A10_Consolidation DF MATOC FY22 - Final_31March22.pdf

Source Selection Information, See FAR 3.104

FOR OFFICIAL USE ONLY

DEPARTMENT OF THE ARMY

U.S. ARMY CORPS OF ENGINEERS, VICKSBURG DISTRICT

DETERMINATION AND FINDINGS FOR CONSOLIDATION

MULTIPLE AWARD TASK ORDER CONTRACT (MATOC) FOR THE LEASE OF

CUTTERHEAD, HYDRAULIC PIPELINE DREDGES

COORDINATION PAGE:

The following signatures indicate concurrence with the contents of this document.

Demetric Erwin Deputy for Small Business Programs

Jamey Pigott Assistant District Counsel

APPROVAL

Davita S. Baloue Chief, Vicksburg District Contracting Office

Source Selection Information, See FAR 3.104

DEPARTMENT OF THE ARMY

U.S. ARMY CORPS OF ENGINEERS, VICKSBURG DISTRICT

DETERMINATION AND FINDINGS FOR CONSOLIDATION

MULTIPLE AWARD TASK ORDER CONTRACT (MATOC) FOR THE LEASE OF

CUTTERHEAD, HYDRAULIC PIPELINE DREDGES

FAR 2.101 defines consolidation or consolidated requirement as a solicitation for a single contract, a multiple-award contract, a task order, or a delivery order to satisfy (i) Two (2) or more requirements of the Federal agency for supplies or services that have been provided to or performed for the Federal agency under two (2) or more separate contracts, each of which was lower in cost than the total cost of the contract for which offers are solicited; or (ii) Requirements of the Federal agency for construction projects to be performed at two (2) or more discrete sites. FAR 7.107-2 requires that consolidation of requirements with an estimated total dollar value exceeding $2 million shall be supported by a written determination that consolidation is necessary and justified in accordance with 15 U.S.C. § 657q.

I have reviewed this requirement and associated market research and determined in accordance with 15 U.S.C. § 657q and FAR 7.107-2 that the benefits of consolidating this requirement into a Multiple Award Task Order Contract (MATOC) substantially exceed the benefits of any alternative contracting approaches which have been identified and considered below. Therefore, I have determined that an acquisition strategy involving consolidation of these requirements is both necessary and justified. This approval is made in accordance with the approval thresholds set forth in Army Federal Acquisition Regulation Supplement (AFARS) 5107.107-2, “Consolidation.” My review resulted in the following findings:

FINDINGS

1. Introduction: U.S. Army Corps of Engineers, Vicksburg District (MVK), proposes to solicit offers and award Indefinite Delivery Indefinite Quantity (IDIQ) MATOCs, with an ordering period of sixty (60) months with a total shared capacity of $49.5M to all technically acceptable offerors. The purpose of this acquisition is to secure, for the Government, the lease and operation of a cutterhead hydraulic pipeline dredge, including all attendant plant and personnel, for dredging any area requiring shallow draft dredging. The MATOC will be solicited on an Unrestricted basis allowing for both small and large businesses to submit offers. The North American Industry Classification System (NAICS) code is 237990, Other Heavy and Civil Engineering Construction. Performance locations are within the geographic boundaries of MVK or other Districts within the Mississippi Valley Division (MVD). This procurement constitutes a consolidation of requirements per 15 U.S.C. § 657q(a)(2)(B) in that it involves construction at two (2) or more discrete sites. MVK has conducted market research, analyzed the factors contained in 15 U.S.C. § 657q(c)(1), and concluded that consolidation of the requirements in this procurement is both necessary and justified.

2. Description of Procurement Action:

a. Project Description:

MVK is tasked with maintaining harbors, rivers, waterways and channels within Mississippi, Arkansas, and Louisiana. Among these tasks are requirements for shallow draft dredging of federal navigation channels. Historically, MVK has been funded each fiscal year to award two (2) contracts for dredging services: one for the Mississippi River Harbors and a second contract primarily for dredging of the J Bennett Johnson (JBJ) Waterway and the Ouachita-Black Rivers in Louisiana. Dredging contracts typically perform maintenance dredging at various “discrete sites” where shoaling has occurred within the federal navigation projects within MVK’s area of responsibility. The purpose of this acquisition is to secure a highly responsive and flexible construction contracting tool to support the MVK dredging projects. Each Task Order will identify dredging locations and be awarded based on channel conditions and the need to restore specific reaches to their project depth and width.

b. Acquisition Strategy/Procurement Summary:

MVK intends to consolidate this requirement into a single solicitation and make multiple awards for IDIQ MATOCs utilizing class deviation 2018-O0006 – Evaluation Factors for Certain Multiple Award Task or Delivery Order Contracts. Under the deviation award will be made “to each and all qualifying offerors” without the consideration of price. A qualifying offer is defined as “an offeror that is determined to be a responsible source, submitting a technically acceptable proposal that conforms to the requirements of the solicitation, and the contracting officer has no reason to believe would be likely to offer other than fair and reasonable pricing”. Price will be considered a selection factor for each individual firm fixed-price task order awarded under the multiple award contract. The consolidated solicitation will be advertised on an unrestricted basis with a contract ordering period of sixty (60) months and a maximum cumulative combined capacity of $49,500,000.

c. Applicability of Consolidation: This requirement meets the definition of consolidation as the proposed MATOC includes construction work that will be performed at two (2) or more discrete sites in Mississippi, Louisiana, and Arkansas. The total estimated value of the requirement exceeds the $2M threshold. MVK intends to consolidate the maintenance dredging of shallow draft navigation projects for Rosedale Harbor, Yellow Bend Port, Greenville Harbor, Lake Providence Port, Madison Parish Port, Vicksburg Harbor, Claiborne County Harbor, JBJ Waterway, and the Ouachita-Black Rivers into one solicitation for a MATOC Dredging contract.

The JBJ Waterway and the Ouachita-Black Rivers combined contain 234 dredging locations that can fluctuate dependent on variant river conditions. By consolidating these requirements, MVK will be able to efficiently coordinate and respond to the dynamic requirements of these dredging projects at a significant savings of cost and time. Additionally, consolidation will allow MVK to accommodate the dredging scheduling windows which are affected by high and low water events and the timing of funding from Congress. This also allows dredging companies to organize their work more efficiently, offer lower unit costs with a more effective economy of scale, and more efficiently schedule their dredging equipment for the best regional approach to meet the needs of the Corps of Engineers’ dredging program.

d. Requirements Being Consolidated: MVK intends to consolidate the maintenance dredging of shallow draft navigation projects for Rosedale Harbor, Yellow Bend Port, Greenville Harbor, Lake Providence Port, Madison Parish Port, Vicksburg Harbor, Claiborne County Harbor, JBJ Waterway, and the Ouachita-Black Rivers into one solicitation. The MATOC will consolidate all dredging projects within MVK into one solicitation for maintenance dredging. The work will be performed at the various locations notated above in Mississippi, Louisiana, and Arkansas within the geographic bounds of the Vicksburg District or other districts within the Mississippi Valley Division.

These projects are funded solely by Civil Works Appropriations.

e. Procurement History: The procurement method used prior to 2019 was to award two (2) stand-alone firm fixed-price contracts utilizing sealed bidding. Beginning in 2019, MVK changed its acquisition strategy to successfully award a three-year IDIQ MATOC with a cumulative capacity of 45,000,000. In 2019, MVK issued a consolidated solicitation, on an unrestricted basis, resulting in multiple awards to one (1) small business Inland Dredging LLC, and three (3) large businesses, Great Lakes Dredge and Dock Co., Weeks Marine, and Crosby Dredging, LLC. The one (1) small business, Inland Dredging LLC, has since become a large business. The previous MATOC has been successfully used by MVK since 2019 but will expire on April 2, 2022. Prior to expiration, there will have been six task orders issued for the annual dredging requirements since award of the 2019 MATOC.

This requirement is a follow-on replacement for the 2019 MATOC that expires on April 2, 2022 and is a continuation of the acquisition strategy implemented at that time, with task orders replacing the stand-alone contracts.

Table 1, Table 2, and Table 3 outline similar or same contracts awarded by MVK since 2012.

All contracts and task orders were awarded in the same dredging locations as described above.

Table 1. Historical Standalone Construction Contract Awards

Year Contract Number/Contractor Award

Amount

W912EE-12-C-0002

Great Lakes Dredge & Dock Company, LLC/Red, Ouachita, and Black Rivers

$ 2,936,140.00

W912EE-12-C-0004

Pine Bluff Sand & Gravel Company/Mississippi River Harbors

$ 3,983,002.00

W912EE-12-C-0007

Inland Dredging Company, LLC/Red, Ouachita, and Black Rivers

$ 3,221,000.00

W912EE-12-C-0020

Great Lakes Dredge & Dock Company, LLC./Mississippi River Harbors

$ 6,148,691.00

W912EE-14-C-0003

Great Lakes Dredge & Dock Company, LLC.

/Red, Ouachita, and Black Rivers

$ 2,512,063.00

2014 W912EE-14-C-0009

Weeks Marine, Inc./Mississippi River Harbors

$ 4,390,701.00

W912EE-14-C-0011

Inland Dredging Company, LLC/Red, $ 2,547,001.00

W912EE-16-C-0001

Great Lakes Dredge & Dock Company, LLC.

/Red, Ouachita, and Black Rivers

$ 1,599,580.00

W912EE-16-C-0005

Pine Bluff Sand & Gravel Company /Red, $ 4,132,371.00

W912EE-16-C-0007

Pine Bluff Sand & Gravel Company/Mississippi River Harbors

$ 3,418,401.00

W912EE-17-C-0001

Inland Dredging Company, LLC/Red, $ 3,216,000.00

W912EE-17-C-0009

4H Construction Corp./Mississippi River Harbors

$ 4,701,100.00

W912EE18C0008

Crosby Dredging, LLC//Red, Ouachita, and Black Rivers

$ 4,502,517.00

W912EE18C0009

Inland Dredging Company, LLC//Red, $ 3,247,000.00

Table 2. Historical MATOC Awards

Year Contract Number/Contractor Award Amount

2019 W912EE19D0004

Inland Dredging Company, LLC $45 Million Combined

2019 W912EE19D0005

Crosby Dredging, LLC

$45 Million Combined

2019 W912EE19D0006

Great Lakes Dredge & Dock Company, LLC

$45 Million Combined

2019 W912EE19D0007

Weeks Marine

$45 Million Combined

Table 3. Historical Dredge Task Orders Awarded Against FY 19 MATOC

Year Task Order/Contractor Current Award Amount

2019 W912EE19F0069

Inland Dredging Company, LLC

$3,954,652.23

2020 W912EE20F0048

Great Lakes Dredge & Dock Company, LLC

$6,428,200.00

2020 W912EE20F0091

Crosby Dredging, LLC

$13,560,468.59

2021 W912EE21F0053

Inland Dredging Company, LLC

$6,245,390.99

2022 W912EE22R0005 JBJ Ouachita-Black $8M Estimate 2022 W912EE22R0006 Ms River Harbors $7M Estimate

f. Rationale for Consolidation:

(1) In order to be determined necessary and justified, the benefits of the consolidated acquisition must substantially exceed the benefits that would be derived from alternative contracting approaches that involve less consolidation. Such benefits may include qualitative or quantifiable cost savings or price reductions. Other benefits, regardless of whether quantifiable in dollar amounts, may include quality improvements that will save time, improve or enhance performance or efficiency, reduce acquisition cycle time, better terms or conditions, or any other supportable benefit. Benefits that are quantifiable are considered substantial if they meet the dollar amounts set forth in FAR 7.107-2(d). Here, the quantifiable benefits of consolidation are substantial because the benefits “individually, in combination, or in the aggregate . . . are equivalent to ten percent of the estimated contract or order value (including options)” as required by FAR 7.107-2(d)(1)(i). As discussed in detail in section 5 of this Determination and Findings for Consolidation, the anticipated administrative and procurement cost savings are roughly $9 million, while the anticipated savings on mobilization clauses are approximately $37.5 million.

Given that the total capacity of the contract is $49.5 million, the quantifiable benefits of consolidation are clearly substantial. Moreover, limiting the work under a particular mobilization to one location (i.e., an individual Ms. River Harbor) would bring no added value.

Awarding multiple contract actions for single dredging locations, without consolidation of the requirement, would require multiple mobilizations and demobilizations, and exhaust all appropriated dredging funds in mobilization cost and never accomplish any actual dredging of the harbors and rivers.

(2) In addition to the already substantial quantifiable benefits, consolidation would likely produce other substantial benefits as well. Consolidation of the dredging requirement gives contractors an opportunity to execute projects more efficiently and efficiently, which in turn boosts the USACE’s ability to complete its dredging mission successfully. When two (2) or more dredging locations are combined, the solicitation allows a longer performance period to give the contractor the option of performing the work in series. This longer period gives the contractor flexibility in determining how the work is sequenced. This flexibility reduces the contractor’s risk of performance, which results in lower costs to the contractor and consequently result in savings to the Government.

(3) If the quantifiable benefits do not meet the thresholds in FAR 7.107-2(d)(1)(i), the approving authority may determine that consolidation is necessary and justified if critical to the agency’s mission success and the procurement strategy provides for maximum practicable participation by small business. Here, the dredging program is critical to the mission of USACE in that it provides navigable federal waterways which are vital to many aspects of Arkansas’s, Louisiana’s, and Mississippi’s economies. Moreover, structuring the contract as an IDIQ MATOC allows for the maximum practicable participation by small business while still allowing the agency to obtain contracts that are critical to its mission. Admittedly, consolidation can sometimes limit a small business’s ability to compete if they are unable to provide all of the services required by the consolidated contract. However, by structuring the procurement as an IDIQ MATOC a small business concern can bid on individual task orders in exactly the same manner that it could have bid on unconsolidated individual contracts. Consolidation may actually prove to be beneficial to small businesses as they may be able to derive the benefits discussed in paragraph (2) above. Furthermore, Inland Dredging Company, LLC exemplifies that a small business can participate in these IDIQ MATOC contracts because it was classified as a small business when it was awarded the 2019 MATOC.

3. Applicable Statutes/Regulations: 15 U.S.C. § 657q, FAR7-107, DFARS 207.107, and

AFARS 5107.107.

4. Results of Market Research: Market research was conducted to determine those sources that could fulfill the Government’s requirement IAW FAR 10.002(b) (2). To ensure that small business concerns are given appropriate opportunities to participate as prime contractors and subcontractors in federal procurements, MVK conducted market research that supplemented MVK’s knowledge of capabilities based on prior similar acquisitions. A Sources Sought/Special Notice, W912EE22R0004, was posted on www.sam.gov (SAM) on 24 November 2021 requesting that interested contractors submit a statement of their capabilities, information regarding their business size and category, their experience with maintenance dredging of inland river, and their interest in submitting a proposal for evaluation in consideration for award of a MATOC. The requirement was posted with a NAICS code of 237990 and a size standard of $30 million. Three responses were received from the market survey, all large businesses. MVK annually bids one (1) to two (2) cutterhead dredge contracts per year against the existing MATOC. Solicitations for these dredge projects have typically yielded three (3) to four (4) proposals from the existing MATOC holders. Currently, the pool of contractors capable of meeting the equipment requirements is limited. The following contractors are existing MATOC holders: Great Lakes Dredge and Dock Co. (Large Business), Weeks Marine (Large Business), Inland Dredging Company, LLC (Large Business), and Crosby Dredging, LLC (Large Business).

Based upon procurement history, the targeted pool of contractors is fully capable of performing the consolidated requirement and their ability to compete will not be negatively impacted by this approach. Based upon the market research and responses to the sources sought inquiry, I have determined that open and full competition under an unrestricted solicitation, allowing both large and small businesses to compete, provides for the maximum practicable participation by small business while still allowing MVK to execute its critical mission of providing navigable waterways.

5. Alternate Contracting Approaches Considered and Rationale for Rejection: MVK considered and rejected the only alternative approach available, which is to not consolidate the dredging requirement and award multiple contracts for each of the eight (8) harbors and an undetermined multitude of locations where shoaling has occurred on the JBJ and Ouachita-Black rivers. This alternative approach was rejected due to the costs required for multiple mobs/demobs.

As previously discussed, it typically costs approximately $1,000,000 to mobilize one dredge.

Limiting the work under a particular mobilization to one location would bring little to no value.

Awarding multiple contract actions for dredging without consolidation of the requirement would utilize all appropriated dredging funds for mobilization cost and not accomplish any actual dredging. Additionally, not consolidating this requirement would result in increased administrative costs associated with awarding and administering separate contracts for each work site and scheduling problems with a very limited pool of dredging contractors.

(1) Cost Saving. Per 15 U.S.C. § 657q(c)(2)(B), “savings in administrative or personnel costs alone do not constitute a sufficient justification for a consolidation of contract requirements” unless the total amount of the cost savings is expected to be substantial in relation to the total cost of the procurement.

Administrative and procurement cost savings. The consolidated MATOC acquisition approach maximizes the opportunity to procure high quality dredging services at fair and reasonable prices from technically qualified bidders.

Tables 4 below reflects the estimated total pre-award/award overall annual costs required for awarding and administering two (2) consolidated Task Orders under the MATOC (including the procurement cost for the award of the base MATOC), in comparison to the annual cost for one stand-alone dredging contract with an unconsolidated scope of work for each of the seven (7) Mississippi River Harbors, one (1) contract for JBJ, one (1) contract for the Ouachita, and one

(1) contract for Black Rivers. These costs are based on standard labor costs developed by Contracting for procurements, along with historical average procurement support costs for Cost Engineering Division, Programs and Project Management Division (PPMD), and Operations Division for acquisition coordination, document review, source selection and source-selection related preparation and post-award administration.

The average procurement costs for in-house contracting labor required to award the replacement MATOC is $50,000 with $15,000 for each Task Order issued. In comparison the award of a single stand-alone contract for the review of an RFP/IFB by project management, Cost Engineering Division, and Contracting is approximately $40,000.

Table 4 – Annual In-House Procurement Cost to Award Consolidated Task Orders versus Multiple Stand-Alone Contracts.

Contract Type Number and Cost Total Annual Cost Consolidated MATOC w/ Year 1 Task Orders; 2 total $50,000 $30,000

$80,000

Annual Task Orders - Year 2 2 x $15,000 $30,000 Annual Task Orders - Year 3 2 x $15,000 $30,000

Annual Task Orders - Year 4 2 x $15,000 $30,000 Annual Task Orders - Year 5 2 x $15,000 $30,000

Total 5year cost $200,000

Unconsolidated Stand-Alone Contracts; 10 Total – Year 1

10 x $40,000 $400,000

Unconsolidated Stand-Alone Contracts; 10 Total – Year 2

10 x $40,000 $400,000

Unconsolidated Stand-Alone Contracts; 10 Total – Year 3

10 x $40,000 $400,000

Unconsolidated Stand-Alone Contracts; 10 Total – Year 4

10 x $40,000 $400,000

Unconsolidated Stand-Alone Contracts; 10 Total – Year 5

10 x $40,000 $400,000

Total 5year cost $2,000,000

In sum, MVK estimates that continuing to use a consolidated MATOC with award of Task Orders would generate $320,000 in labor savings each year or $1,800,000 over the five-year life of the consolidated MATOC.

Mobilization and Demobilization Cost Savings: The proposed strategy also provides the Government with significant savings in mob/demob costs. MVK considered alternative contracting approaches however they were rejected due to the mob/demob costs and scheduling impacts. Consolidating the procurement of these projects will increase efficiency in meeting the mission to restore channel depths after shoaling is identified. A substantial cost in a federal navigation channel maintenance dredging project is the mob/demob of dredge equipment.

Through consolidation, the Government will realize substantial cost savings by eliminating several mobilization and demobilizations of contractor dredge equipment in the project areas.

When the mob/demob costs are reduced through consolidation, funding can be better utilized to maximize the actual dredging effort to optimize navigational access to these channels thus decreasing vessel delays, transport costs, and unnecessary ship traffic delays. The average bid price for mob/demob for a leased cutterhead dredge is $1,000,000.00. On a typical year under this contract the dredge can work at the following projects depending on the shoaling and available funds: Rosedale Harbor, Yellow Bend Port, Greenville Harbor, Lake Providence Port, Madison Parish Port, Vicksburg Harbor, Claiborne County Harbor, JBJ Waterway, and the Ouachita-Black Rivers. If mobilization costs were applied to each MS River Harbor, and the additional 2 river systems, MVK could expect to pay roughly $9,000,000 in mobilization costs. It is assumed that MVK will issue two (2) task orders under this MATOC, one for the MS harbors, and one for the JBJ/Ouachita-Black. The contract also includes mobilizing the entire dredge and plant from project to project at a per mile rental rate. The average cost of moving a cutterhead dredge from project to project is $630 per mile. The total range between MS River projects above is 192 miles, a total moving cost of $120,960.00. The total range of river miles on the JBJ/Ouachita-Black is 532 miles, a total moving cost of $335,160. Therefore, the total mob/demob per year cost of the consolidated contract as proposed would be:

Table 5 – Mobilization and Movement Costs

Alternatives Mobilization Costs

Moving Costs Total Costs

MATOC Consolidated Recommended

(2) x $1M 724 miles x $630

$2,456,120

10 Unconsolidated Stand-Alone Construction Contracts

(10) x $1M 0 $10,000,000

Therefore, on a typical year of dredging using the consolidated contract, the Government would save over $7,500,000 on mobilization costs.

(2) Time Benefits: The period required to award a stand-alone construction contract, consolidated or unconsolidated, is typically about three months. Afterwards, a contractor may require approximately one month to mobilize to the project site after the issuance of the Notice to Proceed. As a result, roughly four plus months may be expended for the acquisition of a stand-alone construction contract. The period required to award a task order under a MATOC typically is less than 60 days, plus 30 days for mobilization after issuance of Notice to Proceed. With the award of a task order, the contractor can be actively dredging in 90 days or less. This approach greatly benefits the Government as river levels fluctuate at an extremely fast rate. The 30 or more extra days in takes for a stand-alone construction contract vs. a task order could lead to loss in navigation.

6. Bundling Analysis:

a. Definition of Bundling. FAR 2.101 defines bundling as consolidating two (2) or more requirements for supplies or services, previously provided or performed under separate smaller contracts, into a solicitation for a single contract that is likely to be unsuitable for award to a small business concern due to: (i) The diversity, size, or specialized nature of the elements of the performance specified; (ii) The aggregate dollar value of the anticipated award; (iii) The geographical dispersion of the contract performance sites: or (iv) Any combination of the factors described in paragraphs (i) through (iii) of this definition.

b. Definition of the Competition in Contracting Act (CICA) Bundling Principle: This acquisition does not meet the definition of bundling, as it does not attempt to consolidate “two

(2) or more requirements for supplies or services, previously provided or performed under separate smaller contracts that are likely to be unsuitable for award to a small business concern”.

The requirements being consolidated have all been previously advertised on an Unrestricted basis and have never been offered under a small business set-aside.

c. Applicability of CICA Bundling Principle: This principle, as developed by the Government Accountability Office (GAO) case law, focuses on whether the combined requirement (new, old, or otherwise) restricts competition, and whether the agency is consolidating or bundling a new requirement unnecessarily. To justify CICA Bundling the agency must show "a reasonable basis for why the bundling is necessary to meet the agency need." (Vantex Serv., Inc., B-29041 5, Aug 8, 2002; Major Contracting Services, Inc., B-406980, October 10, 2012; and Outdoor Venture Corp., B-299675; B-299676, Jul 19, 2007.)

Consolidation of requirements is necessary to allow MVK to meet the maintenance dredging and shore protection needs of its customers in a cost effective and timely manner. Consolidating requirements under MATOC contracts enables the Government to gain many efficiencies and cost savings (see Rationalization of Consolidation section above) that result in a product that is delivered in a timely and efficient manner to our federal and non-federal sponsors without any adverse impact on competition or execution by SB concerns.

This procurement is intended to be advertised under full and open competition on an unrestricted basis. Bundled procurements combine separate requirements into one contract; thus, they have the potential to restrict competition in violation of CICA by excluding firms that can provide only a portion of the bundled requirement. However, substantial cost savings achieved through the reduction of duplicative efforts and operational efficiency can be a reasonable basis for restricting competition where requirements are bundled. As demonstrated above, substantial cost savings will be accomplished through consolidation of these requirements. These projects have historically been consolidated. Competition to small businesses is restricted by the limited number of contractors with the ability and equipment to perform this work. No such dredging contractor is currently qualified as a small business concern under the $30 million threshold set by NAICS code 237990 for dredging and surface cleanup activities. As such, MVK does not reasonably expect to receive offers from two (2) or more small business concerns. There are four

(4) dredging contractors that are part of the FY-19 MATOC. These contractors are Great Lakes Dredge and Dock Co., Weeks Marine, Inland Dredging, LLC and Crosby Dredging, LLC. All (4) contractors are large businesses. MVK has no information nor has it received any comments from the dredging community to suggest that placing each navigation project under separate contracts, or regrouping them in some other manner, would create additional interest and allow other contractors to perform this work.

7. Considerations, facts, and reasoning supporting the determination: All facts, considerations and rationale have been covered previously in the findings. Consolidation will allow MVK to efficiently coordinate and execute these crucial dredging projects at a reduced time and cost and will produce increased quality and performance due to the selection of qualified and experienced contractors. Most importantly, consolidation of this requirement will allow the dredging program to successfully execute the mission of providing navigable federal waterways which are vital to many aspects of Arkansas’s, Louisiana’s, and Mississippi’s economies.

8. Summary: Although this unrestricted MATOC solicitation constitutes consolidation in that it combines construction at two (2) or more discrete sites into one contract, this approach provides the best combination of competitive procedures, timely acquisition, cost efficiency, quality, and capable prime contractors to execute maintenance dredging on MVK navigation channels.

For the reasons indicated above this consolidation is necessary and justified and is critical to the agency’s mission success. While there is a minimum of $9,300,000 in cost benefits associated with this consolidation, these necessary and justifiable benefits significantly increase the likelihood of mission success, reduce acquisition cycle times, provide improved quality that will enhance performance or efficiency, as outlined in FAR 7.107-2(c), and are substantial. The dredging program is critical to the mission of USACE in that it provides navigable federal waterways which are vital to many aspects of Arkansas’s, Louisiana’s, and Mississippi’s economies.

Other alternatives noted above were considered, however, they would result in significantly higher costs and increased acquisition cycle time. Additionally, it is significantly less burdensome for the District’s Contracting and Operations Divisions to administer a consolidated scope of work for the MS River Harbors and/or JBJ and Ouachita-Black rivers than numerous stand-alone contract actions. The findings of the market research and the documentation provided herein support the conclusion that consolidation of requirements is both necessary and justified, based on sound business judgment in view of the size, complexity, and potential number of efforts to be executed in support of the MVK’s Civil Works program. The consolidated approach provides advantages that substantially exceed the benefits of an alternative approaches.

DETERMINATION

Upon the basis of the findings above, I hereby determine, pursuant to the authority of 15 USC § 657q, Defense Federal Acquisition Regulation Supplement 207.107, and Army Federal Acquisition Regulation Supplement 5107.107 “Consolidation” that the proposed consolidation of two (2) or more discrete construction projects within the Vicksburg District is both necessary and justified.

R. Ellis Screws Contracting Officer, Construction and A-E Branch