A.02 J&A Infrastructure IJA Final.pdf

Control Number: SAS 22-08

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION

Contract W912HN20C5000

Maintenance, Repair, Facility Renovation/Rehab, and Operation of Hartwell Lake Project

1. Contracting Activity: U.S. Army Corps of Engineers, Savannah District, Contracting Division, Supplies and Services Section, 100 West Oglethorpe Avenue, Savannah, GA 31401

2. Description of the Action: Approval is being requested for a modification to an existing contract. W912HN20C5000 is a performance-based cost-plus fixed fee/firm fixed price contract providing operations and maintenance support for the Hartwell Project. The contract is funded with Operations and Maintenance funding. The modification is for supplemental funding received under the Infrastructure Investment and Jobs Act (IIJA).

3. Description of Supplies/Services: Contract No. W912HN20C5000 was awarded to R&D Maintenance Services on 18 March 2020. The purpose of this contract is to provide for maintenance, repair, minor construction, and operation of the Hartwell Lake and Dams Project to include minor construction of buildings and structures, which includes furnishing all labor, equipment, supplies, and materials to construct impact sites, small operational buildings, bulkheads, gabion walls, swales, ramps, berms and other recreational facilities as well as minor construction activities in other project buildings at Hartwell Lake and Dam.

The requested modification work is for:

Completion of within scope work for 3 separate funding packages totaling approximately $110,000.00 to be added to existing contract W912HN20C5000.

The first two packages added will be used for renovation of 2 restroom facilities, one located at Broyles Recreation Area and one at Singing Pines Recreation Area. The intent is to add capacity under the cost reimbursement CLIN 1004 to complete this supplemental funding work under TP- 14.3, “Buildings and Structures, renovate and/or modify structures such as gatehouses, restrooms, etc. as directed by the COR”. Labor is not considered in this proposal due to full-time staffing already being covered under the contract as part of the firm fixed price TP-2. This project would be incorporated into contractor’s schedule as time/schedules allow. Work will consist of removing current toilets, sinks, partitions, floor and wall tile, roofing skylights, and indoor lighting at each location. After initial demolition work is complete, new high efficiency amenities will be installed resulting in a more environmentally friendly and sustainable facility at each location.

The third funding package will be used to purchase all material inventory items used specifically for renovation of campsites at Springfield Campground. The intent is to add capacity under the cost reimbursement CLIN 1004 to complete supplemental this funding work under TP-14.4, “Campground and Picnic Impact Sites, impact sites will be established or renovated in accordance with plans and specifications provided by the COR”. Labor is not considered in this proposal due to full-time staffing already being covered under the contract as part of the firm fixed price TP-2. This project would be incorporated into contractor’s schedule as time/schedules allow. Renovation of these sites will consist of removing all old and deteriorated crossties that delineate the camping impact pad, removal of concrete tables, fire rings, grills, etc. and replacing with newly constructed campsite perimeter (cross ties) and installation of new site amenities, e.g. picnic table, fire ring, grill, etc.

Although restroom renovation and campsite rehab work was anticipated under the basic contract, the scope of these three projects was not anticipated when estimating quantities for the basic contract. The requiring activity is the Hartwell Project, Savannah District. The performance period for this work will fall under contract Option Year 1, which runs from 1 November 2021 to 31 October 2022. Specifically, the Hartwell Project’s goal is to complete the three projects during the period of May-October 2022.

4. Authority Cited: The cited statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(2) as authorized by FAR 6.302-1(a)(2)(iii)(A), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements” The authority for this exception is 10 U.S.C. 2304(c)(1) or 41 U.S.C. 3304(a)(1). This provision states, “When the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for…(iii) For DoD, NASA, and the Coast Guard, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in -- (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition, or (B) Unacceptable delays in fulfilling the agency’s requirements. (See 10 U.S.C. 2304(d)(1)(B).)”

5. Reason for Authority Cited:

Background. The need for upgrade/renovation of aging Hartwell Project infrastructure is on-going and identified through the budget development process each year in an attempt to receive funding for specific identified projects to address these needs. The O&M services contractor has performed similar type work in the past and is very well positioned to efficiently execute this work Supplemental funding via the IIJA was received in FY22 to accomplish these specific work packages. Contract W912HN20C5000 was awarded in March of 2020. It encompasses the Hartwell Project and 5 business lines. Estimated quantities for cost reimbursement TPs 6-17 were identified in Section L of solicitation, however, quantities and pricing do not include unanticipated special projects that arise through provision of supplemental funding during the course of this 5-year service contract. Thus, the awarded contract amount does not allow room for unexpected supplemental funding such as this. In order for the contractor to perform work during the specified time, the modification to add this work to the contract must be completed no later than April 2022.

Justification. Most of the contract capacity on Option Year 1 is fulfilled with planned work projects

– as well as routine work requirements – across all business lines and projects. The exception to competition cited in paragraph 4 is appropriate mainly because there would be a substantial duplication of cost to the Government that would not be recovered through competition. A contract vehicle is already in place to complete this work. Competing this project would result in duplication of resources when labor and overhead are paid for under existing contract W912HN20C5000. In addition, if this action were to be competed, work would not be completed in the timeframe specified due to the lengthy acquisition process. The incumbent contractor, R&D Maintenance Services Inc., has the labor on-hand and access to equipment and supplies to complete the specified work. Competing this action would result in a duplication of resources currently available on-site under the existing 5-year O&M service contract. The contractor has recently demonstrated ability to complete work with campsite impact work and rest room repair in FY21. The requesting office derived the cost estimate using previously obtained knowledge through invoice information for needed materials and online research of currently available materials/supplies. The substantial duplication of cost that is not expected to be recovered through competition includes the cost of the acquisition, labor, overhead, G&A, fee, and profit for an estimated additional cost of $56,000.00.

This cost would not be offset or overcome by competing the requirement.

Alternatives. The alternative option available to the Government would be to compete this action under a new contract acquisition. The reason this would be unacceptable is mainly due to the significant duplication of cost. A contract vehicle is already in place to accomplish this type of work.

Impact. If the J&A is not approved, the Hartwell Project would not execute the supplemental funding packages for rest room upgrades or campsite impact pad rehab in a timely manner. Efforts could be made to acquire the work under separate contract; however, if funds are not utilized within the timeframe provided, they could be returned for use by another project. Funding is available now to make critical, needed infrastructure improvements at the Hartwell Project. If timely execution does not occur, the Project could lose its opportunity to improve the identified aged infrastructure; thus allowing the existing facilities to further degrade and potentially end up in a state needing emergency maintenance repairs and/or permanent closure. A potential $110,000.00 in available funding could be lost if not utilized timely and in the most fiscally responsible manner.

6. Efforts to Obtain Competition: Contract W912HN20C5000 was openly competed during acquisition in 2020. The delays associated with waiting for a new contract to be executed for three small work projects would result in substantial increases in overall cost to the Government. Since R&D is already on-site performing work for the customer, there would be no mobilization costs associated with this action. Additionally, costs associated with acquiring the appropriate insight and technical knowledge required to fulfill customer needs in a timely manner will be eliminated.

a. Notice of Intent to Sole Source: IAW DFARS PGI 206.302-1(d), when utilizing the authority at FAR 6.302-1, the contracting officer shall post a request for information or a sources sought notice, and shall include the results of this inquiry in the justification required by FAR 6.303. This requirement to post may be waived by the Head of the Contracting Activity, or designee no lower than a general or flag officer or a member of the Senior Executive Service. The Notice of Intent to Sole Source subject work to R&D Maintenance Services, Inc. via contract no. W912HN20C5000 was posted on Sam.gov on 8 March 2022 with a response date of 22 March 2022. The NOI advised any potential bidders that if they believe they can provide this requirement at a competitive price to respond via email the Contract Specialist. A total of 3 (three) Price Estimates were received in response to the posting. All three estimates were from Small Business concerns, two being Small Disadvantaged Businesses and one a HUBZone Small Business. The three price estimates were compared to the quote of the incumbent contractor and were between 100% and 225% higher than the price quote of the incumbent.

b. Effective competition: Based upon the information in paragraph 5, competition for the action is not recommended. The award of contract W912HN20C5000 was openly competed in 2020, and the request is for a contract modification.

c. Subcontracting competition: The Government ensures that the prime contractor obtains as much competition as possible in its subcontracting. FAR 52.244-5, Competition in Subcontracting, is incorporated in the contract.

7. Market Research: Market research was conducted prior to W912HN20C5000 contract award in 2020. Consideration was given to the recommended sources in an effort to increase competition for this requirement. However, no other sources could be identified from AbilityOne, UNICOR, and GSA. A Notice of Intent (NOI) to Sole Source the requirement was posted to sam.gov on 8 March 2022 for 15 days. An opportunity was provided to the interested parties to submit a pricing estimate. Three (3) Price Estimates were received. After review of the pricing estimates received in comparison to the R&D Maintenances Quote, the incumbent contractor still presents the best overall value to the government. Issuing a bilateral modification to incorporate this work into Contract no. W912HN20C5000 is the best course of action at this time considering all the factors mentioned above to include time, avoidance of cost duplication, and established technical knowledge.

9. Interested Sources: IAW FAR 6.302-1, as a result of the Notice of Intent to Sole Source synopsis, to date, there were three (3) Small Business sources who expressed interest. These sources were given the opportunity to provide the Government a Price Estimate for subject work.

The three price estimates were compared to the quote of the incumbent contractor and were between 100% and 225% higher than the proposed price of the incumbent. After review of this information, the Government finds that the incumbent contractor’s quote presents the lowest price and proceeding with a modification is in the best interest of the Government.

10. Other Factors: Contract W912HN20C5000 was awarded in October 2020. This O&M service contract procurement was awarded as a 100% Small Business set aside to allow competition among Small Businesses.

11. Technical/Requirements Certification

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

Name: Scott Kelley___________________________ Date: ________________

Title: __Natural Resource Program Manager Signature: ________________________________

12. Fair and Reasonable Price Determination

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

Name:_____________________________ Date: ________________

Title: ______________________________ Signature: __________________________________

13. Small Business

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable.

Name:_____________________________ Date: ________________

Title: ______________________________ Signature: __________________________________

14. Office of Council Review (IAW UAI 5101.602-2-90(c))

I certify that this justification is accurate and complete to the best of my knowledge and belief:

Name:_____________________________ Date: ________________

Title: ______________________________ Signature: __________________________________

14.Contracting Officer’s Approval

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

Based on the foregoing justification, I hereby approve the procurement of the above IIJA work on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1), subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Name:_____________________________ Date: ________________

Title: ______________________________ Signature: __________________________________

CAVANAGH.JENNIFER.SLATE.13

67191798

Digitally signed by

CAVANAGH.JENNIFER.SLATE.1367191798

Date: 2022.05.06 14:25:40 -04'00'

Phillip Paradise Digitally signed by Phillip Paradise Date: 2022.05.09 08:16:07 -04'00'

Whittni C. Hiscox 18-May-2022

Contracting Officer