JOFOC AE WORKS_signed.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (JOFOC)

Version Control Date: October 7, 2015

DATE: 3/27/2024

TO: Louis Gilden, Contracting Officer, ADM/AMD

FROM: Alan De Leon, Contracting Officer Representative, ADM/DFS/RRF

SUBJECT: JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

(JOFOC)

1. Nature and/or description of the action being approved.

This is a Justification for a follow-on sole source award to AE WORKS LTD (AE WORKS), 1315 W COLLEGE AVE, STE 101, STATE COLLEGE, PA, 16801 UEID#

ND1EAWFZXHM1, for Architectural and Engineering (A&E) services, specifically Construction Administration for the building renovation that is currently underway on the 11th and 13th Floor at the Nuclear Regulatory Commission (NRC) headquarters facility at One White Flint North (OWFN), 11555 Rockville Pike, Rockville MD, 20852, that will be completed by 10/31/2024. The actual construction/renovation services are provided by another contractor, not AE WORKS. This contract is a 100% Service-Disabled Veteran- Owned Small Business (SDVOSB) set-aside to AE WORKS.

a. Acquisition purpose and objectives.

The purpose of this acquisition is to procure a sole source award to AE WORKS to continue providing contract administration for the renovation project that is currently underway on the 11 and 13th floors at OWFN. The current contract with AE WORKS expires 4/30/2024. The period of performance for the new award will be eight months from 5/1/2024 to 12/31/2024. The actual construction activities are estimated to finish by 10/31/2024. The NRC is adding a two-month safety margin to the length of the subject sole source award, from 10/31/2024 until 12/31/2024, to allow for any unforeseen events that might extend the need for the Construction Administration services provided by AE

WORKS

b. Project background.

• First Contract - 4/16/2016 – 7/31/2022 IDIQ contract NRCHQ4016E0002 for A&E services at the NRC headquarters buildings in Rockville MD, was competed as a 100% SDVOSB set-aside. Six offerors submitted proposals. Award was issued to AE Works LTD with a five-year period of performance from 4/6/2016 to 4/6/2021. The IDIQ contract was subsequently extended another six months through 10/5/2021. Task Order 31310019F0137 for A&E services issued under the IDIQ contract ended on 7/31/2022.

• Second Contract - 8/1/2022 – 4/30/2024 A follow-on sole-source contract 31310022C0023 was issued to AE-WORKS to complete architectural designs for the renovation of several floors at the headquarters buildings, and for Construction Administration services to support the actual renovation.

The second contract was issued with a 15-month period of performance from 8/01/2022 through 10/31/2023 and was subsequently extended another six months through

4/30/2024. The rationale for the sole source Justification for the second contract was that the required architectural designs were not completed during the original contract due to several unforeseen delays, such as: COVID delays; supply chain management and equipment delays; design approval delays; and project management resources delays. It was more efficient and less costly for the NRC, to award a sole source contract to AE WORKS to finish the designs and perform the contract administration, rather than competing the requirement and potentially bringing a new contractor who was unfamiliar with all the work that had already been completed and was in process.

• Third Contract - 5/1/2024 – 12/31/2024 Actual construction/renovation (which is not part of these contracts for A&E services) started on 11/22/2023 with an estimated completion date by 10/31/2024. The start of construction was delayed due to protracted negotiations between the NRC and the National Treasury Employees Union (NTEU) regarding the design of the 11th and 13th floors of OWFN. The eventual agreement that resulted from the negotiations which took months to conclude, required that AE WORKS re-design the 11th and 13th floors, in order for the NRC to conform to the agreement. If there had been no delays due to the negotiations, the subject renovation project and the contract administration services provided by AE WORKS would have been completed on time by 4/30/2024, that is by the end of the second contract. However, due to the delay, the project had to be extended. Consequently, the NRC proposes to issue the subject follow-on sole source award to AE WORKS for eight months from 5/1/2024 through 12/31/2024 to complete the required Construction Administration services, for the ongoing renovation of the 11th and 13th floors at OWFN.

The table below shows the timeline of the 11th and 13th floor project.

Item Description Start End 1 Initial Design of the 11th and 13th Floors 9/17/2021 2/18/2022 2 Initial Construction Bids 3/15/2022 7/30/2022 3 Negotiation between NRC and the Union 5/4/2022 11/29/2022 4 Redesigned the 11th and 13th floors 11/30/2022 6/30/2023 5 Second Construction Bids 7/1/2023 11/1/2023

6 Start Construction 11/22/2023

Estimated completion date is 10/31/2024

c. Name and address of the proposed contractor(s).

AE Works LTD, 1315 West College Avenue, Suite 101, State College, PA 16801

2. Description of the supplies or services required to meet the agency’s needs.

a. Project title.

Architectural and Engineering Construction Administration for the 11th and 13th floors of OWFN.

b. Project description.

The contractor is to provide Construction Administration, punchlist, and place as-built drawings in CAD and pdf for the 11th and 13th floors.

c. Acquisition Information.

• Requirement type.

☐ Research & development (R&D) ☐ R&D support services ☐ Support services (non-R&D) ☐ Supplies/equipment ☐ Information Technology (IT) or Electronic and Information Technology

(EIT)

☐ Construction ☒ Architect-engineer (A-E) services ☐ Design-build ☐ Other (specify): ____________________

• Type of action.

☐ New requirement ☒ Follow-on ☐ Other (specify): ______________________

• Proposed contract/order type.

☒ Firm-fixed-price ☐ Other fixed-price (specify, e.g., fixed-price award-fee, fixed-price incentive-fee): __________ ☐ Cost-plus-fixed-fee ☐ Other cost reimbursement (specify, e.g., cost-plus-award-fee, cost-plus-incentive-fee): ___________ ☐ Time and materials ☐ Labor Hours ☐ Indefinite delivery (specify whether indefinite quantity, definite quantity, or requirements): ___________

• Statement of Work Type ☒ Completion ☐ Level of Effort ☐ Performance Based

• Requisition number.

ADM-24-0056.

• Total estimated dollar value and performance/delivery period.

$80.000 from 5/1/2024 to 12/3124.

3. Identification of the justification rationale.

☐ This acquisition is conducted under Federal Acquisition Regulation (FAR) 8.405-6.

☐ Urgent and compelling need exists ☐ Only one source is capable of providing the supplies or services

(i.e., peculiar item, brand name item) ☐ Logical follow-on

☐ This acquisition is conducted under FAR 13.106-1(b).

☒ This acquisition is conducted under FAR 6.302- 1 .

☒ 6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements ☒ 6.302-2 Unusual and compelling urgency ☐ 6.302-3 Industrial mobilization; engineering, developmental, or research capability; or expert services ☐ 6.302-4 International agreement ☐ 6.302-5 Authorized or required by statute ☐ 6.302-6 National security ☐ 6.302-7 Public interest

☐ This acquisition is conducted using Simplified Procedures for Certain Commercial Items pursuant to FAR 13.500.

☐ This acquisition is conducted using Simplified Procedures for Certain Commercial Items pursuant to FAR 13.500(c).

4. Description of the proposed contractor(s) unique qualifications to provide the required supply or service.

AE WORKS designed the 11th and 13th floors under our previous contracts referenced in the Project Background section above. The subject requirement is for Construction Administration which involves:

• reviewing submittals by the construction contractor;

• responding to clarifications;

• attending progress meetings;

• performing periodic inspections and reports,

• developing punchlists; and

• creating as-built plans.

It would be inefficient, and more costly and time consuming, to compete this requirement at this time, and potentially award the requirement that is already underway to a different vendor, rather then issue the subject sole source award to the incumbent AE WORKS to finish the project it started.

5. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable. Indicate whether a FedBizOpps notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies.

The notice for a requirement estimated at less than the Simplified Acquisition Threshold will be posted on SAM.GOV for 15 days prior to the issuance of the solicitation.

6. Description of the efforts made by the Contracting Officer (CO) to determine that the cost/price of the contract/order is fair and reasonable consistent with FAR 8.404(d) or 15.406-2.

The price of the subject requirement is anticipated to be the expected balance of the existing contract, representing contract administration services not yet completed under the existing contract when the current contract expires on 4/30/2024. Fair and reasonable pricing will be established by comparisons with the pricing history of the current and previous contracts, and by comparison with commercial pricing.

7. Description of the market research conducted (see FAR Part 10) and the results, or a statement of the reasons market research was not conducted.

No new market research was conducted since the price and scope of work for the new requirement are well understood and defined, and were agreed upon in the current contract, and only represent the balance of the work that will not be completed, when the current contract expires on 4/30/2024.

8. Other factors supporting the justification, if any.

• If the current task is competed and awarded to another contractor, the completion of the construction for the 11th and 13th floors may be delayed and we may have to pay the General Services Administration (GSA) extended general conditions to their contractors who are performing the renovation.

• Under the requirements in Nuclear Energy Innovation and Modernization Act (NEIMA) (https://www.congress.gov/bill/115th-congress/senate-bill/512 ), NRC has to reduce corporate costs, so NRC plans to release more office spaces in 2025 and/or 2026. Any further delays to the delivery of the 11th and 13th floor spaces will create administrative problems related to finding suitable offices within NRC’s Headquarters buildings.

9. List sources, if any, that have expressed an interest in the acquisition.

None.

https://www.congress.gov/bill/115th-congress/senate-bill/512

10. If applicable, describe the actions the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

The conditions that led to this restricted consideration were beyond the reasonable control of the NRC, as follows.

• The COVID 19 pandemic which led to construction delays during the second contract from 8/1/2022 – 4/30/2024.

• Additionally, unforeseen lengthy negotiations with the NTEU regarding the design of the 11th and 13th floors of OWFN. The eventual agreement that resulted from the negotiations which took months to conclude, required that AE WORKS re-design the 11th and 13th floors, in order for the NRC to conform to the agreement with the NTEU.

If not for these events beyond the control of the NRC, the subject requirement would have completed on schedule during the period of performance of the second contract, no later than 4/30/2024.

11. Certifications

By signing below, the COR certifies that the justification is accurate and complete to the best of his or her knowledge and belief.

Contracting Officer Representative

Name Date

This is to certify that the justification for the proposed acquisition has been reviewed and that, to the best of my knowledge and belief, the information and/or data provided to support the rationale and recommendation for approval is accurate and complete.

Contracting Officer

Name Date

4/10/2024