JA_OMDAC_SWACA_-_signed_Redacted.pdf

Control Number: JA-Hua-18-173 Contractor: Vectrus Systems Corporation

Program/Equipment: Operations, Maintenance, and Defense of Army Communications in Southwest Asia and Central Asia (OMDAC-SWACA)

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1. Contracting Activity: Army Contracting Command – Aberdeen Proving Ground (ACC-APG), Huachuca Division, 2133 Cushing St, Building 61801, Ft. Huachuca, AZ 85613-7070

2. Description of Action: The 160th Signal Brigade requests approval for a modification to contract W91RUS-13-C-0006 with Vectrus Systems Corporation, 655 Space Center Drive, Colorado Springs, CO 80915 (Cage: 1D510), for the Operations, Maintenance, and Defense of Army Communications in Southwest Asia and Central Asia (OMDAC-SWACA) support services to the 160th Signal Brigade and its subordinate units. This contract action modifies the existing contract to extend the period of performance to allow sufficient time to complete the competitive award and phase-in/phase-out procedures necessary. This modification will accomplish this extension by adding one 12-month option (includes 30 days of phase in for the new contract (30 Oct-30 Nov 2019), one 2-month option, and one 1-month option pursuant to Federal Acquisition regulation (FAR) Part 17.202(d), Use of Options and, as appropriate, each will be exercised pursuant to FAR Clause 52.217-9, Option to Extend the Term of the Contract. The current contract is a Cost Plus Fixed Fee (CPFF) contract with CPFF and cost reimbursable type CLINs

This contract action is necessary to facilitate the time required to complete the competitive award of a follow-on contract for the same services and support currently being provided.

This contract action will provide for the continuation of essential Operations and Maintenance (O&M) services to the 160th Signal Brigade and subordinate units located in the United States Central Command (USCENTCOM) area of responsibility (AOR), currently SWACA.

3. Description of Supplies/Services: This contract action provides for the continued support of the Operation, Maintenance, and Defense of Army Communications (OMDAC) contract that supports the Army Operational Base Communications Information Systems and infrastructure in support of USCENTCOM forces in the Southwest and Central Asia Theater of Operations. The contract supports the 160th Signal Brigade and its subordinate battalions' mission to provide support to the U.S.

Army, US Army Central (ARCENT) and U.S. Central Command (CENTCOM) mission for their areas of responsibility. The Contractor provides technically qualified personnel to provide O&M support of the communications equipment and information systems under the purview of the Network Enterprise Technology Command (Army)

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(NETCOM), 160th Signal Brigade and its subordinate units in the Southwest Asia (SWA) Theater of Operations. The contractor is responsible for communications facilities, inclusive of equipment contained therein, which are declared strategic, enduring, and vital to the 160th Brigade’s mission. The contractor provides all management, personnel, administration, vehicles, travel, training, and equipment (except for Government-Furnished Equipment, Government Furnished Property, or Government-Furnished Resources) required to perform O&M of communication facilities, information systems and equipment in seven different countries which encompasses over 30 different posts, camps and stations throughout the SWACA Area of Operations. Extending the OMDAC-SWACA contract will provide the 160th Signal Brigade with the means to utilize necessary expertise and capabilities to support their mission requirements and provide vital communications services to the warfighter throughout the Southwest Asia Theater.

The services currently being performed are considered critical to the success of the 160th Signal Brigade’s mission throughout Southwest Asia.

Continuation of these services is vital in maintaining support to the Brigade and the warfighter until the follow-on is awarded.

The existing contract period of performance currently expires on 30 November 2018.

This contract action will incorporate an additional 12-month option period (Option Period 5), one 2-month option period (Option Period 6), and one 1-month option period (Option Period 7) to the contract. As necessary, options will be exercised pursuant to

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FAR Part 17.207, Exercise of Options in accordance with the terms of FAR Clause 52.217-9, Option to Extend the Term of the Contract; performance periods are as follows:

Period Dates Option Period 5 1 Dec 2018 – 30 Nov 2019 Option Period 6 1 Dec 2019 – 29 Jan 2020 Option Period 7 30 Jan 2020 – 28 Feb 2020

It is important to note that inclusion of options in the contract does not obligate the Government to their exercise. Should the follow-on contract be awarded ahead of schedule, it will be at the Government’s discretion to exercise any remaining options, or renegotiate a shorter term as needed to ensure proper phase-in/phase-out procedures from one contract vehicle to the next.

4. Authority Cited: Title 10 United States Code 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(iii)(A) and FAR 6.302-1(a)(2)(iii)(B), only one responsible source and no other supplies or services will satisfy agency requirements." Specifically, FAR 6.302- 1(a)(2)(iii)(A) and (B) provides that “Services may be deemed to be available only from the original source in the case of a follow-on contracts for the continued provision of highly specialized services, when it is likely that award to any other source would result in – (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition, or (B) Unacceptable delays in fulfilling the agency’s requirements.”

5. Reason for Authority Cited:

a) Pursuant to FAR 6.302-1(a)(2)(iii)(A) services may be deemed to be available only from the original source in the case of a follow-on contracts for the continued provision of highly specialized services, when it is likely that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition:

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1) Awarding a new short-term contract rather than extending current performance would not be the most cost effective approach for the Government. It would likely present higher costs for vendor support, i.e.

housing, vehicles, and other sponsorship/other vendor agreements in an overseas environment where there is a significant reliance on host nation vendors

2) It is likely the Government will realize higher costs meeting host nation laws and regulations, fees and processes as these change frequently.

It is estimated that the Government can avoid these duplicative costs by extending the current contract because the incumbent already has these personnel in place; these fees have already been paid to ensure personnel are properly documented and able to work.

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3) To award a short-term interim contract to a new vendor would result in a high level of cost risk to both the Contractor and the U.S. Government and could result in a mission failure.

These costs are not likely to be recovered through competition nor would they be recouped over the course of only a two-year time period.

By extending the current contract, we avoid paying these costs twice within a two-year time period.

4) Finally, awarding a short-term contract instead of extending the current performance could cause a potential loss of property accountability

The time associated with conducting a 100% joint inventory with the incumbent and the U.S.

Government is cost and time prohibitive, taking up to four months to complete. By the time a new contractor could complete a 100% joint inventory, up to half of their base period of performance would be up, and then to repeat the process a short time later after the completion of the follow-on acquisition significantly increases this cost and time in managing Government property. By extending the current contract, this joint inventory with the contractors and the Government can occur after completion of the follow-on contract award, saving the Government these costs and the time needed in managing Government property.

5) In summary, the cost objective for this acquisition is to acquire O&M services at a reasonable cost and within the estimated funding available.

Program/Equipment: Operations, Maintenance, and Defense of Army

FOR OFFICIAL USE ONLY Page 8 of 19 in/phase-out of vendor turnover, when those fees have already been paid. It is anticipated that renewal of current personnel CACs, country clearances, Visa’s, etc., would be substantially less because the Government will only be paying for these requirements once.

Not only does this cost the Government money, but invaluable resources in the knowledge, skills, abilities, and expertise that is critically needed to work in this complex and ever-changing environment.

b) Pursuant to FAR 6.302-1(a)(2)(iii)(B), services may be deemed to be available only from the original source for the continued provision of highly specialized skills when it is likely that award to any other source would result in unacceptable delays in fulfilling the agency’s requirements:

1) Awarding a new short-term contract rather than extending current performance would not be the most effective approach for the Government.

A short notice turnover in contractors would pose significant performance risks in an overseas environment where there is a significant reliance on host nation vendors who operate different business models from those used in the U.S. A short notice change in contractor personnel would severely impact Common Access Card (CAC) renewal as well as the Synchronized Pre-Deployment and Operational Tracker system revocation and renewal. This is especially true in geographic locations where the contractor has to travel between operating bases to get their CACs.

thus rendering them unable to complete necessary and critical job functions.

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2) To award a short-term interim contract to a new vendor would result in a high level of performance risk to both the Contractor and the U.S. Government and could result in a mission failure.

By continuing performance under the existing contract, we are avoiding the additional time associated with contract phase-in/phase-out as Vectrus already has the personnel in theater necessary.

By extending the current contract, we avoid unacceptable delays associated with short notice turnovers.

3)

The requested extension to the current performance period would tender the least risk given the difficulties in providing the necessary manpower for this requirement; especially given such short notice. In order to effectively support the mission, i.e., to find qualified talent and personnel with proper experience, required certifications, clearances and the willingness to work long hours in a volatile environment, would increase performance schedule to an unacceptable level. In order to mitigate significant schedule and technical risks, potential offerors would need to propose and pay exorbitant costs for bonuses, expedited recruitment and staffing, expedited deployment, country clearances, country Visa’s, housing leases, vehicles leases, etc. that are required for doing business in theater.

Awarding a short-term contract to a firm other than the incumbent presents significant risk for damaging consequences to the mission of the 160th Signal Brigade and the warfighters they support. A short-term interim contract has multiple constraints that severely increases the risk to 160th Signal Brigade’s ability to continue to provide critical communications throughout the theater as noted above.

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Based on this information, a modification to the current contract to incorporate additional option periods is the only feasible approach to avoid duplication of cost and unacceptable delays in providing mission critical support and services to Warfighters serving in the SWACA Theater.

Incorporating one additional 12-month option, one 2-month option, and one 1-month option to Extend the Term of the Contract in this J&A is the only reasonable measure that will provide the Army flexibility to provide the continuity of services through follow-on contract award and a proper phase-in/phase-out transition period. These options will allow for continuation of critical services and provide for the time required to complete the competitive contract award of a follow-on contract.

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Services are currently being performed under the existing contract through 30 November 2018;

Utilizing a 12-month option period provides sufficient time for the recompete, evaluation, and award of the follow-on contract and provides support for the first 30 days of the phase-in/phase-out period. Utilizing two smaller options for the remaining 90-days required for phase-in/phase-out allows the Government the discretion and flexibility to exercise only the time necessary to provide support until full performance on the follow-on contract can occur.

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6. Efforts to Obtain Competition: In accordance with FAR 5.201 and Defense Federal Acquisition Regulation Supplement 206.302-1, on 23 May 2018, the ACC- APG Huachuca Division KO issued a Special Notice/Sources Sought on the Federal Business Opportunities (FBO) website, designated as the Government Point of Entry to synopsize the Government’s intent to issue a contract modification to incorporate additional option terms to the existing contract. This was posted for thirty (30) days, allowing ample time for vendors to object or respond with intent or provide capabilities statements for consideration. As of the required response date of 25 June 2018, no vendors expressed interest or objection to the proposed contract action, provided any capabilities statements nor were any requests made for an extended response date.

Additionally, the KO has held telephonic discussions with multiple vendors who had reached out expressing interest in the follow-on acquisition. Several of these potential vendors expressed the same concerns, noting that they would not be interested in pursuing a shorter-term interim contract. They also stated that it would be cost prohibitive for them to meet the required performance date of 01 December 2018 and to keep qualified personnel on staff given the short duration. The vendors further stated they were keenly interested however in the follow-on contract and would be following announcements closely and looking forward to release of the draft Request for Proposals (RFP) early in 2019.

7. Actions to Increase Competition: The contracting office is currently preparing the follow-on requirement using full and open competition.

This J&A is a modification to an existing contract to allow for continued performance utilizing options during the source selection process for award of the follow-on requirement. Numerous capable companies have expressed interest in the competitive follow-on requirement, Program/Equipment: Operations, Maintenance, and Defense of Army

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8. Market Research: Market research for this effort constituted a review of interested vendors and availability of competition for the follow-on acquisition package which included initial Request for Information posted to FBO in 2017 as well as a three day meeting with industry event

The Government is aware that a full and open competition would result in multiple potential offers; however as discussed above in paragraphs 5 and 6 above, based on the most recent Special Notice and discussions with industry, another contractor could not be mobilized in time to meet full performance requirements prior to the current expiration date of 30 November 2018 without significant risk to critical service requirements or significant duplication of costs and efforts already in place.

9. Interested Sources: As addressed in paragraph 6 above, a special notice/sources sought was issued through FBO synopsizing the proposed action on 23 May 2018. As of the required response date of 25 June 2018, no vendors expressed interest or objection to the proposed contract action, nor did any vendors provide any capabilities statements nor were any requests made for an extended response date. Also noted in paragraph 6 above, the contracting officer has held telephonic meeting with vendors expressing interest in the follow-on contract; but none indicated interest in a short-term interim contract. Vectrus, , has indicated that they are ready and able to continue services to ensure the warfighter continues to receive critical communications support.

10. Other Facts (Procurement History):

a. Previous contracts providing the 160th Signal Brigade the O&M support of Title X communications equipment and information systems under the purview of the Network Enterprise Technology Command (NETCOM), 160th Signal Brigade and its subordinate units in the Southwest Asia (SWA) Theater of Operations encompasses approximately 22 years of services. The proposed contract action incorporates additional option periods to the existing contract to allow appropriate time for the completion of the follow-on contract award, which will be the fifth competitive solicitation to acquire these services.

1) Contract DAEA32-95-C-0030, Operation and Maintenance Services –

Southwest Asia (O&M-SWA) was awarded in September 1995, as a Firm- Fixed Price (FFP) contract.

The contract was awarded under Full and Open Competition procedures to ITT Federal Services International Corporation.

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2) Contract DAAB32-01-C-0007, Total Army Communications – Southwest Asia (TAC-SWA) was awarded in March 2001 as a FFP contract with cost reimbursable line items.

The contract was awarded under Full and Open Competition procedures to the incumbent, ITT Federal Services International Corporation.

• This contract was larger in scope and dollar value than the previous contract due to the inclusion of O&M support services that were previously contracted separately by the Army Signal Command, USARCENT and the U.S. Army Communications Electronics Command (CECOM).

• After 11 September 2001, and after the on-set of Operation Enduring Freedom (OEF) and Operation Iraqi Freedom (OIF), the situation in Southwest Asia changed considerably and the need for communications support in the area grew exponentially

3) Contract W91RUS-06-C-0002, Total Army Communications – Southwest Asia, Central Asia and Africa (TAC-SWACAA) was awarded 12 December 2005, as a Cost-Plus-Fixed-Fee (CPFF). Due to the uncertainty of the work and efforts to efficiently manage the growing costs of the war effort, the Government moved from a FFP contract to a CPFF.

The change of contract type allowed the Government the necessary flexibility to meet the needs of the warfighter in a constantly evolving environment.

The contract was awarded under Full and Open Competition procedures to the incumbent, ITT Federal Services International Corporation.

4) Interim Contract W9128Z-11-C-5001 was awarded on 31 March 2011 as a CPFF contract

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5) Contract W91RUS-13-C-0006 was awarded to Vectrus Systems Corporation (formerly known as Exelis Systems Corporation) in May 2013

The contract provided operation and maintenance (O&M) support of Title X communications equipment and information systems under the purview of the Network Enterprise Technology Command (Army) (NETCOM), 160th Signal Brigade and its subordinate units in the Southwest Asia (SWA) Theater of Operations. Currently a six month extension was exercised in accordance with FAR 52.217-8 Option to Extend Services which extends performance through 30 November 2018. This contract action will incorporate additional option periods to ensure continuity of support services during the solicitation, evaluation, and award of the follow-on contract.

b.

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c. Subcontracting Opportunities. A subcontracting plan is required under the current contract and was obtained in accordance with the terms and conditions of the contract.

The proposed contract modification does not change this term and condition of the contract;

11. Technical Certification: I certify that the supporting data under my cognizance which is included in this Justification and Approval is accurate and complete to the best of my knowledge and belief.