181001_JA_ANDSF_Bridge_FINAL_REDACTED.pdf

U.S. Army Corps of Engineers

Middle East District (TAM)

Afghanistan National Defense Security Forces

(ANDSF)

Operations and Maintenance

(O&M) Services

Justification and Approval for Other than Full and Open Competition

Value: $22,037,300

Justification For Other Than Full And Open Competition - Afghanistan National Defense Security Forces Operations and Maintenance

Control No. 18-0017

PROGRAM/EQUIPMENT:

AUTHORITY: 10 U.S.C. § 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) Subsection 6.302-1(a)(iii)(B), “Only one responsible source and no other services will satisfy agency requirements;” “It is likely that award to any other source would result in unacceptable delays in fulfilling the agency’s requirements.”

AMOUNT: $22,037,300

PREPARED BY: Thomas B. Duvall PHONE: 540-665-2480

TITLE: CONTRACT SPECIALIST DATE:

EMAIL: Thomas.B.Duvall@usace.army.mil

CONTRACTING OFFICER: Lisa D. McIntyre PHONE: 540-665-6530

TITLE: CONTRACTING OFFICER DATE:

EMAIL: Lisa.D.Mcintyre@usace.army.mil

TECHNICAL REPRESENTATIVE: PHONE:

TITLE: PROJECT MANAGER DATE:

EMAIL:

REQUIREMENTS REPRESENTATIVE: PHONE:

TITLE: PROJECT MANAGER DATE:

EMAIL:

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

PROGRAM MANAGER: PHONE:

SIGNATURE: DATE:

LEGAL COUNSEL: PHONE

SIGNATURE: DATE:

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

HQ LEGAL COUNSEL:

NAME: __________________ PHONE:

SIGNATURE: _ DATE: ___________________

HQ SMALL BUSINESS:

NAME: ____________ PHONE:

SIGNATURE: _ DATE: ____________________

HQ TECHNICAL:

NAME: ________________ PHONE:

SIGNATURE: DATE: ____________________

1. CONTRACTING ACTIVITY: U.S. Army Corps of Engineers, Transatlantic Division, Middle East District (TAM), P.O. Box 2250, Winchester, VA 22604-1450.

2. DESCRIPTION OF ACTION: TAM requests approval of a new Firm-Fixed-Price (FFP) large purchase order contract on an other than full and open competition basis for continued Operations and Maintenance (O&M) services for real property and facilities being utilized by the Afghanistan National Defense Security Forces (ANDSF) in Afghanistan. This new requirement will be a contract to bridge the current O&M contract W912ER-15-D-0001 until such a time that a new fully competed contract may be awarded. The current contract task orders, W912ER-15-D-0001-0013 and W912ER- 15-D-0001-0014, period of performance will end on 11 November 2018 therefore, this bridge contract must be awarded on or before 11 November 2018 to ensure ANDSF will not have a gap in services.

3. DESCRIPTION OF SERVICES: Services performed under this bridge contract are categorized under the following functional areas: buildings and structures maintenance and repair; utility systems plant operation, maintenance and repair; HVAC systems operation, maintenance and repair; grounds maintenance; force protection maintenance; surfaced area maintenance; and pest control. The bridge contract will cover routine, traditional O&M services for facility maintenance as well as unscheduled maintenance. Facility maintenance is defined as covering standard upkeep of the buildings and equipment, including such efforts as preventative maintenance and inspection on electrical generation and distribution equipment, waste water treatment plant, water treatment and distribution.

Preventive maintenance includes those maintenance/repair services as recommended by the manufacturer; however, once a generator reaches a certain amount of hours, it becomes necessary to start replacing parts and perform overhauls. These types of services do not fall under routine maintenance. Service Orders (SOs) represent unscheduled maintenance and repair that is corrective in nature (e.g., repairs, replacements) as well as those related services not generally considered to be a routine recurring preventive maintenance activity. This includes emergency work orders necessary when immediate action is required to eliminate life threatening or serious injury hazards to personnel, prevent significant loss or damage to Government property, ensure security of sensitive Government property, restore essential services, protect the environment or respond to command priorities. Examples of SOs include: generator overhauls, replacing compressor, replacing heating elements, replacing electrical materials at power plants, etc.

As the SO work is unpredictable, the amount of funding required to support these work orders is also unknown. The ANDSF O&M program is dynamic and driven by daily changing operations and requirements. The bridge contract has to have the ability to support changes at ANDSF sites. At any given time generators, water and waste water treatment facilities, critical infrastructure can become non-mission capable and must be repaired or replaced to avoid jeopardizing life, safety, and health of ANDSF forces.

To perform these O&M services, the contractor shall furnish the labor, services, supplies, supervision, materials, tools, equipment, spare parts, warehousing, inventory control, security, transportation and other items necessary to perform routine, traditional O&M services, facility maintenance, and systems and infrastructure support at designated Afghan National Army (ANA) and Afghan National Police (ANP) facilities throughout Afghanistan. The initial estimated total amount of the acquisition is $22,037,300 for a four-month bridge which will include FAR 52-237-3, Continuity of Services that will allow up to 90 days for a phase-in, phase-out period once the O&M follow-on contract is awarded. The total value of this J&A includes an estimated amount should the Contracting Officer invoke FAR 52.237-3.

4. AUTHORITY CITED: 10 U.S.C. § 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) Subsection 6.302-1(a)(iii)(B), “Only one responsible source and no other services will satisfy agency requirements;” “It is likely that award to any other source would result in unacceptable delays in fulfilling the agency’s requirements.”

5. REASON FOR AUTHORITY CITED: To use a contractor other than IDS International Government Services LLC (IDS) would cause unacceptable delays by having to provide the onsite capability to continue the required O&M services without mobilization.

able to provide services in the required Northern provinces which will greatly reduce the risk of a break in service due to access related delays.

to perform the work associated with this requirement. IDS possesses a current understanding of host nation laws, regulations, and inherent physical dangers where services are to be provided in Afghanistan.

. This allows IDS to perform in more remote regions without a disruption in services. Another contractor will have to obtain the required visas, work permits, and country specific accounts that support local national employee benefits and the technical licenses and certifications required to perform the scope of work, possess a current understanding of host nation laws, regulations, and inherent physical dangers where services are to be provided in Afghanistan. Another contractor would have to have considerable phase in that would lead to an unacceptable amount of delay on critical program activities.

a. TAM has committed to award the new O&M follow-on contract resulting from solicitation W912ER-18-R-0047 in March 2019. The current O&M task orders end on 11 November 2018. As a corrective action to the O&M follow-on solicitation Agency protest by IDS, procurement of the O&M follow-on effort. The previous solicitation, W912ER18R00028, was canceled on 20 July 2018 and the new requirement is scheduled to be awarded in March 2019 which will allow for

To prevent a gap in providing O&M services for Combined Security Transition Command- Afghanistan (CSTC-A), TAM is awarding a sole source bridge contract to IDS to continue providing scheduled and unscheduled O&M services throughout Afghanistan.

b. The requirement for O&M services arises under CSTC-A’s mission to reform, develop, and train the ANDSF, which includes the ANA and ANP, develop a stable Afghanistan, and strengthen the rule of law and deter and defeat terrorism within that nation’s borders. The challenges that the ANDSF continues to experience in hiring and retaining host national Afghan facility engineers has placed significant emphasis on avoiding any gaps on the ANDSF O&M contract support. CSTC-A assumes these responsibilities under the national O&M contract and will have this requirement until the ANDSF continue to resolve issues with their ability to assume the O&M responsibilities.

c. IDS has been providing O&M services under contract W912ER-15-D-0001.

Currently IDS continues to provide O&M services under task orders 0013 and 0014 which will expire on 11 November 2018. These O&M services described in Section 3 include approximately ANDSF facilities. These same O&M services would continue under the Bridge Contract W912ER-18-C-0037, which will be awarded as a sole source contract to IDS no later than 11 November 2018. To complete the corrective action following the protest received under the follow-on solicitation, this J&A now seeks to extend the O&M services via the bridge contract until 11 March 2019 and allow for a proper phase-in, phase-out period in accordance with FAR 52.237-3 once the O&M follow-on contract is awarded.

d. UNACCEPTABLE DELAYS. A delay in these multiple vital services will not allow the ANDSF to continue to facilitate its security operations throughout the regions of Afghanistan. The sites maintained under the O&M Contract are identified as critical to the ANA and ANP, as such, the ANDSF’s capabilities would be severely hindered as it would not have the needed functional facilities to support its security operations in the country. A lack of any of the services for utility and infrastructure systems (electrical, potable water and sewer), provided to critical facilities which support the Afghan military and police mission, can cause it to fall in despair as well as affect the health and safety of the users. A lapse would cause mission failure of Government of the Islamic Republic of Afghanistan (GIRoA), Ministry of Defense (MOD), Ministry of Interior (MOI), Department of Defense, Combined Security Transition Command-Afghanistan (CSTC- A), the International Security Forces and the North Atlantic Treaty Organization (NATO).

e. IMPACTS. There are a number of high visibility, high priority sites currently receiving O&M services. These sites include but are not limited to: the Afghanistan

National Detention Facility – Parwan and the adjacent Justice Center, the Ministry of Interior (MOI) Headquarters, the Presidential Palace and the Ministry of Defense (MOD) Headquarters. A lack of any of the services for utility and infrastructure systems (electrical, potable water and sewer), provided to these or any facilities used by the ANDSF, could cause it to fall into disrepair. Without the necessary routine O&M services, the structural integrity and basic facility operating systems would degrade and the facilities would no longer be able to be used for their designated functional purpose.

Any degradation of services would cause the facilities to continue to depreciate and would inhibit the progress of the ANDSF as it takes increasing responsibility for missions of combat service support in an effort to become fully sustainable. All of the sites under the O&M contract that will be awarded on the bridge contract have been identified by CSTC-A as critical to the ANA and ANP.

f. Critical facilities and infrastructure are defined as vital and essential systems and assets to the ANDSF. Partial or total destruction of such systems or assets would have an incapacitating impact on security, health, safety, and operational functions. Several types of critical facilities are listed in the preceding paragraph. Types of critical infrastructure include: electrical power generation and distribution systems, water production systems, wastewater systems, and Heating, Ventilation & Air Conditioning (HVAC) & Refrigeration (HVAC&R) systems. Any degradation to the infrastructure or buildings supporting these critical facilities would further hamper ANDSF’s ability to achieve long-term sustainment. The magnitude of the amount of sites spread throughout Afghanistan and services to be provided have a significant impact on the relationship between the U.S. Government and Afghanistan government. IDS has successfully performed these services throughout the country utilizing their personnel and relationships with Afghanistan tribes, proven ability to maintain security clearances, and their ability to respond immediately during emergency situations and equipment failures identifies the highly specialized experience in which they provide O&M services. Although the O&M services required to perform the work under this requirement is not highly specialized, the experience that IDS possess is highly specialized for this bridge contract. IDS has

g. To perform the required services concurrently at each site, the O&M services contractor must be knowledgeable of the characteristics of each of the ANDSF facilities as well as the equipment types that may require maintenance on each site.

h. Only IDS has the onsite capability to continue the required O&M services without mobilization. to be able to provide services in the required Northern provinces which will greatly reduce the risk of a break in service due to access related delays.

required to perform the scope of work. IDS possesses a current understanding of host nation laws, regulations, and inherent physical dangers where services are to be provided in Afghanistan.

i. The need for continuous and reliable performance with regard to O&M services demands significant personnel and logistical commitments on the part of the prime contractor and its subcontractors.

IDS

in support of the O&M contract: generator overhaul and emergency services; personal security detail and movements; waste water removal and disposal services; bulk water delivery, internet services; life support services; warehouse leasing and ancillary services; pre-employment and annual medical screening; drug-testing; and site water testing.

j. The incumbent contractor, IDS, is currently capable of providing all of the continuing O&M maintenance requirements, without mobilization, until the corrective action can be completed and a long-term solution is in place. Only IDS has the existing administrative support staff, organization, equipment, IT systems, and data to seamlessly continue providing O&M activities at the current ANDSF sites in Afghanistan now being served under the O&M contract.

k. It is imperative to issue a Bridge Contract to IDS to ensure continuous O&M support to the ANDSF. This is the only course of action that provides a seamless transition to the O&M follow on contract. This is especially necessary considering the approaching harsh winter months and the continually declining security environment in Afghanistan.

6. EFFORTS TO OBTAIN COMPETTITION: The program would suffer unacceptable delays to obtain competition for all sites in this instance, because of the short performance period of the bridge contract, the required services have to begin by 12 November 2018. Under the circumstances cited in Section 5 above, obtaining services from any other entity other than the incumbent contractor would cause the Government to incur unacceptable delays and disruptions in service; therefore, no efforts were made to obtain competition for this bridge contract; however, the full O&M services re-compete will be synopsized for full and open competition. Small businesses would not have the adequate structure to mobilize quickly in all of the geographic regions throughout

Afghanistan without a gap in services therefore, the utilization of a small business for this bridge contract would not be feasible.

7. ACTIONS TO INCREASE COMPETITION: The follow-on O&M contract to the bridge contract, will be re-competed using competitive procedures under which multiple proposals are expected to be received. Until the follow-on O&M contract is awarded as a result of the corrective action, TAM does not foresee the need nor intends to award any other sole source bridge contract or Purchase Orders.

8. MARKET RESEARCH: Market Research indicates there appears to be adequate competition consisting of several capable contractors who can perform O&M services as described in Section 3 above. Due to the short four month period of performance required for this bridge contract, only one proven contractor can provide these critical O&M services with the least amount of risk in mitigating a gap in services. In order for the government to receive all of the required services, with no gap in the critical services, vendors must immediately have the ability to mobilize and provide services at sites located all throughout Afghanistan. They must have a web-based CMMS capable of tracking all work orders, parts, labor and costs. They must have a workforce large enough to immediately deploy the correct number of personnel and have base access for those personnel at all facilities. They must have tools and equipment required to perform the needed O&M services at all locations and have a logistics system and warehousing capability in place, and capability of delivering needed materials to the sites. The contractor would also have to have established relationships with vendors and subcontractors in order to meet O&M repair and spare part requirements.

Ordinarily when a new contract is awarded, there is a 60-day phase-in and 60-day phase-out period which allows for a new contractor to acquire all of the above resources to begin performance as well as time to transition the current effort to a new awardee after this bridge contract has ended; thus leaving no time for actual contract performance, which will cause a gap in services as there is no performance for the required services. In the case of a bridge contract there is no time afforded for this process to be meaningful to the Government if the bridge contract is not awarded to IDS. Since all of the sites listed on the current O&M contract are considered critical to the U.S. and Coalition forces, ANDSF, Government of Afghanistan, and the safety and security of the country of Afghanistan, it is imperative there is no gap in services and the risk of performing those services is considered very low. For this reason, the determination has been made that it is the best value and in the best interest of all concerns to award a four month bridge contract to the current O&M contractor thus reducing all risk of awarding to a contractor who may or may not be capable of performing all the required services.

9. INTERESTED SOURCES: In response to the recent protest on the follow-on O&M solicitation, one of the courses of action the Project Delivery Team (PDT) proposed was to issue a four-month bridge contract to continue O&M services and to allow time to re-compete the full follow-on effort. In accordance with FAR 5.201 and 5.203(a), a Notice of Intent to Sole-Source was posted to FBO on 2 October 2018 with a suspense date of 17 October 2018. The Government received a total of 36 responses expressing interest in this requirement. Of the 36 contractors that responded, four were small businesses.

The small businesses that responded expressed interest in specific functional areas (e.g. custodial work), as opposed to all of the various functional areas in their entirety.

While it is apparent that companies other than the incumbent are capable of performing the work under this requirement, as previously stated, a lapse in the multiple vital services provided under this requirement will not allow the ANDSF to continue to facilitate its security operations throughout the regions of Afghanistan. The sites maintained under the O&M Contract have been identified as critical to the ANA and ANP, as such, the ANDSF’s capabilities would be severely hindered as it would not have the functional facilities to support its security operations in the country. The establishment of a four month bridge contract with the ability to exercise FAR 52.237-3 Continuity of Services, will allow time for a competitive solicitation to be developed and awarded, as well provide transitional period that will allow for mobilization/demobilization without a lapse in service.

10. OTHER FACTS: Procurement history.

(1) The initial contracts to provide full O&M services for the ANA and ANP were

FFP contracts awarded in September 2008 under full and open competition. Each contract was awarded with a one-year base and two 12-month option periods. These contracts provided full O&M services for all ANA and ANP installations countrywide.

The ANP contracts were awarded regionally and, although the intent was to award to contractors in the six ANP Regional Commands (RCs), identified by existing ANP installations, unexpected low interest resulted in award to one Afghan contractor. The financial resources and management constraints to perform the logistics and security requirements proved to be far greater than any single Afghan contractor could provide and, in August 2009, the Government decided not to exercise available options under the contracts.

(2) As a result of the Afghan company’s inability to perform, TAM awarded two

IDIQ SATOCs on a full and open basis on 26 July 2010 for the continued performance of full O&M throughout Afghanistan. One contract covered the Northern Region of Afghanistan (W912ER-10-D-0002) while the other contract covered all of the provinces located in the Southern Region of Afghanistan (W912ER-10-D-0003). Both contracts were awarded with a one-year base period and four one-year option periods. To provide enough capacity for the required TOs awarded under the North contract, three of the four option periods were subsequently exercised early. As a result of pulling capacity forward, the period of performance was valid through 31 January 2015.

TAM’s current base IDIQ contract with IDS to perform O&M services throughout

Afghanistan is W912ER-15-D-0001, with a period of performance through 11 May 2018.

The current contract was awarded with a capacity of $245,000,000 on 13 January 2015.

Control No. 18-0017

To date, due to site de-scopes and a lower level of effort than the preceding contract, primarily due to the award of the MOD Construction and Property Management Department (CPMD) on-budget contracts, the burn rate is

. To avoid a break in O&M services due to the delay in the follow-on award, task orders 0013 and 0014 on the Base IDIQ W912ER-15-D-0001 were extended for six months from 12 May 2018 to 11 November 2018. The following table provides historical information related to these contracts:

Contract Number Contract Value Type Geographical Boundary

Comments

W912ER-15-D-0001 $123,215,545.47 FFP

SATOC

IDIQ

All of Afghanistan

ANA & ANP

W912ER-10-D-0002 $425,203,762.60 FFP

SATOC

IDIQ

Afghanistan Engineer District (AED)

– North (TAN)

ANA & ANP

W912ER-10-D-0003 $216,811,216.00 FFP

SATOC

AED – South District (TAS)

ANA & ANP

W912ER-04-D-0003-0015 $239,792,915.16 FFP

IDIQ

All of Afghanistan

ANA O&M

Only

W917PM-08-C-0093 $598,546.72 FFP Region 1, Afghanistan

ANP O&M

Only

W917PM-08-C-0094 $1,259,166.74 FFP Region 2, Afghanistan

ANP O&M

Only

W917PM-08-C-0096 $193,989.15 FFP Region 3, Afghanistan

ANP O&M

Only

W917PM-08-C-0097 $191,101.00 FFP Region 4, Afghanistan

ANP O&M

Only

W917PM-08-C-0098 $1,002,948.23 FFP Region 5, Afghanistan

ANP O&M

Only

W917PM-08-C-0099 $1,273,578.89 FFP Region 6, Afghanistan

ANP O&M

Only

(3) Competitive status of these actions.

All of the contracts listed in paragraph 10 were awarded using fully competitive acquisition procedures.

(4) Authority previously used for less than full and open competition.

Not applicable.

Control No. 18-0017

(5) Summary of the justification prepared to support the procurement made before this one.

Not applicable. The previous procurement was made using full and open competition.

(6) Explanation of changed circumstances from full and open prior award.

Contract W912ER18C0037 is intended to bridge the current O&M Services Contract W912ER-15-D-0001 and the resultant contract from solicitation W912ER18R0047, in which both were and will be fully competitively solicited contracts, to allow time to award the full O&M follow-on contract. The protest and activities involved in taking the corrective action have now impacted the time necessary to award a follow-on O&M contract before 11 November 2018.

(7) Unusual patterns revealed by the procurement history.

Not applicable.

(8) The circumstances justifying the procurement made before this one.

Not applicable.

a. Acquisition data availability.

Technical data packages, specifications and performance work statements suitable for full and open competition are available and were used for the solicitation of

W912ER-18-R-0028.

c. Unusual and compelling urgency.

Not applicable.

d. Subcontracting competition.

IDS has been performing this work for over three years and has established vendor relationships, systems in place, and familiarity with host nation rules and laws, thus it is self-performing all of the routine O&M work. Through the work order process in accordance with the threshold established in the Performance Work Statement, IDS competitively awards work orders.

These actions are awarded to host nation vendors such as

USACE policy is to encourage prime contractors

Control No. 18-0017 to use local labor and it is anticipated that IDS will continue to utilize Afghan firms for this bridge effort.

Control No. 18-0017

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.

Name:

Title: Program Manager

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.

Name:

Title: Program Manager

Control No. 18-0017

13. FAIR AND REASONABLE PRICE DETERMINATION

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable as determined using cost and price analysis techniques on the elements of IDS quote offering, in comparison with the details of the Independent Government Cost Estimate. In accordance with FAR 15 403-1(b)(1), certified cost and pricing data will be required of the vendor.

Name: LISA D. MCINTYRE Title: Contracting Officer

14. CONTRACTING OFFICER CERTIFICATION:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: LISA D. MCINTYRE Title: Contracting Officer

Control No. 18-0017

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of a bridge contract, for Afghan National Defense Security Forces Operations and Maintenance Services, on an other than full and open competition basis pursuant to the authority of 10 U.S.C. § 2304(c)(1), as implemented by FAR Subsection 6.302-1(a)(iii)(B), “Only one responsible source and no other services will satisfy agency requirements.” This effort is subject to the availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition. The total value of this acquisition is $22,037,300.00.

Head of Contracting Activity