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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION NATIONAL NUCLEAR SECURITY ADMINISTRATION OFFICE OF SECURE TRANSPORTATION FEDERAL AGENT MEDICAL DIRECTION, TRAINING AND SUPPORT SERVICES Contract ... JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION NATIONAL NUCLEAR SECURITY ADMINISTRATION OFFICE OF SECURE TRANSPORTATION FEDERAL AGENT MEDICAL DIRECTION, TRAINING AND SUPPORT SERVICES Contract Number: 89233120CNA000133 I. AGENCY IDENTITY AND CONTRACTING OFFICE The United States Department of Energy/National Nuclear Security Administration’s (DOE/NNSA) Office of Secure Transportation (OST) plans to contract for specialized Medical Direction, Training and Support Services by means of other than full and open competition. The contracting activity is the DOE/NNSA Non-M&O Contracting Operations Division (NA- APM-124.2). II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED This document sets forth the justification and approval of the use of one of the exceptions to full and open competition allowed under the Competition in Contracting Act (CICA) of 1984. The contractor is 2SRG, located at 7065 W. Ann Road Suite 130-265, Las Vegas, NV 89130. 2SRG is a Service Disabled Veteran Owned Small Business (SDVOSB) & Woman Owned Small Business (WOSB) performing under the North American Industry Classification System (NAICS) Code 621999 (All Other Miscellaneous Ambulatory Health Care Services), with a small business size standard of $15.0 million. It is anticipated that this procurement will result in the award of a five-year contract with an estimated value of $3,600,000. III. DESCRIPTION OF SUPPLIES AND/OR SERVICES OST is responsible for the safe and secure transportation of nuclear weapons (NWs), special nuclear materials (SNMs), nuclear weapons components (NWCs), and nuclear weapons assemblies between production facilities and Department of Defense facilities using ground and air modes of transportation. Due to OST’s unique national security mission and potential for exposure to attack or other dangerous/hazardous conditions, OST has a critical requirement for FA Medics who will provide immediate emergency medical care in situations where the threat of radiological contamination and/or hostilities would deter and delay local Emergency Medical Services. These FA Medics also provide a first response capability in the event of accidents on the road or during training as well as other health care to Federal Agents on duty to ensure OST’s ability to perform its essential mission is not impaired. The specialized medical training required on this contract will include, but is not limited to; burn management, hemorrhage control, respiratory emergencies, hemodynamic monitoring, drug calculation, orthopedic trauma, airway emergencies, management of wounds, pain management, shock management, neurological assessment, crush injuries and general medical emergencies. IV. AUTHORITY The statutory authority permitting other than full and open competition is 41 U.S.C §3304(a)(5), as implemented by the Federal Acquisition Regulation (FAR) Subpart §6.302-5 entitled "Authorized or Required by Statute." Specifically, FAR Subpart §6.302-5(b)(6) provides that the authority for permitting other than full and open competition may be used when a statute expressly authorizes or requires that the acquisition be made from a specified source. In this case, the Contracting Officer (CO) is authorized to issue a sole source award under the Veterans Benefits Act of 2003 (15 U.S.C. 657f) and as implemented under FAR §19.1406 entitled "Sole Source Awards to Service-Disabled Veteran-Owned Small Business Concerns (SDVOSBCs)." V. APPLICATION OF AUTHORITY Congress passed the Veterans Benefits Act of 2003 on December 16, 2003. Section 308 of the Act (P.L. 108-183) established a procurement program specifically for SDVOSBCs where federal contracting officers are authorized to restrict competition to SDVOBCs and award a sole source or set-aside contract when certain criteria or requirements were met. As applicable here, FAR §6.302-5(a)(2)(i) specifies that full and open competition need not be provided for when a statute expressly authorizes or requires that the acquisition be made through another agency or from a specified source. In this case, FAR §6.302-5(b)(6) expressly authorizes a federal contracting officer to award a sole source award to a SDVOSBC under the Veterans Benefits Act of 2003. Accordingly, pursuant to FAR §19.1406(a)(1) and as discussed in Section VI below, a sole source award to 2SRG is permitted for five reasons: (1) the CO does not have a reasonable expectation that offers would be received from two or more SDVOSBCs based on the market research; (2) the anticipated award price of the resulting contract does not exceed $4M under NAICS Code 621999; (3) the CO has determined that the specialized Medical Direction, Training and Support Services is not currently being performed by an 8(a) participant under the provisions of Subpart 19.8 or has been accepted as a requirement by SBA under Subpart 19.8; (4) the CO has determined that 2SRG is a responsible contractor with respect to performance; and (5) the CO believes that award can be made at a fair and reasonable price. VI. EFFORTS TO IDENTIFY ADDITIONAL SOURCES A Sources Sought Synopsis was posted under Solicitation No. 8923318RNA00019 on May 23, 2018 through FedConnect and FedBizzOpps with the intent of identifying small business set-aside possibilities. Two vendors responded: (1) KATMAI Health Services (8(a) ANC); and (2) 2SRG (SDVOSB/WOSB). However, an analysis by OST subject matter experts determined that 2SRG was the only vendor capable of performing the scope of work in its entirety. The Government will continue to identify additional sources as information becomes available. VII. DETERMINATION OF REASONABLENESS OF COST OR PRICE The CO will make a determination of cost/price reasonableness utilizing various methods to include a price analysis incorporating a technical analysis, utilization of historical Government contracts that the contractor has been awarded, an Independent Government Cost Estimate (IGCE), and other market research methods. Accordingly, it is the determination of the CO that the anticipated costs will be fair and reasonable based on a price analysis of the contractor’s proposal when compared with historical costs, commercial price lists, and the Government’s IGCE. VIII. MARKET RESEARCH Market research consisted of informal internet searches on vendors and market research to identify additional sources as discussed in Section VI above. IX. OTHER FACTS The Veterans Entrepreneurship and Small Business Development Act of 1999 (P.L. 106-50) established an annual government-wide goal of not less than 3% of the total value of all prime contracts and subcontract awards for participation by small business concerns owned and controlled by service-disabled veterans. Specifically, based on the Department’s Office of Small and Disadvantaged Business Utilization FY18 Annual Report, the Department did not meet its stated objective of 3% in contract obligations for SDVOSBCs. In fact, of the goal of $0.81B, the Department was only able to achieve contract obligations of $0.33B or 1.11%. Accordingly, this sole source action and award to 2SRG pursuant to FAR §6.302-5(b)(6) and §19.1406(a)(1) is considered a positive step towards meeting the Department’s overall objective for SDVOSBCs. DOE/NNSA/OST will continue to explore all contracting opportunities for supporting and advocating eligible contract dollars for award to SDVOSBCs for FY19 and FY2020. X. INTERESTED SOURCES 2SRG (SDVOSB/WOSB) and Katmai (8(a) ANC) responded to the sources sought notice.