redacted_J A_2016-71.pdf

MICC Control No: 2016-71 MICC-YPG Control No: 2016-11

Contractor: TRAX International Corp.

Program/Equipment: Tropic Test Support Services

Version – MAY 2016 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR PART 6 JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Program/Equipment: The Contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary to perform Tropic Test Support Services (TTSS) for United States Army Test and Evaluation Command (ATEC).

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

Amount: Estimated $2M

Prepared by:

Contracting Officer:

Technical:

Requirements:

Contractor: TRAX International Corp.

Program/Equipment: Tropic Test Support Services

Version – MAY 2016 FOR OFFICIAL USE ONLY

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

Program Manager:

Director, MICC-YPG:

Small Business Specialist, Small Business Program:

MICC Legal Counsel:

Contractor: TRAX International Corp.

Program/Equipment: Tropic Test Support Services

Version – MAY 2016 FOR OFFICIAL USE ONLY

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

1. Contracting Activity: Mission and Installation Contracting Command - Yuma Proving Ground (MICC–YPG), U.S. Army Yuma Proving Ground (USAYPG), Arizona.

2. Description of Action: Army Test and Evaluation Command (ATEC) requests a Cost Plus Fixed Fee (CPFF) contract modification for an extension for up to 10 months to contract W9124R-11-C-0009 with TRAX International Corporation. The Government projects award for 31 May 2016 and Fiscal Year (FY) 2016 Research, Development, Test, and Evaluation (RDT&E) and FY 2017 RDT&E funds will be used; the latter to be used for performance in FY17 and will be subject to availability of funds (SAF). A 10 month extension beginning 1 June 2016 through 31 March 2017 will provide for the continuation of essential test support services at tropic region locations (such as Panama, Suriname, Honduras, etc.) until award of a competitive follow-on contract is completed. Current milestones indicate that additional time is necessary to complete the follow-on competitive action.

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:

a. The contract provides test support services for technical and engineering special services to the Tropic Regions Test Center (TRTC) in support of its mission to plan and conduct tropic environmental developmental tests on a wide variety of military electronic systems, materials, weapons, and equipment. Contract support services includes:

conduct of analytical and special studies; assist the government in the design, planning, coordinating, and executing the various test programs; assist the government in test support operations management; and provide test facilities maintenance, test equipment maintenance and operations, and test logistical support which provides a myriad of other support including medical facilities, minor test construction as well as some administrative support. The total estimated value of the requested modification is $2M

b. While budget may drive test operations requirements, there are no anticipated changes in the contract requirements during the requested extension period.

c. The total estimated value of the requested modification is $2M.

4. Authority Cited:

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited:

Contractor: TRAX International Corp.

Program/Equipment: Tropic Test Support Services

Version – MAY 2016 FOR OFFICIAL USE ONLY

a. As described at FAR 6.302-1(a)(2), when the supplies or services required by the agency are available only from one responsible source, or for DoD, NASA and the Coast Guard, from only one or a limited number of responsible sources, and no other types of supplies or services will satisfy agency requirements, full and open competition need not be provided for.

(1) TRTC requires a contractor who possess a staff of multi-dimensionally skilled personnel to provide TTSS to support testing through the end of the current contract with minimal disruption. The functional areas described in paragraph 3, above, are all interrelated services that must be managed and performed by one source to ensure seamless support services to the on-going test programs scheduled. An award to any other source would disrupt the TRTC’s currently planned testing program and any break in the test support services currently being provided under the existing contract is unacceptable. TRAX has provided support to TTSS since 14 April 2011 under a competitively awarded contract. TRAX is the only source possessing the trained personnel assets, management team, institutional knowledge, equipment, management and other resources to continue ongoing and upcoming test requirements immediately available for the proposed extension period.

(2) This contract modification is to allow time for the follow-on contract to be awarded competitively. Therefore, the costs will be substantially duplicated if a competitive short-term contract is awarded to a company other than TRAX and these costs will not be recovered.

b. Alternatives:

(1) Allow the current contract to expire and suspend services until the follow-on is awarded. This is not a viable option. The TRTC’s testing mission is invaluable to the Army’s continuing need to improve current and field new weapons and equipment to the warfighter. TRTC is the only Government activity that performs tropical testing in a “real world” environment. As such, TRTC cannot halt its mission performance without adversely impacting the Army. TRTC’s mission is critical to the validation of Army equipment design and the only test method that enables the integration of the actual user into the testing environment. This integration enables TRTC to fully test equipment;

measuring its effectiveness in meeting mission performance parameters while operating in varied terrain and weather by those who will use the equipment in combat and provide Army decision makers the information needed to evaluate systems for continued development or production.

(2) Allow the current contract to expire and perform services with Government Resources. This is not a viable option. TRTC is not staffed to perform the services required. The shift to reliance on contractors to perform functions is due to the downsizing of the civilian workforce over the years and has resulted in a transference of technical expertise and support functions from the Government to private industry.

There is no other Army activity that has the capability of performing these services in

Contractor: TRAX International Corp.

Program/Equipment: Tropic Test Support Services

Version – MAY 2016 FOR OFFICIAL USE ONLY support of TRTC, primarily as the vast majority of the testing is performed in Panama, Honduras, and Suriname.

(3) Award a new, competitively awarded, short term contract until the follow-on can be awarded. This is not a viable option. First, it is highly unlikely that industry will be interested in a short term, low value contract given the effort and expense to research the requirements to establish a presence in Panama, review the solicitation, and develop the required technical and cost proposals and with no assurance that they will benefit from that effort for the follow-on acquisition. Second, a new competitive follow-on contract is anticipated to be awarded in 31 March 2017. This new acquisition has required a significant amount of procurement lead time. Starting a new competitive acquisition effort for a bridge while the existing effort is ongoing will result in the Army incurring duplicative costs that would not be recovered through competition and cannot be completed within the timeframe needed.

c. Justification:

(1) TRAX International Corporation, the incumbent, is the only source possessing the trained personnel assets, management team, institutional knowledge, equipment, management and other resources to continue ongoing and upcoming test requirements immediately available for the proposed extension period. TRTC requires a contractor who possess a staff of multi-dimensionally skilled personnel to provide TTSS to support testing through the end of the current contract with minimal disruption. The functional areas described in paragraph 3, above, are all interrelated services that must be managed and performed by one source to ensure seamless support services to the on-going test programs scheduled. An award to any other source would disrupt the TRTC’s currently planned testing program and any break in the test support services currently being provided under the existing contract is unacceptable. (4 test schedules shown below). A lapse in these test support services would have an immediate negative impact, potentially resulting in mission failure. The negative impact would affect the planning and conducting of tropic environmental developmental tests on a wide variety of military electronic systems, materials, weapons, and equipment of all conceivable types, sizes, configurations and uses, at the TRTC. The delays would severely impact schedules, dates negotiated with host nations, personnel schedules of individuals supporting this efforts who will be assigned to other efforts, loss of seasonal rains which is critical for mobility testing in the tropics, etc.

(2) As stated above, the solicitation and award of a competitive short term contract would result in duplicative costs to the Government that would not be recovered by competition. Changing contractors for this proposed 10 month period would also result in substantial duplication of cost estimated at $200,000.00 ($2M/10) that is not expected to be recovered through competition of a short-term interim contract because there would be a minimum 30 day phase-in period to bring the new contractor up to speed on the status of current work and transfer of records, etc. when the Government would be paying both contractors. An award of any interim contract would also trigger severance pay procedures that are mandated by the local foreign labor laws.

Contractor: TRAX International Corp.

Program/Equipment: Tropic Test Support Services

Version – MAY 2016 FOR OFFICIAL USE ONLY

(3) Any break in service is unacceptable and will halt test operations at TRTC.

Again, these tests have a direct impact on the US Army’s ability to perform its world-wide mission and could adversely impact the safety of the warfighters. As stated above, TRTC does not have the internal resources to perform the identified services and there is no other source that can provide these services to TRTC.

(4) A specific example is the upcoming testing that has a period of performance starting in May continuing through September/October 2016. This test, once started cannot be delayed or interrupted. A contract ending/beginning during this time frame cannot be done during this test. This test would not be able to begin if this contract ends. Being a remote location and a foreign country, a new contractor starting up will disrupt this testing.

6. Efforts to Obtain Competition:

a. Effective Competition: The Contracting Officer shall publish the notices required FAR 5.201 and any bids or proposals received shall be considered. A Sources Sought published on 15 March 2016 for the current on-going competitive follow-on acquisition received responses from three prospective offerors indicating an interest in the follow-on competition. Based on market research, effective competition will be achieved as two or more offers are expected in response to the solicitation.

b. Subcontracting Competition: There are no known subcontracting opportunities because the majority of the contract is overseas. The majority of the contract is for labor accomplished by Panamanian local nationals and there are no known subcontracting opportunities.

7. Actions to Increase Competition: The source selection approach was recently changed to a tradeoff process instead of Low Price Technically Acceptable (LPTA) process. This allows the Government to accept other than the lowest priced proposal. It is anticipated that changing the source selection to a tradeoff process (technical, past performance, and price) will attract higher qualified contractors to perform this highly technical requirement. Potential contractors may be more willing to conduct business in a foreign country if the Government is willing to pay more for a highly rated offeror. The one size LPTA approach is not the solution in a test environment where the number and types of tests cannot be predicted. The workload will fluctuate making a cost type contract the better solution. The successful offeror will need the ability to adjust the workforce not only in numbers, but by technical skill sets. The unintended consequences of an LPTA would be the highly qualified contractors electing not to submit a proposal because of the risk. The desired competition is quality not quantity. The current contract was competed as tradeoff. Two highly qualified contractors submitted proposals. It is anticipated that two or more highly qualified contractors will submit proposals under a tradeoff approach. The tradeoff approach under technical will require offerors to complete a mock test plan as part of their submission. It is anticipated that this will attract and foster competition amongst the most highly qualified contactors.

Contractor: TRAX International Corp.

Program/Equipment: Tropic Test Support Services

Version – MAY 2016 FOR OFFICIAL USE ONLY

8. Market Research: See paragraphs 6 and 7, above. In accordance department procedures a sources sought was posted to Federal Business Opportunities on 13 April 2016 for 15 days and one inquiry was received.

9. Interested Sources: See Paragraph 6 for the synopsis information. A sources Sought notice was published as required by FAR 5.201 on 13 April 2016 for 15 days. One inquiry was received from a small veteran-owned business expressing their interest.

Preliminary technical information submitted has been reviewed by the requiring activity who has advised that the information does not present any details of having experience in testing efforts that would relate to the ATEC and TRTC missions area. To date, no other sources have written to express interest in the acquisition.

10. Other Facts:

a. Procurement History:

(1) Contract numbers and dates of the two known contracts for these same requirements.

(2) The previous two contracts were competed using full and open competition.

No Justification and Approval documents were required for the two previous Procurements

(3) Justifications and Approvals for the extensions to the current contract have been used due to changes in the acquisition strategy and PWS requirements.

(4) There are no unusual patterns that may be revealed by the procurement history.

(5) There are specific legal implications for conducting business in foreign countries and utilizing foreign national employees (as a third party) for conducting business for the United States Government. In countries where the U.S. State Department and U.S. Department of Defense have established appropriate treaties and Status of Forces Agreements (SOFAs) the contractor may generally operate under the appropriate umbrella. However, no such treaties or agreements currently exist with the Republic of Panama. Therefore, the contractor must be incorporated in and possess, including but not limited to, the appropriate business licenses and tax registrations necessary to conduct business in the Republic of Panama. Test execution and support is to be provided by a contractor activity headquartered in Panama City, Republic of Panama.

Previous Contracts Contract Dates W9124R 11 C 0009 01 May 2011 – 31 May 2016 DATM07 02 C 0005 01 October 2001 30 April 2011

Contractor: TRAX International Corp.

Program/Equipment: Tropic Test Support Services

Version – MAY 2016 FOR OFFICIAL USE ONLY

(6) This acquisition supports the TRTC testing program. The scheduling of each test is based on equipment availability and the test location and duration is dependent on the specific item to be tested, the performance requirements to be measured or validated, and the test environment (terrain, weather, day/night operations, required interaction with other systems, etc.) required by the mission test parameters.

Much of this is beyond the control of the TRTC. For example, the vehicles to be tested are not available until mid-2016. The test PM’s program sets the test duration, actions to be accomplished and the conditions under which the testing will be performed. As a result, there are periods during the year when the conduct of tests preclude a transition of contractors.

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.

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.

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable.

This determination will be made using the following: cost analysis price analysis should cost IGCE audit: other:

As a part of this basis, certified cost or pricing data will be requested, used for preparing the Government objective and the final settled price as well as certified current by the contractor at close of negotiations.

will be required.

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

Contractor: TRAX International Corp.

Program/Equipment: Tropic Test Support Services

Version – MAY 2016 FOR OFFICIAL USE ONLY

Approval

Based on the foregoing justification, I hereby approve the modification to contract W9124R-11-C-0009 for Tropic Test Support Services to TRAX International Corporation on an other than full and open competition basis pursuant to the authority of 10 U.S.C.

2304(c)(1) as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition. In accordance with department procedures I have reviewed planned actions for eliminating barriers to competition and they have been satisfactorily completed under the circumstances.

Date & Signature:

Dean M. Carsello Special Advocate for Competition US Army Mission and Installation Contracting Command, Ft. Sam Houston TX

CARSELLO.DEAN.M.1230

116675

Digitally signed by CARSELLO.DEAN.M.1230116675 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=CARSELLO.DEAN.M.1230116675 Date: 2016.05.24 15:01:29 -05'00'