FOB_Fenty_J A_Redacted_(1).pdf

JUSTIFICATION

CONTROL NO. 16-053

PROJECT: FOB FENTY 8MW POWER PLANT

AUTHORITY: AMOUNT:

PREPARED BY: NAME: JUSTIN CHUNG

CONTRACT SPECIALIST

TELEPHONE NO.

DATE:

22 September 2016

CONTRACTING OFFICER NAME: ADRIANA A. DUNAWAY

CONTRACTING OFFICER

TELEPHONE NO.

DATE:

22 September 2016

TECHNICAL NAME: Zachary Papa

TELEPHONE NO.

DATE

22 September 2016

REQUIREMENTS NAME: Ryan Parks

TELEPHONE NO.

DATE

22 September 2016

CONTROL NO. 16-053

FOR PARC-ATL CONCURRENCE

PARC COUNSEL

PARC ATLANTA

SPECIAL ADVOCATE

F COMPETITION

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

1. CONTRACTING AGENCY:

U.S. Army Corps of Engineers (USACE) Philadelphia District (NAP) Wanamaker Building 100 Penn Square East Philadelphia, PA 19107-3390

2. DESCRIPTION OF ACTION:

Approval is requested to award a sole-source, firm-fixed-price (FFP), task order to IAP Worldwide Services, Inc. (IAP) under the Forward Operating Base (FOB) Multiple Award Task Order Contract (MATOC), W912BU-11-D-0012. This task order will be a follow-on to two previously issued task orders for the operation and maintenance (O&M) of a contractor-furnished (CFE) power plant.

Continued operation of the power plant will be funded with FY16 Operation and Maintenance, Army (OMA) funds. The optional purchase of the CFE power plant will be funded with Operation and Maintenance, Army (OMA) funds under the Contingency Construction Authority (CCA), Military Construction, Army (MCA) funds, Unspecified Minor Military Construction, Army (UMMCA) funds, or equivalent.

3. DESCRIPTION OF SUPPLIES/SERVICES OR NATURE OF CONSTRUCTION:

FOB Fenty is an airfield located in an urban area in northeast Afghanistan, about 25 miles from the Pakistan Border. It is co-located with both an Afghan National Army (ANA) base and the Jalalabad municipal airport. Electric power is provided to FOB Fenty by an 8 MW CFE power plant. The CFE power plant is currently provided by, and operated and maintained by IAP under the terms of Task Order No. 11, which expires on 29 September 2016. NAP requests approval to issue a follow-on sole source task order to IAP to continue the same services for an additional six month period from 30 September 2016 through 31 March 2016. The NAICS code for this action is 22119, Other Electrical Power Generation.

This Justification for an Exception to Fair Opportunity includes the following:

Continued operation and maintenance (O&M) of a 8 megawatt (MW) contractor furnished power plant (CFE power plant), the medium voltage and secondary distribution system, and perimeter lighting system at FOB Fenty, to include incidental/minor construction involving the power plant and/or distribution system as specified in the Performance Work Statement (PWS). Estimated cost:

Option to purchase of the 8MW CFE power plant from the current contractor at the end of six (6) months. Estimated cost:

Optional Phase-Out period of 30 days. Estimated cost:

The estimated dollar value, with the base and all options, is

4. AUTHORITY CITED:

FAR 16.505(b)(2)(i)(C), The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract.

5. REASON FOR AUTHORITY CITED:

BACKGROUND

In 2012, NAP competitively solicited a requirement among the three FOB MATOC contractors to provide 10 MW of power and perform O&M services at FOB Fenty. A ll offerors were given a fair opportunity to be considered. The generators, transformers, and other equipment associated with the 10 MW power plant were required to be contractor furnished equipment (CFE). On 17 September 2012, Task Order No. 4 was awarded to IAP Worldwide Services (IAP) under Contract No. W912BU-11-D-0012. Task Order No. 4 included a base period and two one-year option periods. The period of performance of Option Year 2 was 30 September 2014 to 29 September 2015.

During Option Year 2, it was decided that the Government would purchase the CFE power plant and competitively solicit and award a task order for O&M of the GFE power plant under the FOB MATOC. In June 2015, USACE negotiated with IAP for the purchase of the CFE power plant.

However, the proper funds to purchase the CFE power plant were not obtained prior to the expiration of Option Year 2. Therefore, the USACE Special Competition Advocate approved an Exception to Fair Opportunity on 28 September 2015 that allowed NAP to issue a sole-source, follow-on task order to IAP for the continued O&M of an 8MW CFE power plant. It is noted that FOB Fenty no longer required 10MW of power due to troop drawdown. NAP issued Task Order No. 11 under W912BU-11-D-0012 to IAP for the continued O&M of the CFE power plant at FOB Fenty with a total value of $10,503,363, including the base and all options. Task Order No. 11 expires on 29 September 2016.

Unfortunately, the funds to purchase the CFE power plant are still not available, though action is underway and it is anticipated that purchase of the CFE power plant will take place by the end of December 2016. The requested follow-on task order will provide uninterrupted services in the interim. IAW DFARS 206.304(S-70) and DFARS PGI 206.304, Approval of the Justification, the justification for this follow-on acquisition will be approved by the approval authority one-level above the approval authority for the previous justification.

JUSTIFICATION

In accordance with cited authority, this order must be placed on a sole source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract. Any attempt to obtain continued operation and maintenance of the FOB Fenty power plant from a source other than the incumbent contractor would result in a loss of economy and efficiency and unacceptable delays to the Department of Defense. USACE intended to purchase the CFE power plant and competitively solicit and award a new task order for O&M prior to the expiration of the current task order on 29 September 2016. However, the proper funds will not be available to purchase the CFE power plant until after that date and continued provision of electrical power is necessary to support mission critical USFOR-A operational requirements. Given the space limitations at FOB Fenty and the expensive and unreliable nature of spot generators, the only option available to ensure that FOB Fenty has power after 29 September 2016 is to award a sole source task order to IAP for the continued O&M of the existing CFE power plant.

The verified minimum power requirement supporting deployed military personnel and critical facilities cannot be sustained without continuous operation of the CFE power plant. If this J&A is not approved, FOB Fenty will be without a reliable source of electric power. This loss of power would result in significant degradation of the ability of the U.S. military forces to perform their contingency operations in Afghanistan. The ability of the U.S. military forces, located at FOB Fenty, to conduct operations in support of the ongoing operations in the Afghan Theatre of Operations will be significantly diminished. Projects may not be awarded and the lives of U.S.

military personnel will be placed at risk in their performance of overseas contingency operations.

The ability for the United States and its Coalition Partners to wage war in the Afghan Theatre of Operations will likely be adversely impacted, as the personnel currently housed at FOB Fenty would be without dependable electrical power services. Disrupting the service would pose a security risk, and expose critical facilities to harm. Thus, it is not possible to switch out the CFE without an unacceptable loss of power and attendant security risk to deployed military personnel.

As explained below, all of the alternative approaches considered will result in a loss in economy and efficiency in fulfilling USFOR-A’s mission critical operational requirements to provide electricity to FOB Fenty beyond 29 September 2016.

ALTERNATIVES CONSIDERED

The alternatives considered include 1) soliciting and awarding a new task order for O&M services of a CFE power plant; 2) soliciting and awarding a new task order for O&M services of a government owned power plant; and 3) use of spot generators.

Solicit and Award New Task Order for O&M of CFE Power Plant

Due to size limitations at FOB Fenty, two (2) contractors cannot be simultaneously mobilizing and demobilizing. Since only one contractor can be working onsite, there will be a significant gap in coverage of power at FOB Fenty. Therefore, the Government needs to provide an alternative site for a contractor other than IAP to install a new CFE power plant. Only one alternate site was found. It is ~1.3 miles from the current CFE power plant, and the garrison command declined to approve its use due to concerns about interference with air traffic at an adjacent helicopter landing area. This presents a barrier for soliciting and awarding a new task order, as there are no other locations available for a competitor contractor to install its CFE power plant while IAP demobilizes. It could take several weeks for IAP to demobilize. This means that if a contractor other than IAP is the awardee, it would not be able to install its CFE power plant for several weeks. Consequently, soliciting and awarding a new task order for O&M of a CFE power plant is accompanied by a significant risk of a long term power outage.

Purchase CFE Power Plant and Solicit and Award New Task Order for O&M Services

As discussed above, this alternative is being actively pursued. However, it will not take place prior to the expiration of Task Order No. 11 due to the lack of proper funds to purchase the CFE power plant.

Spot Generators

The possibility of switching to spot generators was also considered. The 249th Electrical Engineering Battalion has a limited supply of small backup generators. However, they would need a large amount of small backup generators to provide the power that the CFE power plant currently provides. This large amount exceeds the limited supply within their inventory.

Sufficient backup generators to support FOB Fenty are not currently available as GFE. It would take several months after a decision is made as to the appropriate funds to procure and install spot generators. Therefore, this option also carries a significant risk of a long term power outage. Furthermore, spot generators are inefficient and use significantly more fuel. It is estimated that using spot generators at FOB Fenty could cost an additional $7,000,000 a year for fuel and $140,000 for O&M.

In sum, given the limited space, the unreliability and inefficiency of spot generators, and the current lack of proper funds to purchase the CFE power plant, the only viable plan to ensure that USFOR-A can fulfill its mission critical operational requirements to provide electricity to FOB Fenty beyond 29 September 2016 is to issue a sole source task order to the only responsible source, IAP, to continue to provide O&M services to the existing CFE power plant.

6. EFFORTS TO OBTAIN COMPETITION:

As stated in Section 5, the Government plans to purchase the CFE power plant located at FOB Fenty and compete the O&M requirement for the GFE power plant among either the FOB MATOC contractors or the new, as yet to be solicited Power Construction and Services (PCS) MATOC contractors. As explained above, the Government will not have the appropriate funds to purchase the CFE power plant before Task Order No. 11 expires. The O&M services are available only from IAP because award to any other source would result in unacceptable delays in fulfilling the agency’s requirements.

The Government shall require the contractor to obtain as much subcontracting competition as possible. Through price analysis of cost breakdowns, the Government shall require the contractor to provide evidence that any subcontracting opportunities have been adequately competed. The evidence can include, but may not be limited to, showing quotes from multiple vendors for any direct material or direct labor that is bought through a subcontractor.

7. ACTIONS TO INCREASE COMPETITION:

As stated in Section 5, the Government has a plan to purchase the CFE power plant located at FOB Fenty and compete the O&M requirement for the GFE power plant either among the FOB MATOC contractors or the new, as yet to be solicited Power Construction and Services (PCS) MATOC contractors. As explained above, the Government will not have the appropriate funds to purchase the CFE power plant before Task Order No. 11 expires. The O&M services are available only from IAP because award to any other source would result in unacceptable delays in fulfilling the agency’s requirements.

8. MARKET RESEARCH:

A notice of intent to issue a sole source contract to IAP to provide O&M for the CFE at FOB Fenty was posted to the Federal Business Opportunities (FBO) website on 19 July 2016 (Attachment 4, FBO Notice of Intent). Within the notice, we clearly communicated that the Government intends on issuing a sole source contract to IAP to provide O&M for the CFE at FOB Fenty for a performance period of nine (9) months with an option period of three (3) months. The notice of intent closed on 18 August 2016.

Two firms submitted responses. The first firm asked when the solicitation would be available

Control No. 16-053 and expressed interest in submitting a proposal. NAP responded that this solicitation is not available for competition due to the size limitation at FOB Fenty and that competition of any subsequent action will be limited to just the current two MATOC awardees.

The second firm expressed its opinion that a sole source task order award of up to twelve (12) months was too long, and suggested that it include a base period of three (3) months and three (3), three (3) month option periods instead. NAP considered that suggestion and it was determined by the Contracting Officer (KO) that the government should agree to a shorter base period to allow for maximum competition. The KO and PDT determined that the base could be reduced the base by 3 months from 9 months to 6 months. This will allow NAP to fund the base period of six (6) months with current FY16 OMA funds.

9. INTERESTED SOURCES:

See above. No other sources have written to express interest.

10. OTHER FACTS:

Not applicable.

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.

NAME: _____________________________ DATE: _________________________

TITLE: _____________________________

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.

NAME: _____________________________ DATE: _________________________

TITLE: _____________________________

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. In accordance with FAR 15.403-4 certified cost and pricing data will be obtained as none of the exceptions to certified cost and pricing data are applicable for this contract action.

NAME: _____________________________ DATE: _________________________

TITLE: Contracting Officer

14. CONTRACTING OFFICER CERTIFICATION: I certify that this J&A is accurate and complete to the best of my knowledge and belief.

NAME: _____________________________ DATE: _________________________

TITLE: Contracting Officer

Zac Papa

Project Manager

22 SEP 2016

Ryan Parks

Program Manager

22 SEP 2016

Adriana Dunaway 22 SEP 2016

Adriana Dunaway 22 SEP 2016

Control No. 16-053

Approval

Based on the foregoing justification, I hereby approve the procurement of a firm-fixed-price, follow-on Task Order Number 0012, against base contract W912BU-11-D-0012 to continue operation and maintenance (O&M) of a contractor furnished power plant, currently installed at Forward Operating Base (FOB) Fenty on an other than full and open competition basis to the authority of FAR 16.505(b)(2)(i)(C), The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays. This approval is subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition. The total value for this task order is