Final_Redacted_JA_Joliet_18Aug14.pdf

MICC Control No.

FDO ControlNo.

",,t1'+jIlif,lilf$B3FES?[I'!'=?[,"* DESCRIPTIoN oF PROGRAM: Re-procurement of outstanding regulatory required remediation work at tnlGii"tnrmy Ammunition Plant (JOAAP), lL.

Authority: The regulatory authority ispursuant to 10 U.S.c. 230a(c)(1), as implemented by the

FederatAcquisition Regulation (FAR) O'gOili, Only One Responsible Source and No Other bGpE. or'services wltt satisty Agency Requirements'

Amount: SI

[::13:.3,?"rin carouth-er* ryf=i B:?J:' r';N::?-;"'

Title: Contract SPcialist Email: javelin'msarouthers'civ@mail'mil

[tfi'#;Ift#tf:1F:'- Hru- 3:ir";lu66.21 5e

Email: Cynthia-j.borlinghaus'civ@mail'mil ffi"J:,'gn?x'J:il:,il::":**":'-",ffi p5:iJ"i3,ill'lur" Title: Chief, Cleanup & Munitions Respo

Email: james.d-daniel.civ@mail'mil

MICC Control No' FDO Control No.

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

Local Small Business SPecialist 210466-2153Name: Deanna Ochoa

Signature:

Phone:

Date:

Phone:

Date:

MICC LegalCounsel Narne: Kent Grubb GRUBE'KENT'

Division Chief Name: Veronica Romero Sionature: @,Ytsdrye,u,,qls,e'*rqdlE

210-221-1256

12 Aug 14

Phone: 21A466-2131 Date: 1-3 Aug 1-4

Page?ot 6

MICC Control No.

FDO Control No.

JUSTIFICATION AND APPROVAL FOR

OTTTECTTTAN FULL AND OPEN GOMPETITION

1. contracting Agency: U.S' Army Contracting Command, Mission and lnstallation

Contracting CommanJlFort Sam Hbuston, Ft' Sam Houston, TX 78234'1361'

2. Description of Action: Approval is being requested I"!:tl9 sole source re-procurernent of outstanding regutatory required reme{lqlr-on iroi[ ,t tn" Joliet Army Ammunition Plant (JoAAP)' tL to Montgomery Wa't"otiilroa, lnc (MWH).

-1!g gontlact wilt be a firm-fixed price contract and award is projecteJi"i z+ Arb 1a and ry zot+ EnvironmentarRemediation Appropriation

(ERA) funding will be utitizeO tor [fris acquisition. This sole source action is to complete the regulatory required *orr ,t the prior contractor was Termination for Default (T4D) and the regulators require tne worf< Ue cbmpbted. An acquisition plan is not required as it does not mJet the dollar threshold for an acquisition plan'

3. Description of Service: lnstallation of one groundwater monitoring well, long-term management (LTM) ai ii sites including samptiig qf tl,. associated wells and the final report that includes tne resutts otlne Ufnl at JbRRp tor-ZOtg and 2014' The period ofperformance shal be from date ot "*rio rntit 31 Dec i;, Ul! reporting being completed by 30 Jun 15' The

;;til;il ;alue of .n't i"-firocurement is $tII

4. Statutory Authority: The regulatory-authority iu qYEy?n].to 10 u's'c' 2304(cX1)' as imptemented by the fli"of n"q"uisition negulati;n lfAR) 6'302-1' Only One Responsible idur"" and NoOther Suppties or Services Witt Satisty Agency Requirements'

5. Reasoning for Authority: The prior prime contractor,.Toltest lnc' a subsidiary of

LTCCORP Oovemmeni s"rvic"s-on, lnc. unexpectedly IIed bankruptcy on 2 May 1 4'

Contracting Officer tiiOilft4t. V.ionica nometo issued aT4D on 6 May 14' not knowing the bankruptcy had been nt6a witn the courts on 2 May 1a. Th9 subcontractor MWH was accomplishing the sampling of wells, "o*fiting ttre Oata in the form of reports to support the environmental documentation necessary to--- cJmpry with the Federal Facilities Agreement (FFA) for JoAAp prior to october 2013. The iemaining w_ork includes installation of one groundwater monitoring welt, tong-term management ilfMi 3i r.Z 3i1u1 including sampling of the associated wells and reporting lhat includes th" t"sults of tne ttU at JOAAP for 2013 and 2014'

a. Backgroundff imeline:

(1) On 23 Dec 04, on behalf of AEC, Army contracting command, Aberdeen Proving

Grounds (ACC ApG), awarded an indefinite Delivery indefinite Quantity (lDlO) contract to

Toltest, tnc. R tasf 6rOer was issued under the lDtQ contract on 23 Sep 08' Work has been oh-going i;; date of award to approximately Dec 13, when Ms' Romero was notified that the sub-contractor MWH had stopped work-at JOAAP due to Toltest's failure to pay their invo'rces. MWH was the sub-Contractor performing work for Toltest'

(2) MWH contacted the Ko on 19 Sep 13, tt ling Toltest lnc' was not paying their invoices and they *orlu not be able to continue to'perform wo{ on the contract without payment'

During the date range of 20 sep ts to zs Mar 14,the Ko exchanged numerous emails with Toltest ln".

"nd'nfWH to resolve the nonpayment of the invoices' The KO sent

Toltest rnc. a cure notice on 2 Apr 14, stating their failure to pay their sub-contractor was

FDO ControlNo.

MICC ControlNo^ endangering the performance of the contract'-L a repre$entative of roltest' responded with a d;;ilry*"{tg rr,tyi,^*h''"!Iqagreed to by both parties, and

MWH woutd return tl;;tt' 'on 16 Apr 14"II ie'nt an email informing the Ko

MWH had retumed io *o*. The KO responftaE ftl11 Wilbum with an emailcontaining a memorandum ctosinl 6ri" Notii" on 16'Apr-14.. On 1 $V tf, the Ko sent a follow up iffk 1i:!:T,"Sm*y,,Ul#?fi:i^,'.'H,i5'fJ'+ffi#flij"* paid the invoices as agreed'

(3)TheKodeterminedthatToltestlncwasnotcomplyingwiththeircureplantopayMWH Lrio *t"rt"o the Tennination for Default (T4D) process.

(4) on 2 May-!a,.Jhe Ko received an emailromE *T!#l;|ffir-r[|

-6rronest and was informed that neither he nor an

Tottest; however, bankruptcy had not n"L"'nilJ-v*i ,"0 -the doors were still officially open'

The Ko then receiviJ ariemair with a photo of Tttest offices doors shut with a sign stating its doors were closed'

(5) On the moming of 6 May 14, the KO issued the T4D to Toltest for their failure to cure their deficienc,. fnli ,tt"nioon, tne KO reGveJ worO from Lori Peterson that Toltest had filed for bankruPtcY on 2 MaY 14' q

(6) On 2 Jul 14,The Honorable christopher sontchi,.us Bankruptcy Judge for the District of Delaware, issued an order granting tn" ttipururyn b9!w9e1 the chapter 7 Trustee of the

LTC / Tottest nanriuiit, r"O t'ft" Uniied Staies' The stipulation provideg that ""'The

United States sftafi flav6 fimiteO relief from the automatic stay to take authorized action under any partially completed Govemment contracts in accordance with applicable federal government contraJts i;;;d regulations, provided that the United States shall be obtigated, to the J;;t td*"6 oi"ppti"rbl" lr*, to seek additional leave of this Court to exercise any rights of setoif or recoupment or seei< or assert any affirmative remedies against the Trustee, ifr" O"U-totr, o, ih"ir'""iates." Under this Order on the stipulation' the

T4D of 6 May f a is a plrmissible action under federal govemment contract law and regulation, as is this reprocurement'

(7) The sole source re-procuJementwill allow the Govemment to complete the outstanding regulatory-requireJ remediation work as expeditiously as possible to satisfy the regulators'

b. Alternative:

The alternative to issuing a sole source acquisition to MWH is to compete the outstanding regulatory requireO iemJdirtion work with other sources (i'e' ERMA Small Business portfolio). noweuer, as onty MWH has the historicaldata and LTM results that are required to write tnJ iors tlport an! finalize the five year report' any other source would have to subcontract to MWH to obtain tne 0"t". This wilt take additionar time and resurt in additional cost to tn" a*v *ith pass through costs from the prime co-ntractor to MWH'

The regulators nave oeen understanding olthe situation to date but if the re-procurement does not happen ;;G;itd;ry, tf'," 201; LTM will not be timely completed' Completing the required ,orni.li *"mlrin! dyring 2014 so that result data may be obtained is requiredbytheregulatorsandfailingtoperformtheLTMandobtainthedatainatimely

MICC Control No-fashion could result in fines against the Army and will affect the credibility of the Army with the regulators.

6.EffortstoobtainCompetition:AtJoliet,MWHhasbeenperformingthesamplingof wells and accomplishing reports since 23 Sep 08' The re-procurement involves installation of one groundwater r"oniiiri"g well, long-terr-*rnrg"ment (LTM) at 17 sites including sampling of tne associaiea-wetts ,nOi"poiing ir'"i i1"it1Oes th.e results of the LTM at JOMP for 2013 and 2014. in"io has determineJ ii is in the best interest of the Government to award a contract to MWH allowing tnemtJcomptut" t," remaining work not completed due to the Toltest tnc. oant iuprcv "no"ra"r.

of performance since sept 2013.

T.DeterminationofFairandReasonablePricing:lherebydeterminethattheanticipated price for this contraci ,.tion will be fair and reasonalble, as the price analysis technique as identified at FAR 15.404-1(b), will be 3999mnlished to ensure a fair and reasonable price is obtained. pursuant t" inn i's.+os-t tnxsi, ;;rtirlo ."o.r1 gl pll.ins data will not be -required as this acquisition *""it the definition 6i i'commercial item as defined in FAR 2'101'

g. Market Research: A market research reportwas accomplished indicating that based on the circumstances surrounding this contractliue to Toltest's bankruptcy' and the need for prompt re-procurem;;G ;;fiplete the t"rnlining work to comply witfr tne FFA for JOAAP' it is in the best interesiof tft" Government io ex"cu-te a sole source contract with MWH' Upon approval of this pro"ui"*"nt, the Contra;ft Offi"" will submit a notice of its intent to award a sole source contract in the Governm"nt-wiie point of entry through FedBizopps'gov in accordance with FAR 5.201(d)'

9. lnterested Sources: To date, no other Sources have expressed interest to the

Contracting Office in writing. Notices required by FAR 5.'201, willbe posted at

FedBizopps.gov intormingin* prnfi. of the Government's intent to award a sole source contract.

,l0.StatementofActions:AlthoughitisinthebestinterestoftheGovernmenttoawarda sole source contraciio MWH, a subiontracting plan will be.required' The plan will be reviewed and approved by the Cover,.,mJnilo"*.ut" possible subcontracting opportunities are explored.

MICC Control No'

Title:

ii. Technical Gertifieation: ln accordance with FAR 6'303-2(c), I cgrtifu that the supporting Oata unOerlny "ognizrtt"", which are included in this Justification and Approval' ur" a""rrite and compteie to-tne best of my knowledge and belief'

Name: James D Daniel-

Titte: Chief. Cleanup & Munitions Response Division

- DANIELj61aE53#

Date: 13 Aug 201-4

12. Contracting officer certification: I certfy that this.Justffication and Approval is

"""rt t" and co-mplete to the best of my knowledge and belief'

Name: Cvnthia Borlinqhaus

Signature:

Date: 12 Aug 14