PRESOL | Z | NOTICE OF INTENT TO ISSUE A SOLE SOURCE CONTRACT

FBO DAILY ISSUE OF FEBRUARY 08, 2012 FBO #3728
SOLICITATION NOTICE

Z -- NOTICE OF INTENT TO ISSUE A SOLE SOURCE CONTRACT

Notice Date: 2/6/2012
Notice Type: Justification and Approval (J&A)
NAICS: 238220 — Plumbing, Heating, and Air-Conditioning Contractors
Contracting Office: General Services Administration, Public Buildings Service (PBS), Acquisition Management Staff (1P1PQ), 10 Causeway Street, Boston, Massachusetts, 02222-1077, United States
ZIP Code: 02222-1077
Solicitation Number: GS01P12BWD0018
Archive Date: 3/6/2012
Point of Contact: John C. Sarnoski, Phone: 617-565-8615, Donna Maffeo, Phone: (617) 565-6012
E-Mail Address: john.sarnoski@gsa.gov, donna.maffeo@gsa.gov
(john.sarnoski@gsa.gov, donna.maffeo@gsa.gov)
Small Business Set-Aside: Total Small Business
Award Number: GS01P12BWD0018
Award Date: 2/1/2012
Description: GENERAL SERVICES ADMINISTRATION NEW ENGLAND REGION 1 PSA JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION PART I - TECHNICAL SUPPORTING DATA Recommend that negotiations be conducted with Done Right Building Services, Inc. (Done Right) on a noncompetitive basis for award of three, short term contracts in a total amount estimated to be $989,366. The supporting data for this recommendation are as follows: A. Description of Supplies/Services - The work to be performed is providing all janitorial services; mechanical operations; maintenance repairs; and, quality control services at the following locations: Facility Location SC) Footage St Albans POCH St Albans, VT 65,000 McIntyre FOB Portsmouth, NH 86,056 Haverhill SSA Haverhill, MA 5,500 B. Background - All 3 of the contracts for these services were initially written as 5-year, firm-fixed-pricer sole source 8(a) set-aside contracts awarded to Done Right. In each case, over the course of contract performance, Done Right graduated from the 8(a) program thereby making them ineligible for the follow-on 8(a) contracts. Since the value of each of the follow-on procurements was below the $4.0 million threshold for a competitive 8(a) action, a sole source 8(a) procurement was anticipated for each. In light of the above, SBA identified a potentially suitable New England based 8(a) firm to fill the requirements. RFP's for Haverhill and St Albans were prepared and issued to the directed source and preparation for the Portsmouth RFP was started. Upon receipt of the respective proposals they were evaluated and clarifications were obtained where necessary. During the course of proposal evaluation and subsequent negotiations in the Spring of 2011, there were indications that the Offeror would not be able to provide the level of service required at a fair and reasonable price. In both cases (Haverhill and St Albans), the price proposed was significantly higher than both the Government estimate and the current contract prices. While the Offeror made attempts to revise their proposal to bring it more in line with current pricing, discussions made it apparent that their cost structure would not allow them to reach a price point that could approach "fair market value". At this point, negotiations were ended and, based on this experience; a decision was made not to issue a solicitation to this firm for the McIntyre requirement. GSA then undertook market research to identify additional viable 8(a) sources in New England by utilizing the Small Business Dynamic Search database to identify sources that specifically qualified for NAICS codes 238220 (Plumbing. Heating and Air-Conditioning Contractors) and 561210 (Facility Support Services ). We found that much of the difficulty in locating acceptable replacement contractors for these services was caused by the fact that the NAICS code utilized for mechanical maintenance services, 238220 is a construction NAICS code; there is no separate NAICS code for mechanical maintenance services. As a result, construction contractors are predominately identified as suitable candidates, and not service contractors. There is a huge difference between repair work (which is construction) and comprehensive preventative maintenance of all of a buildings systems and equipment (which is a facilities service). As a result, we found that these companies do not have the requisite past performance and experience to successfully perform these services, as is borne out in the inordinately high prices proposed and the lack of salient experience. Similarly, we experienced the same results at Hartford and Providence as Haverhill and St. Albans, but with a different 8(a) replacement contractor. Even when utilizing NAICS 561210 (Facilities Support Services), it is the mechanical maintenance requirements than cannot seem to be met in the local 8(a) economy. Because of the initial failed negotiations on 2 of the 3 requirements, and based on guidance from the local SBA Regional Office, we then issued a nationwide Sources Sought notice for qualified 8(a) firms. The results of this nationwide search were unsuccessful. No information provided sufficiently demonstrated a firms capability to meet the requirements at a fair market price. Consequently, on 24 October 2011 we initiated a formal request to SBA to release these requirements from the 8(a) program so that we could pursue other small business alternatives. To date, we have not received a response to our request. In light of the above, this sole source justification is to allow Done Right to continue services at all three locations until replacement contracts can be awarded. We estimate this to be until September 30, 2012. From a cost standpoint, Done Right is already on site at each location and has been performing work there for many years. It is unrealistic to expect that another contractor could step in now and bridge services between the current and follow-on contracts at a better price or level of performance. In addition, unacceptable delays may be encountered if award was made to another source due to startup activities required to phase in a new contractor. C. Circumstances Requiring the Use of Other Than Full and Open Competition. Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements. The expiration dates for the current contracts which cover services at these facilities are: Haverhill SSA 31 December 2011 St Albans POCH 31 January 2012 McIntyre FOB 29 February 2012 There are no provisions available to extend the current contracts beyond these dates. Market research has indicated that there are numerous viable small business sources in categories other than 8(a), which are available to meet the current requirements. The proximity of the expiration of current contracts precludes competitive solicitation and award within the time frame necessary to provide uninterrupted services. Continuation of services is essential to the life safety and welfare of those occupying the buildings as well as for carrying out the missions of the tenants occupying these facilities. Specifically, these services include the daily monitoring of mechanical systems; monthly preventative maintenance of building equipment; response to emergency and routine service calls; and, daily cleaning, sanitizing and trash removal services. Based on these circumstances, the only viable course of action that provides uninterrupted continuation of critical services is to negotiate short term "bridge" contracts with the current incumbent. The proposed bridge contracts will be for a maximum period of 15 months (including options), with the base period ending September 2012. This will provide for continuation of current services while the requirement is solicited and awarded on a competitive basis. Due to the compressed timeframe, it is not practical to compete this short-term contract. The incumbent is currently performing the work satisfactorily and has a working knowledge of the facilities and day-to-day requirements. Other contractors could not mobilize quickly enough and do not have the experience in these buildings needed to provide services seamlessly on such short notice and at a fair and reasonable price. D. Market Research As stated previously, the SBA Dynamic search tool was initially utilized to identify potential 8(a) sources. This screening was followed by a Sources Sought Notice targeted at 8(a) suppliers which resulted in minimal response from potential sources that did not, or could not demonstrate the required level of experience or past performance in the mechanical services area. Additional market research was then conducted with the search tool that encompassed all small business categories on a nationwide scale. As a result of this search we initially uncovered 303 potential suppliers that met the criteria of having a NAICS code of 561210 (Facility Support Services) with an indicated expertise in the area of HVAC or mechanical maintenance services. We have issued a requirement specific Sources Sought Notice for each requirement to target these identified sources which yielded a base of potential offerors sufficient to support adequate competition. On 10 January 2012 a "Notice of Intent to Issue a Sole Source Contract" was posted in FBO for St Albans POCH and on 13 January 2012 one was posted for McIntyre FOB as required by FAR 5.201. As a result of these notices, one firm, Maine Real Estate Management, LLC, provided a capabilities statement which will be added to the market research for the follow on contracts. E. Steps to Foster Competition The steps that have already been initiated to release this requirement from the 8(a) Program will significantly improve the competitive environment. Initial market research over the expanded small business arena indicates that we will be able to identify sufficient qualified sources over a range of socio-economic categories to be able to achieve full competition resulting in quality service at a reasonable price. F. Requirements Office Certification The requirement set forth is initiated to satisfy a recognized Government need. As applicable, the statement of work is limited to state the minimum needs of the Government. I certify that the above information is accurate and complete to the best of my knowledge and belief. _______/s/___________ 01/31/2012 Timothy Shobrook DATE Branch Chief North Service Center Branch, 1PKS PART II - CONTRACTS SUPPORTING DATA A. Description of the Procurement Action: These contracts will be awarded as new short-term contracts with the incumbent contractor, Done Right Building Services, Inc. There will be no change to the existing specifications or service requirements and the term of the contracts will vary by facility as follows: Facility Term Expiration Haverhill SSA 9 Months 30 Sep 2012 St Albans POCH 8 Months 30 Sep 2012 McIntyre FOB 7 Months 30 Sep 2012 These short term contracts will provide sufficient time for SBA to render a decision on our request to expand sources beyond 8(a), and to identify qualified small business firms capable of competing for award of a multiple year firm-fixed-price contract at a fair market price. FAR Clause 52.217-8, "Option to Extend Services", will also be included in this bridge contract to allow up to six additional months services in order to award the new 5-year contracts, if needed, for award and startup transition. This acquisition is a continuation of the current services for janitorial and mechanical maintenance performed by Done Right Building Services Inc. In addition to the existing Statement of Work, each contract will contain the applicable, current DOL wage determination for each location. There will be no additional requirements added to the short term contracts. Done Right will be requested to furnish proposals for continuation of services under existing contracts. These proposals will be evaluated using an independent government estimate as well as prices in the respective existing contracts to determine whether the prices submitted are fair and reasonable. B. Authority: 41 U.S.C. 253(c) (1), as implemented by FAR 6.302-1 -Only one responsible source. Done Right is the current contractor and is on site at all 3 locations. It is unreasonable to expect that we will be able to identify a qualified successor who can become familiar with the facilities and requirements quickly enough to provide the level of service required. Additionally, it would be difficult for a new Contractor to mobilize and assume the contract for such a short time (less than 1 year) at a reasonable cost. C. Efforts to Obtain Competition: The proposed short term contracts will not be synopsized as it falls under FAR 5.202(a)(2). Specifically, with the imminent expiration of the current contracts as detailed above, there is not sufficient time to seek competition. However, every effort will be made to expeditiously find and award long term follow-on contracts to qualified small business contractors capable of performing janitorial and mechanical maintenance services at a fair market price. Additionally, in accordance with GSA Acquisition Letter V-09-02 dated May 8, 2009, Posting of Justification and Approval Documents, a copy of this justification for other than full and open competition will be posted on FedBizOpps within 30 days of contract award. D. Fair and Reasonable Cost: The Contracting Officer will take the following steps to ensure that the anticipated cost to the Government will be considered fair and reasonable: (1) A detailed cost analysis will be performed comparing Done Right's proposals with an independent government estimate. (2) Comparison will be made with prices paid in the previous contracts and the proposed prices. (3) Negotiations will be conducted as necessary to obtain clarifications and to ensure the final total price is fair and reasonable. E. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief. _____/s/____________ 1/31/2012 Donna M. Maffeo DATE Contracting Officer Acquisition Service Branch, 1PSA PART III- REVIEW AND APPROVAL SIGNATURES: Concurred By: ________/s/_____________ 02/02/2012 Karen Palladino DATE Director Service Centers Division, 1PS _________/s/________________ 02/02/2012 Shirley McCarthy DATE Acquisition Executive (Acting) APPROVED: _______/s/___________ 02/02/2012 Matt Bailey DATE Competition Advocate (Acting), 1P1 Public Building Services
Web Link: FBO.gov Permalink
(https://www.fbo.gov/spg/GSA/PBS/1PK/GS01P12BWD0018/listing.html)
Place of Performance: Address: St Albans POCH, 50 South Main Street, St Albans, Vermont, 05478, United States; Zip Code: 05478
Record: SN02668678-W 20120208/120206234839-dac4c4186ac9dbff04337bf1ddbc2a13 (fbodaily.com)
Source: FedBizOpps Link to This Notice
(may not be valid after Archive Date)

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Z -- NOTICE OF INTENT TO ISSUE A SOLE SOURCE CONTRACT