47QFMA21F0024_Exception_to_Fair_Opportunity_2024-04-10_Redacted.pdf

ASSIST Award ID: 47QFMA21F0024 and GSA reassessed the needed period of performance (PoP) and NAVFAC gained internal approvals to award a potential five-year action. The additional length in time for the PoP required NAVFAC to revisit its requirements and better project their Public Works requirements needs for years 4 and 5 of the project task order. Additionally, challenges associated with navigating budgetary constraints during extended periods of a continuing resolution impact the capability of client stakeholders to accurately define technical requirements.

Any interruptions or break in service in providing these services for NAVFAC under the current task order until a new competitive task order can be awarded for PWSS is unacceptable because it would negatively affect PW’s ability to successfully meet its mission for NAVFAC, which would result in unnecessary risk to the DON missions and maritime security interests of the US Government. Negative impacts to the utilities in use providing energy and port security for critical port infrastructure that support mission critical needs for the DON is unacceptable to the US Government.

Deloitte is currently supporting NAVFAC’s Public Works department and has provided acceptable support for this task order since June 2021. Deloitte is the only source capable of providing this support within the timeframe because they possess the in-depth knowledge, skills, and technical expertise to continue supporting a substantial amount of concurrent, complex requirements without interruption. The Department of Navy depends on their shore infrastructure as the platforms from which they launch military capabilities. NAVFAC has a responsibility to focus resources and efforts on the initiatives within the PWSS task order that will enhance energy reliability, resilience, and efficiency of those platforms. The services that Deloitte provides in support of these initiatives are highly specialized and critical. Deloitte is uniquely positioned to rapidly respond to energy priorities and requirements. Only Deloitte is capable of providing the services required at the level of quality required within the timeframe provided because the services are highly specialized and providing fair opportunity for the services would result in unacceptable delays and a lapse in support services which would significantly impact project schedules, mission essential services, and costs;

and thus, negatively impact NAVFAC as a provider of resilient energy services.

The following energy programs and projects will be negatively impacted as a direct result of not continuing this work under the current task order:

i. NAVFAC Public Works Energy Core Support: The TO's contribution to the Energy Savings Performance Contracts/Utility Energy Services Contract (ESPC/UESC) program is vital for this portfolio to perform at a high level expected for NAVFAC. If the current TO lapses in support NAVFAC will be unable to execute the annual ESPC/UESC Summit in August that is slated to expand to all facets of DOD. This is impactful because the summit event will contribute to the Navy’s efforts to use efficient energy contracts that save the government money. The contract supports the Energy Project Selection Process (EPSP) by reviewing energy project quad charts to make sure the required information is provided for the projects to be funded. If NAVFAC HQ is unable to provide this support to the field, important projects that aim to close energy security gaps across the Navy may not be selected over technicalities. The TO supports data collection, cleaning, analytics, and visualization at the NAVFAC HQ level to inform project portfolio execution, respond to Congressional and higher-level taskers, and glean insights from vast amounts of data on how to improve the efficiency and effectiveness of the Navy’s Energy Program. A gap in support would result in the inability to progress forward on process improvements and data cleaning, leading to incomplete and inaccurate responses to Navy Energy Program inquiries.

ii. Advancing Navy Commodities Cost Reduction (ANCCR) Program: The contractor provides Utilities Management Support, performing commodity cost analysis for over 24 NAVFAC utility and commodity contracts currently in the ANCCR project pipeline. They also support the performance and progression of data systems and analytic tools necessary for cost optimization and utility financial management. If TO support does not continue, NAVFAC will lose access to key market data sources and expertise which drive cost-optimizing decisions on the ~$1.2B purchased utility portfolio and put a halt to necessary utility budget planning and execution activities.

iii. Industrial Control Systems Program Managers (ICS PM): A lapse in service for the ICS PM would severely impact current initiatives supporting NAVY Facility Related Control Systems (FRCS)/CYBER mission goals. This is unacceptable as Authority to Operates for mission critical energy initiatives would be impact. FRCS Standardization, execution of FY24 Program Objective Memorandum (POM) funds for Mission Critical-FRCS upgrades, Advanced Metering Infrastructure upgrades, and other key programs would be put in jeopardy.

iv. Office of the Chief of Naval Operations (OPNAV): The contractor plays a role in supporting the Office of the Chief of Naval Operations’ efforts to provide instructions to the US Navy. Without the extension, OPNAV N4I2 will have a degraded capability to plan, program, budget, and develop policy in support of over $5B in Navy investments within the utilities, transportation, shore energy, and climate programs.

v. Commander, Navy Installations Command (CNIC): The contractor provides continued support to CNIC as part of the Public Works Support Services task order. The contractor’s efforts allow CNIC to properly coordinate Enterprise Task Management Software Solution Taskers (ETMS) and support energy program initiatives across the shore enterprise, to include memos from the Chief Sustainability Officer. ETMS is the tool used to manage the assignment, development, coordination, approval, distribution, and archiving of actions related to CNIC’s energy program management. A break in service would introduce delayed responses to Congressional, Secretariat, and CNO inquiries, decreased oversight of subordinate units, inability to effectively communicate and drive new initiatives across the enterprise, and inability to conduct technical project reviews and programmatic prioritization of resources.

vi. NAVFAC Public Works (PW)7 Electric Vehicle (EV) & Vehicle Allocation Methodology (VAM): Risks to PW7 for lapse in TO support include inability to support implementation of Vehicle Allocation Methodology actions, limited progress for data and analytics working group data quality efforts. A lack of program support for Electric Vehicle Charging Facilities (ECVF) planning and execution could jeopardize NAVFAC's ability to successfully execute FY24 $131M EV/EVCF funding and result in potential inability or delayed support for EVCF initiatives, including policy and guidance, EVCF reporting, and taskers. Without added guidance and EVCF standardization, EVCF deployments will be less consistent and suboptimal, and executed without needed subject matter expertise.

vii. US Marine Corps (USMC) EV: The contractor assists with the planning, implementation, and reporting requirements for the Non-Tactical Vehicles (NTV) fleet electrification transition and compliance with Executive Order (EO) 14057 which mandates 100% zero-emission vehicle (ZEV) light-duty acquisitions by FY27 and ZEV medium and heavy-duty acquisitions by FY35. If this contract service assistance in not provided, the Marine Corps will be at a significant risk of not following EO 14057 regarding fleet electrification and supporting charging facilities. The absence of contract support will lead to failure to meet the Office of the Secretary of Defense (OSD), DON and USMC compliance requirements regarding NTV fleet electrification and ZEV acquisition and Electric Vehicle Supply Equipment (EVSE) planning and development. The OSD has provided specific goals and deadlines, funding, and guidance for the transition of fossil fuel vehicles to electric.

viii. NAVFAC Northwest: Not extending this TO will have negative impacts on NAVFAC Northwest by introducing delays in the timeline for partnership opportunities. The current staffing levels do not support sustained effort on these critical agreements. A break in service will have substantial cost and mission implications associated with a lack of planning, development, and installation management support for energy partnering opportunities and energy resiliency projects.

ix. NAVFAC Business Directorate: The contractor provides tracking and reporting progress on the Naval Command’s Strategic Plan. Losing this support would impact the mandate from Chief of Naval Operations (CNO)/Vice CNO to measure and improve performance.

The information above reinforces the fact that it is imperative that this work continue under the current TO to prevent unacceptable delays. Only Deloitte is capable of providing the required services required at the level of quality required within the timeframe provided because the services needed to sufficiently support NAVFAC’s requirements are highly specialized. Deloitte has the requisite energy program knowledge and the analytical, technical, engineering expertise and consultative services to effectively perform this work without unacceptable delays. A gap in service will jeopardize NAVFAC’s ability to meet EOs, memos, and mandates from Navy leadership, as well as present a significant impact to mission partners within the DoD. Not extending the current TO in order to avoid a lapse in coverage while a competitive recompete action is solicited and awarded will have a significant impact on NAVFAC’s mission and capability to enhance Energy Security ashore for the warfighter.

5. Determination by the ordering activity Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Government has determined that it is impracticable to secure services of the kind and quality required without the use of a Cost-Plus Fixed Fee type TO. It is not possible to estimate accurately the extent or duration of the work, or to anticipate costs with any reasonable degree of accuracy due to the nature of the tasks. The tasks vary each month and therefore, it is impossible to predict the exact hours that will be needed. It is imperative that the Government have the flexibility to adjust to meet mission needs. The Government realizes that although the risk of performance is higher in a non-fixed-price contract type, there will be adequate controls in place such as a not-to-exceed ceiling price, and overall contractor performance monitoring and surveillance methods to assure quality and control costs. Based upon the nature of this requirement and the presence of the above-mentioned risk mitigation controls, such contract type is justified for this TO extension.

The assigned GSA Project Manager (PM) will complete an evaluation of the contractor’s price submission to ensure the labor mix and hours are appropriate for the work to be performed. In accordance with FAR 15.4040-1(b)(2) a price analysis will be performed including the verification of rates as well as a comparison to prices paid under the current TO to determine if the cost is fair and reasonable to the Government. It is anticipated that the rates proposed for the TO extension will reflect either a close similarity or the same rates as currently being paid to Deloitte under the existing TO.

6. Any other facts supporting the justification.

None.

7. Statement of actions to remove or overcome barriers to exception to fair opportunity.

The Government will only solicit Deloitte for the current TO extension under this GSA OASIS Contract, to extend the existing TO for 12-months. No other firm can provide the necessary services at requisite level of expertise within the timeframe required. The Government is actively working on the subsequent TO recompete, which is currently in the Pre-solicitation phase. GSA anticipates a fully competitive award to be in place upon expiration of the current TO’s 12-month extension.

Certifications and Signatures on Next Page

8. Contracting Officer Certification:

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

__________ Date: _________________

Katie Hughes Contracting Officer GSA FAS, AAS Army

9. Requirements Personnel Certification:

I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Date: _________________

GSA, Project Manager/Contracting Officer’s Representative GSA FAS, AAS Army

Reviewed by:

Date: _________________

Contracting Officer / Branch Chief

Date: _________________

Contracting Director

Date: _________________

Assistant Regional Counsel

______ Date: _________________

Competition Advocate

10. Approval Official Determination:

I determine that the circumstance in FAR subsection 16.505(b)(2)(i)(B), only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized, applies to this order.

_ Date: _________________

HCA

GSA, FAS, AAS Army