47PM0424C0021 JOFOC USAID REPLACEMENT.pdf

GENERAL SERVICES ADMINISTRATION

NCR Region 11

1800 F St NW Washington, DC 20006

Project Name: USAID Phase 5 & 6 Replacement Contract

JUSTIFICATION AND APPROVAL

1. Contracting Agency and Activity. The General Service Administration, Office of Acquisition (OOA) plans to contract by means other than full and open competition.

Vendor Name: Whiting Turner

2. Nature of Action Being Approved & Description of Supplies or Services:

The General Services Administration (GSA) awarded Contract 47PM0420C0005 for USAID Phase 5 & 6 to

Repaintex Company on September 18, 2020 (the Original Contract). The Original Contract was terminated for default, due to Repaintex Company’s refusal to continue work pursuant to the Original Contract and failure to respond to the Government’s request to return to the site and perform all work as required under the Original

Contract. Pursuant to the performance and payment bonds issued to Repaintex Company for the Original Contract, Travelers Casualty and Surety Company of America (the Surety), received the notice of termination for default and began discussions with GSA as to the completion of the project. In March 2024, the Surety issued a solicitation to six contractors requesting proposals for completion of the project. One contractor, Whiting Turner, responded to the solicitation and submitted a proposal and the Surety determined it to be acceptable. The Surety intended to offer GSA a tender agreement wherein the Surety would tender a contractor to GSA to complete the project and the Surety would pay the additional costs for completion of the project. After much discussion and negotiation, GSA determined it was unable to accept a tender agreement. In addition, the Surety would not agree to take over the contract and complete the project.

The Original Contract’s scope of work (SOW) was for tenant fit out for Phases 5 and 6 for the USAID at the

Ronald Reagan Building. Phase 5 (approximately 70,000SF on the 4th floor) was substantially completed in

November 2022. Phase 6 (approximately 30,000SF on the 2nd floor) began construction in January 2023.

Repaintex Company completed a portion of construction for Phase 6, including primarily demolition, wall framing, and partial wall close-in. The new replacement contractor will need to complete all mechanical, electrical, plumbing, fire protection, and telecommunications in the ceilings, floors, and walls, complete finishing of the walls, installation of demountable partitions, build-out of pantries, conference rooms, audio visual equipment, and finishes.

The replacement contract will replace the Original Contract and allow a new contractor to complete the project. It is in the best interest of the Government to issue the replacement contract to Whiting Turner pursuant to FAR

49.405 based upon the proposal Whiting Turner submitted to the Surety. The award of a sole source replacement contract to Whiting Turner allows the Government to ensure the project is completed in a timely manner. If the replacement contract were to be solicited pursuant to full and open competition requirements, the delay in completing the project would result in serious injury, financial and otherwise, to the Government. The replacement contract will be for less than one year and will not exceed the time necessary to complete the project.

3. Estimated Dollar Value. The government estimate is $8,300,000.00

4. An identification of the statutory authority permitting other than full and open competition (FAR 6.303-

2(b)(4)).

The statutory authority permitting other than full and open competition is 41 U.S.C. 3304(a)(2) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302-2 entitled, unusual and compelling urgency.

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority (FAR 6.303-2(b)(5)).

There is a compelling urgency to award this contract to prevent serious injury to the Government. GSA determined that the best way to ensure the project is completed in a timely manner is by awarding a replacement contract. The replacement contract will allow GSA to quickly re-activate the work site and use the funds

DocuSign Envelope ID: E184B812-B877-4278-945F-412825719C14 remaining on the Original Contract. The Government will be injured if the replacement contract is delayed because USAID will be required to fund an additional $3,000,000.00 in order to complete the project if the original funding expires. In addition, GSA is still paying for a construction management contract to provide escort services and to secure the work site in the amount of approximately $100,000.00 per month. GSA is required to continue paying for security services because the work site is incomplete and potentially hazardous. The work site does not have an active fire alarm or sprinkler system and has exposed ceilings and wiring. The work site also contains materials and equipment GSA paid for that are necessary to complete the work which must remain secured.

Additionally, USAID is paying for furniture storage until the project is complete and recently submitted a request for swing office space so that its employees may return to an office setting. If additional space is not available in the building, then leased space may be necessary at additional cost to USAID. Is it imperative the Government award this contract urgently to prevent further cost impacts to the Government.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by FAR 5.2 and, if not, which exception under FAR 5.202 applies (FAR 6.303-2(b)(6)).

The Surety issued a solicitation to six potential contractors on February 19th, 2024. The Surety and GSA conducted a walk through with four of the potential contractors with the opportunity to ask questions about the solicitation and the project. The Surety received one response to the solicitation. The Office of Acquisition determined that if this acquisition were solicited on www.sam.gov, that it would take an additional 6-8 months and would cause a great financial loss to GSA and USAID. GSA did not post a proposed contract action synopsis on www.sam.gov pursuant to FAR 5.202(a)(2) because of the urgent and compelling nature of the action. However, GSA will make this justification publicly available within fourteen days after contract award pursuant to FAR

6.305.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable (FAR 6.303-2(b)(7)).

The Contracting Officer determines that the anticipated cost of the contract will be fair and reasonable based on market research and an Independent Government Estimate. Prior to award of the proposed contract, cost or price information shall be obtained from the contractor and a price/cost analysis will be performed and documented to sufficiently determine that the cost to the Government of the proposed acquisition will be fair and reasonable.

8. A description of the market research conducted (see FAR Part 10) and the results or a statement of the reason market research was not conducted (FAR 6.303-2(b)(8)).

On February 19th, 2024, the Surety issued a Request for Proposal to the following offerors:

1. Whiting-Turner

2. Skanska USA

3. Tutor Perini

4. Hensel Phelps

5. Tlingit Haida Tribal Business Corp

6. John C. Grimberg

The Surety conducted market research by contacting contractors to gauge interest in the project. GSA provided the

Surety with the names of additional potential contractors that were working on other GSA projects in the building and nearby area, as well as the other bidders on the Original Contract.

9. Any other facts supporting the use of other than full and open competition (FAR 6.303-2(b)(9)).

This contract is necessary to complete the USAID renovation to USAID Phase 5 and 6. Whiting Turner is best suited to complete the work with its current experience working within the USAID space at the Ronald Reagan

Building coupled with its experience working with sureties, and specifically the Surety, on similar, difficult

DocuSign Envelope ID: E184B812-B877-4278-945F-412825719C14 http://www.sam.gov/ http://www.sam.gov/ replacement construction contracts.

Whiting Turner is currently working on the follow up project to USAID Phase 5 and 6. It is familiar with the SOW since it attended two walk-throughs with the Surety and GSA, issued questions and clarifications to the Surety and

GSA, and have had discussions with the Surety to confirm the scope of work. Whiting Turner has experience working with the Government and surety companies on various takeover, tender, and replacement contracts for terminated contractors. The specific Whiting Turner team assigned to this project has over 10 years of experience specifically on surety projects. They have unique experience in investigating terminated contractor issues, understanding the risks associated with this type of work and scope gaps to be mitigated, negotiating fairly and carefully with subcontractors of terminated contractors, understanding when to bring on board new subcontractors, while addressing Government clauses and requirements.

GSA estimates that delaying the award of this replacement contract would increase the cost of the project and the harm to the Government. Currently, the cost to complete the project is estimated to be $12,549,293, which includes Whiting Turner’s proposal to complete the contract in the amount of $8,333,027, contingency for exclusions and clarifications in the amount of $2,000,000, a construction contingency and cost overruns in the amount of $1,000,000 and the construction manager and security contract in the amount of $1,216,266. GSA expects to receive a lump sum payment from the Surety for the cost to complete the contract, however, that amount may not be enough to complete the project if the project is delayed and costs increase. In addition, the work site will continue to be unusable and potentially hazardous until the project is completed, which could further increase costs and harm the Government.

10. A listing of any sources that expressed a written interest in the acquisition (FAR 6.303-2(b)(10)).

On March 7, 2024, the Surety conducted a walk through with potential vendors. Whiting Turner, Skanska, and

Tlingit Haida Tribal Business Corporation attended the walk through and expressed written interest in the project.

11. A statement of any actions the agency may take to remove or overcome any barriers to competition if subsequent acquisitions are anticipated (FAR 6.303-2(b)(11)).

The Government does not anticipate subsequent acquisitions will be necessary for this project. However, if there are any additional services required, GSA will conduct thorough market research to gauge the marketplace capabilities and seek competition. GSA will make best efforts to use full and open competition for any future replacement contracts.

12. CERTIFICATION (See, FAR Part 6.304 for approval thresholds and FAR Part 6.305 for 6.305 availability of the justification).

The JOFOC has been prepared and certified by:

Technical/Requirements Personnel: I certify the requirement meets the Government’s minimum need and that the facts, representations, and data included in this justification are complete and accurate.

Signature Date

Name: Hallie Futterman

Title: Project Executive

Name: David Cantrell

Title: Contracting Officer Representative

DocuSign Envelope ID: E184B812-B877-4278-945F-412825719C14

6/14/2024

6/14/2024

Contracting Officer: I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Name: Robert Jackson

Title: Construction Service Division 4 (Potomac) Branch Chief

13. CONCURRENCE

Name: Claire A. Watkins

Title: Supervisory Senior Assistant Regional Counsel

Name: Quentin Hamm

Title: Construction Service Division Director

Name: Shantá Cardiel

Title: Director, Office of Acquisition

Name: Michael Spriggs

Title: Advocate for Competition

Name: Melanie F. Gilbert

Title: Head of Contracting Activity

DocuSign Envelope ID: E184B812-B877-4278-945F-412825719C14

6/18/2024

6/18/2024

6/18/2024

6/25/2024

6/18/2024

6/25/2024