DF Consolidation - Final_14Oct2025---_Redacted.pdf

CUI

DEPARTMENT OF THE ARMY

U.S. ARMY CORPS OF ENGINEERS, NEW ENGLAND DISTRICT

DETERMINATION AND FINDINGS REQUEST FOR CONSOLIDATION

SOLICITATION NO. W912WJ26RA007

SMALL CONSTRUCTION INDEFINITE DELIVERY, INDEFINITE QUANTITY (IDIQ),

MULITPLE AWARD TASK ORDER CONTRACT (MATOC) IN SUPPORT OF THE US

ARMY CORPS OF ENGINEERS, NEW ENGLAND DISTRICT

The Federal Acquisition Regulation (FAR) 2.101 defines consolidation or a consolidated requirement as 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 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 consolidation is both necessary and justified. This approval is made in accordance with the approval thresholds set forth in Army Federal Acquisition Regulation Supplement (AFARS) 5107.170-2, “Consolidation.” My review resulted in the following findings:

FINDINGS

1. Introduction: U.S. Army Corps of Engineers, New England District, proposes to solicit offers for a Construction Indefinite Delivery Indefinite Quantity (IDIQ) Multiple Award Task Order Contract (MATOC) pool with a total shared capacity not to exceed $90,000,000. The MATOC will meet construction needs primarily supporting the District’s Military and Interagency Programs under North American Industry Classification System (NAICS) code 236220 across the New England District Area of Responsibility (AOR) and the North Atlantic Division (NAD) AOR (OCONUS excluded).

This procurement constitutes consolidation of requirements per 15 U.S.C. § 657q(a)(2)(B) in that it involves construction at two or more discrete sites within the District AOR. The period of performance will be five (5) years. The New England District AOR includes military facilities and other project locations within the states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, and New York. If support is required throughout the NAD AOR, work may include project locations in Pennsylvania, New Jersey, Delaware, Maryland, Virginia, West Virginia, and the District of Columbia. The New England District has conducted market research that demonstrates consolidation of this procurement is both necessary and justified.

2. Description of Procurement Action:

a. Project Description: The purpose of this acquisition is to establish a highly responsive construction contracting tool to support the District’s Military and Interagency Programs throughout the New England District and North Atlantic Division AOR. The support to be provided for the Military and Interagency Programs is generally Sustainment, Restoration and Modernization (SRM) and Operations & Maintenance (O&M) work, but could include new Military construction (MILCON) and Unspecified Minor Military Construction (UMMC). Project sizes range from the simplified acquisition threshold to approximately $10M and vary widely in complexity. This contracting effort ensures the Military and Interagency Programs of the New England District meet the needs of military installations throughout the AOR, as well as other stakeholders requiring construction support. Furthermore, due to the enduring nature of the requirement to sustain facilities for military and other stakeholders, the necessity for this contract is not expected to be impacted by current or future budget limitations. The proposed Construction MATOC is not intended to support Design-Build (DB) project requirements. A separate DB MATOC is currently being solicited to support DB requirements.

b. Acquisition Strategy/Procurement Summary: To meet the demanding construction requirements of the New England District Military Program, the District intends to award a Small Construction Indefinite Delivery Indefinite Quantity (IDIQ) Multiple Award Task Order Contract (MATOC) pool in accordance with FAR Part 16.504. This is appropriate because the Government anticipates a recurring need for construction support. However, it cannot predetermine, above a specified minimum, the precise quantities required, and it is inadvisable for the Government to commit itself to more than a minimum quantity. Consistent with the Acquisition Strategy Memo, it is anticipated that up to five (5) IDIQs will be awarded under this acquisition. The MATOC pool will share $90M in contract capacity. The period of performance will be five (5) years. Firm fixed-price task orders will be competed among the contractors within the MATOC pool. This MATOC is necessary for timely execution of projects, many of which operate on a compressed timeline due to late-year stakeholder requirements and availability of year-end funding.

c. Applicability of Consolidation: In accordance with 15 U.S.C. § 657q, “consolidation of contract requirements,” with respect to contract requirements of a Federal agency, means:

“a use of a solicitation to obtain offers for a single contract or multiple award contract – (A) to satisfy 2 or more requirements of the Federal agency for goods or services that have been provided to or performed for the Federal agency under 2 or more separate contracts lower in cost than the total cost of the contract for which the offers are solicited; or (B) to satisfy requirements of the Federal agency for construction projects to be performed at 2 or more discrete sites.”

The definition at (B) applies to this procurement because a MATOC will be used to perform multiple construction projects, awarded on individual task orders, at two or more discrete sites.

d. Requirements Being Consolidated: The proposed Construction MATOC will provide full-service construction of real property facilities and/or their systems and components. Projects with the appropriate scope and magnitude for the MATOC will be drafted to take into account timing, urgency, funding sources, and other requirements unique to the stakeholder. These task orders will be procured by awarding to lowest priced offer that conforms to the RFP requirements.

The primary requirement of the New England District includes, but is not limited to, construction support to the following locations:

Facility/Location Program

US Military Academy at West Point Military Massachusetts Air National Guard Military

Hanscom Air Force Base Military Westover Air Reserve Base Military

Natick Soldier System Center Military Fort Devens/Devens RFTA Military Cold Regions Research and Development Laboratory

Military

Various Federal Agencies IIS

e. Procurement History:

The New England District currently maintains a $90M Small Construction MATOC, awarded in May 2021. This Small Construction MATOC has been a successful tool for supporting District program execution across both the Military and Interagency and International Support (IIS) Programs. To date, the Small Construction MATOC has been used to support 12 task orders totaling with two (2) additional task orders planned prior to MATOC expiration, totaling an additional in awards.

Prior to award of the current Small Construction MATOC, the New England District historically procured construction contracts via individual, project-specific procurements following best value/trade-off or invitation-for-bid procedures. The New England District has also procured some smaller construction requirements via sole source 8(a) set-aside contracts. However, in recent fiscal years (FYs), New England District customers have continued to identify increased uncertainty surrounding mission requirements, resulting in reduced procurement timelines and frequent urgent mission requirements.

The New England District is currently soliciting additional stand-alone construction procurements in support of both Military and Interagency stakeholders and anticipates an increase in construction support across Military and Interagency programs in the coming FYs.

f. Rationale for Consolidation:

Based on the analysis of the New England District, the quantitative benefits of this consolidated approach fall short of the required 10% cost savings. However, the qualitative benefits of the proposed consolidated approach are critical to the District’s mission success and, as detailed below, these benefits substantially exceed the benefits of any approach that involves a lesser degree of 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 a lesser degree of consolidation. Such benefits may include quantifiable cost savings or price reductions as well as other benefits, regardless of whether quantifiable in dollar amounts, to include quality improvements that will save time or improve or enhance performance or efficiency, reduction in 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). If the quantifiable benefits do not meet these thresholds, the approving authority may determine that consolidation is necessary and justified if the expected benefits of the consolidated approach are critical to the agency’s mission success and the procurement strategy provides for maximum practicable participation by small business.

(2) Benefits that are quantifiable in dollar amounts are substantial if individually, in combination, or in the aggregate the anticipated financial benefits are equivalent to ten percent of the estimated contract or order value (including options) if the value is $94 million or less.

The New England District Small Construction MATOC will share $90M in contract capacity;

thus, the required ‘substantial’ threshold for this acquisition is $9.0M.

As shown in greater detail below (Section 5.a.(4) - Cost Savings), the estimated administrative cost savings for consolidating this acquisition are , 2.5% of the estimated contract (including options). This is less than the 10% threshold, but there are other critical factors to consider. The typical New England District Military Program (as well as other customers/programs) design and construction support suffers from an uncertain funding stream that typically does not reveal itself until the 3rd and 4th quarters of the fiscal year. Coupled with the fact that almost all of the funds are expiring annual appropriations, the Military Program requires contracting mechanisms that are quick and efficient yet provide a credible level of competition to ensure fair and reasonable pricing.

While some financial benefit is anticipated by utilizing a MATOC, benefits to the overall procurement schedule substantially exceed the benefits of any approach that involves a lesser degree of consolidation. Once the MATOC pool has been established, award of Task Orders substantially reduces the time and risk of awarding as compared to using any other procurement method. MATOCs provide a unique ability to acquire pre-qualified, experienced, professional services at competitive prices. During past program years, the New England District has been forced to turn away work from valued customers because the District did not have necessary tools – such as this Small Construction MATOC – to complete procurements within those customers’ funding availability. Many traditional New England District customers receive funding late in the Fiscal Year, requiring rapid response from the District to award contracts before funds expire. The District must have a contract vehicle that is responsive to late-emerging customer requirements, their uncertain budgets, and late adjustments to the Fiscal Year priorities in order to assure mission success. See Section 5 analysis below for the benefits of this proposed consolidated acquisition.

To reiterate, use of an IDIQ is appropriate when the Government cannot predetermine, above a specified minimum, the precise quantities of supplies or services that the Government will require during the contract period, it is inadvisable for the Government to commit itself to more than a minimum quantity, and yet the Government anticipates a recurring need. This is exactly the context of the New England District Military Program. An IDIQ, specifically the proposed Small Construction MATOC, is the most beneficial contracting mechanism for accomplishing the New England District Military Program requirements. Consolidation under a MATOC will provide a pool of qualified and experienced contractors, facilitating high quality mission execution, and meeting accelerated acquisition cycle demands, while achieving significant cost savings.

(3) In addition, consolidation of this requirement does not negatively impact small business as this procurement will be set-aside for Small Business interests. New England District issued a Sources Sought in August 2025. The results revealed seven (7) of the nine (9) interested Small Business firms were deemed capable of completing this type of work; thus, competition is deemed adequate.

3. Applicable Statutes/Regulations: 15 U.S.C. § 657q, FAR 7.107-2, and AFARS 5107.170-2.

4. Results of Market Research:

a. A Sources Sought announcement was posted on 05 August 2025 and nine (9) responses were received from the small business community by the due date of 04 September 2025. The purpose of the market research was to provide the District with the necessary information regarding the capabilities and availability of the small business community needed to perform the work required.

Following review of the Sources Sought responses, the District determined that at least seven (7) small business firms are qualified to perform the work required under this procurement. The District evaluated the contractors’ capability packages against the criteria included in the Sources Sought, including evidence of similar project experience, experience with minor repair, modification, rehabilitation, and alterations for vertical construction-type projects, ability to self-perform, and proof of bonding capability.

b. Following the market research, it was determined that an acquisition approach to select up to five (5) contractors from a pool of small businesses would be the preferred approach. The market research identified sufficient qualified firms to ensure substantial competition for the overall IDIQ Small Construction MATOC. Based on the Market Research, the District anticipates that eligible Small Business firms will be able to comply with the requirements of FAR 52.219-14, specifically the self-performance of 15%, or with similarly situated entities as referenced in the current clause deviation. This determination will be documented on the DD 2579.

c. Market research, both past procurement history and specific research related to this solicitation, does not indicate that the proposed approach will negatively impact competition among small businesses. Historically, New England District has solicited construction services from either the general Small Business community or the 8(a) community via set-asides under $4 million.

5. Alternate Contracting Approaches Considered and Rationale for Rejection: In coming to the conclusion that a Small Construction IDIQ MATOC pool was the best solution for satisfying the construction requirements of the New England District Military Program (and other programs requiring similar support), the District also considered site-specific construction acquisitions. The intent of this analysis was to address all alternative contracting approaches that would involve a lesser degree of consolidation, or no consolidation.

a. Alternative 1: Site-Specific Construction Contract: The District considered the award of multiple stand-alone, site-specific construction contracts. While this approach could provide a lesser degree of consolidation, or no consolidation at all if individual contracts are awarded for every single requirement, the benefits of the MATOC approach substantially exceed the benefits of individual site-specific contracts for the reasons outlined below:

(1) Quality. Establishing a MATOC pool of experienced contractors to service all

New England District programs assures a higher degree of consistency in the quality of performance. MATOC pool contractors will be selected based on their experience performing similar construction projects, and over the course of the ordering period of their IDIQ contracts they will gain further experience through the iterative process of responding to Requests for Proposals (RFPs) and executing projects. While offerors on stand-alone, site-specific construction contracts could be selected on similar experience, a contractor has less certainty of being awarded multiple contracts and thus gaining a similar volume of critical experience. The infrequency of performing work supporting New England District programs puts such contractors in a perpetual learning curve that could negatively impact the program because of carried standards of contractor performance, resulting in increased oversight and administrative costs.

(2) Acquisition Cycle. A complicating element of the New England District programs is the frequency of annual funding fluctuations and changes in priorities resulting from emerging requirements. The New England District strives to address these budgetary uncertainties and emerging requirements by remaining in constant communication with all customers and maintaining adequate contract capacity to respond to unanticipated requirements.

The MATOC approach better accommodates the needs of the New England District programs because of its streamlined nature. Stand-alone, site-specific construction contract procurements require additional advertisement time and lengthy evaluation boards. Conversely, the task order procurement process under a MATOC eliminates the 15-day advance notice period required under FAR 5.203. In addition, the task order process reduces the preparation of voluminous stand-alone solicitations which must be created individually using the contract writing system, the burdensome submission requirements for contractors, and the detailed evaluation criteria which is required when doing stand-alone, site-specific construction contracts. The task order procurement process also reduces acquisition timelines because the contractor pool becomes familiar with New England District programs, leading to quicker responses, and because task order selection is streamlined. Each task order requires only the submission of price information.

Through an analysis conducted by the New England District, it is estimated that this contracting mechanism could save as much as four (4) months in the acquisition cycle of each project and 123 days of man-hours spent on each project by streamlining the items detailed above. This time savings is critical to meet the mission successfully, given the District lacks the necessary resources to execute stand-alone site-specific construction contracts for each applicable requirement. The savings in dollar figures associated with these hours are discussed below in 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. Applicability of FAR Bundling Definition. This acquisition does not constitute bundling because it is not an attempt to consolidate two or more requirements previously provided or performed under separate contracts into a single contract unsuitable for small business. This procurement is open to all competition between all small business entities;

therefore, bundling is not implicated.

c. Definition of the Competition in Contracting Act (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. In order 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 and Outdoor Venture Corp., B-299675; B-299676, Jul. 19, 2007).

d. Applicability of CICA Bundling Principle. This small business set-aside procurement does not constitute CICA bundling since it does not restrict competition among small businesses.

The procurement approach will set-aside the MATOC for a pool of small businesses including Women-Owned, HUBZone, and Service-Disabled Veteran-Owned and contain restrictive provisions only to the extent necessary to satisfy the procuring agency’s needs. Task orders will be competed among all MATOC holders; therefore, competition will not be restricted.

7. Considerations, facts, and reasoning supporting the determination: All facts, considerations and rationale have been covered previously in the findings. The DD2579 will be signed by the Contracting Officer and Deputy for Small Business. All concur that consolidation of this requirement is both necessary and justified.

8. Summary: Though this MATOC approach constitutes consolidation in that it combines construction requirements at two or more discrete sites into one contract, this approach represents the most effective means for the New England District to successfully execute a broad and rapidly changing mission. It provides the best combination of competitive procedures, timely acquisition (shortened by 4-6 months), cost efficiency, quality, and capable prime contractors. Compared to approaches with less consolidation, this approach would allow the New England District to shorten acquisition timelines by 4-6 months and contribute to administrative cost savings of (approximately 2.5%). In addition, it offers improved quality performance and successful completion of projects in support of mission requirements. The procurement strategy provides for maximum practicable participation by small businesses. Furthermore, consolidation is necessary and justified as it is critical to the agency’s mission success. The Small Construction IDIQ MATOC enables New England District execution by improving procurement timelines and costs incurred. As previously stated, under the current budgetary climate, many traditional New England

District stakeholders receive funding late in the Fiscal Year, requiring rapid response from the District to award contracts before funding availability changes, while funding that is provided is frequently limited. The absence of such contract tools would limit the District’s ability to be responsive to emerging stakeholder requirements, uncertain budgetary climates, and late adjustments to a stakeholder’s anticipated Fiscal Year priorities.

The MATOC approach meets the intent of statute to provide prime contracting opportunities for small business in that it is the Government’s intent to make multiple awards to small businesses.

This approach also supports the District’s aggressive small business goals.