Consolidation.DF.26BA001.09DEC25_Redacted.pdf

Control No. MVK-2026-0005

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REFERENCES

Federal Acquisition Regulation (FAR) 2.101, Definitions, states, “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.” FAR 7.107-2, Consolidation, states, “(a) Consolidation may provide substantial benefits to the Government. However, because of the potential impact on small business participation, before conducting an acquisition that is a consolidation of requirements with an estimated total dollar value exceeding $2 million, the senior procurement executive (SPE) or chief acquisition officer (CAO) shall make a written determination that consolidation is necessary and justified in accordance with 15 U.S.C. § 657q, after ensuring that-

(1) Market research has been conducted;

(2) Any alternative contracting approaches that would involve a lesser degree of consolidation have been identified;

(3) The determination is coordinated with the agency's Office of Small Disadvantaged Business Utilization or the Office of Small Business Programs;

(4) Any negative impact by the acquisition strategy on contracting with small business concerns has been identified; and

(5) Steps are taken to include small business concerns in the acquisition strategy.”

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 procurement into one (1) Firm-Fixed-Price (FFP) standalone “C” type contract substantially exceed the benefits of any alternative contracting approaches which have been identified and considered below. This approval is made in accordance with the approval thresholds set forth in the Army Acquisition Regulation Supplement (AFARS) 5107.107-2, Consolidation of Contract Requirements, and U.S. Army Corps of Engineers Acquisition Instruction (UAI) 5107.107-2-100, Consolidation. My review resulted in the following findings.

FINDINGS

1. Introduction

The U.S. Army Corps of Engineers (USACE), Vicksburg District (MVK), plans to solicit offers for the construction of four (4) grade control structures for bank stabilization in support of the Mississippi Delta Headwaters Project. This procurement constitutes a consolidation of requirements per 15 U.S.C. § 657q(a)(2)(B) in that work performed under the proposed contract will satisfy requirements of the Federal agency for construction projects to be performed at two

(2) or more discrete sites. MVK has conducted market research that demonstrates consolidation of requirements in this procurement is both necessary and justified.

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2. Description of the Procurement Action

a. Project Description: The work to be performed consists of furnishing all necessary plant, labor, materials, and equipment, and constructing four (4) grade control structures in Tate County, Mississippi. Principal features of the work for the grade control structures include mobilization and demobilization; clearing and grubbing; excavation, backfill, embankment, and control of water; storm water pollution prevention; and environmental protection. Pursuant to FAR 36.204(f), the magnitude of the proposed construction project is between $1 million and $5 million. The estimated completion time for the subject requirement is 105 calendar days after the date the contractor receives the Notice to Proceed. The estimated quantity and unit of measure listed in the bidding schedule is one

(1) Job for each for the following: Item numbers 0001 – Mobilization and Demobilization;

0002 – Clearing and Grubbing; 0003 – Environmental Protection Features; 0004 – Grade Control Structure 1; 0005 – Grade Control Structure 2; 0006 – Grade Control Structure 3;

0007 Grade Control Structure 4; and 0008 – Erosion Control.

b. Acquisition Strategy/Procurement Summary: MVK intends to issue one (1) solicitation with the intent of awarding one (1) FFP standalone “C” type contract. MVK has historically utilized this type of contract for similar requirements to successfully execute projects on tight schedules at reasonable costs. Use of a FFP contract is in the best interest of the Government with respect to timeliness, oversight, and administrative costs.

The North American Industry Classification System (NAICS) code is 237990, Other Heavy and Civil Engineering Construction, and the Product Service Code (PSC) is Y1PZ, Construction of Other Non-building Facilities. The Small Business Size Standard of $45 million. The project will be competed under FAR Part 14, Sealed Bidding. The subject procurement has a Women-Owned Small Business (WOSB) Set-Aside. Solicitation No.

W912EE26BA001 will be issued as an Invitation for Bids (IFB) and posted publicly on the System for Award Management (SAM) website, at www.sam.gov. The estimated cost of this procurement is . Funding for the estimated cost has been provided via Purchase Request and Commitment (PR&C) No. W807PM52377033.

c. Applicability of Consolidation: This project meets the definition of consolidation requirements, which is described as a solicitation of a single contract to satisfy the requirements of the Federal agency for construction projects to be performed at two (2) or more discrete sites. The total estimated value of the requirements exceeds the $2 million threshold. By consolidating these requirements, MVK will be able to efficiently coordinate and respond to the dynamic requirements of the four (4) grade control structures at a significant savings of cost and time. Additionally, consolidation will allow MVK to accommodate the “Grade Control Structure” scheduling window, which is affected by high and low water events and the timing of funding from Congress. This also allows contractors to organize their work more efficiently; offer a lower unit cost with a more effective economy of scale; and schedule their equipment for the best approach to meet the needs

3. Results of Market Research

a. Quick Market Search (QMS): QMS search parameters included all Small Business Administration (SBA) Economic Group Categories in which the firm represents itself as small under NAICS code 237990; the profile location is in Arkansas, Louisiana, Mississippi, and Tennessee; and the profile contains any of the keyword(s) “bank stabilization”. The number of firms meeting the search criteria are listed in the table below (see Table 1).

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7. Considerations, Facts, Reasoning Supporting the Determination

A DD2579 has been signed by the Contracting Officer and Deputy for Small Business. Both concur that consolidation of this requirement is necessary and justified. Consolidation will result in a significant savings of cost and time, as well as accommodate river stage dependent construction and environmental windows. Consolidation will allow contractors to organize their work more effectively; lower unit costs due to economy of scale; and schedule their equipment and resources more efficiently to achieve a well-organized regional approach to meet the needs of the USACE Mississippi Delta Headwaters Project. Moreover, consolidation of this requirement is both necessary and justified because the benefits of consolidation are critical to the success of MVK’s mission, and the procurement strategy provides participation to small businesses to the maximum extent practicable.

8. Summary

a. Although this WOSB FFP solicitation constitutes consolidation of constructing four (4) grade control structures in Tate County, Mississippi, resulting in one (1) consolidated FFP contract, this approach provides the best combination of competitive procedures, timely acquisition, cost efficiency, quality, and capable prime contractors to execute a systems approach for watershed stability on the MVK navigation channels.

b. For the reasons indicated above, this consolidation is necessary and justified and is critical to the agency’s mission success. There is a maximum of in cost benefit associated with this consolidation. Also, 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 Mississippi Delta Headwaters Project is critical to the mission of USACE in that it provides navigable Federal waterways, which are vital to many aspects of Mississippi’s economies.

c. 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 MVK’s Contracting and Construction Divisions to administer a consolidated scope of work for Tate County, Mississippi, Bank Stabilization 17-01, 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 MVK’s Civil Works program. The consolidated approach provides advantages that substantially exceed the benefits of an approach that provides less consolidation.

d. This Consolidation Determination approval is made in accordance with the approval thresholds set forth in AFARS 5107.107-2(b)(ii), citing AFARS Appendix GG, where the Head of the Contracting Activity has the authority to delegate the determination to no lower than the Chief of the Contracting Office when the total value of the consolidated requirement is above $2 million but less than $500 million. Authority is also stated in UAI 5107.107-2-100 Consolidation, (b)(ii)(B) Construction Exception. (2) For stand-alone construction acquisitions where the total value of the consolidated requirement is less than $100M, the Chief of the Contracting Office will make the determination.