DLA_Fuels_Navy_PH_2_JA_Redacted.pdf

Control No. HNC-17-60-967

JUSTIFICATION AND APPROVAL

Program/Equipment: DLA-Fuels Recurring Maintenance and Minor Repair (RMMR) Navy Phase 2 services

Authority: 10 U.S.C. 2304(c)(1) 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

Prepared by:

Name: Paul Daugherty PH: 256-895-1697 Title: Contract Specialist Email: paul.c.daugherty@usace.army.mil

Contracting Officer:

Name: Frederick B. Cartes PH: 256-895-1295 Title: Lead Contract Specialist Email: Frederick.B.Cartes@usace.army.mil

Technical Representative:

Name: Bryan Merry PH: 256-895-8100 Title: DLA-Fuels PE/A Email: bryan.c.merry@usace.army.mil

Requirements Representative:

Name: Dennis L. Bacon PH: 256-895-2528 Title: Program Manager Email: dennis.l.bacon@usace.army.mil

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

Small Business

Name: Rebecca J. Goodsell

Legal Counsel:

Name: Karen Vanek

JUSTIFICATION AND APPROVAL

For DLA-Fuels Recurring Maintenance and Minor Repair (RMMR) Navy PH 2 Services

1. Contracting Activity: U.S. Army Corps of Engineers (USACE), Huntsville Engineering and Support Center (CEHNC) located at 4820 University Square, Huntsville, AL 35816- 1822.

2. Description of Action: The purpose of this justification is to ensure repair and maintenance services are available to all Navy PH 2 sites affected by an award-protest and subsequent GAO stay of the Navy PH II W912DY-16-G-0026-0003 BOA Basic Ordering Agreement (BOA) contract/order. The Contracting Officer proposes to award a short-term BOA order on a sole-source basis to the contractor (Pond Constructors) to continue services while the award-protest is resolved and any necessary corrective action is completed. The contract period of performance of this order will be a 1 month base period plus 2 each 1-month options (totaling 90 days). The 90 day period will allow for recurring maintenance and minor repair (service orders) to be executed at all Navy PH 2 sites (19 sites). This contract will be funded using FY 17 Defense Working Capital Funds (DWCF).

3. Description of Supplies/Services: The purpose of this order/contract is to provide all required Recurring Maintenance and Minor Repair Services for petroleum facilities on Navy Phase 2 sites, as shown in Appendices H of the PWS (attached). The contractor shall provide all labor, supervision, transportation, supplies vehicles, tools, materials, facilities, equipment and incidentals necessary to conduct work described in the Performance Work Statement (PWS).

The contractor shall properly maintain and repair petroleum systems and facilities in order to provide compliance with applicable code criteria, and federal, state and local regulations. The list of facilities and equipment/components included in this order are identified in Appendices H of the BOA order PWS. A petroleum system is defined as an underground or above ground storage tank, connected piping, ancillary equipment and appurtenances, and containment system, if any. Minor construction incidental to the repair may be required. Periodic testing of systems/components is included within the definition of maintenance and repair. Other repairs may be ordered by the installation for associated non-petroleum systems such as separators, piping, tanks, sewers, storm drains, or requirements to meet compliance with applicable standards, codes, laws and regulations.

Required tasks are further described in Section 5 of the PWS.

4. Authority Cited: 10 U.S.C. 2304(c)(1) 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. “For DoD, NASA, and the Coast Guard, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in (B) Unacceptable delays in fulfilling the agency’s requirements. (See 10 U.S.C. 2304(d)(1)(B))".

5. Reason for Authority Cited: The sites have been without services since 13 March 2017 and the gap in coverage is becoming untenable. A continuing need exists to provide Navy PH 2 customers with uninterrupted contractual coverage. The recently awarded order/contract is under a GAO stay because of an award-protest. Pending resolution of the protest and any necessary corrective action, services must be restarted and maintained.

There is currently a gap in services; therefore, an acquisition solution (this sole source award of a BOA order) must be implemented to resolve the gap in services. Each passing day without services increases the urgency. Only the previous contractor can provide immediate support. Ramifications of failing to continue contract coverage is explained in the paragraphs that follow.

Continuous DLA-Fuels RMMR support is necessary for the Navy Phase 2 sites to successfully perform their critical fuel mission responsibilities. The proposed contract provides recurring maintenance support and minor repair for DLA-Energy (DLA-E) Capitalized petroleum systems, and facilities. A petroleum system is defined as an underground or above ground storage tank, connected piping, ancillary equipment and appurtenances, and containment system, if any. Periodic testing of systems/components, on a quarterly, semi-annual, and annual basis, is included within the definition of maintenance and repair. Interruption of these fuel maintenance and minor repair support services for even a short period of time, would potentially disrupt critical operational mission requirements for on and off load operations as well as fueling US.

Navy fleet/vessels, aircraft and ground support vehicles. Included in these 19 sites is Craney Island, the largest Navy Defense Fuel Supply Point (DFSP) which stores millions of barrels of multiple grade fuels. These systems directly support the National Command Authority and Combat Command Operational Plans and Orders in defense of the United States and its allies. Loss of fuel availability/operations will eventually disrupt operations at multiple Naval installations, possibly sidelining multiple naval vessels, aircraft, and support vehicles along the eastern seaboard as well as other allied ships and aircraft.

Failure to continue support for the recurring maintenance and minor repair services would directly and significantly impact ship, aircraft, armament, navigation, power generation and other infrastructure maintenance and repair schedules. These schedule delays would result in additional costs to support work around activities necessary to minimize the impact on support of the Navy installations/DFSPs/Activities as well as create an increased environmental and safety risk. This sole source BOA order will provide DLA-Energy and Navy Phase 2 installations customers with the critical contractual coverage required while the GAO stay is in effect and the protest is being adjudicated.

Awarding a sole source BOA order to the previous contractor who is the only contractor capable of performing the work immediately would present an economical, effective and a workable solution for the Government, allows the contractor to quickly get back in the

(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 contract for this requirement was accomplished using full and open competition, include a detailed explanation of the changed circumstances causing this action to now limit the sources.

The changed situation is that our re-compete action was subjected to a bid-protest and has been put on hold.

(6) An explanation of any unusual patterns that 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 procurement and whether there have been any significant changes.

N/A

b. Other facts. Provide any other facts necessary to justify limiting competition that were not previously stated.

N/A

12. Technical Certification: “I certify the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.”

Name: Bryan Merry Title: DLA-Fuels PE/A Date: 13 APRIL 2017

13. 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: Dennis L. Bacon Title: DLA-Fuels PgM

14. Fair and Reasonable Cost Determination: “I determine that by applying cost analysis techniques described at FAR 15.404(c) to the cost proposal which will be required from the contractor, the Government will obtain a fair and reasonable price for the requirement described herein.

Name: Frederick B. Cartes Title: Contracting Officer

15. Procuring Contracting Officer Certification: “I certify this justification is accurate and complete to the best of my knowledge and belief.”

Name: Frederick B. Cartes Title: Contracting Officer

APPROVAL

Based on the foregoing justification, I hereby approve the award of the DLA-Fuels Recurring Maintenance and Minor Repair (RMMR) Navy Phase 2 services BOA Order to Pond Constructors, on a sole source basis pursuant to the authority of 10 U.S.C. 2304(c)(1) 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, for the total estimated amount of subject to availability of funds and provided that the services herein described have otherwise been authorized for acquisition.

Frederick B. Cartes Contracting Officer U.S. Army Corps of Engineers

Date