ACC1928.pdf

CMO Control Number: 2015-004

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

W911SE-07-D-0008 Task Order BR06

1. Contracting Activity: Army Contracting Command-Warren (ACC-WRN)

2. Description of Action: The purpose of this justification is to extend the period of performance for task order BR06 issued to URS Federal Support Services (URS) under the Field and Installation Readiness Support Team (FIRST) Indefinite Delivery Indefinite Quantity (IDIQ) Multiple Award Task Order (MATO) Contract W911SE-07-D-0008. URS is currently performing BR06 on a Firm Fixed Price (Labor) and Cost No Fee (Material) basis. The proposed action will extend the task order terms and conditions by six months and increase the task order value by $4.4M from $58M to $62.4M. Operation and Maintenance (OMA), Army FY15 funds will be used for this effort.

Task order BR06, which was awarded on 21 February 2012, includes Federal Acquisition Regulation (FAR) clause 52.217-8 “Option to Extend Services”. This clause authorizes an option to extend the period of performance up to six months. Since the FAR 52.217-8 option was not evaluated at time of award, consistent with Government Accountability Office (GAO) Decision B-401472 dated 14 September 2009, a justification for an exception to fair opportunity is required to extend the period of performance for six months, utilizing the same rates previously established in the task order.

3. Description of Supplies/Services: Services required are to provide Supply Chain Management support to the Family of Medium Tactical Vehicles (FMTV) RESET Program at Red River Army Depot (RRAD), located in Texarkana, Texas. This effort includes acquisition, storage, and issuing of all parts and material necessary to support the maintenance line for all variations of the FMTV series trucks.

4. Authority Cited: This acquisition is conducted pursuant to10 U.S.C. 2304c (b)(3) and FAR 16.505(b)(2), Exceptions to the fair opportunity process, specifically FAR 16.505(b)(2)(i), states, “The contracting officer shall give every awardee a fair opportunity to be considered for a delivery-order or task-order exceeding $3,000 unless one of the following statutory exceptions applies: … (C) The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.” GAO Decision B-401472, dated 14 September 2009, specifies a justification is required if the six month period of performance per FAR 52.217-8 was not evaluated at time of award. FAR 52.217-8 states, “The Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor until 08 February 2015.”

5. Reason for Authority Cited:

a. This sole-source logical follow-on award action is proposed in the best interest of economy and efficiency to the Government in accordance with FAR 16.505(b)(2)(i)(C). At the time of task order award, all 15 FIRST MATO contractors had an opportunity to compete for the award.

b. This sole-source logical follow-on is in the best interest of efficiency because a new contractor will require a period of time to establish buildings and operations at RRAD, obtain the necessary workforce to support the six month requirement with required government credentials, and perform coordination and placement of the shifts in numerous buildings supported by this requirement located on more than 16,000 acres. Previous contract performance has shown this transition to take up to 120 days, which is more than half of the period of performance of the six month extension. This transition will result in decreased efficiency of parts ordering in order to support the RESET lines and will have a chain reaction to other equipment awaiting RESET, which would negatively affect RRAD’s ability to perform the aforementioned services based on end user requirements. URS has the existing business structure already in place to continue performing this effort in the most efficient manner. This logical follow-on will allow the Government to extend the period of performance on the existing task order by six months to prevent a lapse in services in support of RRAD.

c. URS is currently performing in Option Period 2 of task order BR06 and will exhaust all of the funding established for Option Period 2 on 22 February 2015. The current task order was awarded in February 2012 for one base period (12 months) and two option periods (12 months each). Option Period 1 was exercised in February 2013;

12 months from the award date. Option Period 2 was exercised in February 2014.

d. A new competitive action estimated at $38.8M for 36 months of service has been initiated to provide continued supply chain management support to the FMTV RESET program located at RRAD for FY15 – FY17 requirements. The anticipated award date for the competed action is August 2015. This sole-source logical follow-on award action will bridge the six month gap between the date URS will exhaust all funding on task order BR06 (February 2015) and the date when the successor action is expected to be competed and awarded (August 2015). ACC-WRN has determined that it will be more economical and efficient to compete the new competitive action on the OMNIBUS III’s successor contract TACOM Strategic Service Solution (TS3). The anticipated award date of the TS3 in early calendar year 2015 does not allow time to compete the new competitive action by the time Option 2 expires on 22 February 2015;

new orders typically take six to eight months to award. Therefore, this sole-source logical follow on action will bridge the gap until the TS3 contract is awarded and an order can be competed against the TS3 contract.

e. URS employees at RRAD are responsible for operating and managing the supply chain and inventory of spare/repair parts for the FMTV RESET Program, which includes all variations of the FMTV series 2.5 Ton and 5 Ton trucks. URS supports up

Comment [A1]: OPSEC carlo.a.daleo Highlight to 100 vehicles per month. A lapse in service at RRAD would be detrimental to the timely performance of the mission and issuance of RESET vehicles back to CONUS and OCONUS locations. The proposed extension will allow for uninterrupted contractor support, until a competitive action can be accomplished.

f. It is not logical to separately compete and award the required six month support. A new contractor will incur expenses during any phase-in period to establish operations at RRAD, obtain the necessary workforce, and fully understand the services to be performed on the different types of equipment. URS can continue the current performance of this task order without incurring any such expense as it has already established the workforce and management structure necessary. This will save the Government from having to pay a duplication of costs, which based on previous contract performance, exceeds $600,000.00. The $600,000 of duplicated costs for start up, which URS does not require to perform the six month extended effort, include the lease of an office building, office equipment, material handling equipment, vehicles, and employee recruitment.

g. In addition to the duplicated costs described in paragraph 4(f) above, award of a contract to a new contractor would likely result in labor costs approximately 2.5% or approximately $40,000.00 greater than the labor costs under the URS task order. This greater cost results because if a new contractor is awarded the six month effort, the labor rates will be based on work contracted for only six months at current labor rates, which are higher than three years ago and may result in the payment of a premium due to the higher risk to the contractor to maintain staff for only a six month period, rather than the three year competitive rates previously established for URS. Considering the combined estimated additional costs of $640,000, as compared to the estimated $4.4M value of the six month extension, it is unlikely that the Government could recover the additional costs through competition . Therefore, in the interest of efficiency and economy, it is in the Government’s best interest to extend the current competitive task order with URS for an additional six months utilizing FAR 52.217-8.

6. Contracting Officer’s Fair and Reasonable Cost Determination: I hereby determine the cost to the Government for this contract action is fair and reasonable and is the most advantageous method of fulfilling the Government’s need, price and other factors considered, in accordance with FAR 17.207(c)(3). Use of the existing contracted rates is required by FAR 52.217-8. These rates were determined fair and reasonable through competition when the contract was established on 21 February 2012. The basis for the initial determination was an analysis in accordance with FAR 15.404 -1(b) and (c).

SIGNATURE: _//s// Timothy A. Nichols_________ DATE: _6 October 2014_

NAME: TIMOTHY A. NICHOLS

TITLE: Contracting Officer

7. Other Facts: None

8. Actions to Increase Competition: ACC-WRN is working on a new competitive action that will provide continued support for the FMTV RESET Program located at RRAD. The plan is to issue a full and open solicitation and award a contract in August 2015. Details regarding the competitive action will be posted on the ProcNet website to obtain a maximum amount of competition.

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

SIGNATURE: _//s// Timothy A. Nichols____________ DATE: _6 October 2014_

NAME: TIMOTHY A. NICHOLS

TITLE: Contracting Officer

10. 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.

NAME: _Rob Barnes__ DATE: __24 June 2014__

TITLE: _MTV Reset Coordinator_ SIGNATURE: _ //s//_ Robert J. Barnes __

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

NAME: Peggy VanSickle______ DATE: _24 June 2014________

TITLE: _C, Med Tac Veh Group__ SIGNATURE: //s// Peggy VanSickle__

Approval

Based on the foregoing justification, I hereby approve the procurement for continued supply chain management support services to support the FMTV RESET Program located at Red River Army Depot. The estimated amount is $4.4M pursuant to the authority of FAR 16.505(b)(2)(i)(C), subject to availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.

Date:__16 Oct 2014_______ Signature:_

Elizabeth Augustus Alternate Competition Advocate