A.03.09_Approved_NAO_JA.BNC.Paint Shop_W9123620C2025__Redacted.pdf

Control #CENAO 22-003

Source Selection Information ~ See FAR 2.101 and 3.104

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. CONTRACTING AGENCY:

U.S. Army Corps of Engineers, Norfolk District (USACE) 803 Front Street Norfolk, Virginia 23510-1096

2. DESCRIPTION OF ACTION:

Approval is requested to issue an out-of-scope contract modification to Balfour Beatty Construction (BBC) to construct a paint shop that will be integrated into the facilities currently under construction under Contract No. W91236-20-C-2025, Battalion Complex Operations Building and Hangar Facility, Joint Base Langley Eustis (JBLE), Virginia. The undersigned Contracting Officer deems this a follow-on contract for the continued provision of highly specialized services resulting in a defined design-bid-build construction effort. As such, the justification reflects consideration of the cost and schedule impacts if not approved. The contract was awarded to BBC on September 29, 2020, in the amount of $111,530,000, inclusive of options. The contract performance period is 772 days. The intended firm fixed priced modification, to be funded with Military Construction (MILCON) funds, will include the cost of construction estimated in the amount of

3. DESCRIPTION OF SUPPLIES/SERVICES OR NATURE OF

CONSTRUCTION:

The Battalion Complex Operations Building and Hangar Facility replaces the substandard and deteriorated facilities currently occupied by the end-user. Collectively, the ongoing construction will provide a multi-story secure operations building and a multi-story secure aircraft hangar. The paint shop is designed to provide capabilities consistent with the end- mission requirements. The paint shop, which was included in the DD Form 1391 as a primary facility, was inadvertently excluded from the solicitation. The purpose of this justification to obtain approval to integrate the paint shop, as originally intended, into the superstructure, roofline, walls, foundations, and other systems and provide the end-user with critical operational capabilities integrated within the secured complex. The paint shop is an approximate 6,000 gross square foot maintenance facility that consists of painting equipment, prep areas, and paint storage. It will provide a paint kitchen, and space for washing, rinsing, paint stripping, corrosion removal, protective coating, chemical agent resistant coating, and paint application. The paint shop design effort was performed by the NAO in-house team.

4. AUTHORITY CITED:

Authority for the use of other than full and open competitive procedures is provided at Title 10 United States Code Section 2304(c)(1), as implemented by Federal Acquisition

Regulation (FAR) 6.302- As explained in the previous paragraph, this authority is invoked to insert the paint shop into the ongoing construction contract during a limited window of opportunity such that it will not impact the ongoing sequencing and delivery of construction of the project as a whole. The paint shop is a primary facility in accordance with the project 1391 that was inadvertently omitted from the solicitation and contract award. In accordance with Section 2304(d)(1)(B), as implemented at FAR 6.302-1(a)(2)(iii), for DoD acquisitions, 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

The intended contract modification is a follow-on requirement of the initial award that results due to the inadvertent omission of the paint shop despite the ongoing critical need for it reflected in the project programming. In order to take advantage of the limited opportunity currently available to integrate the paint shop into the pertinent building systems to minimize construction and commissioning impacts, the paint shop needs to be tied into the ongoing construction contractor effort before the window closes.

Although facility construction services are typically generic in nature, the exact services required are circumstantially specialized. In order to dovetail this feature into the ongoing construction, it must be integrated into the unique set of construction activities which have already been specially planned, sequenced, and sourced by BBC. As discussed more fully below, no other general contractor can concurrently integrate into its disruption and inefficiency.

5. REASON FOR AUTHORITY CITED:

5.1 BACKGROUND

As indicated in the plan below, the paint shop will be part of the hangar facility. The area in white is the facility as awarded and the gray area is the scope of the contemplated contract modification. Although presented in the plan as a separate compartment, the paint shop will be integrated into the facility, sharing superstructure, walls, foundations, mechanical, electrical and communications as well as BAS and UPS/backup power systems. To accomplish this integration, the design is undergoing revisions to adjust the foundation, superstructure, mechanical, electrical, plumbing, telecommunications, security, and commissioning requirements to support the construction modification.

5.2 JUSTIFICATION

Procurement History: The subject requirement will be procured, if the J&A is approved, through a modification to Contract No. W91236-20-C-2025, Battalion Complex Operations Building and Hangar Facility, Joint Base Langley Eustis (JBLE), Virginia, which was awarded to Balfour Beatty Construction on September 29, 2020 in the amount of $111,530,000.

Acquisition Data Availability: The scope of limited competition for this justification is restricted to the prime contractor responsible for the overall management of the construction effort for the paint shop which then anticipates less than a couple of months delay. With exception of certain items whose sourcing was restricted via a separately approved J&A, BBC will be able to compete required work as is practical among subcontractors and vendors consistent with its overall construction management plan.

The integration of the paint shop involves a substantial adaptation of the facility and will require design changes, provide by in-house team. The additional paint shop construction efforts, if awarded to BBC, will dovetail appropriately with the sequencing of then ongoing civil and structural requirements of the hangar to include excavation, pile driving, installation of pile caps and utilities, forming and bracing, rebar installation and concrete placement. Modification to the BBC contract by February 2022 should eliminate or drastically minimize duplication of their costs because incorporating the work into their scheduled activities would alleviate any demolition, damage, rework, or delay progressing the requested work.

The paint shop requires the construction of pits in the ground floor that are near the existing hangar foundations. If awarded to BBC, the excavation and construction of these pits could be performed in conjunction with the hangar foundations.

As construction would progress, the roof joist system for the paint shop would be the same as for the hangar. If BBC constructs the paint shop, it could fabricate and integrate the superstructure without unnecessary and difficult coordination between two prime contractors. As the exterior envelope is constructed the connections between the hangar and paint shop will have multiple expansion joints that allow for proper structural expansion and contraction. These joints must perform properly to assure a water and airtight envelope. If two separate prime contractors install the building envelope, it leaves the potential for gaps or gray areas of responsibility for these features.

Ventilation will be critical for proper performance of the paint shop. Its vents will be routed along the hangar wall and exhausted above its roof. This will require close coordination of the steel shop drawings between the paint booth and hangar construction.

Awarding to BBC will ensure coordination of this effort.

With respect to power supply, the paint shop is designed to be served by a separate panel.

However, installation of the required power feeders for the hangar and paint shop will be more easily coordinated and cost effective if provided by a single contractor. Similarly, if BBC constructs the paint shop, the approved electrical switchboards, panelboards, disconnect switches, receptacles, etc., would be provided from the similar manufacturers.

This would provide a maintenance benefit for the facility. Similarly, lighting, grounding, and lightning protection equipment and installation would be provided from a common source providing an additional maintenance benefit.

A single prime contractor would combine all door hardware procurement under one contract. This would allow for coordination of all keying and access controls for a further maintenance benefit.

From a fire protection standpoint, the paint shop presents a higher hazard level than the balance of the building. A single prime contractor would ensure coordination of branch piping, hydraulic calculations, and alarms for the integrated paint shop.

Given the unique exhausting requirements for the paint shop, a single prime contractor requirements. This will eliminate gaps in responsibility for the final set up of the equipment.

The end user has robust security requirements. A single prime contractor will ensure that the security system is seamlessly integrated in the entire facility envelope. This will also minimize the number of contractors who need access to the configurations and other security data.

Finally, given the interconnected nature of all the building systems, the introduction of a second prime contractor will likely lead to a congested, inefficient, and unsafe construction effort. It is hard to imagine the level of additional effort that would be required to safely and productively coordinate the array of trades and laborers at the intersection of the hangar and paint shop.

If the justification is not approved, there will be significant avoidable duplication of costs. For the reasons discussed above, it is not feasible from a safety standpoint to hire a second contractor to integrate the paint shop into the hangar while the hangar construction is ongoing. As such, the only safe way to integrate the paint shop into the hangar structure, other through a modification to BBC, would be through sequential contract actions. Specifically, the alternative to this modification would be to complete the hangar structure as initially awarded and then contract for a second construction contract to integrate the paint shop into the hangar. Therefore, this would require extensive demolition of the facilities that would be constructed based on the awarded design to allow the paint booth to be constructed and properly tied into the hangar as originally programmed. This will also require demolition and re-work of the site area and final 50' of aircraft apron which needs to be sloped correctly to accommodate the roll-up doors for the paint shop. The needed demolition reflects the duplication of the construction effort due to the need to re-construct those facilities elements necessary to complete the building envelope. No formal construction estimate was prepared for these costs. A rough order of magnitude of was developed based on an extrapolation of the existing construction estimate.

Relatedly, the need for a separate follow-on contract if the justification is not approved will create significant schedule delays for the customer/end user and will delay beneficial occupancy by approximately twelve months which is the anticipated duration for this effort is performed as a separate contract.

5.3 ALTERNATIVES

Alternatives to an out-of-scope modification to BBC include a separate concurrent construction contract to incorporate the paint shop in accordance with the revised design.

Another alternative would be to construct the paint shop sequentially after the completion of the hangar.

For the reasons discussed more fully in the justification section, it cannot be reasonably anticipated that a second prime contractor could feasibly or safely complete the work while BBC. As important, there would be an unreasonably high degree of risk that there would be shortfalls in the necessary coordination of the construction of the various building systems and components. As such, it is likely that the schedule and quality would be adversely impacted.

A sequential construction effort would involve an unreasonably high degree of wasteful demolition of a newly constructed features. This would also introduce the risk of incompatibility as the subsequent integrated paint shop is retrofitted into the hangar.

Finally, this sizable construction effort would be intrusive and frustrate the end-intended beneficial use of the hangar facility.

5.4 IMPACT

In lieu of the intended modification, a concurrent but separate contract results in substantial safety risks, efficiency impacts, and coordination shortfalls would be expected resulting in a substandard facility and likely delayed completion. If the construction were to occur sequentially, unacceptable demolition, rework, building system tie-in risks, and disruption to the end-user would occur. By modifying the existing contract we are anticipating less than a couple of months of delay since the current contractor would be able to increase the quantities of shipping and fabricated materials with minimized impacts due to coordination of labor, transportation, storage, and erection of structure.

Alternately, by issuing a RFP for a separate contract action, we would project an extension to BOD of significantly greater than one year due to procurement actions, inability of a second prime contractor to perform adjacent to current prime contractor erecting the adjoining superstructure, masonry, electrical, mechanical, and other systems work connected to the system sources located within the operations building and hangar;

submittal process of accepting materials compatible with existing work, demolition of recent work to tie into existing systems and infrastructure, excavation for pits, mitigating vibrational and impact damage of driving numerous 75 ft vertical, concrete piles into the ground at/around recent hangar work, recommissioning new and overall systems for seamless compatibility and interoperability, and operations and security certification of entire complex prior to Customer being able to establish the Battalion Complex for mission use.

6. EFFORTS TO OBTAIN COMPETITION:

The circumstances in which the need for this construction modification arises preclude a reasonable opportunity to compete the requirement. In order to fold this work into the ongoing construction, only the incumbent can be expected to safety, efficiently, and effectively perform the work. Nonetheless, a Notice of Intent to Sole Source was published on government point of entry (beta.sam.gov) on 26 AUG 2021. The notice was published to gain awareness of current market and to determine whether a competitive procurement would be the most advantages approach to completing this work. The notice was published for 15 days in accordance with FAR 15.202. No responses were received.

As stated above, awarding an out of scope modification to complete the construction of the paint shop is the most suitable solution. A full and open competition would result in a substantial duplication of cost to the Government and it would not be expected that the costs incurred would be recovered through such competition. Just as significantly, a full and open competition for this action would introduce significate risk of incompability and safety concerns for the entire project.

7. ACTIONS TO INCREASE COMPETITION:

This action is identified to solely perform construction of a paint shop. BBC will not perform work for any other project or program under this specific action. Therefore, there are no planned actions to increase competition for this requirement covered by this J&A.

This will not affect competition for any other projects.

8. MARKET RESEARCH:

As stated in paragraph 6 above, a Notice of intent was published on 26 Aug 2021 as W9123620C2025P00004 This notice was published to gain awareness of the current market and to determine if a competitive procurement would be the most advantagesous approach to completing this work. The notice was published for 15 days in accordance with FAR 5.201. The Government did not receive any responses.

9. INTERESTED SOURCES:

A Notice of Intent was posted to beta.sam.gov on August 26, 2021. After pending for the required fifteen days, no other sources have expressed either a written or verbal interest in this procurement.

10. OTHER FACTS:

Subcontracting Competition: The Small Business Subcontracting Plan will be amended as appropriate to include the paint shop construction.

APPROVAL

Based on the foregoing justification, I hereby approve the modification to incorporate the construction of a paint shop in the estimated contract amount of into Contract No. W91236-20-C-2025, Battalion Complex Operations Building and Hangar Facility, on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1) implemented by FAR 6.302-1, subject to availability of funds, and provided that services herein described have otherwise been authorized for acquisition.

Alternate Command Advocate for Competition U.S. Army Corps of Engineers