17-R-0012_GOCO_Laundry_JA_Redacted.pdf

Control No: 17-17 Contractor: Penn Enterprises

Service: GOCO Laundry

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: GOCO Laundry 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: Deborah Olivieri DSN:

Contract Specialist Date:

Email:

Contracting Officer: Ronnie T. Sakata DSN:

Contracting Officer Date:

Email:

Technical: Corinne Nomura DSN:

Contracting Officer’s Representative Date:

Email:

Requirements: Marla L. O’Brien DSN:

Interim Director, LRC-HI Date:

Email:

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: _ Date: ____________________

Legal Counsel:

Typed Name: Darryl W. Bardusch DSN:

Signature: Date: __1/23/2017____

1/25/2017

1/18/2017

1/20/2017

1/25/2017

Service: GOCO Laundry

Version – MAY 2016 FOR OFFICIAL USE ONLY preparation attire as it relates to life, health, and safety. Under this contract, the contractor shall provide laundry support service to all Logistics Readiness Center-Hawaii (LRC-HI)-supported units stationed on Oahu. The contractor will provide all personnel, management, materials, and transportation to perform the operation of the GOCO Laundry Facility. Work to be performed are laundry services, preventative maintenance, repair of Government Furnished Property (GFP), and housekeeping services. The contractor shall operate the Pickup/Delivery Service to all locations as stated in the

PWS.

The IGCE for the bridge effort as submitted by the Requiring Activity Upon receipt of proposals and analysis, negotiations with the offeror may be required. The Option Period will only be exercised if delays persist in the award of the follow-on contract

Base Period: 01 March 2017 to 31 May 2017 Value:

Option Period 1: 01 June 2017 to 31 August 2017 Value:

Total:

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 incumbent 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.

Due to delays encountered with Solicitation W912CN-16-R-0001 a Bridge of three months and three month Option Period will allow sufficient time for the acquisition team to conduct evaluations, clarifications/discussions/negotiations (if required) and prepare award documents for review and approval. The bridge is estimated at It is the intent of the RCO to proceed with evaluating the offer received from Solicitation W912CN-16-R-0001 and make award prior to expiration date of the bridge contract.

(a) Background:

1) The current contract, W912CN-13-D-0012 (Period of Performance 1

September 2013 to 31 August 2016) was solicited as a competitive 100% Small Business Set Aside (SBSA) and awarded as a Firm Fixed Price Requirements Contract to Penn Enterprises, Inc. The RCO-HI exercised one six-month option (1 September 2016-28 February 2017) under FAR 52.217-8.

Service: GOCO Laundry

Version – MAY 2016 FOR OFFICIAL USE ONLY

2) The Regional Contracting Office (RCO) – Hawaii, 413th Contracting Support Brigade (CSB) was preparing to make a direct award under FAR Part 8.7 Acquisition from Nonprofit Agencies Employing People Who Are Blind or Severely Disabled under solicitation number W912CN-16-R-0001, through the AbilityOne program,

3) Due to several changes and delays encountered during the solicitation and negotiations phases (as outlined below), award of contract W912CN-17-D- 0001 will not be awarded in time to provide continued service. RCO-HI has already exercised the contract extensions under FAR 52.217-8, therefore a bridge contract is the only means of preventing a lapse in service.

Service: GOCO Laundry

Version – MAY 2016 FOR OFFICIAL USE ONLY

4) The RCO-HI intends to continue negotiations with to award contract under the AbilityOne program. However, even if price reasonableness is determined, this service contract would then go through the process for addition to the Procurement List, performed in accordance with the Javits-Wagner-O’Day Act and the rules of the Commission, a process that can take 80 to 120 days, which would cause a lapse in service.

5) If RCO-HI is unable to determine Price Reasonableness through negotiations with a new competitive will be solicited and awarded as a Firm Fixed Price Requirements Contract.

(b) Alternatives: Alternatives and their potential impact are explored below. Based upon all available information and the negative potentials explored in the alternatives below, the best solution is to award a bridge contract to extend the existing GOCO Laundry Services contract.

Service: GOCO Laundry

Version – MAY 2016 FOR OFFICIAL USE ONLY

1) Allow lapse in service: These services provide critical support to TAMC and its tenants, patients and workforce. These contracted services also sustain the USAG-HI family support base. A break in services for a hospital the size of TAMC would be catastrophic to the military and dependent population. Without the necessary laundry services, TAMC could have a potential shut down, incurring additional cost to the Government if Military and Dependents were required to seek medical services in private sector instead of TAMC. Disruption of support will result in a loss of services crucial to life, health, and safety of soldiers and family members.

2) Use of In-House Resources: This contract ensures linen are cleaned, transported and stored appropriately in order to avoid contamination, which can lead to dangerous and costly infections within patients and the hospital. Hospital linens have specific cleaning requirements before soiled items can be considered safe for reuse within the hospital. Using Government personnel (military or civilian) to replace contractor personnel in the execution of the duties in the contract is unrealistic at this time. In-house capabilities are not available due to lack of in-house resources.

In-House laundry execution would be a very complicated and costly process. There are many factors to take into consideration when laundering hospital linen, including the guidelines placed by the Center for Disease Control (CDC) including OSHA regulation 29 CFR 1910.1030, and the Healthcare Infection Control Practices Advisory Committee (HICPAC) when handling laundry and bedding from a hospital such as ventilation, transportation, the appropriate use of chemicals and the equipment all playing an important role in getting the linen properly cleaned. The complex needs to properly cleaning hospital soiled linens and the difficulty in maintaining surveillance is what led TAMC to contract their linen needs out to commercial launderers.

3) Award bridge contract to another contractor: There would be an untenable disruption in services if a contractor other than the incumbent contractor, Penn Enterprises, is awarded the bridge contract. Penn Enterprises is the only source with the skilled personnel, material, and experience available to perform the currently provided services on such short notice. It is neither cost effective nor realistic for the LRC to expect a new Contractor to be able to perform during the brief interim period before the award of the follow on contract, W912CN-17-D- 0001, as the training required, expectation to meet the various complex mandatory regulations governing performance of this contract; the transfer and accountability of a large amount of Government Furnished Property to a new contractor; and continuity of service Finally, the turnover and training of the large inventory of GFP would not be cost effective for a short term bridge contract.

Service: GOCO Laundry

Version – MAY 2016 FOR OFFICIAL USE ONLY

(c) Impact: TAMC services all branches of the military on island. Their Mission:

“TAMC serves as the premier Health Readiness Platform in the Pacific by providing high quality, safe, patient centered healthcare; sustaining and building medical capacity and capability; and ensuring medically ready force in order to optimize the health, readiness and resiliency of America’s Fighting Forces.

Neither Navy nor Air Force have hospital on island that provide the patient care and services TAMC provides.

Failure to award this bridge contract will result in a lapse in service and would have several severe impacts to TAMC, patients, the workforce and the overall hospital safety and sanitation. Soldier and tenant readiness and health would be severely degraded due to the following reasons: proper organizational health, sanitation requirements and meal preparation attire as it relates to life, health, and safety would be inaccessible, GFP will not be maintained, and repair parts and supplies would be unavailable. Contracted services that would stop immediately include:

Laundry contract service in direct support of TAMC;

Non-hospital laundry, i.e. uniforms, meal preparation attire, bedding, etc.;

Preventive maintenance of laundry equipment;

Service delivery pick-up and drop offs to and from location.

The overall benefits of this Bridge contract to the Army by continuing this requirement significantly outweighs any increased cost of administration and reduces the Army’s risk liability.

6. Efforts to Obtain Competition: In accordance with FAR 5.202(a)(2), this action will not be synopsized. Due to the unusual and compelling urgency resulting from the delays in negotiating the follow-on contract W912CN-17-D-0001 under the AbilityOne program, insufficient time is available to conduct a competitive source selection for the required services by 28 February 2017.

a. Effective Competition: Because this is a sole source action, effective competition is not applicable.

b. Subcontracting Competition: due to urgent and compelling nature of this action, Subcontracting Competition is not applicable.

7. Actions to Increase Competition: If RCO-HI is unable to determine Price Reasonableness through negotiations with , a new competitive will be solicited and awarded as a Firm Fixed Price Requirements Contract.

8. Market Research: Market research was performed under Solicitation W912CN-16-R- 0001 and indicates that this requirement has sufficient small business companies registered in NAICS 812332 that can provide GOCO Laundry Services. Results indicate numerous small business are available to perform these services.

Service: GOCO Laundry

Version – MAY 2016 FOR OFFICIAL USE ONLY

Economic Group NAICS 812332 NAICS 812332 in Hawaii 8(a) Certified 20 0 SDB Certified 13 0 HUBZone Certified 16 0 Service-Disabled Veteran 50 0 Veteran 90 0 Woman or Women Owned 113 0

9. Interested Sources: This interim contract has not been synopsized pursuant to the exception in FAR 5.202(a)(2). Penn Enterprises has been notified of the bridge contract requirement and is capable to perform these services. Penn Enterprises is the only known firm capable to fulfill this requirement in such a short timeframe. To date, no other sources have written to express interest in the acquisition.

10. Other Facts: Due to urgency, a Request for Proposal (RFP) will be sent to the incumbent contractor Penn Enterprises. Due to the urgency of this action, Penn Enterprises (incumbent) is the most suitable contractor to fulfill this requirement within the timeframe required.

a) Procurement History:

(1) Contract Number W912CN-13-D-0012 was a competitive 100% SBSA solicitation awarded to Penn Enterprises on 25 July 2013 as a firm fixed price requirements contract with a one-year base period and two 12 month option periods.

(2) Contract number W912CN-11-D-0018 was a competitive 100% SBSA solicitation awarded to Crown Preferred Laundry Services on 29 June 2011 as a firm fixed price requirements contract with a one-year base period and one 12 month option period.

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.

Date: _________________ Brenda Mance Supervisor Contract Management, LRC-HI

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.

Date: _________________ Marla O’Brien Acting Director, LRC-HI

Service: GOCO Laundry

Version – MAY 2016 FOR OFFICIAL USE ONLY

Service: GOCO Laundry

Version – MAY 2016 FOR OFFICIAL USE ONLY

Approval Based on the foregoing justification, I hereby approve the procurement of GOCO Laundry Services on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(2) as implemented by FAR Part 6.302-2 -- Unusual and Compelling Urgency, subject to availability of funds, and provided that the services or property herein described have otherwise been authorized for acquisition.

Lorenzo Lopez Date: 23 Jan 2017 Division Chief, IT/LRC