W9127819F0112P00016 LSJ-Tyndall AFB Phase II Modular Facility Lease Task Order Extension_Redacted.pdf

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Notice of Intent to Extend Contracts for Leases of Modular Facilities, Phase I, II and III, Tyndall Air Force Base (AFB), Florida
Solicitation number
W9127819F0112
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This document is a Limited/Sole Source Justification (LSJ) for a contract extension under Task Order W9127819F0112 for leasing modular facilities on Tyndall Air Force Base (AFB) in Florida.

The LSJ provides background on the original contract award in 2019 to provide 10 modular facilities to house personnel on Tyndall AFB after Hurricane Michael caused catastrophic damage. The current task order is set to expire on June 14, 2024, but the military construction projects supported by the facilities will not be completed by that time. The sole source justification cites that the current vendor, MMG, is the only source capable of immediately providing the required facilities, as it would take an estimated 14 months for a new contractor to construct a new facility. Relocating the personnel supported by the facilities is not feasible due to the lack of available space on Tyndall AFB. The LSJ states that not approving the extension would result in substantial sunk costs and 14 months of downtime for the customer. A sources sought notice was published with no responses received.

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4. Authority Cited: The statutory authority permitting acquisition of the requirement by other than full and open competition is 41 United States Code (U.S.C.) 4106(c) as implemented by FAR 8.405-6(a)(1)(i)(B). Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized. Also, FAR 8.405-6(a)(1)(i)(C) provides that limiting the source of an order placed on the FSS can be justified by showing that "in the interest of economy and efficiency”, the new work is a logical follow-on to an original FSS order provided that the original order was placed in accord with FSS ordering procedures, and the original order was not issued under sole-source or limited-source procedures.

5. Reason for Authority Cited:

a. Background: On 10 October 2018, Hurricane Michael made landfall at Mexico Beach just to the east of the base. Air Force officials described the damage imparted to the base by the hurricane as “catastrophic”, with all the base’s facilities being declared “unlivable”. Task order number W9127819F0112 under contract GS07F0222X was awarded on 14 March 2019 competitively under GSA FSS 56 Category 36150, Lease/Rental of Pre-Engineered/Prefabricated Buildings and Structures to MMG to provide the installation of ten modular facilities with a one base year lease, with four 1-year lease options, and option Contract Line Item Numbers (CLINS) to cover the dismantle/removal of the ten facilities at the end of the task order term. Five of the ten facilities have already been dismantled/removed with another facility scheduled to be dismantled/removed prior to the expiration of Option Year 4. While efforts to repair the base were underway at time of award, there was no confirmed time of completion on the repairs. The current task order expires 14 June 2024; however, the military construction projects this facility currently supports are behind and will not be completed for multiple years. Failure to remain with the current contractor would create a significant logistical and mission communication dilemma across Tyndall AFB. The customer would be required to unexpectedly relocate tenants around the AFB, for an unknown amount of time, with no feasible location to put them. This would also result in substantial sunk costs and duplication of time, that could not be recuperated.

b. Justification: The Government’s need is for an immediate facility capable of housing up to 102 Government personnel working across various projects for Phase II as described in the Statement of Work that is already on site as provided by MMG under the expiring task order and still located on site. MMG is the only responsible source who can meet the Governments minimum needs which is for an immediate facility. Any award to another contractor would require approximately two months for MMG to tear down the current RLF and an additional 12 months for a new contractor to construct the new RLF. The existing facility is owned by MMG. Therefore, they are the only available source capable of leasing the existing 4 facilities remaining to the Government, as there are no means of acquiring another contractor, on a competitive or non-competitive basis, to assume their lease without causing substantial harm to the USACE, the Air Force customer, and its missions. It is physically impossible for any other contractor to meet the Government’s minimum requirements for an immediate facility in the required location and would take an estimated 14 months for the existing facility to be removed and a new facility to be

Force Guidance Memorandum (DAFGM) to Department of the Air Force Manual (DAFMAN) 36-2032 (DAFI 32-100_DAFGM2023-01) 8.3.1.

Finally, the operations and maintenance of the relocatable facilities are not supported by the base because by definition they are equipment, not real property (DAFI 32-100_DAFGM2023-01 8.2).

3) USACE leases an Off-Base facility and relocates the current tenants. This alternative is not feasible because of the length of time it would take to locate and lease a new facility. Additionally, this alternative would displace the current tenants until a new facility could be located and leased.

d. Impact: This facility houses up to 102 Government personnel working across various projects for Phase II. Currently, the Phase II mission has no space to relocate on Tyndall AFB. If there were a break from the current facilities and the Government had to remove the trailers and re procure with another contractor, it would result in sunk costs to the Government of approximately (costs to dismantle/remove the current facility and procure and install a new facility with a new contractor) and an estimated 14 months of downtime. If this LSJ is not approved, the customer would be displaced with no feasible place to relocate and would be hamstrung with various communication, organizational and logistical issues that would impact multiple missions. These issues would necessitate an unplanned, large-scale realignment of the logistical arrangements within Tyndall AFB and the composition/location of Phase II personnel.

6. Efforts to Obtain Competition: Sources Sought Notice W9127823L0028 was published at SAM.gov on 25 September 2023 with a response date of 10 October 2023 for interested parties to respond. No responses were received.

7. Actions to Increase Competition: Based on the discussion at paragraph 5(b), there are no possible actions to be taken to increase competition for subsequent acquisitions.

8. Market Research: A sources sought notice was posted to GSA eBuy on 28 November 2023 with a response date of 05 December 2023 to determine if any interested parties were available to perform the requirements of this LSJ. Only one response was received which did not discuss the capability to perform this requirement.

9. Other Facts: Discuss any other facts supporting the use of other than full and open competition, such as the following:

a. Procurement history:

(1) Contract number and date of the last award: N/A

(2) Competitive status of this action: This action was a competitive GSA FSS award.

(3) Authority previously used for less than full and open competition: N/A

(4) If a justification was prepared to support the procurement made before this one, a summary of the contents of paragraph 7 of the justification for that procurement and an explanation of the results: N/A

(5) If any prior award was accomplished by full and open competition, a detailed explanation of the changed circumstances: N/A

(6) An explanation of any unusual patterns which may be revealed by the history, e.g., several consecutive, urgent buys: N/A

(7) If a justification was prepared to support the procurement made before this one, briefly describe the circumstances justifying the buy and whether there have been any significant changes: N/A

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