MICC_JA_Irwin_LSSBridge_redacted.pdf

MICC/MCC MICC-IRW

Control No. 12-90 Control No. IRW 2012-06-013

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

Program: Logistics Support Services (LSS) Fort Irwin, California

Authority: 10 U.S.C. § 2304(c)(1)

Amount: $69,000,000 est.

Prepared By: Name: John A. Acampora

Title: Contract Administrator Date: _25 June 2012 E-mail: john.acampora@us.army.mil DSN: 470-6508

Contracting Name: Marie G. Velez Officer (CO): Title: Contracting Officer Date: _25 June 2012 E-mail: marie.velez@us.army.mil DSN: 470-4450

Technical: Name: COL Sherrie L. Bosley

Title: Commander 916th SPT BDE Date: _25 June 2012 Email: sherrie.bosley@us.army.mil DSN: 470-4703

Management: Name: BG Terry R. Ferrell

Title: Commanding General NTC Date: _9 July 2012 Email: terry.ferrell@us.army.mil DSN: 470-3261

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

Small Business: Date: _26 June 2012 Advisor Name: Diane House DSN: 470-3893

Legal Advisor: Date: _26 June 2012 Name: Veronica S. Hale DSN: 470-3889

Division Chief, CAD: Date: _25 June 2012 Name: Marie G. Velez DSN: 470-4450

Commander, MICC-IRW Date: _25 June 2012 Name: LTC Joseph H. Paulin DSN: 470-3660

MICC Small Business Advisor _________________________ Date: _3 July 2012 Name: Sandra K. Spiess DSN: 450-2290

MICC Legal Advisor _________________________ Date: _19 July 2012 Name: Garreth E. Shaw DSN: 450-2283

Special Competition Advocate _________________________ Date: _19 July 2012 Name: Albert W. Jacob DSN: 450-2487

Principal Assistant Responsible for Contracting ________________________ Date: _20 July 2012 Name: George M. Cabaniss, Jr. DSN: 450-2442

1. CONTRACTING AGENCY:

Mission and Installation Contracting Command (MICC), MICC - Fort Irwin, Fort Irwin, California (CA)

2. DESCRIPTION OF ACTION:

a. Request approval to execute an interim bridge contract with Northrop Grumman Corporation, Technical Services, Inc. (NGTS) for Logistics Support Service (LSS) for the National Training Center (NTC), Fort Irwin, California. The contract will be a cost plus fixed fee (CPFF) contract for a period of 9 months from 01 September 2012 through 31 May 2013.

b. The interim bridge contract is required to continue mission critical logistics support services to the Fort

Irwin National Training Center pending the award of a new follow-on contract by the MICC-Fort Irwin, Fort Irwin, California. Current milestones for the new contract target an award date in March 2013.

c. Fiscal Year 2012 Operations and Maintenance Army (OMA) appropriation will be used to fund the bridge contract.

d. The requiring activity is the Installation Forces Command (FORSCOM), Fort Irwin, CA 92310.

3. DESCRIPTION OF SERVICES:

a. Supplies/services to be acquired:

The current contract and this requested bridge are in direct support of the Army’s National Training Center’s (NTC) mission at Fort Irwin. The required services provide the resources and management necessary to perform logistical support services for the NTC training mission to include the following major functional areas:

1) Petroleum Oil Lubricant (POL) support

2) Ammunition Supply Point (ASP) support

3) Vehicle and Equipment Maintenance support

4) Warehousing support

5) Echelon Above Brigade (EAB)

b. Quantities and/or performance period:

The bridge is requested to continue level of support at the existing rates and quantities for a period of 9 months utilizing a sole source bridge contract.

c. Estimated total value of requested bridge contract for nine (9) months is $69,000,000.

4. AUTHORITY CITED:

10 USC §2304(c)(1) as implemented by FAR 6.302 -1, Only One Responsible Source and No Other Type of Supplies or Services Will Satisfy Agency Requirements.

5. REASON FOR AUTHORITY CITED:

Pursuant to FAR 6.302-1(a)(2)(iii)(A), the proposed source, Northrop Grumman, Technical Services, Inc.

(NGTS), is the only logical source capable of continuing to provide the logistics support services until a follow-on contract is awarded. The current contract expires on 31 August 2012 and the competitively solicited new follow-on contract will not be awarded until March 2013. Award to any other source would require a substantial duplication of costs that is not expected to be recovered through competition. It will take a minimum of three (3) months for the new contractor to become fully functional. The Government estimates this would result in non-recoverable cost of approximately $23,000,000.00 ($7,666,666.67 x 3) for a required ninety (90) day start-up/close-out overlap with a new contractor. Any break in the services provided under the existing contract is unacceptable. The incumbent contractor has the necessary management, supervision, labor force, equipment, and demonstrated past performance to successfully perform the services without incurring such costs

The acquisition process of the competitive follow-on contract has been delayed due to changes to the Performance Work Statement (PWS). Specifically, the following issues have delayed the acquisition process:

1) The customer has requested multiple downscoping from the existing PWS in order to satisfy shrinking future funding. The impact of this downscoping on both the PWS and the IGE had to be analyzed and incorporated into the appropriate planning documents

2) The customer has requested that the requirement remain as single prime—multiple sub-contractor model rather than soliciting the requirement as multiple independent contracts. The justification for this request is vested in the inherent interlocking of the individual functional areas and the undue operational risk that arises if the functional areas are separated and awarded as independent actions. The staffing and routing of this justification has delayed the acquisition process.

The above changes have created delays with the acquisition process of the competitive re-solicitation of this requirement. Given the scope and magnitude of the LSS contract, and the time required to competitively award and phase-in a new contract, award to any other source during this interim period would result in unacceptable delays in fulfilling this requirement and would negatively impact the NTC and Fort Irwin’s ability to meet critical logistics support missions. The requested bridge contract is necessary to allow for the proper completion of the acquisition pursuant to the milestones identified in the Acquisition Milestone Agreement (AMA) that has been agreed to in support of the next-generation LSS contract.

a. Background:

MICC-Fort Irwin began working on the current resolicitation requirement in April 28, 2011. An initial draft of the Performance Work Statement (PWS) was forwarded from the requiring activity in July 2011. From August, 2011, through October, 2011, the PWS was refined and revised, and MICC-Fort Irwin worked with the requiring activity to fix-price a significant part of the cost elements of the existing contract.

The current contract provides the following general logistical support services under a one-prime contractor with multiple sub-contractors model:

1) Petroleum Oil Lubricant (POL) Support

2) Ammunition Supply Point (ASP) Support

3) Vehicle and Equipment Maintenance Support

4) Warehousing Support

5) Echelon Above Brigade (EAB) Support

A complete procurement history can be found in paragraph 5.d. Prior Acquisitions below.

b. Alternatives:

1) Suspension of Operation. This alternative is not viable. These services provide critical support to the

Army Force Generation (ARFORGEN) process by providing the logistics support that combatant commanders and civil authorities need to maintain a steady supply of trained and ready units that are task organized in modular expeditionary force packages and tailored to perform joint battlefield mission requirements. Disruption of support will result in a loss of services crucial for life, health and safety of Soldiers and would negatively affect the installation’s ability to train soldiers for deployment readiness with the necessary supplies and equipment required to meet today’s ARFORGEN needs.

2) Use of In-House Resources. Using Government personnel (military or civilian) to replace contractor personnel in the execution of the duties in the contract is not a viable alternative. In-House resources and capabilities are not currently available. The existing activity is already operating at a level that is less than conventional. The 916th Support Brigade manages what would normally be managed at the Sustainment Brigade level. This capability could be redeveloped; however, the time and resources required to accomplish such an endeavor would require the support of headquarters and echelons of support above the installation level. Such support is not present at this time.

3) Award Bridge Contract to Another Contractor: There would be an unacceptable disruption of services if a contractor other than the incumbent were to perform these services. The incumbent contractor, NGTS, is the only source with the necessary management, supervision, labor force, and equipment in place and immediately available to successfully perform the services without interruption. Any other contractor would require three months to marshall all resources necessary for full contract performance. This would result in unacceptable delays and degradation of performance, making this a non-viable alternative.

4) Award a Bridge Contract to Incumbent Contractor. The current contractor possesses both the manpower and resources to adequately perform these mission critical services for the period. This is a vital function of the Command, and a lapse in the services provided under the existing contract by the incumbent contractor would present an unacceptable risk to the NTC training mission.

c. Justification:

The installation does not have the in-house resources and management necessary to perform the logistical support services for the NTC training mission. Without these essential services, Fort Irwin’s NTC training mission will falter or fail. For example, without POL support, fuel will not be available to the rotational units. Without ASP support, ammunition will not be available to the rotational units. Although a new competitive procurement is ongoing, changes in the requirement due to current DoD funding constraints have resulted in acquisition process delays. Given the scope and magnitude of the LSS contract, and the time required to competitively award and phase-in a new contract, award to any other source during this interim period would result in unacceptable delays in fulfilling this requirement and would negatively impact the NTC and Fort Irwin’s ability to meet critical logistics support missions.

1) The customer has requested multiple de-scopes from the existing PWS in order to satisfy shrinking future funding. The impact of these de-scopes on both the PWS and the IGE have been analyzed and incorporated into the appropriate planning documents.

2) Due to the integrated nature of support required, it is vital to retain a single prime—multiple sub-contractor model rather than soliciting the requirement as multiple independent contracts. The justification for this request is vested in the inherent interlocking of the individual functional areas and the undue operational risk that arises if the functional areas are separated and awarded as independent actions.

3) The bridge period is necessary to allow for the proper completion of the acquisition process pursuant to the milestones identified in the Acquisition Milestone Agreement (AMA) that has been agreed to in support of the next-generation LSS contract.

The milestones for the next-generation recompete are listed in the table below:

EVENT MILESTONE

(1) ASSP – Review and Preparation at local level

1 Sep 2012

(2) ASSP – Review and Final Approval (at appropriate level)

11 Sep 2012

(3) Solicitation Prep and Local Approval 21 Sep 2012

(4) Solicitation Review and Final Approval (at appropriate level)

26 Sep 2012

(5) Issue Solicitation 06 Oct 2012

(6) Receive Proposals 21 Nov 2012

(7) Evaluate Proposals/Prepare and Submit POM for Review

27 Dec 2012

(8) POM – Review and Final Approval (at appropriate level)

11 Jan 2013

(9) Negotiate, Receive & Evaluate Final Proposal Revision, Prepare PNM & SSA Award Decision Document

28 Feb 2013

(10) PNM Review and Final Approval (at appropriate level)

15 Mar 2013

(11) Award Contract 24 Mar 2013 Phase-in 1 Apr 2013 – 31 May 2013

d. Prior Acquisitions:

1) Based on a 1994 FORSCOM study, it was determined to be in the best interest of the government to break the large multi-function contract into five separate contracts:

a) Installation Support Services (DCA, DPW, G3, DOIM, PMO)

b) Logistic Support Services (Supply, Services, Maintenance of the NTC’s Prepositioned Fleet)

c) Food Services, TISA and Ice Plant operation

d) Custodial Services

e) Job Order Contract

2) The first LSS contract was awarded to ITT Industries, Systems Division, on 26 June 1996 with a 90-day phase-in period, a 12-month base period, and four 12-month option years. The contract type was Cost Plus Award Fee (CPAF).

3) The second Logistics Support Services contract was awarded to Vinnell Corporation on 01

November 2001 with a 90-day phase-in period, a 12-month base period and four 12-month option years. The contract type was Cost Plus Award Fee (CPAF), selection based on Best Value, with an approximate dollar value of $225,000,000.

4) The second Logistics Support Service (LSS) contract increased the scope of equipment maintenance functions provided under the prior contract to the National Training Center, Fort Irwin, California. Effective 15 July 2005, the Department of the Army replaced DA Pamphlet 738-750, with AR 750-1, Army Materiel Maintenance Policy to support the Army maintenance transformation initiative. Because of this change the maintenance structure transformed from four-level maintenance (organizational, direct, general and depot) to two-level maintenance (field and sustainment). As a result of the new “field” maintenance requirement, the two maintenance echelons (organization and direct support) are not severable and are designed to be accomplished as a single effort.

5) With the revision of FORSCOM Regulation 350-50-1, the Echelon Above Brigade (EAB) support that was previously provided by the visiting rotational training units was now to be provided by the National Training Center, Fort Irwin, CA. The NTC realized there were insufficient military personnel available due to deployment and redeployment to support the EAB effort; therefore, in October 2005, after numerous meetings between the Commanders of NTC, Support Brigade, and FORSCOM, the decision was made that EAB services must be obtained contractually in order to sustain affective rotational training.

6) The third Logistics Support Services contract was awarded as a task order under the Field and Installation Readiness Support Team (F.I.R.S.T.) to NGTS on 28 September 2007 with a 90-day phase-in period of 29 September 2007 through 30 November 2007, a 4-month base period of 01 December 2007 through 31 March 2008, and four 12-month option years with and expiration date of 31 March 2012. The contract type was Cost Plus Award Fee (CPAF), selection based on Best Value, with an approximate dollar value $300,000,000.

7) An Option to Extend Services under the current contract was awarded 30 March 2012 for the period 1 April 2012 to 31 August 2012. The contract type remained as Cost Plus Award Fee with an authorization not to exceed $37,000,000.

e. Impact:

1) Rotational Training Units (RTUs) training at the NTC are pre-scheduled for back-to-back training events. RTUs at the NTC are simultaneously incoming and outgoing, along with the addition of unscheduled additional units brought in to assist the RTUs such as aviation and other special operation units. Failure to extend these services with the incumbent will result in an unacceptable risk to the interruption of the NTC’s training mission. The disruption that would result from such a failure would encumber the training scheduled in such as way as to cause NTC to fail at its mission to train the Warfighter. The interim period of the proposed bridged contract will ensure the continuation of services while allowing adequate time for the MICC-Fort Irwin to complete the competitive resolicitation.

2) Award of a short term contract to another contractor would result in a substantial duplication of cost to the Government that is not expected to be recovered through competition. Specifically, to avoid a substantial degradation in services would require a 90 day phase-in/phase-out period. During this period, the Government would be paying both contractors at an estimated cost of $46,000,000.00 ($69,000,000.00/9x6) of which $23,000,000.00 is duplicative and non-recoverable.

6. EFFORTS TO OBTAIN COMPETITION:

In an attempt to increase competition and possible future small business opportunities, MICC Fort Irwin analyzed the requirement to determine if the composite requirement could be separately solicited and awarded as component functions rather than under the existing single prime contractor model. However, the requiring activity (916th Support Brigade) made a compelling argument that the component functions must be kept together under a single prime contractor in order to minimize the operational risk that would otherwise be presented if multiple prime contractors were awarded individual contracts to provide the necessary logistics support. A notice of the Government's intent to award a sole source bridge contract to the incumbent contractor for continued logistics support services for the period of 1 September 2012 through 31 May 2013 will be synopsized and posted on Federal Business Opportunities (FEDBIZOPPS) on 13 July 2012. The requested sole source bridge will serve as a temporary solution to fill immediate mission requirements. Based on present circumstances outlined in this document, seeking competition for this period is not feasible. However, MICC-Fort Irwin anticipates robust competition for the follow-on contract.

7. ACTIONS TO INCREASE COMPETITION:

The requested sole source bridge to the follow-on competitive contract will serve as a temporary solution to fill immediate mission requirements. Based on market research, it has been determined there is a large amount of interest in the follow-on action. As a result, it is anticipated the long term contract solution will be competitively solicited, with an anticipated award in March 2013, for a base period of performance and two one-year options. MICC Fort Irwin anticipates incorporating a combined two day industry day/site visit into the early stages of the solicitation period for the follow-on effort. Further, if on-going discussions result in substantial changes to the follow-on requirement, MICC Fort Irwin will re-issue a pre-solicitation notice or sources sought notification in order to identify potential sources and keep industry informed of the pending requirement.

8. MARKET RESEARCH:

Market research is ongoing in preparation of the new contract. Review of current and historical contract performance data, current market conditions, and interviews with other MICCs with similar requirements are underway to refine and shape the Fort Irwin effort. A market survey and pre-solicitation notice in support of the pending acquisition was published in FEDBIZOPS in November 2011. The Government received significant interest from multiple sources in response to the pre-solicitation notice. It is anticipated that the competitive follow-on Fort Irwin LSS solicitation will result in significant competition.

9. INTERESTED SOURCES:

On 13 July 2012 The Government Federal Business Opportunities (FEDBIZOPPS) notification of intent to award a sole source bridge contract. To date, no responses have been receieved. Inquiries that are received in response will be addressed prior to bridge contract award.

10. OTHER FACTS:

a. Procurement History: See paragraph 5d.

b. Acquisition Data availability: Current performance data via Standard Army Management Information

Systems (STAMIS) as well as Award Fee Board performance reports are being reviewed in support of pending acquisition.

c. Unusual and compelling urgency: Not applicable.

d. Subcontracting Competition: The current LSS contract supports applicable subcontracting goals. These same goals will be carried over into the interim bridge contract.

11. TECHNICAL/REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance included in this Justification are accurate and complete to the best of my knowledge and belief.

Name: COL Sherrie L. Bosley Date: 26 June 2012 Title: Commander 916th SPT BDE Signature: _______________________

12. MANAGEMENT REVIEW/APPROVAL: The requirement herein described is a valid requirement for the activity named in this Justification. The technical and requirements information contained in this Justification represent the minimum needs of the Government. The only way to satisfy this requirement is by limiting the competition as described herein.

Name: BG Terry R. Ferrell Date: 9 July 2012 Title: Commanding General NTC Signature: _______________________

13. FAIR AND REASONABLE COST DETERMINATION: I hereby determine that the anticipated cost, $69,000,000, for this contract is fair and reasonable. Cost or pricing data is not required for the bridge. The basis for this determination is the prior negotiation with the incumbent contractor, historical costs incurred, the cost analysis utilizing the Government’s Independent Government Cost Estimate (IGCE), and competitive pricing received on the previous award.

Name: Marie G. Velez Date: 25 June 2012 Title: Contracting Officer Signature: _______________________

14. CONTRACTING OFFICER CERTIFICATION:

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

Name: Marie G. Velez Date: 25 June 2012 Title: Contracting Officer Signature: _______________________

Approval

Based on the foregoing justification, I hereby approve an interim 9-month bridge contract for Logistics Support Services Fort Irwin, California for the period of 1 September 2012 through 31 May 2013 on other than full and open competition basis in the estimated amount of $69,000,000.00. This approval is pursuant to the authority of 10 USC 2304(c)(1) as implemented by FAR 6.302-1, subject to the availability of funds, and provided the services herein described have otherwise been authorized for this acquisition.

Signature: ____________________________ Date: _25 July 2012__ Kirk F. Vollmecke Brigadier General, US Army Head of the Contracting Activity