07D0004-P00013_J A.pdf

MICC Control No. 12-42 ICO Control No. WSMR 12-03

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

Program: Planning and conduct of analyses and studies and the development and enhancement of models and simulations for the U.S. Army Training and Doctrine Command (TRADOC) Analysis Center (TRAC) at White Sands Missile Range (WSMR), New Mexico

Authority: 10 U.S.C. 2304(c)(2), FAR 6.302-1 Amount: $4,893,993.00 Prepared by:

Name: Carolyn Truxal Date: __27 Feb 2012_________ Title: Contract Administrator DSN: 258-3489 E-mail: carolyn.f.truxal.civ@mail.mil

Technical Requirements:

Prepared by:

Name: Kathy A. McFarland-Mason Date Reviewed: _09 Feb 2012_____ Title: COR – TRAC-WSMR DSN: 258-5912 E-mail: kathy.a.masonmcfarland2.civ@mail.mil

Procuring Contracting Officer (PCO):

Name: Rosemarie T. Marquez Date Reviewed: __28 Feb 2012_______ Title: Contracting Officer DSN: 258-4936 E-mail: rosemarie.t.marquez.civ@mail.mil

I have reviewed this J&A and find the justification adequate to support other than full and open competition.

Local Small Business Specialist:

Ronald B. Taft E-Mail: ronald.b.taft.civ@mail.mil

DSN: 258-1401

Local Legal Advisor:

Robert P. Simm E-Mail: robert.p.simm.civ@mail.mil

DSN: 258-7967

Director of Contracting:

Beverly A. Stotz E-mail: beverly.a.stotz.civ@.mil

DSN: 258-7307

MICC Control No. 12-42 ICO Control No. WSMR 12-03

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. CONTRACTING AGENCY: Mission and Installation Contracting Command (MICC), White Sands Contracting Office, White Sands Missile Range (WSMR), NM.

2. DESCRIPTION OF ACTION:

a. Request approval to issue a modification to an Indefinite Delivery Indefinite Quantity contract, number W91QF4-07-D-0004, with Fixed Price (Labor) and Cost (Travel) Task Orders. The contract with Alatec Inc. is for planning, analysis and studies associated with the development and enhancement of models and simulations. This six (6) month extension will be from 3 May 2012 through 2 November 2012, at an estimated cost of $4,893,993.00.

This modification will be issued pursuant to Federal Acquisition Regulation (FAR) Clause 52.217-8, Option to Extend Services, which was included in the awarded contract, but was not evaluated at the time of award in a manner consistent with the decision of the Government Accountability Office in Major Contracting Services, Inc., B-401472.

b. The extension of the performance period and the increase in the value of the current contract will provide for planning and conduct of analyses and studies and the development and enhancement of models and simulations services pending award of a follow-on contract by 2 November 2012. Research, Development, Test, and Evaluation (RDTE); Operations and Maintenance (O&M); and Army funds will be used for any task orders awarded during the extension period of performance. Multiple lines of accounting maybe used in accordance with DFAS 37-100 and appropriation laws. The TRAC-WSMR Budget Analyst ensures the correct funds are available and certified as part of the purchase request process.

3. DESCRIPTION OF SUPPLIES SERVICES:

a. Contract Number W91QF4-07-D-0004 was awarded 3 May 2007 by the Fort Leavenworth Contracting Office to provide all resources necessary for planning and conduct of analyses and studies and the development and enhancement of models and simulations for the U.S. Army Training and Doctrine Command (TRADOC) Analysis Center (TRAC) at White Sands Missile Range (WSMR), New Mexico. The contract was for a one-year base period, and four one-year option periods. The Government has thus far exercised all option periods and the contract will expire on 2 May 2012.

b. The estimated value for the requested six (6) month extension period is $4,893,993.00.

c. No material change is anticipated in the contractual requirement from the modification.

d. Funds will be obligated on each delivery order as they are awarded.

4. AUTHORITY CITED: 10 U. S. C. 2304(c)(1) Only One Responsible Source and No other Supplies or Services Will Satisfy Agency Requirements as implemented by FAR 6.302-1(a)(2)(iii).

5. REASON FOR AUTHORITY CITED: Pursuant to FAR 6.302-1(a)(2)(iii), the incumbent is the only logical source for this contract extension. Awarding to other than Alatec Inc. would not be realistic or cost effective due to start-up costs, manning problems including recruitment, and possible relocation fees associated with hiring new personnel from other than the local community. Also, award to any other sources would result in substantial duplication of costs to TRAC-WSMR that is not expected to be recovered through competition. In addition, awarding to any other source would result in unacceptable delays and negatively impact TRAC-WSMR’s ability to meet the critical mission and services to conduct operations analysis and analysis of current operations in support of the Soldier. All others would require a transition period that would leave TRAC without full-service coverage for at least 1 – 2 months. There are also several lines of Government Furnished Property that would have to be 100% inventoried and transitioned to a new contractor and would cause further delays. Any break in the planning and conduct of analyses and studies and the development and enhancement of models and simulations is unacceptable.

Without this extension, the ability to meet mission requirements will be seriously and injuriously impacted.

MICC Control No. 12-42 ICO Control No. WSMR 12-03

A competitive follow-on contract to continue service beyond 2 May 2012 is not yet in place. Competitive procurement of the follow-on action has begun. At this point in time, it would be advantageous to the Government to modify the contract which would allow services to continue uninterrupted until a new contract is in place.

Modifying the contract to extend services through 2 November 2012 is the only way to prevent a disruption in services. Considering the current contract ends 2 May 2012, there is not sufficient time to solicit and award the follow-on procurement. The following table depicts the major milestones for the follow-on acquisition:

a. Background: Contract W91QF4-07-D-0004 was competitively awarded to Alatec Inc. 3 May 2007, as a

Total Small Business Set-Aside, with a one-year base period of performance with four additional one-year options to be completed 2 May 2012. The current five-year contract including the six-month extension is estimated at $75,402,000.00. The Government has exercised all option periods, and the contract will expire on 2 May 2012. The contract contains FAR Clause 52.217-8, Option to Extend Services. At time of award, contractor pricing was obtained through the fourth option period ending 2 May 2012.

b. Alternatives: Alternatives to meet the continuing requirements were considered. There are four possible alternatives, three of which will not satisfy the need underlying the requested modification. They are: 1) Use of In- House Resources, 2) Establishment of a New Contract, 3) Suspension of Operations, and 4) Modification of the Existing Contract. Only Alternative 4, Modification of the Existing contract to extend services, using a clause already included in the contract, fully meets the need and is the most beneficial to the Government.

(1) Use of In-House Resources. TRAC-WSMR does not have the existing personnel, equipment, and facilities necessary to perform the required services at any level.

(2) Establishment of a New Contract. It is neither cost effective nor realistic to expect another contractor to perform services at the level currently being provided by the incumbent contractor for the short period for which the modification is being requested. Based on the dollar value of the requested modification, to completely solicit and award a contract would take a minimum of five months during which time the existing contract would expire.

This would result in TRAC-WSMR being unable to provide essential mission support services.

MICC Control No. 12-42 ICO Control No. WSMR 12-03

(3) Suspension of Operations. This approach was not considered as it would result in TRAC-WSMR being unable to provide essential mission support. The procured services support requirements are tied directly to TRAC-WSMR’s mission accomplishment for services necessary to conduct operations analysis and analysis of current operations in support of the Soldier. Inability to provide these services would prove to be costly and negatively impact TRAC-WSMR’s mission.

(4) Modification of the Existing Contract to Extend the Contract Period Under Other than Full and Open Competition. The incumbent contractor, Alatec Inc., is the only logical source to perform the service until award of a follow-on contract.

c. Justification: A clear, present, and critical need exists to allow WSMR to continue use of the Alatec Inc.

contract for the planning and conduct of analyses and studies and the development and enhancement of models and simulations. Unacceptable delays in award of this modification would hinder the TRAC-WSMR ability to conduct operations analysis and analysis of current operations in support of the Soldier. FAR Clause 52.217-8, Option to Extend Services, is contained in the contract. Pricing for this period was not obtained during the solicitation, and therefore could not be evaluated from the initial award. However, current pricing will be utilized during the six-month extension period.

In the decision of Major Contracting Services, Inc., B-401472, September 14, 2009, the Government Accountability Office (GAO) held that where an agency failed to evaluate the price of an extension authorized by FAR 37.111, as implemented in FAR Clause 52.217-8, the exercise of an option under that clause constituted a “new procurement” that had to meet the FAR Part 6 standards for less than full and open competition. Although this contract contains FAR Clause 52.217-8, the clause was not evaluated in accordance with the GAO’s criteria. Accordingly, in order to exercise the clause and extend the services under the contract for an additional six months, the action must fall within the ambit of a proper sole source contract action under Far Part 6.

In accordance with FAR 6.302-1(a)(iii), Alatec Inc. is the only responsible source available that will satisfy the continued test requirements at WSMR for the requested extension. A short term contract would not allow for sufficient understanding of the work requirements to enable a contractor other than Alatec, Inc. to develop, test, and deliver the tasks as outlined in the task order. The work related to combat simulation development requires that the contractor have an intimate knowledge of the underlying algorithms, model structure, data, and processes; intimate knowledge that is not readily transferable from contractor to contractor in the available timeframe. The deliverables are incremental and build upon each other to the final deliverable; multiple short term contracts would prevent continuity and preclude coherent and synchronized development, testing and delivery of combat simulation enhancements.

d. Impact: Failure to continue these services will seriously impact TRAC-WSMR’s mission. The lack of the ability to plan and conduct analysis and studies, develop and enhance models and simulation, and physical security support will negatively impact the TRAC-WSMR mission. If the requested J&A is not approved, TRAC- WSMR will not be able to meet statutory and regulatory analytical requirements such as Analysis of Alternatives (AoAs) in support of acquisition decisions.

6. EFFORTS TO OBTAIN COMPETITION: A sources sought synopsis for the follow-on acquisition was posted on FedBizOps 13 Jan 2011. Seventeen responses were received. Sixteen of the seventeen sources were found to demonstrate the above capabilities. However, based on the information in paragraph 5 of this J&A, competition for this action is not feasible.

7. ACTIONS TO INCREASE COMPETITION: The current contract was solicited as a Total Small Business Set- Aside. The incumbent contractor, Alatec Inc., has performed at the required full performance level for the past five years. The follow-on contract is being procured by the White Sands Contracting Office. The follow-on requirement will be solicited as a competitive, Total Small Business Set-Aside. For the reasons detailed in Paragraph 5 of this J&A, competition for the six-month extension is not feasible.

8. MARKET RESEARCH: Market research, under NAICS 541511 for applications software programming services, custom computer, is being conducted by the White Sands Contracting Office for the follow-on

MICC Control No. 12-42 ICO Control No. WSMR 12-03 requirement. A sources sought synopsis for the follow-on acquisition was posted which generated seventeen responses. Sixteen of the seventeen sources were found to demonstrate the above capabilities. The acquisition team believes that the service, size, and aggregate dollar amount of the potential contract is well within the capabilities of small businesses. Performance for this type of service has been successfully performed by this current Small Business contractor since 2007 for TRAC-WSMR. The proposed Acquisition Strategy will be a total small business set-aside.

9. INTERESTED SOURCES: Alatec Inc., the incumbent contractor, is the only known source capable of satisfactorily providing planning and conduct of analyses and studies, and the development and enhancement of models and simulations at the required full performance level for the six-month period for which this modification is being requested, which will be until the White Sands Contracting Office’s competitive acquisition process for the new mission support contract is complete.

10. OTHER FACTORS:

a. Procurement History:

Small Business Set-Aside Synopsis in FedBizOpps, 8 July 2005 Solicitation W91QF4-05-R-0011, issued 30 August 2005 Proposal due date extended numerous times due to Protest and appeals, reference the NAICS (US Ct of Fed Claims) NAICS is 541511 Received 4 proposal by due date of 10 Apr 2006 Notice of Intent to Award, 12 Jul 2006 Protest a SB representation to SBA SBA failed to provide a determination in timelines IAW FAR 19.302(h)(1) Contract was awarded, later termination based on GAO ruling.

Opened discussion with remaining 3 offerors

Contract W91QF4-07-D-0004:

Awarded 03 May 2007, to ALATEC, Inc.

Base plus 4- one year options Single award, IDIQ Contract GM, $150,000.00 for Base year & each exercised option Maximum, Life of KT, is $65.5 Million Para B.10 Labor Categories for Base & each OY Includes Hourly Overtime Rate FFP - Hourly rates, 28 labor categories Para B.11 & B.12 of KT, Percentage increase or decrease for various locations CLINs/SubCLINs Structured to accommodate SPS TO/DO match

b. Acquisition Data Availability: Not applicable, lack of sufficient data is not the basis for this interim action.

c. Unusual and Compelling Urgency: Not applicable. The basis for this interim action is only one responsible source to maintain continuity of services to meet the mission needs until the follow-on contract can be awarded.

d. Subcontracting Competition: Not applicable.

MICC Control No. 12-42 ICO Control No. WSMR 12-03

11. TECHNICAL REQUIREMENTS CERTIFICATION: “I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.”

12. MANAGEMENT REVIEW/APROVAL: “The requirement herein described is a valid requirement of the activity named in paragraph 3 of this J&A. The technical and requirements information in the J&A represent the minimum need of the government. The only way to satisfy this requirement is by limiting competition as described

13. FAIR AND REASONABLE DETEMINATION: The Contracting Officer determined the prices fair and reasonable as part of the market research for the exercising of the fourth option period, which was in accordance with FAR 8.404(d). The work that will continue into the extension period shall contain the same pricing as the second option period. Additionally, work that falls under the Travel line item will be evaluated and approved according to established procedures. “As Contracting Officer, I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. Pricing is determined fair and reasonable by

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

MICC Control No. 12-42 ICO Control No. WSMR 12-03

Approval

Based on the foregoing justification, I hereby approve the extension of Contract W91QF4-07-D-0004 with Alatec Inc. for the planning and conduct of analyses and studies and the development and enhancement of models and simulations for TRAC-WSMR at White Sands Missile Range, New Mexico, for the period 3 May 2012 through 2 November 2012 in the estimated amount of $4,893,993.00 in accordance with FAR clause 52.217-8, Option to Extend Services, pursuant to the authority of 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1(a)(2)(iii) subject to the availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

E-Signed by JACOB.ALBERT.W.1245192629 VERIFY authenticity with ApproveIt

Date: ___08 Mar 2012________ Signature: _______________________________________

ALBERT W. JACOB

Special Competition Advocate Mission and Installation Contracting Command