MICC_2016-93_redacted___.pdf

MICC Control No: 2016-93

Contractor: Facility Services Management, Inc.

Program/Equipment: Installation Support Services

Version – MAY 2016 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Program/Equipment: Perform all functions of Installation Support Services for the Directorate of Public Works (DPW), United States Army Yuma Proving Ground (USAYPG), to include planning, programming and supervision of technical and professional personnel for Operations and Maintenance (O&M) repair of real property facilities.

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: $9M

Prepared by:

Contracting Officer:

Technical:

Requirements:

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:

Legal Counsel:

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: Directorate of Public Works (DPW), USAYPG requests a Firm Fixed Price/Cost Plus Fixed Fee contract extension of 12 months to contract W9124R- 11-C-0011 with Facility Services Management, Inc. Fiscal year 2016 & 2017 Operations and Maintenance (O&M) funds will be used. A 12-month extension for the continuation of all functions of Installation Support Services (ISS) beginning 1 August 2016 through 31 July 2017 will provide sufficient time to work toward the completion of a competitive follow-on contract.

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 contractor performs all ISS functions at USAYPG, which includes providing all planning, programming and supervision of technical and professional contractor personnel for Operations and Maintenance (O&M) repair/alterations of real property facilities. The contractor performs facilities support in the form of services, industry trades, planning and estimating, service orders control, receipt and dispatching, Unaccompanied Personnel Housing (UPH) assignment and terminations processing, furnishing warehouse management, inspection, supply purchasing, warehousing and issue, financial accounting, and management. There are no anticipated changes in the contract requirements during the requested extension period. The period of performance for this extension period is 1 August 2016 through 31 July 2017.

b. The total estimated value of the requested modification is $9M.

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:

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) The incumbent contractor is the only responsible source that can satisfy the

Army’s requirement to provide continued essential ISS at USAYPG during the period necessary to allow for a competitive follow-on contract. A break in service will disrupt critical functions in support of the mission at USAYPG, including Engineering Resources Management; Operation of Utilities Systems; Maintenance and Repair of Real Property;

Emergency Services; Installation and Repair of Equipment in Place; and other Engineering Support Services.

b. Alternatives:

(1) Suspension of services: This contract provides O&M repair/alteration of real property facilities and renovation of real property services that are directly tied to the vital needs of the installation, including the health and safety of Soldiers and their Families, DoD Civilians, and contractors working/residing at USAYPG. Additional USAYPG supporting tenant activities and mission test and evaluation events will suffer without these services.

(2) Use in-house resources: USAYPG does not have sufficient in-house resources to perform this requirement. The Government increasingly relies on private industry to bring technical expertise and perform critical functions. There are no current in-house Government employees who have the expertise or experience to perform the requirements of the ISS contract. Additionally, the amount of time required to recruit and hire 77 qualified Government personnel through the civilian personnel system, and then train them to support current and upcoming requirements, render this alternative unrealistic and unachievable.

(3) Competitively awarding a bridge contract: As stated in paragraph 6.a. below, a direct 8(a) ANC was attempted as a bridge contract for this ISS until the follow-on was awarded. Due to the protest and waiting on the Small Business Administration (SBA) final acceptance letter, there was insufficient time for MICC-YPG to compete an interim contract before the ISS expired. This is not feasible because a new contractor would need a transition period greater than the time remaining on the current contract to become familiar with the ISS contract requirements. A new contractor would need to recruit, relocate, transfer, staff, and acquire other resources.

c. Justification: Pursuant to FAR 6.302-1, an award to any other source would result in a substantial duplication of costs to the Government in the estimated amount of $900K (one-month phase-in period) or $1.8M (two-month phase-in period) that is not expected to be recovered through competition of a short-term interim contract. The transition would require many labor hours to transfer 20 office spaces and replace 77 personnel located across USAYPG sites. Along with this time-consuming effort, the contract includes more than 1,750 lines of Government Furnished Property valued at over $12M that the incumbent would have to inventory and turn over to a new contractor. A transition at this point would create delays that would likely necessitate a break in service. The requested extension is the only feasible alternative for obtaining the required services prior to awarding a follow-on contract.

d. Impact: Any break in service is unacceptable and will disrupt operations at

USAYPG. Without the continuity of the ISS contract there would be health and safety issues due to a failing infrastructure.

6. Efforts to Obtain Competition:

a. MICC-YPG planned on making award to an 8(a) Alaska Native Corporation (ANC) to allow sufficient time to award the follow-on ISS contract. MICC-YPG submitted an offering letter to Small Business Administration (SBA) Seattle District Office on 24 March 2016 and in turn MICC-YPG received an acceptance letter (#1013/16/603430) dated 29 March 2016 and revised acceptance letter (# 1013/16/602430) dated 30 March 2016 (received on 31 March 2016). MICC-YPG received notice of a protest on 31 March 2016 that award to the 8(a) ANC would have an adverse impact to the incumbent small business concern. Once the protest was received, a four month extension under 10 U.S.C. 2304(c)(2) as implemented by FAR Part 6.302-2, “Unusual and Compelling Urgency” was initiated for the period of performance from 01 April 2016 to 31 July 2016.

SBA Seattle rescinded the acceptance letters because they failed to conduct an adverse impact analysis prior to accepting the requirement into the 8(a) program, in accordance with SBA’s own policy. The GAO protest was dismissed as academic on 04 May 2016 after the US Army agreed to take corrective action, including a request to the SBA to perform their economic impact analysis. SBA Seattle performed the analysis on 14 April 2016 and determined there would be an adverse impact. Since this requirement is no longer eligible for a direct 8(a) award a 12-month extension is needed to allow sufficient time to compete the follow-on contract.

b. Subcontracting Competition: The current contract, W9124R-11-C-0011 was solicited and awarded under a 100% small business set-aside. Therefore, a subcontracting plan was not required. Subcontracting efforts are not precluded; the contract includes FAR 52.219-14, Limitations on Subcontracting, where the contractor is required to perform at least 50% of the work.

7. Actions to Increase Competition: As indicated in paragraph 6.a. above, this extension will provide adequate time for the Army to solicit offerors, evaluate proposals, negotiate, and award a competitive follow-on contract.

8. Market Research: MICC-YPG has conducted market research for the follow-on requirement. In response to a General Services Administration Request for Information (RFI) in January 2016, ten small business concerns and three large businesses from the 03FAC Facilities Maintenance MAS have expressed interest in the procurement. RFIs from previous years showed similar small and large business interest.

9. Interested Sources: In accordance with (IAW) the DFARS 205.205-71, DFARS 206.302-1(d) and PGI 206.302-1(d), MICC-YPG posted a sources sought notice to FedBizOpps on 11 July 2016 for 10 days. The sources sought notice specifically asked respondents to address their ability to mobilize and be prepared to perform the services described in the PWS by 20 July 2016. Additionally, the sources sought asked respondents to provide a proposed solution, alternative solution, any existing security clearances within their firm, bonding capabilities, and thresholds for construction. MICC- YPG received ten timely responses to the sources sought notice. None of the ten timely non-incumbent respondents detailed specific solutions that would mitigate the delayed performance and duplicative cost risks associated with an award to a contractor other than the incumbent. The contracting officer has determined that awarding the extension to the incumbent is the only viable option for fulfilling this short-term need. 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 known contracts for these same requirements are indicted on the table below.

Contract Number

Contractor

Contract

Type

Contract Amount

Competitive Proposals

Rec'd

Period of Performance

DAAD01-96-C-

Pyramid, Inc.

CPAF $73.2M 8 1Oct 96 – 30Sep 05

W9124R-06-C-

Pyramid, Inc.

CPAF $105.8M 5 1Sep 05 – 30 Sep11

W9124R-11-C-

FSI, Inc. FFP/CPFF $74.6 M 8 1Sep 11 – 31 July 16

(2) The previous contracts were competed as set asides for small businesses. No J&A documents were required for the previous procurements.

(3) The previous extension under authority 10 U.S.C. 2304(c) (2) as implemented by FAR 6.302-2(a) (2) Unusual and Compelling Urgency was necessary due to the protest received on 31 March 2016. The need for this authorization has ended with the dismissal of the protest.

(4) The previous contract was awarded competitively. However, a one year non-competitive bridge contract is needed to allow for the follow-on contract to be awarded competitively.

history.

(5) There are no unusual patterns that may be revealed by the procurement

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 or price to the Government for this contract action will be fair and reasonable. This determination will be made using cost analysis. As a part of this basis, certified cost or pricing data will be required.

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

Approval

Based on the foregoing justification, I hereby approve the proposed extension to contract W9124R-11-C-0011 for Installation Support Services at the U.S. Army Yuma Proving Ground, AZ to extend the performance period for 12 months for performance through 31 July 2017 in the amount of $9M, 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 or property herein described have otherwise been authorized for acquisition.

Digitally signed by CARSELLO.DEAN.

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=CARSELLO.DEAN.M.1

Signature & Date:

Date: 2016.07.27 08:19:36 -05'00'

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

CARSELLO.DEAN.M.