20241230 JA_CLEANVICapacityIncrease_Final Redacted.pdf

J&A No. 25-002 human health and the environment has reduced the remaining available contract capacity on a more advanced schedule than anticipated.

In addition to possible fines and/or penalties for noncompliance under CERCLA, awarding follow-on work to another contractor would result in a substantial duplication of costs, particularly in the areas of administration, planning, and mobilization and demobilization, as well as rework required for another contractor to become familiar with efforts already completed by the current CLEAN VI contractor. No other known sources are available or capable. In addition, even if another contractor is capable, awarding to another contractor would result in unacceptable delays in meeting statutory requirements for the Restoration Program, which would be unacceptable to regulatory agencies.

Red Hill Monitoring and Closure Projects.

There are existing task orders supporting the Red Hill monitoring and closure efforts that require follow-on and uninterrupted services which are needed to support environmental monitoring and remediation related to the Red Hill fuel release. The scope of the actions are discussed in constant communication between relevant Regulatory Agencies, and are largely unknown until they are finalized, at which point implementation is needed immediately. Increased capacity is critically needed to ensure readiness to respond promptly and efficiently to the evolving demands of the contract and regulatory landscape.

Contract efforts include, but are not limited to, providing drinking water long term monitoring (LTM) services that include drinking water sampling, analytical laboratory services, data validation and data evaluation, investigation on the extent of contamination and potential impacts to the subsurface, and expanding/updating/supporting the Environmental Database Management System (EDMS). These services are necessary to assist the Navy in making well-informed, science-based, and risk-based decisions to meet regulatory requirements, improve consumer confidence, and alleviate concerns of the Stakeholders.

The impact of non-action or not awarding the Red Hill projects under the CLEAN contract are severe. The 2015 Administrative Order on Consent (AOC) and 2023 Administrative Consent Order (ACO) are binding agreements entered into by the Navy, Defense Logistics Agency (DLA) and the U.S. Environmental Protection Agency (EPA). In the event that the Navy fails to comply with any requirement, the EPA may assess stipulated penalties and pursue litigation against the Navy. Per the 2023 ACO, the EPA may assess a stipulated penalty against the Navy, in an amount not to exceed $5,000 for the first week (or part thereof) and $10,000 for each additional week (or part thereof) for failure to comply with any requirement, including completion of any work in the 2023 Consent order, and/or within the specified time schedules approved under the 2023 ACO.

The contractor has the resources and technical expertise to operate under the levels of public and regulatory scrutiny leveled at the Navy since the release. Awarding follow-on services for this response effort to another contractor would not be practical or reasonable as there is a steep learning curve on a multitude of issues for the project and new requirements are constantly identified for immediate implementation. Particularly, the loss of corporate knowledge of the complex hydrogeological conditions and the multitude of details of the work done to date will contribute to the duplication of cost and unacceptable delay. The time to phase-in the forthcoming contract and provide a fully executed task order is approximately .

Without the increased capacity and the overlap this provides to utilize the current contract, the task order execution timeline results in unacceptable delays to the FY25 projected requirements.

Additional Task Orders:

The statutory authority of 10 U.S.C. 3204(a)(1), and FAR 6.302-1(a)(2)(iii), only one responsible source and no other supplies or services will satisfy agency requirements, also applies to the additional task orders planned for award. The scope of task orders will be within scope of the current CLEAN contract to provide follow-on services for ERN Program, and there is no other environmental contract available to provide highly specialized environmental services required for these new requirements. The acquisition process is underway for re-procuring a follow-on CLEAN contract; however, based on current plan of action milestones indicate that a new CLEAN contract will not be awarded until . Waiting for the new CLEAN contract award through competition would result in unacceptable delay in awarding new requirements, which would result in potential failure meeting the agency’s environmental remediation requirements.

The actions taken by the Navy that are awarded under the CLEAN contract, specifically those that support remediation, modeling, and monitoring are necessary to protect public health to ensure that the air and water quality meet State and Federal standards, that the fuel release is properly remediated, and that the environment is adequately monitored to provide the public with transparent results of what the Navy is actively doing. Without the capability to fulfill contract requirements, the government puts a risk on human health due to the amount of housing and school areas within the AOR.

In addition to regulatory requirements, the Navy is under extreme public scrutiny to remediate the environment, and to clean and close the facility in a safe, deliberate, engaged, and committed manner. The public opinion regarding the Navy’s efforts at Red Hill heavily influences Regulatory Agencies, who then impose previously unforeseen requirements on the Navy.

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

Naval Facilities Engineering Systems 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 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. The action was synopsized from 28 April 2021 to 27 May 2021 prior to award on 30 January 2023 where only one offer was received. 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.

Technical experts are available to review the level of effort submitted and the contract is subject to auditing, reducing the risk of overpayment by the government for services rendered

8. Actions to Remove Barriers to Future Competition.

Efforts are in place to re-procure a new CLEAN contract. The new contract is planned for award in . The replacement contract will be procured using full and open competition methods at a value intended to ensure that all known requirements would fit within the dollar limits established at the time of award.