EFO_W912DY20D0071-W912DY23F0297 - Mold Remediation Ft Wainwright AK_8JAN2026_Redacted.pdf
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- Solicitation number
- CEHNC-25-0024
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This document is a Justification Review Document for an Out-of-Scope Modification Exception to Fair Opportunity for a task order with Siemens Government Technologies (SGT) at Fort Wainwright, Alaska. The modification (P00004) seeks to address mold remediation in Building 3208's mechanical room, which was caused by malfunctioning hot water generators. The total value of the modification is $566,289.00, bringing the total contract value to $6,653,367.00, representing a 31.9% increase from the original award.
The task order (W912DY23F0297) was originally awarded on 11 September 2023 under the UMCS Siemens SATOC contract, with an initial value of $5,045,462.00. The modification is being pursued under an urgent and compelling exception authority due to potential health risks to approximately 300 soldiers from mold growth, and the contractor's cessation of water heater replacement until mold is abated. The United States Army Corps of Engineers (USACE) Huntsville Engineering and Support Center is the contracting activity, and the period of performance ends on 06 October 2026.
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CUI
Control Number: CEHNC-25-0024
Mold Remediation Fort Wainwright, AK Siemens
Justification for an Out-of-Scope Modification Exception to Fair Opportunity
Under Federal Acquisition Regulation 16.505(b)(2)(i)(A)
1. Contracting Activity: United States Army Corps of Engineers, (USACE), Huntsville Engineering and Support Center (CEHNC) located at Redstone Gateway (RG300), Redstone Arsenal, AL 35898.
2. Description of Action: The UMCS Program seeks approval to award modification (P00004) ECO-02 to the SGT TO W912DY23F0297 on Contract W912DY20D007, Heating Ventilation and Air Conditioning (HVAC) and Security Door Monitoring, Fort Wainwright, Alaska. This TO requires the contractor, Siemens Government Technologies (SGT), to furnish and install HV AC with associated controls, exterior door monitoring and building ancillary repairs at Fort Wainwright (FWW) at Buildings 3725 and 3208. The requirement consists of two tasks: Task 1: Building 3725 exterior door monitoring and Task 2: Building 3208 HV AC systems and building ancillary repairs. While performing work on Task 2 in the mechanical room of Building 3208, SGT discovered mold within the interior mechanical room walls within the building. SGT submitted engineer change proposal labeled ECO-02 for complete mold remediation in the mechanical room. The moisture and resultant mold in the mechanical room are due to malfunctioning hot water generators (HWGs). The HWGs relief valves and connections failed and were responsible for the moisture and water that was continuously leaking onto the mechanical room floor and walls Modification P00003 for ECO-03 was approved and obligated for in-kind replacement of the HWGs. The proposed changes in ECO-02 in conjunction with the previously awarded modification for ECO-03 for the replacement of the HWGs, is required to correct the issue and allow the original intent of the PWS to be met with a fully functioning system. The proposed price of this modification is $566,289.00 with a period of performance end date of 06 October 2026.
3. Description of Supplies/Services: Task A firm fixed-price TO W912DY23F0297 was awarded under the UMCS Siemens SATOC - W912DY22D0071 on 11 September 2023 with a TCV of $5,045,462.00. Modification P0000l was executed to exercise optional CLIN 0001:
Task 1 which did not affect the total contract value (TCV). Modification P00002 for ECO-01 decreased the TCV by $5,289.00, for a new TCV of $5,045,462.00. Modification P00003 for ECO-03 established and fully funded hot water generator replacements in-kind in the amount of $1,046,905.00 which raised the TCV to $6,087,078.00. This proposed modification for mold remediation in the amount of $566,289.00 will provide an accumulated increase of 32%.
(Source Selection Information - See FAR 2.101 and 3.104-4) 3
Control Number: CEHNC-25-0024 Mold Remediation Fort Wainwright, AK Siemens
Table 1: History
Description of Action Value of Total Value Date of Value
Modifications ofAward Action Change
Award Initial Action $ 5,045,462.0( 11 SEP 23 P0000l Exercise Ootion Task 1 $ 5,045,462.0( 28NOV24 0o/c P00002 ECO-0 J Descope doors -$ 5,289.0C $ 5,040,173.00 04 SEP 24 -.1% P00003 ECO-03 Hot Water $1,046,905.0( $6,087,078.0( 25 JUL25 20.6o/c
Generator Replacement Proposed Modification
P00004 EC0-02 Mold Remediation $566,289.00 $6,653,367.00I Pending 31.9%
4. Authority Cited: 10 United States Code 2304c(b )(3) as implemented in FAR 16.505(b)(2)(i)(A). "The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays."
5. Reason for Authority Cited: FAR l 6.505(b )(2)(i)(A) allows an exception to fair opportunity when an unusual and compelling urgency such as critical infrastructure failure poses an imminent risk of a life-safety system which require immediate and short-term repairs. The failure of the hot water generators located in the mechanical room represent failed infrastructure causing mold growth. The repair of the infrastructure (the hot water generators) has been initiated in a previous executed modification which was considered inscope. Also, in cases of public health emergencies, where a procurement is necessary to prevent widespread injury or death represents a compelling urgency. In this situation, the continued growth of unabated mold in building 3208, in which approximately 300 Soldiers reside, has the potential to injure multiple Soldiers in the building with long term respiratory issues.
Additionally, SGT has ceased the replacement of the water heaters until such time that the mold is abated, for its own health and safety concerns, further exacerbating this issue by preventing this Task Order from restoring critical infrastructure in terms of the hot water generator, to this facility. It is the best interest of the Government to remove and abate the mold quickly to remove this hazard and prevent further negative health consequences of the Soldiers living in proximity to the mold, and to restore the critical hot water generators. The time required for an additional follow-on contract with fair and open competition is deemed unacceptable as the health and welfare of Soldiers is at risk as additional time passes. This exception to fair opportunity provides authority to award an urgent and compelling modification to task order W912DY23F0297 which was issued against base contract W912DY22D0071. There exists a logical nexus for this modification to be executed so the contractor can proceed in the most efficient and timely manner to remove the life-safety risk posed by the mold in building 3208 and provide a fully functional and complete working system in compliance with activity specific requirements itemized in the PWS.
6. Efforts to Obtain Competition: This modification will be awarded via an urgent and compelling exception authority for reasons of economy and efficiency on an existing TO.
(Source Selection Information-See FAR 2.101 and 3.104-4) 4
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