25-JA-FECON-0005 OKI MACC_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND FAR EAST

PCS 473 BOX 13

FPO, AP 96349

J&A No. 25-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, Facilities Engineering and Acquisition Division (FEAD) Camp Butler, Okinawa, Japan.

2. Description of the Action Being Approved.

This Justification and Approval (J&A) seeks approval to increase the aggregate contract maximum Not-To-Exceed (NTE) capacity for the Design-Bid-Build (DBB) and Design-Bid (DB) Multiple Award Construction Contract (MACC) for Various U.S. Government Installations, Okinawa, Japan by $95 Million from $245 Million to $340 Million. The MACC includes the following ten Indefinite-Delivery Indefinite-Quantity (IDIQ) contracts:

Contract Number Contractor Name

1 N4008421D0069 KYUNAN CO., LTD.

2 N4008421D0070 AMERICAN ENGINEERING CORPORATION

3 N4008421D0071 FUJI CONSTRUCTION CO., LTD.

4 N4008421D0072 GILBANE JAPAN GK

5 N4008421D0073 NIPPO CORPORATION

6 N4008421D0074 NISHIMATSU CONSTRUCTION CO., LTD.

7 N4008421D0075 ONAKA GUMI CO., LTD.

8 N4008421D0076 SUMIJU YOKOSUKA KOGYO CO., LTD.

9 N4008421D0077 TOA CORPORATION

10 N4008421D0078 TODA-NUDP JV

3. Description of Supplies/Services.

The MACC provides authority to award task orders for new construction, alterations, demolition and repairs throughout the various U.S. Government Installations, Okinawa, Japan. Projects will be DBB/DB and may include but not limited to: office renovation/modernization, building demolition, built-in equipment repair/replacement, plumbing repair/replacement, piping repair/replacement, pipe lagging, electrical work, mechanical work, road pavement, fencing, roofing, painting, carpentry work, site work, removal and disposal of lead based paint and asbestos containing material, welding and masonry. The MACC consists of ten (10) qualified construction contractor firms with IDIQ awards that independently compete for individual task order projects.

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

10 U.S.C. § 3204(a)(2), Unusual and Compelling Urgency

$95

$245 $340

5. Rationale Justifying Use of Cited Statutory Authority.

The original MACC with an aggregate capacity of $245 Million was competed on a full and open basis, and awarded to the ten (10) firms listed in paragraph 2 above on 01 April 2021 for a five (5) year ordering period. Each contractor had a minimum guarantee of $10,000. The task order range is from $150,000 to $25,000,000. The contract expiration date is 31 March 2026.

The MACC is nearing its maximum capacity of $245 Million for task order awards due to the unanticipated heavy spike in workload for mission critical requirements that started in FY25.

This unusual spike in work, such as unanticipated repair and upgrade requirements of facilities and utilities, significantly decreased capacity of the MACC within its first three years.

Moreover, the unusual volume of work that was projected for FY25Q3 through FY25Q4 execution was beyond the remaining initial capacity of the current MACC. Therefore, the reason to expand the initial capacity. The Unusual volume of work continues to increase and the volume of work projected for FY25 as presented under Table 1 below:

Table 1: Variance to Existing Capacity

Contract Capacity $245,000,000.00 Awarded amount $178,000,000.00 Remaining Capacity $67,000,000.00

Planned awards amounts $162,400,000.00 Variance to existing capacity $95,400,000.00

Further details pertaining to FY25 projects are presented under Table 2 below:

Table 2: Projected FY25 Projects:

Title Camp Building IGE Repair Entry Control Camp Courtney COU 4211 $850,000.00 Climate Control for Paraloft SCH 3219 $750,000.00 Create Bleacher Shelter FUJ 450 $500,000.00 Replace R22 Chillers Various Various $2,000,000.00 Replace 3 AC Units FOS 5604 $750,000.00 Repair Drainage Issue in Dugouts COU 4436 $500,000.00 Repair Landslide HAN 2431 $850,000.00 Relocate Fence around Detention Pond FUT FENCE $500,000.00 Hangar Electrical Issues FUT 507 $650,000.00 Install Pads and Power for ILS FUT FL $800,000.00 Repair Voids at Foster Pool FOS 5909 $5,000,000.00 Correct Erosion and Repair the Slope ASP 901 $850,000.00 Gonsalves 500 Building Renovation GON 500 $30,000,000.00 BU2303M Bldg. 5718 Repair BEQ FOS 5718 $27,000,000.00 Futenma Runway Base Bid FUT Airfield $80,000,000.00

$245 p

$10,000

$245

$245,000,000.00 $178,000,000.00 $67,000,000.00

$162,400,000.00 $95,400,000.00

$850,000.00 $750,000.00

$500,000.00

$2,000,000.00

$750,000.00

$500,000.00

$850,000.00

$500,000.00

$650,000.00

$800,000.00

$5,000,000.00

$850,000.00

$30,000,000.00

$27,000,000.00

$80,000,000.00

Replace BFP on Pier White Beach

1146 $600,000.00

Base Security Upgrades and Road Improvement

$960,000.00

Repair by Replacement Multiple AHUs and Boilers

Various Various $1,766,000.00

Replace Pier Lights, grounding and degraded sys

White Beach

Pier $1,460,000.00

Replace Various Mechanical Equipment White Beach

1700 $1,164,000.00

Replace Multiple Split ACs, Packaged AC Unites, AHU, including duct cleaning

Various Various $550,000.00

Repair Concrete Spalling ext. and int. in Multiple facilities

Various Various $900,000.00

Renovate Entire Bldg. White Beach

230 $4,000,000.00

Total $162, 00, 00.00

Increasing the NTE capacity of the current MACC by $95 Million is the most advantageous way to ensure that sufficient capacity is available to competitively compete known, specific requirements which must be awarded in fiscal year 2025 by providing fair opportunity to the MACC contractors. No other resource can satisfy NAVFAC’s requirements as completely and cost-efficiently as the current MACC. This action does not extend the ordering period end date of 31 March 2026. The additional capacity granted by this Justification will be utilized within a year to compensate for current and additional tasks that could have been supported by the subsequent Okinawa MACC Group. Consistent with FAR 6.302-2(d)(1)(i)(A), this one-year period is deemed to be the required timeframe to meet the unusual and compelling urgency requirements generated in Table 2.

The MACC historically functioned as the predominant and most viable tool used to successfully and effectively procure DB/DBB contracts to support requirements in Okinawa, Japan.

Increasing the NTE capacity of the MACC was determined to be the only method to effectively execute time sensitive, mission critical projects identified under Table 2 above. Critical projects included in this list provide needed repairs and improvements to facilities that support various U.S. government installations in Okinawa, Japan. If repairs and improvements cannot be completed there is a risk of failure that results in immediate negative impacts to installation mission, life safety, and quality of life.

The requiring technical activity (RTA), end users, and customers confirmed the criticality and time sensitivity which mandates that these requirements be awarded during FY25. While the specific criticality of each project under Table 2 varies, the aggregate award of all projects is essential to ensuring mission readiness for Marine Expeditionary Force and Marine Corps Installation Pacific (MCIPAC), and Commander Fleet Activities Okinawa (CFAO).

As described throughout this J&A, procuring requirements outlined herein through full-and-open competition outside of the MACC is neither practical nor achievable since it will result in delays and substantial project cost increases while also exposing various MCIPAC and CFAO

$600,000.00

$960,000.00

$1,766,000.00

$1,460,000.00

$1,164,000.00

$550,000.00

$900,000.00

$4,000,000.00

$162, 00, 00.00

$95 installations to unnecessary risk which would result in the serious injury to the government and potentially negatively impacting the MCIPAC and CAFO’s mission objectives in Okinawa, Japan. Opening the required projects up to full and open competition as standalone procurements is not likely to garner any significant savings beyond what competing on the MACC already provides, as there is more than sufficient competition between the ten (10) contractors on the MACC.

The ten (10) MACC contractors are already familiar with MCIPAC and CFAO requirements, processes security requirements, and are best positioned to complete the projects required under this J&A with no undue delay, expeditiously addressing the potential impacts to installation mission, life safety, and quality of life concerns raised by the same. Moreover, it is estimated that issuing standalone contracts for these projects would likely take one year from publication of solicitation to completion of the contracts. Accordingly, a modification of the MACC to increase capacity in order to address these projects is the only way to avoid the serious injury to the government.

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

In an effort to facilitate competition for the requirements contained herein, the contracting activity shall competitively solicit the requirements contained herein by providing fair opportunity to the ten (10) MACC contractors for every project that arises.

Synopsis of the proposed modification was not published to the SAM.GOV website due to applicable exception under FAR 5.202(a)(2). However, in accordance with FAR 6.305, the approved J&A will be posted on SAM.GOV within 30 days after award of the contract modification.

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. The contracting activity will competitively solicit the projects contained herein from all MACC contractors and only those offers that were determined to be fair and reasonable will be awarded.

8. Actions to Remove Barriers to Future Competition.

The follow-on Okinawa MACC is currently scheduled for award in the fourth quarter of FY25.

Accordingly, NAVFAC anticipates removing barriers to future competition through award of a new Okinawa MACC. In deference to competition, the contracting activity shall competitively solicit the requirements contained herein from all current MACC contractors.

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/Requirements Cognizance:

L R RICHARD FORNEY 315-645-4097

Signature Name (Printed) Phone No. (DSN) Date

LEGAL SUFFICIENCY REVIEW:

I have determined this Justification is legally sufficient.

JOHN AGUON 315-243-6035

Signature Name (Printed) Phone No. (DSN) Date

CONTRACTING OFFICER CERTIFICATION:

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

RUMIKO SHIMOOKA 315-645-1490

Signature Name (Printed) Phone No. (DSN) Date

FORNEY.RICHARD.K

EMPER.1171986288

Digitally signed by

FORNEY.RICHARD.KEMPER.117198

Date: 2025.03.04 12:38:49 +09'00'

AGUON.JOHN.

V.1184383868

Digitally signed by

AGUON.JOHN.V.1184383868

Date: 2025.03.04 13:13:10 +09'00'

SHIMOOKA.RUMI

KO.1179506005

Digitally signed by

SHIMOOKA.RUMIKO.1179506005

Date: 2025.03.04 13:21:20 +09'00'

Digitally signed byFORNEY.RICHARD.KK FORNEY.RICHARD.KEMPER.117198

EMPER.117198628888 6288 6288

Date: 2025.03.04 12:38:49 +09'00'e: 2

L R RICHARD FORNEY 315-645-4097

AGUON.JOHN.. Digitally signed by

AGUON.JOHN.V.1184383868

V.118438386868 Date: 2025.03.04 13:13:10 Date:

+09'00'00

JOHN AGUON 315-243-6035

SHIMOOKA.RUMII Digitally signed by

SHIMOOKA.RUMIKO.1179506S

KO.11795060055 Date: 2025.03.04 13:21:20 +09'00' DatDate: 2 RUMIKO SHIMOOKA 315-645-1490

ECH II ASSISTANT COMMANDER FOR CONTRACTING APPROVAL:

Upon the basis of the above justification, I hereby approve the proposed procurement described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. § 3204(a)(2), Unusual and compelling urgency.

CINDY READAL 202-685-9157

Signature Name (Printed) Phone No. Date

-9157READAL 202-685DYCINREADAL.CINDY.S.1111724055 Digitally signed by READAL.CINDY.S.1111724055 Date: 2025.03.05 13:45:12 -05'00'SREADAL CINDY 1111724 CINDY CINDY 555577 405405DYDY724724CCININ signedEADAL55RERE5 DigitallyADALADALDigitaDigitaADALADALDate: Date:D tADALADADat5555RR 25.03.05 20 by 1111724055202-REA202202REAREA202202 ::::20 9157.CINDY915791.CIND.CIND91579157''11-685DALL.L.LLDALDALDALDAL685685---5 S

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