17D0004 JA HQC003 22 27 Summit.pdf

Control Number: HQC003-22-27

JUSTIFICATION REVIEW DOCUMENT

Description of Acquisition: Modification for Streamlined Construction Improvement Program (SCIP) IV, Indefinite Delivery Indefinite Quantity (IDIQ) Contract No. HDEC03-17-D-0004 P00003 with Summit Construction, Inc. to extend its ordering period in support of maintenance, repair, and alteration of commissaries and associated facilities located in the contiguous United States, Alaska, Hawaii, Puerto Rico, and Guam.

Statutory Authority: 10 U.S.C. §3204(a)(1) - FAR 6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements; FAR 6.302-1(a)(2)(iii)(B) Unacceptable delays in fulfilling the agency’s requirements.

Estimated Contract Amount: $13.5M.

Ordering Period: Original ordering period 21 Sep 2017 – 20 Sep 2022, modification approval request for ordering period 21 Sep 2022 – 20 Sep 2023 (12-month extension).

Prepared By: Danielle Carrico Contract Specialist Phone : 210-671-5276 Date/Initials: _______

Technical/Requirements: Miguel A. Garcia Chief, Design-Construction Division Phone : 210-671-8412 Date/Initials:________

PCO: Fortunato N. Sapida, Jr. Contracting Officer Phone : 210-671-5877 Date/Initials: _______

Required Review Signatures: We have reviewed this J&A and find the justification adequate to support other than full and open competition.

Program Manager: Miguel A. Garcia Phone: 210-671-8412

Signature: _____________________ Date: _____________

Legal Counsel: Patrick R. Vanderpool Phone: 804-734-8000 x48427

Signature: _____________________ Date: _____________

Division Chief: Jill A. Craft Phone: 804-734-8000 x86294

Signature: _____________________Date: _14 Sep 22____

DeCA Competition Rhonda N. Jackson Phone: 804-734-8000 x89816 Advocate:

Signature: _____________________ Date: _____________

14 Sep 22 DC

14Sep22 MAG

14 Sep 22 FNS

14 Sep 22

14 Sep 22

GARCIA.MIGUE

L.A.1231143153

Digitally signed by

GARCIA.MIGUEL.A.1231143153

Date: 2022.09.14 10:54:36 -05'00'

VANDERPOOL.PATR

ICK.RAYMOND.1458

886586

Digitally signed by

VANDERPOOL.PATRICK.RAYMON

D.1458886586 Date: 2022.09.14 12:48:32 -04'00'

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Office – Defense Commissary Agency, Construction-Design Branch (CCQEC), 2250 Foulois St. Ste 3, JBSA Lackland, TX 78236

2. Type of Contract Action – Execute modification for Contract No. HDEC03-17-D-0004 P00003 with Summit Construction, Inc. to extend its ordering period for an additional twelve

(12) months.

The proposed modification will extend the ordering period from 21 Sep 2017 - 20 Sep 2022 to 21 Sep 2022 - 20 Sep 2023. No funding will be used for these modifications; however, additional Defense Working Capital Fund or Surcharge funds, depending on the type of construction project, will be requested for future task orders issued against Contract No.

HDEC03-17-D-0004 during the extended ordering period.

3. Description of Supplies/Services – Perform maintenance, repair, alteration and renovation of commissaries and associated facilities located in the contiguous United States, including Alaska, Hawaii, Puerto Rico and Guam.

The SCIP IV IDIQ aggregate program amount is $170M, total contract value expended to date is over $115.7M and total remaining is over $54.2M among four (4) contractors. To date, Summit Construction, Inc. has been issued 21 task orders totaling over $70.6M.

For Fiscal Year 2023, the Design-Construction Division (CCND), Engineering Directorate (CCN), is projected to execute eight (8) construction projects (100 % design has been completed for all projects) with an estimated total value of approximately over $24M.

4. Authority Cited - 10 U.S.C. § 3204(a)(1) - FAR 6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements; FAR 6.302-1(a)(2)(iii)(B) Unacceptable delays in fulfilling the agency’s requirements.

5. Reason for Authority Cited – The agency has experienced a delay in executing the award of the follow-on contract to the subject SCIP contract, Multiple Award Construction Contract (MACC), prior to 20 Sep 2022. The MACC will replace the SCIP IV IDIQ contact as the primary construction IDIQ for DeCA. While DeCA has been actively engaged in acquisition planning, recent leadership direction has changed the acquisition path forward, requiring significant additional acquisition planning and document preparation.

Summit Construction, Inc. has successfully executed a total of 21 task orders to date and currently has the resources in place to execute seamlessly throughout the extension period.

Summit Construction, Inc. has specialized knowledge of DeCA Commissary infrastructure and is capable of completing complex and specialized construction activities, such as, HVAC and Refrigeration System Upgrades. Summit Construction, Inc. is a fully qualified construction contractor with sufficient quality control systems and knowledgeable field staff in place to provide uninterrupted construction projects in accordance with federal, state and agency requirements.

Given the time required to pursue the above-mentioned competitive approach in executing the follow-on MACC, it is likely that award to any other source would result in an unacceptable delay in fulfilling the agency’s requirements, including delay to mobilize another source and become familiar with DeCA infrastructure and processes to avoid a gap in services. DeCA has limited this extension to include the minimum expected time to compete the follow-on MACC.

6. Efforts to Obtain Competition – The SCIP IV IDIQ contract HDEC03-17-D-0004 was competed in accordance with FAR Part 6.1, Full and Open Competition. In accordance with FAR 5.202(a)(11), an exception applies as the proposed contract action is made under terms of an existing contract; therefore, this proposed contract action will not be synopsized on Contract Opportunities. This justification will be made publicly available after the completion of the contract modification to extend the contract ordering period in accordance with FAR 6.305. A request for information or sources sought notice will not be issued for this modification to extend the ordering period due to time constraints involved.

7. Fair and Reasonable Cost Determination – There are currently four (4) SCIP IV IDIQ contract holders, Summit (HDEC03-17-D-0004), Nelson (HDEC03-17-D-0002), Northcon (HDEC03-17-D-0003) and Vazquez (HDEC03-17-D-0005). Typically, multiple proposals are received and evaluated for each order. Regardless if multiple or only one (1) proposal is received, a thorough price analysis of each proposal is completed and compared with the independent Government estimate; therefore, task orders issued against the SCIP IV IDIQ contract are determined fair and reasonable. Exchanges are conducted, if necessary, in the event of disparities in the proposal(s) IAW FAR Part 15 procedures.

8. Market Research – The initial market research was completed and approved by the Procuring Contracting Officer on 13 Jan 2017; therefore, market research for this J&A was not conducted.

DeCA will evaluate responses received from other third-party contractors if any are received following public notice of this J&A.

9. Actions to Increase/Foster Competition – Under SCIP IV IDIQ contract, HDEC03-17-D- 0004 Summit Construction, Inc., Section H-Special Contract Requirements, Task Order Issuance Procedures, paragraph 3.1, “Competition for issuance of Task Orders is limited to those awardees under this contract. All awardees will be given a fair opportunity and will be able to submit proposals on any of the projects that are within their bonding capacity.” As mentioned above, the extension covered by this J&A, in addition to the ordering procedures inherent to an IDIQ contract, allow DeCA to minimize this Sole Source action and DeCA will begin to order from the competitive MACC as soon as it is awarded.

10. Other Factors - The SCIP IV IDIQ contract HDEC03-17-D-0004 Summit Construction, Inc.

was initially competed as a full and open competition in accordance with FAR Part 6.1, no authority for other than full and open competition was previously used.

a. The following is a list of known current and past SCIP IDIQ Contractors:

SCIP IV:

1. HDEC03-17-D-0002 Nelson Refrigeration, Inc., 20 Sep 2017 – 19 Sep 2022

2. HDEC03-17-D-0003 Northcon, Inc., 21 Sep 2017 – 20 Sep 2022

3. HDEC03-17-D-0004 Summit Construction, Inc., 21 Sep 2017 – 20 Sep 2022

4. HDEC03-17-D-0005 Vazquez Commercial Contracting, LLC, 21 Sep 2017 –

20 Sep 2022

SCIP III:

1. HDEC0312D0001 LEDCOR, 25 May 2012 – 24 May 2017

2. HDEC0312D0002 Engineered Structures, Inc., 25 May 2012 – 24 May 2017

3. HDEC0312D0003 Joeris General Contractors, LTD, 25 May 2012 – 24 May

4. HDEC0312D0004 MCC/Catamount LLC, 25 May 2012 – 24 May 2017

5. HDEC0312D0005 Summit Construction, Inc., 25 May 2012 – 24 May 2017

6. HDEC0312D0006 Three Phase Electric-Rand Construction Co, 25 May 2012

– 24 May 2017

7. HDEC0312D0007 CCG Davitz, LLC, 25 May 2012 – 24 May 2017

8. HDEC0312D0008 EZ Mechanical, Inc., 25 May 2012 – 24 May 2017

SCIP II:

1. FA300207D0006 Caddell Construction, Co Inc., 04 Apr 2007 – 03 Apr 2012

2. FA300207D0007 KBR Federal Services LLC, 04 Apr 2007 – 03 Apr 2012

3. W912DQ07D0072 VT Griffin, 12 Sep 2007 – 11 Sep 2012

4. W912DQ07D0073 ANTHA Govt Services Corp, 12 Sep 2007 – 11 Sep 2012

5. W912DQ07D0074 Clement-Ritch Contracting Gp, 12 Sep 2007 – 11 Sep

6. FA300207D0021 Summit Construction, Inc., 12 Sep 2007 – 11 Sep 2012

7. W912DQ07D0069 EZ Mechanical, Inc. 12 Sep 2007 – 11 Sep 2012

8. W912DQ07D0070 Nelson Refrigeration, Inc., 12 Sep 2007 – 11 Sep 2012

9. W912DQ07D0071 Rand Construction Co, 12 Sep 2007 – 11 Sep 2012

b. HDEC03-17-D-0004 Summit Construction, Inc. remains competitively active.

c. Previous award was competed as full and open during the solicitation of the SCIP IV IDIQ contract.

d. There is no history of a J&A being submitted for the SCIP IV IDIQ contract HDEC03- 17-D-0004 Summit Construction, Inc.

e. Due to the delay in awarding the MACC, it is imperative to extend the ordering period for the SCIP IV IDIQ contract, HDEC03-17-D-0004 Summit Construction, Inc., in support of store operations.

f. Due to DeCA’s budgeting process, funding of construction projects does not occur until the fourth quarter of each fiscal year, it is imperative that Contract No. HDEC03-17- D-0004 Summit Construction, Inc. ordering period be extended, it is used to expeditiously execute task orders in support of store operations and to meet funds obligation deadline imposed by the Budget Office on CCND and CCQEC. If Contract No. HDEC03-17-D-0004 Summit Construction, Inc. extension is not approved, DeCA will be unable to promptly execute major construction projects award which will degrade store operations support.

11. Interested Sources:

Nelson Refrigeration, Inc.

Northcon, Inc.

Summit Construction, Inc.

Vazquez Commercial Contracting, LLC.

The requirement to post a sources sought notice has been waived in accordance with DFARS

PGI 206.302-1.

12. Fair and Reasonable Price Determination and Contracting Officer Certification:

I hereby determine that the price for this contract action will be fair and reasonable. I certify that this J & A is accurate and complete to the best of my knowledge and belief.

Name: Fortunato N. Sapida, Jr. Signature: _______________________________

Contracting Officer Date: __________________

Technical/Requirements Certification:

I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Name: Miguel Garcia Signature: _______________________________

Title: Division Chief (CCND) Date: ____________________

APPROVAL

Based on the foregoing justification, I hereby approved the 12 months extension for Contract No.

HDEC03-17-D-0004 Summit Construction, Inc. on an other than full and open competition basis pursuant to the authority of 10 U.S.C. §3204(a)(1), provided funds are available, or will be available, and provided that the services and products herein described have otherwise been authorized for acquisition.

APPROVED:

Signature: ______________________________ Date:_________________________ Rhonda N. Jackson DeCA Competition Advocate

SAPIDA.FORTUNATO.

NASOL.JR.1179691678

Digitally signed by

SAPIDA.FORTUNATO.NASOL.JR.117

9691678 Date: 2022.09.14 10:38:47 -05'00'

14 Sep 22

GARCIA.MIGUEL.A

.1231143153

Digitally signed by

GARCIA.MIGUEL.A.1231143153

Date: 2022.09.14 10:55:15 -05'00'

14 Sep 22