Jusification_ _Approval.pdf

Control No. HNC-16-6727

Source Selection Information – See FAR 2.101 and 3.104

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

Program Manager:

Legal Counsel:

Justification and Approval

Other than Full and Open Competition Electronic Security System (ESS) V MATOC

1. Contracting Activity: United States Army Engineering and Support Center, Huntsville Engineering and Support Center (CEHNC) located at 4820 University Square, Huntsville, Alabama, 35816-1822.

2. Description of Action: The purpose of this justification is to obtain approval for a modification to all ESS V contracts to extend the ordering period through .

The additional time is required to provide continued technical support, procurement, installation, monitoring, maintenance and service for ESS, Utility Monitoring and Control Systems (UMCS) and related systems. The follow-on ESS VI Multiple Award Task Order Contract (MATOC) was initiated in November 2013; however is not expected to be awarded until . The unexpected number of proposals and additional requirements due to questions received by the offerors extended the proposed award date from to the current anticipated award date of . The extension of the ordering period will allow for the completion of the transition period from the current ESS MATOC holders to the successful contractors under the follow-on contract and provide coverage in the event that any post award protests are received in response to ESS VI. Extension of the ordering period will ensure there isn’t a gap in these mission critical services until the follow-on MATOC is in place. The original capacity of the ESS V contract was $900 million dollars in which $250 million was allocated to the restricted pool for small businesses and $650 million was allocated to the unrestricted pool for large businesses. Listed in the table below are the contracts to be extended and the requested extension period. As of April 2016, $502,605,781.55 of capacity has been utilized leaving $397,394,218.45 of available capacity. A balance of $79,960,985.35 remains in the restricted pool and $317,433,323.10 in the unrestricted pool. Based on the burn rate over the past five years, the remaining capacity is adequate for the extended ordering period of and an increase is not necessary.

Table 1: ESS V Vendor Pools

Contract Contractor Award Date

Current POP End Date

Ordering Period

Extension Business Size

W912DY-11-D-0001 BAE Systems Technology Solutions & Svcs 14-Jan-11 13-Jul-16

LB

W912DY-11-D-0002 InDyne, Inc. 14-Jan-11 13-Jul-16 LB

W912DY-11-D-0003 Johnson Controls Building Automation Svcs 14-Jan-11 13-Jul-16

LB

W912DY-11-D-0004 Science Applications Intl. 14-Jan-11 13-Jul-16 LB W912DY-11-D-0005 Secure Mission Solutions, Inc. 14-Jan-11 13-Jul-16 LB

W912DY-11-D-0017 Atlantic Commtech Corporation 7-Jan-11 6-Jul-16 SM W912DY-11-D-0018 Evergreen Fire Alarms 7-Jan-11 6-Jul-16 SM W912DY-11-D-0019 Infotec Systems Corp. 7-Jan-11 6-Jul-16 SM W912DY-11-D-0020 Low Voltage Wiring, Ltd. 7-Jan-11 6-Jul-16 SM W912DY-11-D-0021 SEI Group, Inc. 7-Jan-11 6-Jul-16 SM W912DY-11-D-0022 Trofholz Technologies, Inc. 7-Jan-11 6-Jul-16 SM

3. Description of Supplies/Services: The U.S. Army Engineering and Support Center, Huntsville maintains Mandatory Centers of Expertise (MCX) in both Intrusion Detection Systems (IDS) and UMCS. As MCXs, CEHNC provides support to the Department of the Army, other Department of Defense (DoD) agencies and non-DoD agencies in ESS, UMCS, and related systems for the Procurement and Installation (P&I) of these systems at various facilities. The objective is to procure and install ESS and physical security and/or force protection measures as well as other Automated Control Systems. Including building automation systems, fire alarm systems (FAS) and life safety systems. Procure and Install services include, chemical/biological/radiological detection/response systems, mass notification systems (MNS), and other related electronic systems, which are compliant with the United States (U.S.)

Government Regulations, U.S. National Codes and applicable industry standards. The ESS work consists of site surveys, preparation of technical data packages, procurement and installation and testing of hardware and software. ESS work also includes security and/or force protection measures such as barriers, fencing, gates, window treatments, hardening and lighting.

Certain projects require service, maintenance, repairs, and/or upgrade of the aforementioned existing systems. In addition, certain projects also require vulnerability assessment and studies for preparation of an ESS justification. An ESS requirement consist of five (5) sub-systems:

a. Intrusion Detection Systems

b. Electronic Entry Control System (EECS) or Automated Entry Control Systems (ACES))

c. Video Systems, which includes Closed Circuit Television (CCTV) systems

d. Data Transmission Systems(DTS), including information assurance, data processing and data storage

e. Command and Control System

4. Authority Cited: 10 U.S.C. 2304 (d) (1) (B) as implemented by Federal Acquisition Regulation (FAR) 6.302-l (a) (2) (iii) (B); Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited: This document addresses major factors/events that drive the mission and the necessity for an extension to the current ordering period.

a. The ESS V contracts identified, provide a uniquely qualified group of contractors that allow the US Army Corps of Engineers (USACE) to fulfill the ESS requirements of various DoD and non-DoD agencies without experiencing unacceptable delays in requirement execution. Over the five year ordering period, the contractors in the

MATOC pool have demonstrated their unique skills, knowledge and qualifications to execute specialized ESS projects. These contractors are familiar and experienced in the USACE business processes, applicable Government regulations and technical criteria required for successful execution of ESS projects. Installation of electronic security systems is a highly prioritized mission and an important force protection measure. Failure to procure and maintain these services will have an adverse impact to the life and safety of the Department of Defense, military, civilian, and contractor personnel.

b. No other contractors are able to provide the level of support required during this period due to the complex and unique nature of the ESS program. The time it takes to solicit contractors with the level of experience and meet the security requirements will result in unacceptable delays and mission failure. Continued installation and maintenance of electronic security systems within CONUS and OCONUS locations is critical to mission success and is a high priority to DoD and Non DoD agencies world-wide.

c. CEHNC is currently awaiting the award of the new ESS VI MATOC estimated at $450 million dollars, with the current MATOC set to expire in July 2016.

Failure to continue these unique services will have a detrimental effect on the safety and security of DoD and Non DoD agencies worldwide. The Government must ensure that contractors who are unfamiliar with the ESS processes and procedures are not at a disadvantage and have a clear understanding of all the applicable regulations and procedures. ESS VI has incorporated lessons learned and procedural changes exist in the follow-on that were not included in the current MATOC. New solicitation processes exist to include allowing small businesses to participate in requirements previously set aside for large businesses. It will be difficult for any new MATOC holder to adequately participate if they are unfamiliar with the ESS process which will negatively impact competition.

d. Any lapse in the ordering period would result in new requirements awarded as stand-alone actions as opposed to task orders. This would result in increased administrative costs (see table 3 below) and longer lead times to competitively solicit new requirement on the open market. If CEHNC were to re-solicit this requirement, the current time frame for award would fall within the 4th quarter. It would not be possible for the new awardees to meet the schedule for all new requirements based on current Procurement Acquisition Lead Times (PALT) in which the MATOC is the most efficient stream line process.

Below is the list of FY16 projects currently being worked by the ESS Project Delivery Team (PDT) with an estimated value of . Additional work is anticipated in the amount of during the extended ordering period. Adequate capacity remains to support the projected projects identified during the extended period.

Table 2: FY 16 Projects

e. It is not practical to consider a new MATOC at this time when the ESS VI MATOC is scheduled to be in place by . To execute one MATOC to satisfy the identified needs/capacity for the requested ordering period would take at a minimum of 18 months. This would result in a duplication of effort and cost for a procurement that is already in process. In addition, it would also result in unacceptable delays and failure to meet our customer requirements.

f. Stand-Alone “C” Contracts. The proposed program cost listing set forth in Table 3 below is a representative comparison of the contract costs to award customer requirements by standalone type “C” contracts versus placing task orders under an existing MATOC contract less than $10M. Accordingly, with an estimated award cost of $150,000 for each stand-alone “C” contract and estimated completion time of 6 to 8 months, 27 pending requirements could cost about $4,050,000 and delay award of the services due to extended time lines associated with Source Selection and Evaluations outside of the normal MATOC award environment (i.e. sheer volume of contractor’s competing in stand-alone award approach.) It will cost approximately $30,000 to award a MATOC task order with an estimated completion time of two to three months. Twenty-Seven requirements would cost approximately $810,000. Awarding just 27 MATOC task orders rather than 27 standalone contracts would result in a savings of approximately $3,240,000.

Table 3: Cost Savings by Using Existing MATOC Award Description Number of

Actions Approx. Unit Cost

Approx. Final Cost

Type “C” Competitive Awards <10M

27 $150,000 $4,050,000

Award MATOC Task Order

27 $30,000 $810,000

Cost Savings by Using MATOC Task Order

$3,240,000

6. Efforts to Obtain Competition: CEHNC is currently pursuing award of the follow-on ESS VI MATOC with an expected value of $450,000,000.00 over a period of five years.

Pursuant to FAR Part 16.505, the new ESS VI MATOC is being procured under an acquisition strategy that will position vendors to participate for ESS services task order awards by a “competitive evaluation” process. Most important, this new MATOC will allow future service awards that continue to assure fair opportunity in accordance with the current acquisition regulatory guidelines. Requests for proposals will be issued to the contractors which include reasonable response times and disclose the basis upon which selection will be made based on significant factors and subfactors, including cost or price. Task Orders will be made on a best value basis, will include a written statement documenting the basis of the awards and the relative importance of the quality and price or cost factors, and post award debriefings will be given, as required, in order to provide contractors valuable feedback that may enhance their competitiveness on future orders. As required by FAR 5.201(b), the Government also issued a special notice on 15 March 2016 of its intent to extend the current ordering period.

The Government will use the procedures in FAR 16.505(b)(1), Fair Opportunity, for each task order awarded under this contract to ensure adequate competition is obtained for each task order.

7. Actions to Increase Competition: Full and open competition is being sought under the follow-on MATOC and the “Sources Sought” announcement for the follow-on ESS VI MATOC.

The Sources Sought was structured to identify as many vendors as possible that are qualified to perform these requirements. Sources sought results from the current MATOC and the special notice results received from this action indicate sufficient contractors who are capable and are interested in performing the work required did participate in the acquisition process for ESS VI.

CEHNC’s goal is to have a robust and capable vendor pool. This strategy enabled CEHNC to provide a full range (large and complex or simplified and limited) of ESS services. With this MATOC strategy, more customer service requirements, whether complex or minor, has been primary one of which was applicable to this requirement. identified past performance data supporting their capabilities that are applicable to the ESS requirement. appear generally capable of performing ESS work, but awarding new contracts for this specific purpose was determined not feasible since the contracts would not be awarded in time to fulfill the Government’s needs. Additionally, the follow-on MATOC solicitation was publicized under full and open competition on Federal Businesses Opportunities website and afforded all interested and capable businesses adequate time to respond and participate in the acquisition process to include and .

10. Other Facts:

a. Procurement history.

(1) These services were previously procured on the ESS V MATOC that were awarded in January 2011. ESS IV MATOC was awarded in December 2005.

The most recent ESS contract suites are summarized below:

ESS V in 2011: six (6) small businesses and five (5) large businesses; 900 million total capacity

Table 5: ESS V Contracts

Contract Contractor Business

Size

W912DY-11-D-0001

BAE Systems Technology Solutions & Svcs LB

W912DY-11-D-0002 InDyne, Inc. LB

W912DY-11-D-0003

Johnson Controls Building Automation Svcs LB

W912DY-11-D-0004 Science Applications Intl. LB W912DY-11-D-0005 Secure Mission Solutions, Inc. LB W912DY-11-D-0017 Atlantic Commtech Corporation SM W912DY-11-D-0018 Evergreen Fire Alarms SM W912DY-11-D-0019 Infotec Systems Corp. SM W912DY-11-D-0020 Low Voltage Wiring, Ltd. SM W912DY-11-D-0021 SEI Group, Inc. SM W912DY-11-D-0022 Trofholz Technologies, Inc. SM

ESS IV in 2005 and 2006: five (5) small businesses and five (5) large businesses; $500 million total capacity.

Table 6: ESS IV Contracts

Contract Contractor Business Size W912DY-05-D-0013 Williams Electric Company, Inc LB

W912DY-05-D-0014 Johnson Controls Building Automation Systems

LB

W912DY-05-D-0015 Siemens Government Technologies Inc LB W912DY-05-D-0018 SEI Group, Inc SM W912DY-05-D-0019 Low Voltage Wiring, LTD SM W912DY-05-D-0027 Infotec Systems Corp LB

As previously stated the total capacity for this MATOC is $900 million dollars. Based on recent calculations 29.7 % of awards have been to small businesses. CEHNC anticipates a similar allocation to the restricted pool, during the extended ordering period.

(2) The previous contracts were awarded under full and open competition.

(3) N/A

(4) N/A

(5) N/A

(6) N/A

(7) N/A

b. Other facts. N/A

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 Exception to Fair Opportunity 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 to the Government for this contract action will be fair and reasonable.

I hereby determine that the anticipated cost for this contract action will be fair and reasonable based on the use of the previously evaluated and negotiated option year rates, verifying that they are in line with the previously established rates identified in the base contract. Additionally, all task orders and modifications to them will be evaluated based on comparisons of offers received and against an Independent Government Estimate, as necessary. Past costs for similar efforts, materials, and equipment and any handling fees/markups under current and past task orders will be used as a basis for negotiation. All terms and conditions of contract will also be verified as being followed – to include using the Government’s Defense Base Act Insurance Policy for OCONUS work.

Contracting Officer: Gloria Harris

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

Contracting Officer: Gloria Harris

Approval

Based on the foregoing justification, I hereby approve the extension of the ordering period through for the procurement of additional services for the procurement, installation, monitoring, maintenance of electronic security systems on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304 (d)(1)(B) as implemented by FAR 6.302-1 (a)(2)(iii)(B); Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for this acquisition.

Date: Colleen O’Keefe Center Chief of Contracting