JA ceiling increase 693JF723D000002_4232026 redactedpdf.pdf

U.S. Department of 1200 New Jersey Avenue, S.E.

Transportation Washington, DC 20590 Office of the Secretary of Transportation

02/10/2026

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

USMMA CMC Contract #693JF723D000002

1. Identification of the Agency and Contracting Activity:

The Department of Transportation/United States Merchant Marine Academy, Facilities and Infrastructure in collaboration with Acquisitions; Campus Maintenance Contract (CMC).

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

DOT/USMMA intends to modify the Campus-wide maintenance support services Contract, 693JF723D000002, to increase the maximum contract ceiling to meet the additional maintenance needs of USMMA under the scope of the contract.

3. Description of the supplies and services required to meet the agency’s needs (including estimated value).

This is a commercial service contract to provide a wide range of continuous campus maintenance, including but not limited to emergency requirements, preventive and corrective maintenance on critical infrastructure.

The contractor shall provide all services, materials, supplies, plant supervision, labor and equipment, except as specified as Government- furnished, develop a written preventative maintenance program, operate, maintain, repair, and improve real property facilities and equipment, and provide services as specified, in strict accordance with all terms, conditions and drawings contained and/or incorporated by reference under Contract 693JF723D000002.

The contract action requested for approval is an increase to the total estimated potential value (TEPV) for IDIQ Contract #693JF723D000002, awarded to The Building People / J&J Worldwide Services, LLC. The total estimated value of this ceiling increase is Upon obtaining all necessary approvals, the total estimated potential value of the IDIQ contract will increase . Approval of this TEPV increase will allow essential maintenance activities to continue uninterrupted while a follow-on requirement is competitively awarded.

The original IDIQ contract was awarded to provide preventive and corrective maintenance services across the USMMA campus. Due to several unforeseen and emergency conditions that required support immediately, the contract was utilized for in-scope efforts involving critical repairs and upgrades necessary to protect the health, safety, and welfare of life and property on campus. These emergent requirements were not fully anticipated in the original contract ceiling, and contract obligations are now projected to reach the current ceiling by September of 2026.

, will be exceeded if all options are exercised on current task orders through the final option year. No additional requirements can be added within the scope of the contract if options are exercised.

Unforeseen conditions related to health, well-being and quality of life for the midshipmen, faculty and staff at the academy and in accordance with mission critical repairs and upgrades across campus have created and will continue to result in additional outlays. Thus, an increase in is needed to accomplish unexpected and unforeseen additional work not captured within the original estimate as described below.

The ceiling increase approval is needed for the continuation of contract support services. The IDIQ will end in January of 2028, and this increase will help the Government with the continuity of service and provide the Government time to work on the follow-on requirement, which will be competitively awarded prior to the expiration of the IDIQ.

Furthermore, increasing the ceiling supports multiple Executive Orders (EO) aimed at streamlining the Government contracting process:

• EO 14271: Ensuring Commercial, Cost-Effective Solutions in Federal Contracts

• EO 14275: Restoring Common Sense to Federal Procurement

4. Statutory authority permitting other than full and open competition.

41 U.S.C. § 3304(a)(1) and Revolutionary FAR Overhaul (RFO) FAR 6.103-1, Only one responsible source and no other supplies or services will satisfy agency requirements, permits USMMA to use other than competitive procedures for this activity.

5. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

In accordance with RFO FAR 6.103-1(c)(2)(i), supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition.

If we do not increase the ceiling of the existing IDIQ contract, and a new contractor were to be awarded the contract, it would set the Academy operations back exponentially.

Earlier task orders contained insufficient and incomplete requirements, which hindered effective operations and maintenance across campus. Through extensive collaboration and the issuance of revised task orders, significant progress has been made in reducing “no heat,” “no hot water,” and mold-related issues. In addition, a reliable, self-sufficient work order management system, Computerized Asset Management Platform (CMMS–Maximo) is now fully operational and accessible to faculty, staff, and midshipmen.

Much of the campus infrastructure has exceeded its useful life or remains in an unreliable operational state. New systems are being installed in facilities such as Samuels Hall and Fulton Gibbs, and newly deployed fiber optic infrastructure must be fully integrated into preventive maintenance schedules and the work order management system.

The CMMS program required nearly two years to obtain an Authorization to Operate (ATO).

Because the Government does not own the software, only the data will be retained at contract completion, necessitating procurement of a new system and a repeat ATO process if the incumbent is replaced.

Furthermore, transitioning to a new contractor now would significantly disrupt operations. Time would be required to staff and clear personnel, familiarize them with complex campus systems, implement a new CMMS, and obtain a new ATO—delays that would set back Academy operations and maintenance efforts. DOT security clearances alone take several months, and uncleared personnel cannot perform work on campus.

Many facilities rely on shared critical infrastructure, including three boiler plants serving seven buildings. Institutional knowledge of interconnected systems is essential. The Academy experienced major heating failures early in the current contract and cannot risk a recurrence due to contractor transition delays.

With approximately $80 million in deferred maintenance, any loss of momentum would be detrimental. Maintenance and modernization efforts cannot pause while awaiting clearances, staffing, new maintenance schedules, ATO approval, and contractor familiarization across 41 campus buildings.

Awarding this work to another contractor at this point in the contract would result in a substantial duplication of costs and resources that are unlikely to be recovered through competition.

Increasing the ceiling under the current IDIQ contract will save time and administrative costs of approximately ten (10) full-time employees (FTE) ranging from GS13 to GS15 to compete the effort without any delay.

6. 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.

In accordance with RFO FAR 6.301, “Availability of the justification,” this justification shall be publicly available within 14 days after processing the contract action.

7. Determination that the anticipated cost to the Government will be fair and reasonable.

A proposal will not be requested to raise the ceiling of the IDIQ contract because the ceiling increase will be based largely on the same labor rates in the current IDIQ contract and option year estimated costs. These IDIQ rates were reviewed and determined to be fair and reasonable prior to award. Any additional rates which are not currently in the IDIQ contract and are required for the ceiling increase will be reviewed by the Contracting Officer to determine the price fair and reasonable prior to adding them to the IDIQ. Additionally, at the task order level Technical Evaluations and Price Analysis are based on the IDIQ ordering guide to ensure a technically acceptable proposal at a fair and reasonable price. Certified Cost and Pricing Data will not be requested; however, the COR will ensure that the contractor is able to complete their projects within the projected timeline and adhere to budgetary requirements.

8. A description of the market research conducted, and the results or a statement of the reason market research was not conducted.

The CMC IDIQ was solicited as a 100% Small Business set-aside under North American Industry Classification System code 561210 for a one-year base period plus four one-year options. Ten (10) proposals were received in response to the solicitation. Pricing for the Base and Option Years were determined to be fair and reasonable based on competitive proposals.

On 12 December 2022, the contract was awarded to the TBPJJ Worldwide Services, LLC(TBPJJ) who is a small business as a Firm Fixed Price (FFP), single award IDIQ type contract. The current contract holder was contacted via email, and they responded with having no concern with the raising of the ceiling and would not affect their ability to provide the services required.

A Request for Information (RFI) for market Research for the follow on the CMC IDIQ will be issued after the final option is exercised. Due to urgency, it is determined to be in the Government's best interest to award a sole-source modification to increase the ceiling of the existing CMC IDIQ contract for continued support until the follow- on contract is competitively awarded.

9. Any other facts supporting the use of other than full and open competition.

The current task order (TO) for Heating, Ventilation, Air Conditioning (HVAC), TO 05 under the IDIQ, Option year 2 (2026-2027) will be funded from borrowing from the out years ceiling.

This ongoing Preventive Maintenance (PM) and Corrective maintenance (CM) effort across campus has identified many CM items that have been replaced or repaired and many more that need to be replaced or repaired. One note is the work we are doing on the Geothermal wells and pumps, . We are upgrading the equipment and piping in the geothermal wells and pump rooms to allow for more flow and better efficiencies to the HVAC in the barracks buildings. If we cannot fund the MAU replacements, which is a secondary project and a major component of the barracks HVAC system, we will not be able to operate the heat pumps and condition the spaces using the old MAU’s. All the efficiencies we have gained from the upgraded geothermal wells and pumps will stress an old system, leading to mechanical breakdown. This will contribute to the continued mold conditions which we are consistently addressing.

This IDIQ contract has enabled the Academy to improve the conditions on the campus by replacing boilers, replacing hot water heaters, repairing pumps, adding water treatments and many more repairs that have improved the living conditions, learning and working environments.

in pending work that is needed for the improvements across campus including kitchen equipment in Delano Hall, and overhaul to the Fulton Gibbs Heating, Ventilation and Air Conditioning system. Fulton Gibbs buildings are our main teaching buildings with classrooms and labs. If we do not continue to improve these facilities, we will risk losing the accreditation from the Middle States Commission on Higher Education (MSCHE).

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

None. Any responses received resulting from the publication of this justification will be reviewed and documented in the official contract file supporting market research.

11. Statement of the actions, if any, the agency may take action to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required:

Acquisition planning activities will be initiated to procure the follow-on CMC IDIQ program requirements with a target award date in Q2 FY2028. Based on historical experience and previous market research, there is an expectation that a sufficient number of qualified small business firms will compete for inclusion in this program. The follow-on acquisition strategy will review historical and program workload volume to develop a more realistic TEPV to minimize potential future actions of this type. Additionally, for the follow-on competition, we will ensure a more accurate ceiling is used for USMMA maintenance requirements.