24-JA-FECON-0005_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND FAR EAST

PSC 473 BOX 13

FPO AP 96349

Justification and Approval Number 24-JA-FECON-0005

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Facilities Engineering Systems Command (NAVFAC) Far East

2. Description of the Action Being Approved.

This justification and approval (J&A) seeks authority to increase the aggregate contract maximum Not-To-Exceed (NTE) capacity for non-recurring services of the Base Operations Support Contract (BOSC) for Marine Corps Air Station (MCAS) Iwakuni by

. The increase for Option Years Two, Three and Four is indicated below.

Option Period

Original Capacity

Current Capacity

Recommended Total Increase

Base One Two Three Four Total Increase

The total increase to support the emergent mission requirements is by

. This increase in the ordering capacity of the current non-recurring services under the BOSC will ensure that sufficient BOSC capacity is available to respond to specific requirements which must be awarded in fiscal years (FY) 2024-2026. This action will not extend the period of performance of 30 June 2026.

The contract is funded by Operations and Maintenance (O&M) (Marine Corps), O&M (Navy), O&M (Defense Agencies); and Department of Defense working capital funds.

3. Description of Supplies/Services.

The BOS services include management and administration, family housing, facility investment, custodial, grounds maintenance, wastewater plant operation, and environmental services at MCAS Iwakuni, Japan, MCAS Iwakuni controlled area around Iwakuni, and other locations within the Yamaguchi prefecture.

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

10 U.S.C. § 3204(a)(1) – Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

The current BOSC, Contract No. N4008421D0060, was competed full and open, and awarded to PAE Government Services, Inc. (PAE-Amentum) on 24 June 2021 for one 12-month base period with four 12-month option periods. The current NTE capacity for option year two is with the expiration date of 30 June 2024.

The BOSC is reaching its NTE capacity for option year two with as the remaining balance. Per the projections, the Iwakuni BOSC will exceed its current capacity for option year three and four at a very early stage. Due to COVID-19, PAE-Amentum was not given an opportunity to inspect the contract inventory prior to contract award and accepted the inventory in “as-is” condition.

The complete real property installed equipment (RPIE) inventory was insufficient at the start of the contract, partly due to this being the first iteration of this contract. Prior to the BOS contract, the PWD (via in-house shops) conducted maintenance and inventory. However, starting in 2018, the PWD struggled to maintain an accurate inventory and conduct anything beyond failure maintenance due to the increased workload on the Department caused by a massive base expansion which completed in 2017. PWD workforce manning increases did not keep pace with the quantity of new maintenance and inventory required.

A BOS contract was quickly put in place to supplement the in-house shops in the performance of preventative maintenance. However, due to both the new infrastructure and the new BOS contract, supported commands underestimated the number of work orders they’d need and have needed to purchase more orders exceeding the limits of liability than originally anticipated.

Additionally, the historical maintenance data, project closeout data, and floor-to-book facility surveys which were used to establish the inventory for the contract did not match the needs of the installation due to the large changes that occurred during the prior major construction.

Failure to capture all necessary inventory resulted in failure to capture recurring maintenance requirements in the contract. Due to the missed maintenance under recurring work prior to the start of the contract, non-recurring work is needed to ‘reset’ the infrastructure through major repair or replacement so that infrastructure can be properly added to recurring work moving forward.

During the base year and Option Year One, PAE-Amentum inspected the inventory for serviceability and suitability and found numerous mechanical issues due to years of insufficient maintenance provided for the equipment before contract award. The inventory, which the PWD seeks to bring up to standard, includes but is not limited to: humidity control systems, chillers, cooling towers, heat exchangers, packaged and separate A/C units, Direct Digital Control (DDC) systems, domestic hot water circulation pumps, piping, storage tanks, air compressors; street lights, air handling units, fan coil units, tree services (to remove safety hazards), and damaged playground equipment.

Most corrective actions that have been recommended by PAE-Amentum and validated by the Government exceed the limits of liability for preventive maintenance, as result of the conditions described above. Due to the state of the equipment, as well as the PWD’s desire to enable standardized long-term fixes, repair by replacement of these inventory items is often the best value option to the Government. PAE-Amentum, by the nature of their current active recurring work contract, has obtained understanding of current general conditions which enabled them to identify cause of trouble and properly plan for corrective and preventive actions. They possess the necessary technical expertise and site-specific knowledge to most effectively execute repair by replacement exceeding the limits of liability and immediately transition to effective preventive maintenance.

Iwakuni executed of non-recurring services in Option Year Two. Based on currently known urgent mission requirements, Iwakuni anticipates awarding an additional 26 projects worth an estimated value of in the remainder of Option Year Two. Mission critical projects that must be awarded in fiscal years (FY) 2024, 2025, and 2026 include but are not limited to: utility monitoring and control system upgrades, repair/replace chiller units, replacement of frequency converters, replacement of streetlights, tree trimming, update/repair direct digital control systems, update/repair critical heating, ventilation, and air conditioning systems. Without the increase in capacity, MCAS Iwakuni will be at great risk of equipment failure which will ultimately cause detriment to MCAS Iwakuni’s ability to sustain life-health-safety compliant facilities and enable critical Combined Naval Air Operations.

PAE-Amentum is familiar with MCAS Iwakuni requirements, processes, security requirements, and is already mobilized with a presence on the installation in their role as the MCAS Iwakuni BOS contractor. They are uniquely positioned to complete the repairs required under this J&A with no undue delay, expeditiously addressing the impacts to installation mission, life safety, and quality of life. Accordingly, a modification of the MCAS Iwakuni BOSC to increase capacity in order to address these repairs is the most effective and efficient way for the Government to proceed in order to avoid negative impacts to installation mission, life safety, and quality of life.

Procuring requirements outlined herein through full-and-open competition outside of the MCAS BOSC is neither practical nor achievable since it will result in meaningful delays and substantial project cost increases while also exposing MCAS Iwakuni, Japan to unnecessary risk and potentially negatively impacting the United States Indo-Pacific Command’s (INDOPACOM) mission objectives in Japan. Ultimately, increasing the NTE amount of the MCAS BOSC as described herein is essential to meet the infrastructure mission requirements at MCAS Iwakuni, Japan.

The Contracting Officer will be able to determine fair and reasonable price based on historical data and cost and price data. In addition, based on the historical cost information currently available, the Contracting Officer has adequate information to ensure that the cost to the

8. Actions to Remove Barriers to Future Competition.

NAVFAC FE conducts ongoing market research and acquisition planning to ensure requirements are competitively procured. The follow-on MCAS BOSC contract will be completed using competitive procedures with award scheduled in the second quarter of FY26.

ECH II ASSISTANT COMMANDER FOR CONTRACTING APPROVAL:

Upon the basis of the above justification, I hereby approve, as Assistant Commander for Contracting, the proposed procurement described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. § 3204(a)(1) Only one responsible source and no other supplies or services will satisfy agency requirements.

Signature Name (Printed) Phone No. Date