W912EF25Q0013 JA sole source WOSB FINAL Redacted.pdf

Control Number: 25-0011

Sole Source Justification Women-Owned Small Business

NWW HQ Elevator Maintenance Services

1. CONTRACTING AGENCY: U.S. Army Corps of Engineers (USACE), Directorate of Contracting, Walla Walla District (CECT-NWW)

2. DESCRIPTION OF ACTION: The U.S. Army Corps of Engineers, Walla Walla District, has a hybrid firm-fixed price and time-and-materials, commercial requirement for elevator maintenance services at the district’s headquarters building located at 201 North 3rd Ave, Walla Walla, WA.

3. DESCRIPTION OF SUPPLIES/SERVICES: The Walla Walla District Headquarters building requires routine and nonroutine maintenance to three (3) elevators in accordance with the PWS, manufacturer’s instructions, ASME A17, and applicable OSHA standards.

4. AUTHORITY CITED:

A. FAR 6.302-5(a) (2) Full and open competition need not be provided for when–

(i) A statute expressly authorizes or requires that the acquisition be made through another agency or from a specified source

B. FAR 6.303-1 (a) A contracting officer shall not commence negotiations for a sole source contract, commence negotiations for a contract resulting from an unsolicited proposal, or award any other contract without providing for full and open competition unless the contracting officer-

(1) Justifies, if required in 6.302, the use of such actions in writing;

(2) Certifies the accuracy and completeness of the justification; and

(3) Obtains the approval required by 6.304.

C. FAR 19.1506 (b), (1) where a contracting officer shall consider a contract award to a WOSB concern (including EDWOSB concerns) eligible under the WOSB Program on a sole source basis (see 6.302-5(b)(7)) before considering small business set-asides (see 19.203 and subpart 19.5) provided none of the exclusions at 19.1504 apply and-

(1) The acquisition is assigned a NAICS code in which the Small Business Administration (SBA) has determined that WOSB concerns are substantially underrepresented in Federal procurement.

(2) The contracting officer does not have a reasonable expectation that offers would be received from two or more WOSB concerns (including EDWOSB concerns); and

(3) The conditions in paragraph (c) of this section exist.

(c) (1) The anticipated award price of the contract, including options, will not exceed-

(i) $6.5 million for a requirement within the NAICS codes for manufacturing; or

(ii) $4 million for a requirement within any other NAICS codes.

(2) The EDWOSB concern or WOSB concern has been determined to be a responsible contractor with respect to performance.

(3) The award can be made at a fair and reasonable price

5. REASON FOR AUTHORITY CITED:

Background: This is the Government’s second attempt at awarding a base year plus two option years contract for HQ Elevator Maintenance Services. The previous action, Contract No. W912EF25C0003, was solicited IAW FAR 19.502-2(a) - Total small business set-asides. During the post-award phase, it became evident that the awarded prime KTR was acting as a pass-through entity, and a large business subcontractor was going to perform the majority of work. In addition, the prime KTR failed to timely communicate, submit required submittals, or perform under the terms and conditions of the contract. As a result, the contract was terminated for cause.

Based on the quotes received from Contract No. W912EF25C0003 and market research, the Contracting Officer does not have a reasonable expectation that offers would be received from two or more WOSB concerns (FAR 19.1506 (b) (2)).

As such, the Government plans to resolicit and sole source IAW FAR 19.1506 –to Vertical Options.

Justification: Full and open competition need not be provided when a statute expressly authorizes the acquisition to be made from a specified source, such as a sole source award under the WOSB Program (FAR 6.302-5; FAR 19.1506). FAR 19.1506(b)(1) states the Government SHALL consider an award to a WOSB on a sole source basis before considering a total small business set aside.

The Government has confidence in Vertical Options, who serves as the elevator contractor for three of the six operating projects within the Walla Walla District. Vertical Options has proven to be responsible, is active in SAM, has no exclusions, and SBA has determined NAICS code 561210 - Facilities Support Services, WOSB to be substantially underrepresented (see market research report).

a. Impact: The headquarters building requires elevator maintenance services to remain compliant with the Occupational Safety and Health Administration (OSHA) and Americans with Disabilities Act (ADA) standards. The district has gone without monthly routine maintenance from a responsible and qualified business since May 2024 and without monthly routine maintenance the elevators pose a safety risk to employees. If the Government does not sole source to Vertical Options the Government would need to find an alternate servicer, which would take longer, may be more expensive, and may ultimately result in yet another subcontract.

b. Alternatives: As states under the Justification section above, the Government shall consider a WOSB set aside before a total small business set aside as long as the conditions IAW FAR 19.1506(b) have been met.

If the conditions had not been met, we would solicit IAW FAR 19.502-2(a) using a total small business set aside and FAR 52.212-2 Evaluation Factors for Commercial Items to mitigate risk and ensure we award to a contractor who is technically capable. Note, this would increase the procurement acquisition lead time by at least 45 days based on Northwestern Division Contracting Labor Estimating tool.