

JEFFERY T. BEYER

J.e;.- Chief; Business Support & Policy Di'ision

MICHELLE M. MENDEZ

Competition Advocate

Date:2S Wb I~

Date:.] (, 1f4 llf

Date:.20 F4> I r Date: ;;{(of<" h H

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