JAVermeer.pdf

Control No. 14-0008

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. CONTRACTING AGENCY: United States Army Corps of Engineers (USACE), Transatlantic Division, Middle East District (TAM), 201 Prince Frederick Drive, Winchester, VA. 22602.

2. DESCRIPTION OF ACTION: Award of a new Foreign Military Sales (FMS) Firm- Fixed-Price services contract for field training on the Vermeer horizontal drilling system in Egypt on a sole source basis. This procurement is being made pursuant to the Letter of Offer and Acceptance (LOA), FMS Case EG-B-HCP dated May 31, 2010 and via Amendment 1 to the LOA dated May 25, 2011 between the United States Government and the Government of Egypt (GoE) Ministry of Defense (MOD). USACE is the implementing Agency for this action.

3. DESCRIPTION OF SEVICES/SUPPLIES: This acquisition is for field training on the Vermeer horizontal drilling system and procurement of associated tools, materials, and parts necessary to complete the training on location in the country of Egypt. The training site will be in the vicinity of Mersa Matrouh, approximately 500 KM from Cairo Egypt. FMS case funds will be used for this procurement. This estimated price of the contract is $ 105,000 and the anticipated award date is March 31, 2014.

4. AUTHORITY CITED: 10 U.S.C. 2304(c)(4), as implemented by Federal Acquisition Regulation (FAR) 6.302-4(a)(2), International Agreement and Defense Federal Acquisition Regulation Supplement (DFARS) 206.302-4(c), International Agreement.

5. REASON FOR AUTHORITY CITED: Per DFARS 225.73, Acquisitions for Foreign Military Sales, an acquisition pursuant to an LOA may be sole source if directed by the LOA. Per DFARS 225.7304, Customer Involvement states, “The contracting officer shall honor such requests from the FMS customer only if the LOA or other written direction sufficiently fulfills the requirements of FAR Subpart 6.3.” The GoE provided TAM the LOA dated May 25, 2011, requesting award on a sole source basis for the procurement of field training and associated tools, materials, and parts as described in paragraph 3 above, to Vermeer Corporation. Originally, contract W912ER-08-C-0031 was awarded on a country directed sole source basis to Vermeer Corporation to install their horizontal drilling system, provide field training, standard commercial warranty services, and spare parts. Consequently, the field training was delayed and not completed due to host country issues concerning the location of the training. It is in the best interest of the Government to award this acquisition to the country directed sole source vendor Vermeer Corporation for the purposes of specialty training, unique parts, and warranty services.

6. EFFORTS TO OBTAIN COMPETITION: Based on information in paragraph 5 above, competition is not required in compliance with the LOA. Per FAR 5.202(a)(3) Exceptions, synopsis of the proposed contract action is not required.

Control No. 14-0008

7. ACTIONS TO INCREASE COMPETITION: This and future acquisitions will follow DFARS Subpart 225.73 – Acquisitions for Foreign Military Sales.

8. MARKET RESEARCH: Market research was conducted to determine the availability of the field training from the country directed sole source and its overall availability in the market from other sources. Government databases were queried using North American Industries Classification System (NAICS) code 237990, Other Heavy and Civil Engineering Construction. Among sources researched were the Defense Logistics Agency and the General Services Administration that yielded multiple vendors available for the required field training. The Government also queried www.contractdirectory.gov and there were 735 results available under NAICS code 237990. Finally, the Government utilized historical data as the GoE has a long working relationship with Vermeer Corporation. Furthermore, competition is not required in compliance with the LOA directed sole source vendor Vermeer Corporation.

9. INTERESTED SOURCES: In accordance with (IAW) FAR 6.305 – Availability of the Justification, this justification shall be made publicly available within fourteen (14) days after contract award.

10. OTHER FACTS: None of the factors are applicable.