ANNEX 1 - JUSTIFICATION AND APPROVAL (NMCARS Change 18-25)_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND MARIANAS

PSC 455, BOX 195

FPO AP 96540-2937

J&A No. ACQ21-25-02

ANNEX 1 � JUSTIFICATION AND APPROVAL

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Facilities Engineering Systems Command Marianas (NAVFAC Marianas), Guam.

2. Description of the Action Being Approved.

Award of a subsequent bridge contract on a sole source basis to existing contract N4019220D1800 Environmental Indefinite Delivery Indefinite Quantity (IDIQ) Services for Hazardous Waste, Hazardous Material, Other Regulated Waste, and Spill Response at Joint Region Marianas (JRM), Guam. The requirement is for a three-month extension, and one (1) three-month option. The bridge contract will be implemented under the statutory authority at 10 U.S.C. 3204(a)(2), Unusual and compelling urgency.

3. Description of Supplies/Services.

The contractor shall provide environmental services for hazardous waste, hazardous material, other regulated waste, and spill response for all Supported Components and Tenant Commands under JRM on Guam. The work includes operation of a Conforming Storage Facility (CSF); management of Less-than-90-Day Storage Facilities; management of satellite accumulation sites at Naval Base Guam and initial accumulation points at Naval Support Activity Andersen; daily management, collection and disposal of hazardous waste, hazardous material, and other regulated waste such as but not restricted to asbestos, lead- based paint, and polychlorinated biphenyls; occasional management, disposal, and collection of non-hazardous waste; sampling, testing, and laboratory analysis for hazardous waste, regulated waste, and unknown waste determination; oil and hazardous substance spill response, cleanup, sampling, laboratory analysis, and disposal. The bridge contract shall be made within the limits and at the schedule of rates specified in the existing contract and shall not exceed the IDIQ contract maximum of . The current contract price of and the estimated cost of the bridge contract at are within the IDIQ contract maximum. There will be no change in the contract schedule of rates nor the maximum limitation of . Fiscal year 2025 funds are available for this contract action.

Period of Performance (POP)

3 Month Extension 10 October 2025 � 09 January 2026 3 Month Option 10 January 2026 � 09 April 2026

Independent Government Cost Estimate (IGCE)

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

10 U.S.C. 3204(a)(2), Unusual and compelling urgency.

5. Rationale Justifying Use of Cited Statutory Authority.

Contract N4019220D1800 Environmental IDIQ Services for Hazardous Waste, Hazardous Material, Other Regulated Waste, and Spill Response at JRM, Guam was awarded to Landscape Management Systems, Inc. (LMS) with a 12-month base year period, plus four (4) 12-month option periods for a total of 60 months, with a period of performance ending 09 April 2025. A bridge contract was first approved on 27 March 2025 due to delays during the evaluation of the follow-on contract, which extended the period of performance for two (2) months, with an additional four (4) one-month options, for a total of six (6) months, or until 09 October 2025.

Continuity of services was planned via the award of follow-on Contract N4019225D5000 on 25 April 2025 to NOREAS, Inc. Unfortunately, two (2) Government Accountability Office (GAO) post-award protests were submitted on 09 May 2025 and 12 May 2025. Both protests were dismissed as academic on 16 June 2025 after NAVFAC Marianas stated it would take corrective action. After the corrective action, a follow-on GAO protest was filed on 13 September 2025.

As the follow-on Contract N4019225D5000 remains under protest, JRM is at risk of a gap in Hazardous Waste Management services and Spill Response capabilities which will severely affect its Supported Components and Tenant Commands. During this gap, the installation, detachments, and the fleet would not have a contract vehicle to utilize for services related to management, collection, and disposal of hazardous waste and materials and oil and hazardous substance spill response, cleanup, testing, and disposal.

To prevent a lapse in service, NAVFAC Marianas recommends executing a bridge contract modification to extend performance for an additional three (3) month period, and one (1) three-month option period, which ensures uninterrupted Hazardous Waste Management services and Spill Response capabilities, as well as time to address the current protest associated with the follow-on procurement.

Awarding this extension to the incumbent contractor is necessary as they currently operate the CSF, and are already mobilized with the necessary workforce, equipment, and collection vehicles. Although market research suggests other contractors are capable of providing the hazardous waste requirements, not awarding to the incumbent contractor will result in protracted timelines for contract administration and mobilization of workforce, equipment, and collection vehicles that would cause unacceptable lapses of critical hazardous waste services.

Additionally, hazardous waste collection is considered highly technical and by nature of the industry, the selected contractor must have a thorough understanding of Resource Conservation and Recovery Act and U.S. Department of Transportation regulations to ensure environmental services provided for hazardous materials, hazardous waste, non-hazardous waste, other regulated waste, and spill response programs are in compliance with all applicable Federal and local statutes and regulations, Executive Orders, Department of Defense (DoD) and Component-specific permits, policies, instructions, guidance, and requirements. Further, if other than the incumbent contractor is awarded, additional time will be needed to process clearances, and provide the proper passes for access to the different locations throughout the area of responsibility.

Without a hazardous waste contractor in place to provide these critical services, the DoD activities on Guam are at risk of non-compliance with existing federal and territorial laws, and subject to notices of non-compliance and monetary fines.

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

Market research was conducted by reviewing the Market Research Report for the new follow-on contract as the requirements are the same or similar. Market research was conducted in accordance with FAR Part 10 to determine sources capable of satisfying the requirement exist, and the size status of potential sources. Based on market survey results, and responses received from the sources sought notice, there is a reasonable expectation of obtaining offers from at least two or more responsible small business concerns that are competitive in terms of market prices, quality, and delivery.

However, only the incumbent contractor would be able to provide the required services in the limited period of performance as the contractor operates the CSF, is able to transport the material, and is mobilized with the necessary workforce, equipment, and collection vehicles and therefore, the only reasonable means to accomplish the work given the urgent circumstances.

In accordance with FAR 6.305, the approved J&A shall be posted in the government-wide point of entry on SAM.gov within 30 days after award of the subsequent bridge contract.

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 based on a comparison of the proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items, and current prices in the IDIQ contract schedule of rates.

8. Actions to Remove Barriers to Future Competition.

This bridge contract will allow for uninterrupted services while the GAO post-award protest is resolved. The follow-on contract is a competitive small business set-aside which allowed qualified firms to compete for this requirement.