22 CONS-JA MACC Ceiling Inscrease.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

Was a J&A approved for the preceding acquisition where that acquisition required a J&A? D Yes 0 No

Is this a new or amended J&A Document? ~ New D Amended ( Prior to Award Only!)

Is this a Bridge Action as defined at DAFFARS 5302.101 ? D Yes ~ No

Dollar Value of this Acquisition: 0 ~ $750K O > $750K and ~ $1 SM ~ > $1 SM and ~ $1 QOM O > $1 QOM

Contracting Activity: 22d Contracting Squadron, McConnell AFB Kansas

Purchase Request (if available)/ Local ID Number: FA4621-22-D-0003, FA4621-22-D-000S, and FA4621-22-D-0007

Program/ Project (and PE, if applicable): McConnell AFB MACC - 2022

Program Type (PEO, Enterprise, of Operational): Operational

Authority:

6.302-1 - 10 USC 3204(a)(l), Only One Responsible Source - No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): $ 23,000,000.00 J&A Type: D Class ~ Individual

COORDINATION ( DAFFARS 5306.304(a ))

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APPROVAL ( DAFFARS 5306.304(a) )

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I. Agency and Contracting Activity.

Department of the Air Force, 22d Air Refueling Wing, 22d Mission Support Group, 22d Contracting Squadron, 53384 Kansas Street, Bldg. 840 McConnell AFB, 67221-3702.

II. Nature and/or description of the adion being approved.

The Government requests approval to increase the program ceiling amount of the existing Multiple Award Construction Contract (MACC.) The MACC program ceiling is currently $75M. Approval of this J&A will increase the ceiling amount by $23M, resulting in a new program ceiling amount of $98M. Upon HQ AMC approval for the program ceiling increase, the Government will initiate a bi-lateral modification with each of the active MACC contractors.

The current McConnell AFB MACC - 2022 Contracts (FA4621-22-D-0003, FA4621-22-D-0004, FA4621-22-D-0005, FA4621-22-D-0006, and FA4621-22-D-0007) have a current ordering ceiling maximum amount of $75M with a total of $57,973,665.57 currently obligated. The contracts are currently in the first option period which is scheduled to run through 28 Feb 2026, with one option period remaining for the period 1 Mar 2026 through 29 Feb 2028. Under the authority identified herein, three McConnell AFB MACC - 2022 contracts will be modified by supplemental agreement to increase the contract maximum amounts by an additional $23M in order to accommodate the McConnell AFB projected requirements until the next contract vehicle is in place.

The contract ceiling will be increased to $98M for the following three MACC IDIQ contracts:

FA4621-22-D-0003 - OK2 Construction, LLC, 6509 Royal Perth Dr, Cleburne, TX 76033. Total obligation as of 18 Aug 25 is $7,515,111.65 over 11 Task Orders.

FA4621-22-D-0005 - Snodgrass & Son's Construction Co., Inc, 2700 S George Washington Blvd, Wichita, KS 67210. Total obligation as of 18 Aug 25 is $41,549,616.49 over 24 Task Orders

FA4621-22-D-0007 - SES Construction and Fuel Services LLC, 1006 Floyd Culler Ct Ste 2, Oak Ridge, TN 37830. Total obligation as of 18 Aug 25 is $5,239,953.00 over 2 Task Orders.

The remaining MACC 2022 contracts (FA4621-22-D-0002, FA4621-22-D-0004, and FA4621-22-D-0006) account for the remaining $3,668,984.43 and will not be further utilized. The Government does not intend to modify two of the current McConnell contracts

The Second Option Period will not be exercised for the remaining two contracts FA4621-22-D-0004 (ProMark) and FA4621-22-D-0006 (Olgoonik). Option Period 1 was not exercised for the OAC contractor FA4621-22-D-0002 and therefore they are no longer on the MACC IDIQ contract. Currently, research is being conducted to see if standing up another SABER contract vehicle is a viable option in addition to the follow-on MACC IDIQ.

A ceiling increase is required due to multiple factors that have led to a significant increase in the utilization

August2023 Page 3 of 8 of the McConnell AFB MACC during this contract. Specifically, the loss of the SABER contract vehicle in Fiscal Year (FY) 23 due to contractor performance issues, support to our nontraditional mission partners at the Kansas Air National Guard due to emergent issues that could not be handled on their contracts, and the inclusion of a Corps of Engineer project that was unable to be accomplished by the Corps as planned, as the addition of their required fees increased the contract value which led to statutory funding limitations being exceeded. These additional project requirements, combined with increased inflation during the period, have led to a faster utilization of the contract ceiling.

The increase of $23M was derived by considering current work, planned work in FY26, additional unplanned work and modifications based on historical performance. The current program value is $58M, when combined with $25M in current unfunded requirements, CE estimated $6M of additional future requirements in FY26 that are not yet advertised/planned, and $9M for new required projects and modifications, the total value needed through FY26 equates to a approximately $98M. The $23M is reached by subtracting the current ceiling value of $75M from $98M which represents the estimated costs through FY26. (Refer to Section III below for further details).

Ill. Description of supplies/services required to meet agency needs.

The McConnell AFB MACC - 2022 is a firm-fixed price (FFP), indefinite-delivery/indefinite-quantity (IDIQ) multiple award contract with a program ceiling of $75M awarded to six contractors for McConnell AFB KS Construction requirements ranging from $2K to $10M. Air Force 3400 Operations and Maintenance appropriation funds are primarily utilized to fund the projects, and funds are executed via Task Orders written against the IDIQ contracts. Contractors are required to furnish all materials, equipment, tools, supervision and labor necessary to accomplish a broad range of maintenance, repair, alteration, and demolition of real property with work consisting of multiple disciplines of general construction categories and may involve design services. During the base period it was determined that Option Period One would not be extended to one of the initial contractors , which reduced the number of contractors still eligible to compete for MACC awards to a total of five.

The MACC projects provide the necessary support to the McConnell AFB mission, and associated McConnell AFB tenants, to include the Air National Guard and NAF services located on the Base.

Below is a summary of the annual spending on the McConnell AFB MACC - 2022 contract to date:

Base Period: $34,617,872.02 (1 Mar 2022 - 29 Feb 2024)

Option Period 1: $23,355,793.55 (1 Mar 2024 - 28 Feb 2026)

Option Period 2: TBD (1 Mar 2026 - 29 Feb 2028)

Total: $57,973,665.57 out of $75,000,000

Available Ceiling: $17,026,334.43

Based on the history of the McConnell AFB MACC - 2022, the average annual obligation amount is approximately $14.5 million per year. The follow-on contract vehicle is currently under development with a projected contract award in November 2026. An increase of $23M (raising the program ceiling value to $98M) would allow for continued support of the McConnell AFB construction requirements and provide a margin for other smaller projects that arise as well as allow for in-scope modifications ( differing site conditions, etc.) through Fiscal Year 2026 with the exercise of Option Period 2 in February 2026.

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Projected requirements during this period include the following:

Total ceiling required through FY 26

Estimated Value of MACC through FY 26:

$58M (current utilized)+ $40M (amount through FY26) = $98M

Estimated Additional Ceiling needed through FY 26:

$40M (amount through FY26)- $17M (Available ceiling)= $23M

$39,477,335.93

Re-procurement of the follow-on contract is in the Acquisition Planning phase and is anticipated to be awarded by November 2026 with performance starting NL T January 2027.

Of the five current MACC 2022 contracts, only three (FA4621-22-D-0003, FA4621-22-D-0005, and FA4621-22-D-0007) will be bilaterally modified to increase the ceiling to $98M

IV. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above.

This acquisition is for the continued execution of construction requirements at McConnell AFB utilizing the McConnell AFB MACC - 2022 contracts that are currently in place. The current MACC contract was a total small business set-aside awarded to six (6) contractors with an ordering period beginning 1 March 2022 and running through 29 February 2028.

The current contractors are the only firms capable of providing the construction services without experiencing unacceptable delays and substantial duplication of costs in fulfilling McConnell AFB construction needs between now and the award of the follow-on contract. The current contractors have a proven track record of the ability to perform the required work on McConnell AFB, have been vetted and approved as qualified (determined to be responsible), and have access to McConnell AFB. No other contractors currently hold these qualifications. Additionally, acquisition lead time using alternative methods would add at a minimum 120 days per project to acquire the construction services, causing substantial unacceptable delays in the necessary repairs to multiple facilities across the base, and in the case

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