W911SA-16-C-0002_JA_version_3_6.pdf

Control No. 2017-27 Contractor: VSE Corporation

Service: Logistics Readiness Support Services

JUSTIFICATION REVIEW DOCUMENT

FAR PART 6 JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Program/Equipment: Logistics Readiness Support Services for the 63th Regional Support Command (RSC).

Authority: 10 U.S.C. 2304(c)(1) as implemented by FAR Part 6.302-1 (a)(2)(iii)(B) -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Amount: $17.7 Million

Prepared by:

Laurie Ehlinger DSN: 280-4649 Contract Specialist Date: 27 Mar 17 Email: laurie.a.ehlinger.civ@mail.mil

Procuring Contracting Officer:

Dawn M. Poppler DSN: 280-4424 Contracting Officer Date: 27 Mar 17 Email: dawn.m.poppler.civ@mail.mil

Technical/Requirements Representative:

Daniel H. Simmons Phone: 501-771-7832 Supervisory Maintenance Management Specialist Date: 27 Mar 17 Email: daniel.h.simmons4.civ@mail.mil

Phone: 650-526-9810 Date: 27 Mar 17

Management Representative:

Hugo E. Gonzales Director of Logistics, 63rd RSC Email: hugo.e.gonzales.civ@mail.mil

Service: Logistics Readiness Support Services

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Deputy Director of Logistics, 63rd RSC:

Hugo Gonzales Phone Number: 650-526-9810

________________________________ Date: see electronic signature

Local Small Business Specialist:

Lavonne Lee DSN: 471-2755

________________________________ Date: see electronic signature

Local Legal Counsel:

Lance C. Hughey DSN: 280-5729

________________________________ Date: see electronic signature

Division Chief:

Dawn M. Poppler DSN: 280-4424

_________________________________ Date: see electronic signature

Director, MICC Fort McCoy:

Mary E. Purpus DSN: 280-2818

_________________________________ Date: see electronic signature

412th CSB Office of Counsel:

MAJ Shawn Butler DSN: 471-0336

_________________________________ Date: see electronic signature

Digitally signed by POPPLER.DAWN.M.1151906636 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=POPPLER.DAWN.M.1151906636 Date: 2017.03.27 12:38:37 -05'00'

LEE.LAVONNE.DA

COLE.1123301796

Digitally signed by

LEE.LAVONNE.DACOLE.1123301796

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=LEE.LAVONNE.DACOLE.1123301796 Date: 2017.03.27 12:47:32 -05'00'

Digitally signed by

GONZALES.HUGO.ERNESTO.1177728353

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=GONZALES.HUGO.ERNESTO.1177728353 Date: 2017.03.27 12:17:11 -07'00'

HUGHEY.LANCE.CHRIST

OPHER.1232525262

Digitally signed by

HUGHEY.LANCE.CHRISTOPHER.1232525262

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=HUGHEY.LANCE.CHRISTOPHER.1232525262 Date: 2017.03.28 10:48:32 -05'00'

PURPUS.MARY.E.12305

41260

Digitally signed by PURPUS.MARY.E.1230541260 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=PURPUS.MARY.E.1230541260 Date: 2017.03.28 11:20:22 -05'00'

BUTLER.SHAWN.CHRIS

TOPHER.1049570496

Digitally signed by

BUTLER.SHAWN.CHRISTOPHER.1049570496

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=BUTLER.SHAWN.CHRISTOPHER.1049570496 Date: 2017.03.28 12:03:53 -05'00'

Service: Logistics Readiness Support Services

Commander, 412th CSB:

COL Dennis M. McGowan DSN: 471-6472

_________________________________ Date: see electronic signature

Assistant Director, Small Business Programs:

Mark A. Massie DSN: 450-2290

_________________________________ Date: see electronic signature

Special Advocate for Competition:

Scott D. Kukes DSN: 450-3015

_________________________________ Date: see electronic signature

MICC HQ Office of Counsel:

Bruce I. Topletz DSN: 450-2273

_________________________________ Date: see electronic signature

MCGOWAN.DENNIS.M

ICHAEL.1010868277

Digitally signed by

MCGOWAN.DENNIS.MICHAEL.1010868277

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=MCGOWAN.DENNIS.MICHAEL.1010868277 Date: 2017.03.28 15:16:51 -05'00'

TOPLETZ.BRUCE.IRVIN

G.1127004729

Digitally signed by TOPLETZ.BRUCE.IRVING.1127004729 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=TOPLETZ.BRUCE.IRVING.1127004729 Date: 2017.03.29 11:23:51 -05'00'

MASSIE.MARK.A.

1230122276

Digitally signed by MASSIE.MARK.A.1230122276 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=MASSIE.MARK.A.1230122276 Date: 2017.03.29 13:21:58 -05'00'

KUKES.SCOTT.DE

AN.1151934346

Digitally signed by

KUKES.SCOTT.DEAN.1151934346

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=KUKES.SCOTT.DEAN.1151934346 Date: 2017.03.30 06:11:11 -05'00'

Service: Logistics Readiness Support Services

FAR Part 6 Justification and Approval for Other than Full and Open Competition

1. Contracting Activity: MICC-Fort McCoy, 1108 South R Street, Ft. McCoy, WI 54656

2. Description of Action: The 63rd Regional Support Command (RSC) requests a firm-fixed- price modification with cost-reimbursement line items to extend the current bridge contract W911SA-16-C-0002 with VSE, 6348 Walker Lane, Alexandria, VA 22310 for a period of ten months. The Government projects award for March 2017 and fiscal year 2017 OMAR 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).

3. Description of Supplies/Services: The Contractor shall furnish all labor, equipment and transportation necessary to provide Logistics Readiness Support Services to perform and assist with property accountability, vehicle operations and supporting functions, maintenance management services, field and sustainment level maintenance, storage site operations, hands-on-training mission support, and refurbishment support at various locations in Arizona, California, Texas, Oklahoma, Nevada, Arkansas and New Mexico for the 63rd RSC, in strict accordance with the terms and conditions specified within the contract and in accordance with the Performance Work Statement. The scope of work for the action will remain unchanged from the established contract W911SA-16-C-0002-P00003.

Period of Performance:

Base Period: 30 Mar 17 to 29 Nov 2017 Value: $14,146,602.64 Option Period 1: 30 Nov 2017 to 29 Dec 2017 Value: $ 1,805,884.43 Option Period 2: 30 Dec 2017 to 29 Jan 2018 Value: $ 1,753,106.68

Total Value: $17,705,594.00

4. Authority Cited: 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1 (a)(2)(iii)(B), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: The incumbent contractor, VSE Corporation, is the only responsible source for satisfying the 63rd RSC’s mission essential logistic readiness support services without incurring unacceptable delays in providing these services before the expiration of the current contract W911SA-16-C-0002.

a. Authority Cited. As described at FAR 6.302-1 (a)(2)(iii)(B), When the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full

Service: Logistics Readiness Support Services and open competition need not be provided for. Further, for DOD, NASA, and the Coast Guard, a service may be deemed to be available only from the original source in the case of follow-on contracts for the continued provisions of highly specialized services when it is likely that award to any other source would result in unacceptable delays in fulfilling the agency’s requirements.

On 14 March 2016, MICC–Fort McCoy received notification from GAO that a protest was filed on 14 March 2016 by XOTech, LLC for solicitation number W911SA-15-R-0014, which was to satisfy Logistic Readiness Support Services for locations under the 63rd RSC area of responsibility. The notification required a stay of performance for W911SA- 16-D-0004 which is a follow-on to contract W911SE-07-D-0017-1U02. On 16 March 2016, another GAO protest was filed by White's Paint Blast, LLC. The government implemented corrective action which was completed on 29 June 2016. On 30 June 2016, offerors were notified of the results of the corrective action. XOTech requested and received information on why they did not receive the award 8 July 2016. On 13 July 2016, MICC–Fort McCoy received notification from GAO (B-412852.3) that a protest was filed on 13 July 2016 by XOTech LLC. The notification required another stay of performance for W911SA-16-D-0004. The stay in performance and the imminent expiration of the current effort did not provide time to publish, assess market results, and to solicit and award a follow-on contract under normal processing. On 06 October 2016, the Outcome Prediction was received and the government initiated corrective action and began efforts to reissue the solicitation. The corrective action was to terminate contract W911SA-16-D-0004, re-evaluate the requirement, and re-solicit the requirement for a re-compete.

During the week of 6 February 2017, the 63rd RSC finalized their requirements package with the MICC-Fort McCoy. It is anticipated the solicitation for the follow-on competitive procurement will be issued on or about 22 May 2017, with an award date on or about 01 December 2017. The Phase-In will begin on 29 December 2017, with full performance on 29 January 2018.

The current contractor, VSE, has all required tools and highly trained employees on board for this bridge contract that have been supporting the 63rd RSC for the previous two contracts spanning over seven years in the multiple locations required for performance. There will be no delay of support at this critical location and the government is currently providing oversight.

The current contractor provides services at numerous Government Owned/ Government Operated (GO/GO) facilities, so government oversight is achieved. The current contractor is providing Support for 95% of all the USARC mandated exercises.

The supported exercises require more than 200 pieces of equipment that will be returned 28 July 2017 to be inspected and put into 10/20 standards by 28 September 2017 and then returned to 1st Army for use as a training set for deploying engineer units. Further, a lapse in services would have caused an inability to maintain

Service: Logistics Readiness Support Services operations throughout the region and cause a “catch up” situation that would place exercise support for FY17 in jeopardy. As such, the current contractor is the only source capable to provide the required performance immediately across geographically dispersed locations without any lapse in service or unacceptable delay in fulfilling the agency’s requirement.

A lapse in services would cause an inability to maintain the current levels of maintenance support, storage support, and property book support throughout the 63rd RSC region and put us in a situation that would not only place the large scale exercise support for FY17 in jeopardy, but also the support of our customers that utilize our Equipment Concentration Sites (ECSs) for maintenance and storage support as well.

b. Alternatives. There are no alternatives that will meet this requirement.

Suspending contract support would bring mission degradation to all of our ECSs, the large scale exercises, and prevent efforts to increase unit readiness throughout the 63rd RSC region. Decreased unit-owned equipment readiness will not meet Army Leadership new training guidance in which unit readiness is a priority.

c. An eight (8) month plus two one-month-option-periods to the current contract W911SA-16-C-0002 is required to continue performance while the requirement is being solicited. As stated above, on 06 October 2016 MICC–Fort McCoy received an Outcome Prediction from GAO on B-412852.3; which at that time, it was determined that re-writing the solicitation for the 63rd requirement was necessary. The protested award has been terminated, a revised customer requirement has been received, and a new solicitation is being developed.

d. Impact. The unavailability of a contract to provide logistics support services would cause mission degradation within the 63rd RSC Region. It would have an adverse effect to property accountability, maintenance operations, and unit owned equipment readiness. If there was a break in service, the equipment readiness for the Army Reserve units supported by the 63rd RSC would decrease every month that the contractor is not providing this service, the accountability of stored equipment would be degraded, the equipment support for large scale exercises would be at risk, and the 63rd RSC would lose property accountability of the Area Maintenance Support Activities and ECSs facilities which are currently scheduled for inventory. All scheduled training would be canceled. This includes mandatory training to meet environmental and OSHA requirements. The equipment readiness for Army Reserve units supported by the 63rd RSC would decrease 30% per month that the contractor is not providing this service.

6. Efforts to Obtain Competition:

a. Effective Competition: This interim action is a result of the Outcome Prediction received from GAO and is anticipated to allow time for revisions to the

Service: Logistics Readiness Support Services solicitation for this requirement which will result in a competitive solicitation that includes effective competition and reflects the current requirement. A sources sought synopsis was posted 31 January 2017 and closed 09 February 2017.

b. Subcontracting Competition: The current contractor is a Large Business and will be required to submit their subcontracting plan in eSRS in accordance with the terms and conditions of the contract which emphasized optimal competition. MICC Fort McCoy will verify subcontracting plan is reported in eSRS.

7. Actions to Increase Competition: Currently, MICC Fort McCoy is actively working with the Small Business Administration and the 412th Contracting Support Brigade’s small business specialist to select the type of set-aside for the follow-on competitive procurement. This interim action provides time to re-write the solicitation, and solicit the updated requirement as a result of the Outcome Prediction received from GAO on 06 October 2016. This will ensure that the competition will be conducted correctly while fostering a competitive environment.

8. Market Research: Significant market research will be accomplished prior to the solicitation of the re-compete action. Significant market research had been accomplished prior to the solicitation of the action that was a subject of two protests.

The solicitation for the protested award W911SA-15-R-0014 was set-aside as small business. The competition that ensued was robust as evidenced by the fact that the awardee, and twelve eventual unsuccessful offerors submitted proposals.

9. Interested Sources: A sources sought synopsis was posted 31January 2017 and closed 9 February 2017; two capabilities statements were received. One was a Woman-Owned Small Business and HUBZone and the other was Woman Owned Small Business. Both vendors submitting capability statements appear to have the necessary experience to accomplish the requirement. However, due to the short timeframe available to award a contract that complies with regulatory and statutory requirement and still accommodate gaining full performance as required by 29 March 2017, it is unfeasible that these vendors will be able to ramp up in time to meet the requirement resulting in unacceptable delays for the agency. In accordance with the performance work statement the ramp up/Phase-In requires the minimum of the following items to be accomplished across seven states and 32 sites within 30 days:

• Establish a contractor project management office.

• Recruit and hire necessary contractor personnel.

• Obtain all required contractor personnel license, certifications, clearances, and TNAC checks.

• Obtain Contractor and Government Issued Identification Media.

• Obtain required Email accounts.

• Joint contractor-Government inventories.

• Develop and submit all required contractor deliverables.

Service: Logistics Readiness Support Services

• Ensure contractor participation in post-award meetings, as required.

• Complete all necessary training requirements of contractor personnel.

• Establish procedures for contractor personnel to sign for Government Property.

10. Other Facts:

a. Procurement History:

Contract: W911SE-07-D-0017-1U02 Contractor: VSE Corporation Award Date: 27 Sept 13 Value: $44,203,067.34 Competitive Status: Fair Opportunity

Contract: W911SA-16-C-0002 Contractor: VSE Corporation Award Date: 17 May 2016 Value: $5,872,657.68 Competitive Status: Sole Source IAW 6.302-2 to continue services after protest were received.

Contract: W911SA-16-C-0002–P00002 Contractor: VSE Corporation Award Date: 30 Jul 2016 Value: $5,872,657.68 Competitive Status: Sole source IAW 6.302-2 to continue services after protests were received.

Contract: W911SA-16-C-0002-P00003 Contractor: VSE Corporation Award Date: 30 Nov 2016 Value: $7,283,301.32 Competitive Status: Sole source IAW 6.302-1 to continue services while re-competing the requirement.

Service: Logistics Readiness 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.

_____________________________________ Date: see electronic signature

DANIEL H. SIMMONS

Supervisory Maintenance Management Specialist

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: see electronic signature

HUGO E. GONZALES

Director of Logistics, 63rd RSC

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 incumbent contractor has been performing the required services for the past five years with efficiencies gained while meeting changing mission requirements. This determination will be made using the price analysis conducted September 2013 for the award of W911SE-07-D-0017-1U02. As a part of this basis, certified cost or pricing data will not be required and the exception at FAR 15.403-1(b) applies since the prices that will be agreed upon are based on adequate price competition. At the time of award of W911SE-07-D-0017-1U02, there was adequate competition and the new contract price is the same pricing that was evaluated for option period one on W911SE-07-D-0017-1U02 with the exception of a wage determination and collective bargaining agreement increase.

Additionally, when option period one was exercised for the period of performance of 30 September 2014 through 29 September 2015 market research was conducted and the option pricing was determined fair and reasonable.

_____________________________________ Date: see electronic signature

DAWN M. POPPLER

Contracting Officer

Digitally signed by POPPLER.DAWN.M.1151906636 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=POPPLER.DAWN.M.1151906636 Date: 2017.03.27 12:39:01 -05'00'

Digitally signed by SIMMONS.DANIEL.HAMPTON.1120920703 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=SIMMONS.DANIEL.HAMPTON.1120920703 Date: 2017.03.27 13:28:16 -05'00'

Digitally signed by GONZALES.HUGO.ERNESTO.1177728353 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=GONZALES.HUGO.ERNESTO.1177728353 Date: 2017.03.27 12:25:40 -07'00'

Service: Logistics Readiness Support Services

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

_____________________________________ Date: see electronic signature

DAWN M. POPPLER

Contracting Officer

Digitally signed by POPPLER.DAWN.M.1151906636 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=POPPLER.DAWN.M.1151906636 Date: 2017.03.27 12:39:19 -05'00'