SPECIAL NOTICE
Z -- Intent to Award-EROS O&M Bridge Contract
- Notice Date
- 2/28/2014
- Notice Type
- Special Notice
- NAICS
- 561210
— Facilities Support Services
- Contracting Office
- USGS NATIONAL ACQUISITION BRANCH205 NATIONAL CENTER12201 SUNRISE VALLEY DRIVERESTONVA20192US
- ZIP Code
- 00000
- Solicitation Number
- G14PS00171
- Point of Contact
- Meridith Potts
- E-Mail Address
-
mpotts@usgs.gov
(mpotts@usgs.gov)
- Small Business Set-Aside
- N/A
- Description
- The U.S. Geological Survey has a need for a bridge contract to maintain current services previously issued under G10PC00079 while a new contract is being awarded separately. USGS intends to award this six-month extension (bridge) to the incumbent subcontractor, DCT, Incorporated. The USGS has determined that there is no other source that can provide the above services (see sole source justification below); therefore, the USGS intends to make an award to DCT, Inc. for a six month continuation of services, with two three-month option periods. Vendors may contact the Contracting Officer, mpotts@usgs.gov by the response due date indicated on this announcement. The U.S. Geological Survey (USGS) considers employee signatures to be Personal Protected Information, and therefore all employee signatures have been redacted. By posting this document, the Contracting Officer attests all appropriate signatures have been obtained. SOLE SOURCE JUSTIFICATION STATES THE FOLLOWING: JUSTIFICATION AND APPROVAL Justification for Other Than Full and Open Competition (FAR 6.3) 1. Contracting Agency and Activity. The Department of the Interior, United States Geological Survey, Office of Acquisition and Grants, plans to contract by means other than full and open competition. This document sets forth the justification and approval as required by FAR 6.303 and 6.304. 2. Nature of Action Being Approved. Issue a sole source bridge contract to DCT Inc. to continue providing existing Operation and Maintenance (O&M) Services. 3. Description of Supplies or Services. This contract is for Operation and Maintenance Services at the Earth Resources Observation Science (EROS) Center in Sioux Falls, South Dakota. The facilities house more than 500 personnel located in 300,000 sq. ft. on 318 acres. The systems at EROS are in the critical path for control of the two LANDSAT satellites. Services include operating and maintaining a 300,000 sq. ft. building with three computer rooms that must operate at all times, with heating and air conditioning, boilers, electrical systems and substation switching from 12470 voltages to 110 voltages, a backup generating plant for critical power, building automation that must be operational at all times, and a waste water treatment pond system. The contractor also manages the phone private branch exchange, and the physical network infrastructure and data base management. Snow removal is also provided. 4. Estimated Dollar Value. Dollar amounts have been redacted. The anticipated cost to the government is fair and reasonable because the services under this bridge contract will be provided at the same rate as the current contract. The current contractors prices were determined to be fair and reasonable at the time of the award, and the contractor for this bridge contract has agreed to provide these services at the same rate. 5. Statutory Authority. Pursuant to 10 U.S.C. 2304(c)(2), the proposed action may be awarded on a sole source basis under the authority of FAR 6.302-2 Unusual and compelling urgency. As directed by FAR 5.406(a), the contracting officer will publish notice of this action.. 6. Determination of Exceptional Circumstances. The current contract (G10PC00079) for the EROS O&M effort is being performed by DKC Enterprises, LLC (DKC). It is a firm-fixed priced, commercial services contract that was a HUBZONE set aside. DKC submitted the only proposal. The contract has a base year plus four option years and is currently in option year three, which will expire on March 31, 2014. The government had anticipated exercising the fourth option year, which was to start April 1, 2014 and continue through March 31, 2015. During this final option year, the government planned to complete a new acquisition process for these services. On January 22, 2014, DKC sent an email to the contracting officer that asked the government not to exercise option year four because it had not paid its subcontractors and was having financial problems with the cost of the contract. The contracting officer agreed not to exercise the fourth option year. On February 19, 2014, via a telephone conversation with Donna Caldwell, the DKC President and CEO, the contracting officer informed DKC that the government had received notice that its subcontractor, DCT, Inc. (DCT), intended to stop performing on February 23, 2014 because it had not been paid for services rendered. At that time, the contracting officer asked Ms. Cadwell if DKC had paid DCT for the services, and she admitted that DKC had not paid DCT. The contracting officer asked Ms. Caldwell whether DKC could provide the services required under the contract if DCT ceased performing and she admitted that it could not. Accordingly, the contracting officer informed Ms. Caldwell that if DKC was not able to pay the subcontractor and avoid the work stoppage, the contract would be terminated for cause. On February 21, DKC sent an email to the contracting officer stating that the subcontractor DCT had agreed to continue services through February 28, 2014 and therefore, DKC would be able to fulfill the terms of the contract until that date. The contracting officer sent DKC a request for assurances that performance would continue and DKC would fulfill all contractual obligations pursuant to FAR 52.212-4(m). On February 24, 2014, DKC responded that it would not be able to meet its contractual obligations after February 28, 2014. The situation has necessitated an unforeseen termination for cause effective February 28, 2014. As a result of the termination for cause, the government does not have enough time to complete the acquisition process for the EROS O&M effort and maintain uninterrupted performance of these critical services. The bridge contract is necessary to ensure continuation of services. The incumbent subcontractor, DCT, is familiar with the requirement, is able to continue providing services while a competition takes place, and has agreed to provide the services at the same rate as the current prime contractor, DKC. The O&M contract tasks cover a wide scope of activities for the necessary operation of the mission critical functions that are performed at EROS. The EROS center would not function without continuation of these services and the government would not meet regulatory requirements mandated by state and federal agencies such as the State of South Dakota Department of Natural Resources and the Environmental Protection Agency. The contractor also manages the phone private branch exchange (PBX), and the physical network infrastructure and database management. Many of these activities are critical for the Department of the Interior and other inter-government operations. The systems at EROS are in the critical path for control of the two LANDSAT satellites. Snow removal is a daily critical requirement to provide maintenance of sidewalks for the ongoing safety of occupants and visitors. The incumbent subcontractor is already on site and performing these services; it is fully capable of performing all of the functions of the current contract without any disruption of services. Any new contractor would need to mobilize and organize operations, creating a lapse in services and disruption of the critical mission activities at EROS such as the loss of satellite data gathering. In order to properly complete a new procurement action, the government will need to develop an acquisition strategy and prepare all necessary materials, including a new statement of work for the continued services. The period for proposals, evaluations, and award of the current contract requires approximately six months to complete. The bridge contract is limited to the time required for the government to properly conduct a full and open competition for a new contract for the EROS O&M effort, without a lapse in these critical services. 7. Other Information. The six month bridge contract and three month option periods will be issued under the same terms and conditions as the current contract. 8. The Efforts to Identify Additional Sources Including the Market Research Conducted. Market research will be conducted as part of the acquisition process for the new contract for the EROS O&M effort. 9. Future Plans to Permit Competition. The EROS O&M effort has been competed in the past and received sufficient competition. It is expected there will be sufficient competition in the future and a new, full and open competitive action will be completed for the EROS O&M effort following the expiration of the bridge contract. The bridge contract is required to prevent an unforeseen lapse in services. 10. Recommendation and Certification from Program Office. Based on the above, I recommend this acquisition be conducted on the basis of other than full and open competition. I certify that technical data which forms a basis for this justification, which is the responsibility of technical or requirements personnel, is complete and accurate. Signature has been redacted 11. Approvals Signatures have been redacted
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