201021 JA 20-028_16D1807_Redacted.pdf

PROCUREMENT SENSITIVE INFORMATION

DISCLOSURE LIMITATIONS AS OUTLINED IN FAR 2.101 AND 3.104 APPLY

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Department of the Navy, Naval Facilities Engineering Command, Pacific (NAVFAC PAC), Joint Base Pearl Harbor-Hickam, Hawaii.

2. Description of the Action Being Approved.

Request approval to modify Contract No. N62742-16-D-1807 to increase the contract ceiling by $90 Million(M), from $95M to $185M. The subject contract is an Indefinite Delivery Indefinite Quantity (IDIQ) Cost-Plus-Award-Fee (CPAF) Small Business Environmental Remedial Action Contract (SBRAC) for Sites in Hawaii, Guam, and Other Areas within the NAVFAC PAC Area of Responsibility (AOR). The contract (hereafter referred to as “SBRAC IV”) was awarded to Cape Environmental Management Inc. on 20 July 2016 for a base year plus four one-year options not to exceed 60 months. To date, contract task orders (CTOs) with a total dollar value of approximately have been awarded, with a remaining capacity of approximately . The contract is on its fourth and final option year and will expire on July 19, 2021.

, planning for a a identified the need for that will interfere with an upcoming remedial action. The existing remediation site is the Pearl Harbor Sediment, Joint Base Pearl Harbor-Hickam (JBPHH) Pearl Harbor The current Remedial Action is to implement selected methods to address contaminated sediments, including placement of clean material to enhance natural recovery (ENR), treatment of contaminated sediment with activated carbon (AC) amendment material, and environmental dredging. Due to the overlapping of on the remediation area, the environmental dredging portion of the remedy appears to now require a significantly higher volume of soft sediment dredging over what was initially awarded and elimination of the other passive remedies in this area. In preliminary discussions, regulators have agreed that this would be an appropriate approach to this portion of the Remedial Action. It would also be ineffectual to implement the original multiple remedy approach in the area with the construction project quickly moving on to the area that would disturb the CERCLA remedy. Environmental Restoration Program agreed the appropriateness of the construction planner’s proposal to include this additional dredging volume in a revised Remedial Action approach. This would require adding funding to a planned Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) Remedial Action in . This unplanned requirement to perform additional soft sediment dredging at necessitates adding capacity to the SBRAC IV. The remediation action was awarded on a CTO through the SBRAC IV. CTO authorizes remediation of contaminated sediments through dredging but the scope of the remediation does not include the

. Adding remediation for the site significantly increases the volume of soft sediment dredging. However, it is more responsible to conduct a comprehensive CERCLA cleanup than to effect the remediation in phases. The funding to address this additional environmental dredging volume at the site is now anticipated in the

. Increasing capacity to SBRAC IV will allow the government to issue

J&A No. 20-028 another Task Order and achieve a more comprehensive cleanup.

SBRAC IV remediation dredging is soft sediment dredging to alleviate contaminants in the harbor sediment. Remediation dredging is one of various remedies in this harbor .

It was a CERCLA action even before the project came to life. The additional funding being authorized is intended to pay for removal of contaminants in anticipation of the construction work.

The estimated cost to complete this additional environmental dredge volume at this site is and must be awarded by . In order to address the environmental dredging before the begins, it is projected that the remedial action dredging needs to be awarded by . The project is within the scope of Contract N62742-16-D-1807.

3. Description of Supplies/Services.

The subject contract provides environmental remedial action services at environmental contamination sites, predominantly located at Navy and Marine Corps installations and other Government agencies. The sites consist of those ranked on the Superfund National Priority List (NPL) as well as non-NPL sites regulated under Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), Resource Conservation and Recovery Act (RCRA), Underground Storage Tanks (UST) regulations, state specific regulations, and other sites requiring remedial action.

Remediation technical services may include, but are not limited to, performing removal actions, expedited and emergency response actions, pilot and treatability studies, facility operation, maintenance and instruction, other related activities associated with returning sites to safe and acceptable levels, munitions response and range clean ups and closures, closure and/or replacement of underground or aboveground storage tanks, and performing and preparing appropriate documentation of planned and completed actions.

Specialized remediation services are typically performed through a cost reimbursement contract instead of a firm-fixed-price contract. The extent of contamination at a CERCLA site cannot be definitively determined prior to the remedial action, and thus the level of effort (both labor hours and material requirements) for remedial action is highly uncertain and speculative. Due to the uncertain nature of the services, a cost reimbursement contract is preferred because it reduces risk to the Government by allowing the Government to only pay for the actual services rendered. The SBRAC IV contract is currently the only active environmental remediation cost reimbursement contract applicable to the NAVFAC PAC AOR that is available and has a scope of services to perform these types of remediation efforts.

4. Statutory Authority Permitting Other than Full and Open Competition.

10 U.S.C 2304(c)(1), Only One Responsible Source and No Other Services Will Satisfy Agency Requirements, as implemented by Federal Acquisition Regulation (FAR) 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority.

Increasing the capacity of the SBRAC IV will eliminate the award of a competitively solicited remediation contract for the additional harbor dredging. However, using the SBRAC IV will result in the most advantageous acquisition strategy. The Government will realize efficiencies by using the incumbent SBRAC services provider to complete the remediation at the site. For instance, increasing capacity to the SBRAC IV provides the ability for the same contractor to perform that work in the harbor and avoids the duplication of effort including for mobilization and demobilization of the dredging equipment, obtaining additional permits and certain management and associated overhead required if another dredging company was awarded the work. Increasing the capacity in the SBRAC IV will avoid unacceptable delays, which is of upmost importance because the mission need date

The current SBRAC IV contractor has developed working knowledge of the relevant Record of Decision (ROD), remedial design package, and background studies associated with this CERCLA site that an new dredging concern would have to gain familiarity with. The existing dredging contractor has also obtained approvals on various work plans and has initiated and/or completed multiple regulatory consultations, all of which would need to be re-accomplished should another contractor be awarded the additional dredging volume work at this CERCLA site. The government realizes a savings in contract administration resources, use of existing regulatory-approved work plans, site and CERCLA-process familiarity, and other technical, regulatory, and/or logistical effort already accomplished in the current CTO. The cost to duplicate these various efforts is not expected to be recovered through competition.

In addition, there are no other NAVFAC PAC CPAF environmental contracts currently available to provide timely award of this required service . Although re-procurement efforts for the SBRAC contract are ongoing, the award of the new contract is not anticipated until the . Postponing this requirement until award of the new SBRAC contract through competition would result in unacceptable delays and potential failure to meet environmental remediation requirements.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

Naval Facilities Engineering Command, Pacific has not published and does not intend to publish a Notice of Intent to Sole Source in accordance with FAR 5.203(a). This proposed contract action is made pursuant to the terms of an existing contract that was previously synopsized in sufficient detail to comply with the requirements in FAR 5.207 with respect to the current proposed contract action. Accordingly, the requirements for an exception under FAR 5.202(a)(11) have been met and no synopsis is currently required. A market survey was not conducted and an increase of the subject contract capacity is considered the only reasonable means to accomplish the work in a timely manner.

7. Determination of Fair and Reasonable Cost. The Contracting Officer has determined the anticipated cost to the Government of the services covered by this J&A will be fair and reasonable since the contract has ceiling rates to negotiate labor cost and indirect costs and sufficient historical data available for similar services.

8. Actions to Remove Barriers to Future Competition. Efforts are in place to re-procure a new environmental remedial contract. The new contract is planned for award in .

The replacement contract will be procured using total small business set-aside at a value intended to ensure that all known remediation requirements fit within the dollar limits established at the time of award.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

Signature Name Telephone No. Date

Requirements Cognizance:

LEGAL SUFFICIENCY REVIEW

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

CHIEF OF THE CONTRACTING OFFICE (NAVFAC PACIFIC) REVIEW

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

APPROVED BY:

ASSISTANT COMMANDER FOR ACQUISITION, NAVAFACHQ

Upon the basis of the above justification, I hereby waive the requirement in DFARS PGI 206.302-1, to post a request for information or a sources sought notice, and I approve the proposed modification described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304 (c)(1).