17-R-0003_J&A__Redacted.pdf

Control No: 17-03 Contractor. Ho'opono

Service: Dining Facility Attendant Services

JUSTIFICATION REVIEW DOCUMENT

FAR PART 6 JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Program: Dining Facility Attendant Services for Logistics Readiness Center Hawaii

(LRC-HI)

Authority: 10 U.S.C 2304(c)(2) as implemented by FAR Part 6.302-2 - Unusual and Compelling Urgency ..

Amount:

Prepared by:

Contracting Officer:

Technical:

Requirements:

Yasmin A. Restrepo Contract Specialist Email:

Ronnie T. Sakata Contracting Officer Email:

Scott T. Shimon Contracting Officer's Representative Email:

Marla L. O'Brien Interim Director, LRC-HI Email:

DSN:

Date: 24 Oct 2016

DSN:

Date: 29 Nov 2016

DSN:

Date: 29 Nov 2016

DSN:

Date: 29 Nov 2016

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

Program Manager:

Typed Name: Marla L. O'Brien DSN:

signature: ~ie: f £1.,!{..

Legal Counsel:

Typed Name: Darryl W. Bardusch DSN:

Signature: _ _ _______ Date: 08 November 2016

Version - MAY 2016 FOR OFFICIAL USE ONLY

Special Advocate for Competition:

Typed Name: Joseph R. Scanlan

Control No: 17-03 Contractor: Ho'opono

Service: Dining Facility Attendant Services

DSN:

Signature: ~.-:.A,:~~" Date:---- --- --

Contractor: Ho'opono

Service: Dining Facility Attendant Services FAR Part 6 Justification and Approval for Other than

Full and Open Competition

1. Contracting Activity: LRC/IT Division, Regional Contracting Office, Hawaii (RCO-HI), 4131h Contracting Support Brigade (CSB) is conducting this acquisition under FAR 6.302, other than full and open competition. Mailing address is 742 Santos Dumont Avenue, Building 108, Third Floor, Schofield Barracks, Hawaii 96857.

2. Description of Action:

a. Approval is requested to award a bridge Firm Fixed Price Contract under other than full and open competition to Hawaii Department of Human Services, doing business as Ho'opono Rehabilitation Center for the Blind, hereafter referred to as "Ho'opono" and Blackstone Consulting, Inc. , 1901 Bachelot St. Honolulu, HI 96817-2432 for the period 01 February 2017- 30 April 2017 (base period), 01May2017- 31July2017 (option period 1) and 01August2017 to 31January2018 (52.217-8 extension).

b. The extension is required to provide mission critica l food service to troops pending the award of a long term, FFP contract by the RCO-HI, for a base and four (4) one-year option periods. Date of award of the follow-on contract is unknown at this time pending arbitration results .

c. Fiscal Year (FY) 2017 will be used for delivery orders issued during the base, and options periods if exercised .

An acquisition plan is not required because this procurement does not meet the thre old at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

(Insert approval authority title approved an acquisition plan in accordance with DFARS 207.103(d)(i)(B) on (insert date).

The required acquisition plan in accordance with DFARS 207.103(d)(i)(B) is currently awaiting (insert approval authority title) approval.

3. Description of Services:

a. The requirement for this bridge contract remains unchanged from the current bridge contract (W912CN-16-D-0016) which is in its 6-month short term extension, and is scheduled to expire on 31 Jan 2017. The existing contract is performance based with acceptable interim performance reviews.

b. The LRC requires Dining Facility Attendant (DFA) services for the U.S. Army Garrison (USAG) at Schofield Barracks Hawaii (SBHI) and Wheeler Army Air Field (WAAF) , Island of Oahu, Hawaii. The mission of the USAG is to provide support to the dining facilities for SBHI and WAAF. The objectives are to: feed all soldiers in support of the USAG in accordance with (IAW) Army Regulation (AR) 30-22 and Department of the Army Pamphlet (DA PAM) 30-22; to ensure that all food quality standards are met IAW Technical Bulleting Medical (TB Med) 530, and to ensure the cleanliness and sanitary conditions of the dining facilities. The outcomes to be satisfied are performance-based , identified in the Performance Requirements Summary (PRS}, with evaluation based on the Department of the Army Food Program certified Performance Assurance Plan (PAP).

Service: Dining Facility Attendant Services

c. The contractor is required to furn ish all resources, labor, planning, preparation, scheduling , cleaning and management to support DFA services for soldiers and qualified civilians to meet requirements at four (4) dining facilities at SBHI and WAAF, Hawaii.

Dining Facility Attendant services include but are not limited to, the following: cleaning dining facilities , cleaning restrooms, included in these duties are sweeping, mopping , scrubbing, trash removal , dishwashing, waxing, stripping, buffing, window washing, equipment and utensils cleaning, and other sanitation related functions in the dining facilities listed within the PWS, and may be required before, during, and after normal dining facility operating hours. The contractor shall continue to provide the prescribed services in accordance with the terms and conditions specified in its existing contract requi rements. The contractor is required to have the ability to adjust to variations in number of meals served on short notification . The management staff must be able to respond quickly to ensure appropriate and adequate staffing is available at the facilities due to troop reductions, surges and/or changes in the type of services required, with no more than 24-72 hours notification . Soldiers living in barracks and using meal cards have access to hot meals three times a day, seven days a week, 365 days a year as supported by the DFA Service contract.

Base Period : 1 Feb 2017 to 30 Apr 2017 Option Period 1: 1 May 2017 to 31 Jul 2017

Value:

Value:

FAR Clause 52.217-8 option: 1Aug2017 to 31Jan2018 Value:

Total:

Values above are based on the requiring activity's IGCE. Utilization of the 52.217-8 period is dependent upon the outcome of the arbitration court case and award of the follow-on contract for solicitation W912CN-16-R-0005.

4. Authority Cited: 10 U.S.C. 2304(c)(2), as implemented by FAR 6.302-2, Unusual and compelling urgency.

5. Reason for Authority Cited: As described at FAR 6.302-2, when the agency's need for the supplies or services is of such an unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals, full and open competition need not be provided for. The services performed under this contract are tied directly to the mission success of the Department of Defense and cannot cease without a negative impact on the Army's mission and the Mission of the 402nd AFSB, LRC Hawaii, as will be subsequently discussed. The referenced contractor has provided quality service, performance, and delivery of services at a fair and reasonable price during the course of this contract. The contractor responds quickly to changing conditions.

(a) Background:

1) Current Bridge Contract No. W912CN-16-D-0016 (Period of Performance: 1 Apri l 2016 through 31 January 2017). Hawaii Department of Human Services OBA Ho'opono Rehabilitation Center for the Blind (Ho'opono) and Blackstone Consulting, Inc.

was solicited and awarded via sole-source for a two-month base period (1 April - 31 May

Service: Dining Facility Attendant Services 2016); plus one two-month option period (1 June - 31 July 2016); plus one six-month 52.217-8 Option period (1August2016 - 31 January 2017) in accordance with FAR 6.302-2, Unusual and Compelling Urgency. The Government entered into direct negotiations with the Hawaii State Licensing Agency and Blackstone Consulting, Inc.

This bridge contract was required to prevent a break in service due to delays encountered in the solicitation phase. There was no contract extension clause 52.217-8 included in the W912CN-11-D-0010 contract so a bridge contract was the only practical method of preventing a lapse in service. Further details as follows:

• On 19 February 2016, Army Sustainment Command (ASC) requested a change in closing date of solicitation from 22 February 2016 to 29 February 2016 to review Randolph Sheppard Act priority language.

• On 25 February 2016, RCO-HI was directed by Deputy Contracting Operations, Army Contracting Command to amend the solicitation to remove the Randolph Sheppard Act priority language that was contained in the solicitation.

• Amendment 0004 was issued and revised the closing date to 3 March 2016 from previous date of 29 February 2016.

• On 3 March 2016, and were received in response to the solicitation.

• Technical evaluations of the proposals were then scheduled for week of and there was a potential of clarifications/negotiations taking place prior to awarding the new contract. At this point in time, less than half a month remained on the existing W912CN-11-D-0010 contract. Considering that a new small business contractor would need a reasonable phase-in time period , coupled with extended Government timeframes required for technical evaluations, clarifications/negotiations, preparation and approval of award documents, it was determined to be in the best interest of the Government to establish a sole source bridge contract with the incumbent to preclude a break in services.

2) RCO-HI was prepared to issue the follow-on, competitive, DFA award W912CN-16-D-0020 to a small business offerer on 11 July 2016, but received instruction from 413th Legal to hold off on award due to the Department of Education's intention to file an injunction to stop the award. Through further discussion between the Department of Justice and the Department of Education, it was agreed that arbitration will take place to address the removal of Randolph-Sheppard preference in the follow-on solicitation , which thereby excluded the State of Hawaii for follow-on award consideration. Per email dated has requested delay of competitive follow-on award until arbitration is complete.

By doing so, the State of Hawaii agreed to withdraw its request for injunctive relief and expedite arbitration. CJA has discussed withholding of the competitive follow-on award and received concurrence from Expeditionary Contracting Command (ECC) and Acquisition Support Center (ASC). In addition to the aforementioned agreement based on the discussions held between both Government parties, RCO-HI must maintain status quo, which mean the incumbent contractor would

Service: Dining Facility Attendant Services continue to work any contract action related to the scope of work under contract W912CN-16-D-0020 until a decision is reached by the Department of Justice regarding arbitration.

3) Services are deemed to be available from other sources for this contract extension, but due to ongoing arbitration and agreement reached through the discussions held between the Department of Justice and the Department of Education any course of action other than a bridge contract with the incumbent contractor, (i.e.

awarding to any other source) would result in a violation of said agreement.

(b) Alternatives:

Alternatives and their potential impact are explored below. However, based on all available information and the negative potentialities explored in the alternatives below, the best solution still is to do a bridge contract to extend the existing DFA Services contract.

1) Suspension or curtailment of dining facility attendant services. The services procured by this contract are tied directly to the mission success of the Department of Defense and cannot cease without a negative impact on the Army's mission and the mission of the USAG, Hawaii, to provide the Army with trained, disciplined, motivated and physically fit warriors who support the Army's core values.

Subsistence is a basic necessity for keeping soldiers fit for combat. The lack of dining facility attendant service will hinder the ability to provide full food services and will negatively affect soldiers' stamina, morale and concentration. This can directly impact soldier health and well-being, as well as the safety and effectiveness of training. The command would consider it unacceptable to allow a single missed meal or any serious degradation of services.

2) Use of Morale, Welfare and Recreation (MWR) facilities to feed only Soldiers on meal cards: Army Regulation (AR) 30-22, paragraph 3-39(c) authorizes the use of MWR facilities to provide food service support to enlisted personnel when no other food service support is available. Authorizations must be submitted through channels to the supporting ACOM or IMCOM region. Currently, the USAG MWR facilities do not have the staff and/or kitchen equipment necessary to service the USAG food program population nor the proposed meals required, thus this is not a viable option .

Service: Dining Facility Attendant Services

3) Use of catered meals to feed soldiers: AR 30-22, paragraph 3-41 , authorizes commercially prepared , catered meals only when food service personnel or equipment are not authorized or available and support cannot be obtained from an active Army unit with food service capability. Requests to purchase catered meals must be approved by the Deputy Chief of Staff, G-4, for the Department of the Army. To get approval from G- 4 prior to 31 January 2017 is very unrealistic and should not be relied upon as a feasible working alternative. In addition there is a risk that USC Title 10, section 2533a (the Berry Amendment) , could be violated through the use of catered meals to feed soldiers. The Berry Amendment states that appropriated funds for DoD or otherwise available to DoD may not be used for the procurement of an item (such as food) if the item is not grown, reprocessed, reused or produced in the United States, unless the agency head waives the restriction by determining that domestic food items cannot be obtained in satisfactory and sufficient quantity at the United States market prices.

4) Use of In-House Resources: Using Government personnel (military or civilian) to replace contractor personnel in the execution of duties in the contract is unrealistic at this time. In-house capabilities are not available due to lack of in-house resources. The DFA service contract has been outsourced for over ten years and there is no capacity to bring the work back in-house at this time. This capability could be redeveloped;

however, the time and resources required to accomplish such an endeavor would require the support of headquarters and echelons of support above the installation level. Such support is not present at this time.

(c) Justification: Based upon the information above, failure to obtain approval of the J & A will result in substantial duplication of costs to the Government not expected to be recovered through competition , and unacceptable mission delays. The incumbent contractor, Ho'opono, 1901 Bachelot St. Honolulu, HI 96817-2432, is the only logical source that can immediately perform a bridge contract of this magnitude and complexity for the period of 1 February 2017 to 31 January 2018, with one (1) three month option , and one (1) six month 52.217-8 extension, if needed . Approval of Other Than Full and Open Competition under statutory authority 10 U.S.C. 2304(c)(2), as implemented by FAR Part 6.302-2, "Unusual and Compelling Urgency," is the only feasible alternative until the competitive follow-on contract is in place. Ho'opono is the only source that has the necessary management and labor structure in place that will ensure continuity of services for the interim period.

(d) Impact: As shown above, there are no alternatives for this situation that are logistically feasible by the RCO-HI. The incumbent contractor is currently providing daily services that meet the needs of the Government. As has been previously mentioned cessation of food service operations would be untenable for meal card holders living in Schofield Barracks (SB) and Wheeler Army Airfield (WAAF) and there are insufficient food outlets both on and off-post to support a sudden influx of

, particularly during weekday lunch hours. There is a critical need to continue the Dining Faci lity Attendant services in support of full food services beyond 31 January 2017. USAG cannot perform its mission without the DFA services contained within this request.

Control No: 17 -03

Service: Dining Facility Attendant Services

6. Efforts to Obtain Competition: In accordance with FAR 5.202(a)(2), this action will not be synopsized.

a. Effective Competition : The requirement is for a commercial service that is well defined and available in the commercia l marketplace. Solicitation W912CN-16-R- 0005 for the follow-on contract was competed and were received.

However, because this bridge contract is a sole source action, effective competition is not applicable.

b. Subcontracting Competition: Not applicable for this action. The follow-on contract was competed as a 100% Small Business Set-aside.

7. Actions to Increase Competition: A competitive follow-on contract is expected to be awarded in FY17 by RCO-HI.

8. Market Research: Market research was already accomplished by RCO-HI in accordance with FAR Part 10 for solicitation W912CN-16-R-0005 and it indicates that this requirement has sufficient small business companies registered in NAICS 722310 that can provide DFA services.

9. Interested Sources: To date, no other source has expressed interest in the acquisition. Action was not synopsized (See paragraph 6 above).

10. Other Facts:

a. Procurement History

b. The incumbent contractor has expressed a willingness to continue performance on the OF A contract.

c. Acquisition data availability. The Government's requirements are defined in the Performance Work Statement.

d. Due to urgency, a Request for Proposal (RFP) will be sent to the incumbent contractor Ho'opono Due to the urgency of this action, Ho'opono is the most suitable contractor to fulfill this requirement within the timeframe required .

Service: Dining Facility Attendant Services

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.

Typed Name: Scott T. Shimon

Title: Contracting Officer's Representative

Date: l q \'\ oV L 0 \ (:, "

Signature:

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.

Typed Name: Marla L. O'Brien Date: l~ AW/(,, Title: Interim Director, LRC-HI Signature:

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 the following: cost analysis price Analysis should cost IGCE audit: other:

As a part of this basis, certified cost or pricing data:

will be required.

I will not be required and the following exception applies (FAR 15.403}:

Prices that will be agreed upon are based on adequate price competition.

Prices that will be agreed upon are based on prices set by law or regulation.

A commercial item is being acquired.

A waiver has been granted by the head of the contracting activity (HCA) in accordance with DFARS PGI 215.403-1 .

The contract action is a modification to a contract or subcontract for commercial item(s).

The estimated cost of the contract action is less than the threshold for certified cost or pricing data.

Typed Name: Ronnie T. Sakata

Title: Contracting Officer

Date: 29 Nov 2016

Signature:

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

Version- MAY 2016 FOR OFFICIAL USE ONLY

Typed Name: Ronnie T. Sakata

Title: Contracting Officer

Approval

Control No: 17 -03 Contractor: Ho'opono

Service: Dining Facility Attendant Services

Date: 29 Nov 2016

Signature:

Based on the foregoing justification, I hereby approve the procurement of Dining Facility Attendant services on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(2), Contracts: Competition Requirements, subject to availability of funds, and provided that the services or property herein described have otherwise been authorized for acquisition .

JOSEPH R. SCANLAN

Special Advocate for Competition

Date: -----

Signature:

Date: 2016.1 2.05 11 :05:21 • 10'00'