20200810 Red Hill Tank 14 Repairs J and A.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING COMMAND, HAWAII

400 MARSHALL ROAD

JBPHH, HAWAII 96860-3139

IN REPLY REFER TO:

JA-20-0028

N39430-20-D-2220

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

The requiring activity is Naval Facilities Engineering and Expeditionary Warfare Center (EXWC), Code CI-11, Port Hueneme, CA. The contracting activity is Naval Facilities Engineering Command, Hawaii (NAVFAC HI), Code PRJ22, JBPHH, HI.

2. Description of the Action Being Approved.

This Justification and Approval authorizes the issuance of a construction/repair Task Order to one firm, without soliciting proposals from the remaining seven contractors under the FY20 Petroleum, Oil, and Lubricants Multiple Award Construction Contract (POL MACC).

3. Description of Supplies/Services.

APTIM Federal Services, LLC (APTIM) is one of the POL MACC contract holders (N39430- 20-D-2225). APTIM has already performed tank inspection and repair work for Tank 14 at the Navy’s Red Hill Underground Fuel Storage Facility (RHUFSF). The pending request for proposal is to perform additional emergent repairs identified and required in order to ultimately return Tank 14 to operation. These additional emergent repairs are not covered by APTIM’s current task order involving Tank 14.

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

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1. FAR 6.302-1 permits contracting without providing for full and open competition in situations where services are deemed to be available only from the original source for the continued provision of highly specialized services where it is likely that award to any other source would result in 1) substantial duplication of cost not expected to be recovered through competition, or 2) unacceptable delays in fulfilling the agency’s requirements. In addition, 10 U.S.C. Section 2304(c)(2), as implemented by FAR 6.302-2, permits contracting without providing for full and open competition in situations where 1) an unusual and compelling urgency precluded full and open competition, and 2) delay in award of a contract would result in serious injury, financial or other, to the Government.

JA-20-0028

N39430-20-D-2220

5. Rationale Justifying Use of Cited Statutory Authority.

Background Task Order 0005 was awarded on 31 August 2016 under Contract No. N39430-15-D-1632 Petroleum, Oil and Lubricant (POL) Fuel Systems - Multiple Award Construction Contract (MACC). The task order was awarded to APTIM to (1) clean, inspect, repair, and inspect repairs to mined-in-place military petroleum storage tanks (Red Hill Tanks 14, 17, and 18); (2) perform an out-of-service modified API 653 Inspection; and (3) inspect and repair tank appurtenances pursuant to request for proposal requirements and API Standard 653 at Red Hill Underground Fuel Storage Facility on Joint Base Pearl Harbor-Hickam.

On 18 January 2018, APTIM completed a comprehensive API 653 out-of-service internal integrity inspection of Tank 14 and submitted the Preliminary Condition Assessment Inspection Report (PCAR) to the Government. It is noted that the predictive scope of work for the inspection indicated a quantity of approximately 200 locations within the tank that would require repair by way of installation of 6-inch diameter patch plates at these areas. The number of additional mandatory and recommended repairs identified in the Tank 14 PCAR are an order of magnitude greater than the number of predictive repairs. A Tank Repair Requirements (TRR) meeting with POL stakeholders (NAVFAC, NAVSUP, and DLA) reviewed the PCAR and approved a list of additional Tank 14 repairs on 04 April 2018 which included:

231 additional patch plate repairs, including some with complex and large geometry, some requiring full plate replacements 2,547 tank weld repairs 18 linear feet of weld repairs within the 32” product nozzle Replacement of the gunnite-encased 24” tank vent line Design and supply of a product piping crossover with a new 20” motor-operated isolation valve Taking the 18” product nozzle out of service and reconfigure it to dry carrier pipe service for small-bore drain line and sample lines Coating the tank interior extension ring and 32” nozzle interior

Unique Conditions

As the prime contractor for the Red Hill Tank 14, APTIM has already performed the cleaning and inspecting of Tank 14 and has performed the predictive repairs to the maximum extent possible.

However, unless the additional repairs that were identified in PCAR are completed, APTIM’s subcontractor Enterprise Engineering, Inc. (EEI) would not be able to issue a suitability of service testament for Tank 14 and the tank would not be able to return to operations.

Tank Access APTIM designed and installed a system of telescoping booms, baskets and monorail trolleys to perform the inspection and predictive repairs in Tank 14. They have been maintaining the inspection and load testing of this equipment to date so that their equipment is certified compliant.

Temporary Utilities APTIM provided the existing infrastructure for temporary utilities for the Tank 14 clean and inspection phase. This includes temporary construction ventilation, tower lighting, compressed air, generators, cabling, switchgear and electrical power connections in the upper and lower tunnels.

Schedule APTIM currently has company employees and subcontractors working in the Red Hill facility under their three (3) tank clean-inspect-repair task orders with current Red Hill Fuels security credentials. The Government benefits because security badging for a new Red Hill contractor takes up to four (4) to six (6) months to obtain. The field time for APTIM to mobilize, install temporary utilities, and modify, install and test the tank access equipment for the Tank 14 inspection took about 12 weeks. APTIM has successfully completed repairs in Tank 5, and mechanical and tank weld repairs in Tank 17 and Surge Tanks S4 and S3. APTIM and its subcontractors are currently mobilized in Hawaii, they are familiar with work in the Red Hill tanks, and they can guarantee a completion of Tank 14 repairs by mid-January 2023.

The current global, national and local situation concerning the novel coronavirus disease (COVID-

19) is rapidly evolving and the potential impact upon contractors and subcontractors and the availability of their workforce to access the local jurisdiction is a present concern.

According to EXWC, the Navy had 24 years starting from 2012 to complete the repairs of all the Red Hill tanks and currently seven (7) tanks remain to be API certified. Based on the performance by APTIM, it takes approximately 3.75 years to complete the Clean-inspect-Repair (CIR) process per tank. In addition, NAVSUP’s policy only allows a maximum of four (4) tanks to be out-of-service for a given time. If NAVFAC is unable to award a sole source task order to APTIM to complete the additional repair work in Tank 14, it would take over 2.5 years for another contractor to come in and perform this work, which would have a dramatic impact to the overall POL program and could risk some of the tanks to not be utilized in the future due to failure to meet the regulatory requirements.

Given all of the above, it would be impractical for a new POL contractor to mobilize and perform only a portion of the additional Tank 14 emergent repairs. The new contractor may have work in the same area as the incumbent contractor or on units maintained by the incumbent contractor, which may pose a liability issue.

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

A similar sole source was conducted for the repair work in Tank 5 and the other GPOL MACC contract holders did not have any disagreement with the Government position for this particular sole source approach on 29 March 2018. For the reasons stated above, the Government did not seek another market survey with the GPOL MACC holders.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer will determine the cost to the Government of the services covered by this Justification will be fair and reasonable in accordance with FAR Part 15.

8. Actions to Remove Barriers to Future Competition.

No future task orders for repair or construction work in Tank 14 are anticipated.

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.

_________________________ 13 August 2020 Guy Pasco Date Project Manager

NAVFAC EXWC, CI-11

808-473-7849

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Mark Morita Date Counsel NAVFAC Hawaii 808-474-2255

PASCO.GUY Digitally signed by

PASCO.GUY.

Date: 2020.08.13 14:20:42 -10'00'

MORITA.MARK

Digitally signed by

MORITA.MARK.

Date: 2020.08.13 16:06:06 -10'00'

CONTRACTING OFFICER CERTIFICATION

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

Tramaine Sims Date Chief of the Contracting Office NAVFAC Hawaii, ACQ 808-471-4536

APPROVING OFFICIAL (NFAS 6.304)

Upon the basis of the above justification, I hereby approve the solicitation of the proposed procurement described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304 (c)(1).

Cindy Readal Date Assistant Commander for Contracts Senior Executive Service

NAVFAC HQ

SIMS.TRAMAINE.

2020.08.17 09:50:46 -10'00' 2017.011.30171

READAL.CINDY.

Digitally signed by

READAL.CINDY.

Date: 2020.08.17 16:18:56 -04'00'