B.04 Consolidation Memo_26R019 NWP DB-DBB MATOC_REDACTED.pdf

DEPARTMENT OF THE ARMY

CONSOLIDATION OF CONTRACT REQUIREMENTS DETERMINATION

June 30, 2026

U.S. ARMY CORPS OF ENGINEERS, PORTLAND DISTRICT

MULTIPLE AWARD TASK ORDER CONTRACT FOR

DESIGN-BUILD/DESIGN-BID-BUILD CONSTRUCTION

PORTLAND, SEATTLE, AND WALLA WALLA DISTRICTS AREAS OF RESPONSIBILITY

W9127N26RA019

Table of Contents

1. Introduction

2. Definitions

3. Description of the Procurement Action

a. Project Description

b. Description of Procurement History

c. Requirements Being Consolidated

d. Acquisition Strategy/Procurement Summary

e. Definition of Consolidation

f. Applicability of Consolidation Definition

g. Rationale for Consolidation

h. Funding

i. Extent of Consolidation

4. Applicable Statutes/Regulations

5. Results of Market Research

a. Sources Sought Announcements

b. Historical Information

c. Market Research Analysis

d. Conclusion

e. Impacts of Consolidation on Small Business

6. Alternative Contracting Approaches Considered

a. Alternative 1: No Consolidation (Stand-Alone Contracts)

b. Alternative 2: Less Consolidation (District-Specific MATOCs)

c. Alternative 3: Award One DB/DBB IDIQ MATOC (RECOMMENDED)

d. Summary of Alternatives

7. Bundling Analysis

a. Definition

b. Applicability of RFO Bundling Definition

8. The Competition in Contracting Act (CICA) Bundling Principle

a. Definition

b. Applicability of CICA Bundling Principle

9. Considerations, Facts, and Reasoning Supporting the Determination

10. Summary

1. Introduction

The U.S. Army Corps of Engineers (USACE), Portland District (NWP) seeks approval to consolidate requirements and solicit offers for a firm fixed-price, two phase Design-Build (DB)/Design Bid-Build (DBB) Multiple Award Task Order Contract (MATOC) for design build and design bid-build construction capable repair and maintenance of real property and construction services to include new construction and renovation to large civil works projects in the Northwestern Division (NWD). Performance locations include the Portland District, Seattle District (NWS), and Walla Walla District (NWW) area of responsibility. The estimated contract value is a total of up to $99,000,000 and the contract duration will be five years, based on historical data and future work analysis demonstrating the need and ability to award approximately $20,000,000 in Task Orders per year. These Task Orders will fulfill requirements developed by the Portland, Seattle, and Walla Walla District’s Project Teams, and are expected generally to fall in the range of $1.5M to $7.5M. Task Order value shall not exceed $10 million.

The MATOC is anticipated as a set aside for three to five Total Small Business Set-Aside eligible contractors. The North American Industry Classification System (NAICS) code for this contract is 237990 (Other Heavy and Civil Engineering Construction). Market research indicates that consolidation of this procurement is both necessary and justified as the quantified benefits of $17.6M (17.8% of contract value) substantially exceed the Revolutionary Federal Acquisition Regulation (FAR) Overhaul (RFO) 7.107-2(c)(3)(ii) requirement of $9.4M (greater of 5% or $9.4M).

2. Definitions

The RFO 2.101 defines “Consolidation or consolidated requirement” as follows:

“Consolidation or consolidated requirement --

(1) Means a solicitation for a single contract, a multiple-award contract, a task order, or a delivery order to satisfy–

(i) Two or more requirements of the Federal agency for supplies or services that have been provided to or performed for the Federal agency under two 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 or more discrete sites.

(2) “Separate contract” as used in this definition, means a contract that has been performed by any business, including small and other than small business concerns.”

I have reviewed this requirement and associated market research and determined that consolidation, in accordance with 15 U.S.C § 657q, RFO 7.107-2, Army Federal Acquisition

Regulation Supplement (AFARS) 5107 .107 "Additional requirements for acquisitions involving consolidation, bundling, or substantial bundling", and USACE Acquisition Instructions (UAI)

5107.107 “Consolidation of Contract Requirements” is both necessary and justified. My review resulted in the following findings.

3. Description of the Procurement Action

a. Project Description This procurement will establish a pool of Total Small Business Set-Aside contractors for DB/DBB construction, renovation, and repair projects throughout the Portland, Seattle and Walla Walla Districts. The work will be located within these District’s geographical boundaries.

Specific work may include a combination of design, construction, and/or repair within the NWP, NWS, and NWW project sites. Individual requirements will include repair and maintenance of real property and construction services to include new construction and renovation to components of civil works projects including flood control and hydroelectric dams, river navigation facilities, maintenance and office facilities, roadways and recreation facilities, ecosystem management, navigation channel improvements, upstream and downstream fish passage structure maintenance and improvement, flood control structure maintenance and improvement, flood mitigation, regulation of wetlands and waterways, and river levees..

This MATOC will be awarded using two-phase design build procedures so DB/DBB task orders will only be required to be evaluated based on Phase 2 evaluation criteria. Task order work will consist of a broad range of tasks relating to horizontal and vertical construction type projects.

The proposed acquisition is to procure a Total Small Business Set Aside MATOC with a minimum of three (3) awardees and a maximum of five (5) awardees sharing a total capacity of $99M across a five-year base contract with no option years.

The general scope of work for the MATOC will consist of construction associated with design, construction, and repair. Projected work on civil systems may include site utilities, waterstop installation, potable & wastewater systems, underground utilities, drainage and culverts, geotechnical exploration and testing, hillside stabilization stream bank stabilization, irrigation systems, paving, striping, site fencing, and river levee rehabilitation. Work on structural/architectural systems may include general concrete, structural concrete, structural frames (including steel, aluminum, FRP), machinery supports and seismic bracing, hydraulic steel structures (primarily metal fabrication and machining), Corps of Engineers paint systems (including vinyl), fall protection systems, pre-engineered buildings, manufactured buildings, building interior renovation, elevators, roofing, waterproofing, firestop systems, building exterior envelope renovation, and new buildings. Work on electrical systems may include telecom/CCTV systems, fiber optic, motor control (480V MCC or less), power distribution, emergency backup generators, instrumentation & controls (e.g. PLC, SCADA), commercial/industrial lighting, fire & security systems, low and medium voltage distribution (less than 5KV), lightning protection, and Variable Frequency Drives (VFD). Work on mechanical systems may include fire protection, HVAC, pumping, compressed air, hydraulic power systems, cranes and hoists (less than 10 tons), general industrial equipment, and general/industrial plumbing.

Each individual task order Request for Proposal (RFP) may or may not have traditional plans and specifications or may include sketches and other submittals. Scope of work may include design, new construction, demolition, and repair for large civil works projects. Rehabilitation and construction activities may also include, but are not limited to, incidental services such as hazardous material removal, painting, final inspections and testing services, and classification/marking of final product.

b. Description of Procurement History The Contracting Officer, in coordination with the multi-functional Procurement Delivery Team (PDT), determined NAICS code 237990 (Other Heavy and Civil Engineering Construction) is best suited for this acquisition. The preponderance of the anticipated work consists of heavy construction utilizing varying design-build and design-bid-build methodologies. Furthermore, historical Indefinite Delivery Indefinite Quantity (IDIQ) contracts and corresponding task orders awarded within the region have consistently utilized this NAICS code.

Given the regional scope of this proposed requirement — spanning the Seattle (NWS), Portland (NWP), and Walla Walla (NWW) Districts' geographic areas of responsibility — the procurement history review focuses exclusively on previously established Multiple Award Task Order Contracts (MATOCs) rather than singular, standalone contracts. Each historical MATOC underwent similar consolidation determinations and findings, including localized historical project reviews. Consequently, this review assesses regional data for MATOCs that align in scope, NAICS code, and civil works objectives.

Unlike other regional districts with Military Construction (MILCON) missions, Portland District (NWP) does not possess an extensive history of utilizing MATOCs for construction requirements. Therefore, internal NWP examples are limited, necessitating reliance on the broader regional dataset to justify the consolidation and acquisition strategy. The historical MATOCs assessed for this requirement are presented below and summarized in Table 2 below.

NWW Performance Oriented Construction Activities (POCA) MATOC

(W912EF11D0019 / 0020 / 0021 / 0022)

Four base contracts were awarded to SBA certified HUBZone small business set-aside eligible firms under NAICS codes 237990. The total capacity was $6,000,000, with a one-year base period and three, one-year option periods. The value of each Task Order was expected to primarily be below the Simplified Acquisition Threshold (SAT), at the time $150,000, and a maximum task order value of $500,000. The scope of the MATOC was to provide a variety of civil works design and construction services including but not limited to the following: repair and maintenance of real property, incidental services, force protection work, property repair and maintenance, habitat restoration (environmental work), new construction, renovation, and any presently unforeseen construction requirements that may arise.

NWS MATOC for Design-Build and Horizontal Construction Work

(W912DW13D1015 / 1016 / 1017 / 1018 / 1019)

Five base contracts were awarded to 100% (or total) small business set-aside eligible firms under NAICS code 237990. The total shared capacity was $49,000,000 over a five-year performance period (one year base and four option years). There were not clear maximum or assumed average task order values noted in the solicitation or contract documents. The contractors selected for award were to have the capability and experience to perform, or provide a wide range of services relating to design-build and horizontal construction, including but not limited to earth moving, construction and repair of levees, floodwalls, jetties, and spits, civil site work (utilities, paving, roads, etc.), sustainable design, landscaping/re-vegetation, placement of rock, including armor rock and riprap, restoration and paving, wetland enhancement, and other general construction.

NWW Small Business Design-Build MATOC

W912EF16D0020 / 0021 / 0022

Three base contracts were awarded to total small-business set-aside eligible firms under NAICS code 237990. The total shared capacity of $45,000,000 over a five-year period (three-year base and a single two-year option period). The minimum task order value was $2,000 and the maximum task order value was $2,000,000. Task orders were to be issued either as Design Build or Design-Bid-Build projects. Specific work may include construction or repair on:

structural concrete, waterstop installation, pre-engineered buildings, structural frames, machinery supports, metal fabrication and machining, Corps of Engineers paint systems, potable and waste water systems, underground utilities, drainage culverts, fall protection systems, stream bank stabilization, irrigation systems, road maintenance, paving, striping and river levee rehabilitation. Work on electrical systems may include: Telecom/CCTV systems, fiber optic, motor control (480v MCC or less), instrumentation and controls (e.g., PLC, SCADA), commercial/industrial lighting, fire and security systems, and medium voltage distribution (less than 5Kv). Work on mechanical systems may include construction or repair of the following systems: HVAC, pumps (less than 100 HP), compressed air and general/industrial plumbing and other presently unforeseeable construction requirements that may arise

NWP Small Projects Team (SPT) Design-Build MATOC W9127N20D0003 / 0004 / 0005 Three base contracts were awarded to small business 8(a) eligible set-aside firms under NAICS code 237990. The total shared capacity of $20,000,000 over a single five-year base period.

The maximum task order value was limited to $1,500,000. In preparation for this particular MATOC, 11 years of contracts for dollar amount, small business size standard, and type of work was reviewed which is summarized in Table 1 below. The historical view of contracts awarded from 2006 through 2016 observed that a total of 65 contracts administered by SPT with a total average of $1,966,523.54 awarded per year. The historical dataset referenced aided determination of this SPT D-B MATOC scope and capacity.

choosing to slightly increase this to a $99M capacity for reserve. The projected capacity for the next five years is $99M but does not account for a number of known, higher dollar value projects that may be solicited separately and awarded as stand-alone contracts. Additionally, some requirements may be adjusted downward due to budget constraints or schedule slips. The total capacity of $99,000,000 appears sufficient given the coordination across the Division and the anticipated projects that would fall under this scope.

d. Acquisition Strategy/Procurement Summary This procurement will be competitively negotiated and solicited amongst Total Small Business Set-Aside eligible firms with an aim to result in up to five (5) firm fixed price Design-Build/ Design Bid-Build IDIQ MATOCs with a shared capacity of up to $99,000,000.00. The ability and language for on ramping and off ramping will be included. Each MATOC will have a five (5) year base period with no option years. The MATOC will be used only by Portland District, Walla Walla District, and Seattle District. This procurement will use the two-phase selection method set forth in Engineering Regulation (ER) 1180-1-9 Design-Build Contracting and RFO 36.3 will be used in the evaluation process. In addition, negotiation procedures as stated in RFO Part 15 will be utilized with the best value trade-off procurement method in accordance with RFO 15.103-1.

Prior to release of the Phase I solicitation, one seed project will be chosen that best represents the breadth of this IDIQ. The offeror providing the best value to the Government for the seed project will be awarded the first task order.

At this time, Portland District intends to use John Day Turbine Repair Generator Rewind (TRGR) Storage Building as the seed task order in the solicitation for the required price evaluation within Phase Two. Should the identified seed project not be available prior to issuing the Phase Two Requests for Proposals, the Portland District will replace it with another similar seed project. The seed project will be a DB project, and the offerors will propose a DB technical approach and associated construction costs to complete the project during Phase Two. Follow-on task orders will either be DB or DBB. All other successful offerors included in the IDIQ MATOC will be provided a minimum guarantee of at least $3,000 each to meet the requirements of RFO 16.504-1 and AFARS 5116.504-1(b).

e. Definition of Consolidation As defined in 15 U.S.C § 657q(a)(2)(B), consolidation means a use of solicitation to obtain offers for a single contract or a multiple award contract to satisfy requirements of the Federal agency for construction projects to be performed at two or more discrete sites. An approved determination is required for all consolidation construction requirements that are equal or greater to $50M.

f. Applicability of Consolidation Definition This procurement is considered a consolidated effort because the work will be performed at two or more discrete sites under one contract.

g. Rationale for Consolidation Consolidation is necessary for efficiency, to streamline processes, and to reduce the procurement time and performance risk associated with selecting contractors able to execute this specialized work. Specifically, consolidation provides the following summarized benefits which Section 6, Alternative Contracting Approaches Considered, below explains in more detail:

Procurement Efficiency: Reduces procurement labor costs by up to $1.1M over 5 years (56% reduction).

Mission Assurance: Reduces Procurement Average Lead Time (PALT) by 140 days per action, protecting up to $15.7M in hydropower revenue over 5 years.

Quality Assurance: Establishes pool of pre-qualified, technically capable contractors through rigorous two-phase selection.

Small Business Opportunity: Maintains 100% small business participation through total set-aside with multiple awards.

Operational Flexibility: Enables workload balancing across three districts to respond to emergent requirements.

These benefits total $17.6M (17.8% of contract value), substantially exceeding the $9.4M threshold required for consolidation approval under RFO 7.107-2(c)(3)(ii).

h. Funding Funding for projects under this MATOC is expected to be provided primarily by the Bonneville Power Administration (BPA) and a small percentage may be by the Western Area Power Administration (WAPA) via Western States Power Corporation (WSPC). These entities are power marketing administrations that operate within the U.S. Department of Energy or customer funding entities that have agreed to provide contributed funds to the agencies in order to maintain reliable hydropower. Funding from these sources would be supplied prior to the solicitation of the task order and increased before award, if necessary, and do not expire. BPA funds may require the use of incrementally funded task orders since not all funds may be available at task order award. In addition, funding for task orders under the MATOC may also use Civil Works Operation and Maintenance (O&M) appropriation funding or Civil Works Construction appropriation funding. USACE develops metrics to obligate 95% of the funds available in the fiscal year in accordance with the Execution of the Annual Civil Works Program (Engineering Circular (EC) 11-2-211). These funds are budgeted for two years into the future.

These funds are often received in the 2nd or 3rd quarters of the fiscal year resulting in a short timeframe to award the task order before the end of the fiscal year to meet the metric. No specific funding constraints are evident at this time other than the continual expectation to obligate funds per EC 11-2-211.

Minimum guarantees will be funded by NWP accounts. An amount of $12,000 (4 MATOC contractors not awarded the seed project in the amount of $3,000 each on separate task orders) will be available for the minimum guarantees at the time of the issuance of the RFP.

i. Extent of Consolidation The proposed contract action will result in the consolidation of requirements for the three Districts previously noted all within the NWD. As stated above, this work will service hydropower facilities, navigation locks, and flood risk management projects. This consolidation will replace various stand-alone contracts previously setup for primarily NWP requirements. NWD has previously awarded multiple DB/DBB contracts under NAICS code 237990 and all the firms were small businesses firms.

4. Applicable Statutes/Regulations 15 U.S.C § 657q, RFO 7.107-2, Army FAR Supplement (AFARS) 5107.107, "Additional requirements for acquisitions involving consolidation, bundling, or substantial bundling", and USACE Acquisition Instructions (UAI) 5107.107 “Consolidation of Contract Requirements”.

5. Results of Market Research A variety of market research methods were used to determine the number and capability of firms interested in competing for this contract. Market research techniques included a sources sought announcement, and historical market research.

a. Sources Sought Announcements A sources sought notice was issued on February 13, 2026 on the SAM.gov website with a response date of February 27, 2026. The sources sought was used to determine the number and capability of firms interested in competing for this contract. Three revisions were made to the sources sought over the course of the open period to further refine the information requested. The intent of the notice was to gather information from the competitive pool to identify sources that have knowledge, skills, and capability to perform the repair and maintenance of real property and construction services to included new construction and renovation to civil works projects including flood control and hydroelectric dams, river navigation facilities, maintenance and office facilities, roadways and recreation facilities, river levees rehabilitation, and construction. The notice was also used to identify interests and abilities that could cover work across the three Districts of Portland, Walla Walla, and Seattle.

The sources sought was open to all offerors and included the following summary scope of work:

Specific Work May Include:

Civil: Site utilities, drainage, paving, waterstop installation, and various geotechnical work.

Structural/Architectural Systems: Concrete, structural frames, hydraulic steel structures, fall protection, roofing, elevators, new buildings and building renovation.

Electrical Systems: Power distribution, generators, lighting, and control systems (SCADA/PLC, fire/security, ICT).

Mechanical Systems: Building MEP (HVAC, plumbing, fire protection) and industrial equipment (pumps, cranes, hydraulics, compressors).

Anticipated Schedule: CENWP intends to advertise (09/2026) and award (03/2027) Construction Contract with estimated construction completion by the end of calendar year 2032.

The NAICS code used in the announcement was 237990, Other Heavy and Civil Engineering Construction. All responding firms stated that they would be interested in competing as a prime

(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.

"Separate smaller contract" as used in this definition means a contract that has been performed by one or more small business concerns or that was suitable for award to one or more small business concerns.

b. Applicability of RFO Bundling Definition This acquisition does not meet the definition of bundling as this multiple-award contract is not likely to be unsuitable for award to a small business concern. The consolidation of this procurement will not result in a diversity, size, or specialized nature of the elements of the performance required where small business would have been capable of performing these actions if the procurement was not consolidated. Small businesses have historically performed this work under NAICS 237990, with a size standard of $39.5M per year, on stand-alone contracts. Furthermore, the Sources Sought resulted in a wide variety of small business contractors who anticipate responding to the solicitation under this NAICS code. Multiple small business firms responded to the Sources Sought. The aggregate dollar value of the anticipated MATOC and the geographical dispersion of the contract performance do not affect small businesses capability. The extensive market research completed shows that this work is a good fit for a total small business set aside as multiple firms are technically qualified to perform the repair and maintenance of real property and/or construction services including a new construction and/or renovation to large civil works projects. Although the requirement does not meet the definition of bundling, the chosen alternative shows measurable substantial benefits as documented above.

8. The Competition in Contracting Act (CICA) Bundling Principle

a. Definition This principle, as developed by 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. In order to justify CICA Bundling the agency must show "a reasonable basis for why the bundling is necessary to meet the agency need." (Vantec Serv., Inc., B-290415, Aug 8, 2002 and Outdoor Venture Corp., B-299675; B-299676, Jul 19, 2007.)

b. Applicability of CICA Bundling Principle The Competition in Contracting Act (CICA) bundling principle is justified in that it is necessary to meet the needs of the Government. The consolidation is necessary—not merely convenient— because:

Mission-Critical Infrastructure: Hydropower facilities generate millions of kilowatt-hours annually per dam and require rapid response to equipment failures. The 140-day PALT reduction provided by MATOC task orders (121 days vs. 261 days for stand-alone contracts) is essential to minimize revenue loss and maintain flood control/power generation capabilities.

Minimum Consolidation: The requirement consolidates only to the extent necessary.

Task orders are sized $1.5M-$10M (well within small business capacity under NAICS 237990 $39.5M size standard), and work is distributed across 3-5 small business awardees rather than a single contractor.

Small Business Access Preserved: Total small business set-aside ensures 100% small business participation. Market research identified 18 capable small businesses, and historical MATOCs demonstrate successful small business performance of identical scope.

Quantified Benefits: The $17.6M in quantified benefits (17.8% of contract value) substantially exceeds the minimum necessary threshold, demonstrating the consolidation provides measurable substantial benefits rather than administrative convenience.

Reduced Duplication: The Government can realize efficiency, reducing duplication, through the reduction of duplicative solicitation efforts and gain operational efficiency where requirements are consolidated. This can be quantified, at minimum, by a comparison of acquisition labor costs represented above by approximately $200,000 for labor for Alternative 3, compared to $1,000,000 for Alternative 1 and $500,000 for Alternative 2.

The requirements being consolidated are not more than required to meet the Government's minimum needs for mission assurance, cost efficiency, and schedule performance.

9. Considerations, Facts, and Reasoning Supporting the Determination

All facts, considerations and rationale have been covered previously in the findings. The DD2579 has been signed by the Contracting Officer, Deputy for Small Business, and SBA Procurement Center Representative. All concur that consolidation of this requirement is both necessary and justified.

10. Summary

Based on the facts and circumstances of this project, the current acquisition plan is necessary and justified since the benefits of this plan substantially exceed the benefits of any alternative contracting approach, as described above. None of the other alternatives would allow the Government to produce contracts at the desired level of quality and timeliness needed or mission execution.

The quantifiable benefit of consolidation, $17,584,365 or 17.8% of the estimated contract value, substantially exceeds the standard in RFO 7.107-2(c)(3)(ii) ($9.4M, the greater of 5% of contract value or $9.4M). This includes:

Procurement cost savings: $1,116,265 (56% reduction vs. stand-alone contracts).

Revenue protection: $15,668,100 (conservative estimate based on 140-day PALT reduction).

Administrative efficiency: ~ $800,000 (reduced overhead for 1 MATOC vs. 25 stand-alone contracts).

The benefits outlined above are critical to the agency's mission success, and the procurement strategy provides for maximum practicable participation by small businesses while meeting consolidation requirements.

Attachments:

Market Research Report