ETFO_AL_ACC CCEDIRemediation_signed.docx

Defense Threat Reduction Agency 8725 John J. Kingman Road, Sto p 6201 Fort Belvoir, VA 22060-6201

EXCEPTION TO FAIR OPPORTUNITY JUSTIFICATION

1. Nature and/or Description of the Action The Defense Threat Reduction Agency contracting activity proposes to procure, without requesting proposals from the contractors under the CTRIC III Indefinite Delivery/Indefinite Quantity contracts, additional activities under the current task order HDTRA1-19-F-0078 for the Azerbaijan Ministry of Health Central Reference Lab (Center for Control of Especially Dangerous Infections hereto referred to as CCEDI) with CH2M in Azerbaijan. CH2M will be the only contractor solicited to provide the required effort. As such, this acquisition would be an exception to the FAR 16.5 “Fair Opportunity” process. The planned requirement will be procured under a bilateral modification P00006.

2. Description of the Supplies/Services Required One expanded effort was identified during the Assessment of the facility and identified as a needed action to complete the project. The proposed P00006 effort to support CCEDI directly relates to the scope of work in the current Statement of Work (SOW). The effort will address deficiencies, identified during assessment, of the HVAC ductwork to and from the BSL-3 laboratory. This effort addresses the project’s primary identified risk and ensures the facility is prepared for commissioning, third party validation, and to support laboratory activities in accordance with internationally accepted best practices & protocols. The proposed expanded effort removes existing ductwork that consists of incorrect material for BSL-3 operations, replaces and installs proper isolation values in laboratory suites, installs valves to isolate locations for proper corrective and preventative maintenance, and installs ductwork of proper material and sizing to ensure correct airflows and pressures. The period of performance for the tasks will begin upon award of the modification and within a duration of 6 months and will not extend beyond the last day of the basic CTRIC III IDIQ contract period allowed for task order performance. Estimated date of completion is 6 December 2021. The cost for the additional work and materials based on the Independent Government Cost Estimate (IGCE) data is approximately $1,255,90.20. The current value of this CPFF order, inclusive of all option periods, is $4,393,448.

3. Exception to Fair Opportunity The justification for this ETFO action is FAR 16.505(b)(2)(i)(C) which states “the order must be issued on a sole-source basis in the interest of economy and efficiency as a logical follow-on to an order issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order”. The original order provided fair opportunity to all CTRICs to bid on the work. In this case, issuance of a new task order for this effort is not feasible and would cause significant construction delays and additional cost for another contractor to mobilize in- country, complete their assessment and begin necessary actions. An impact of 30 to 60 days and $400,000 to $600,000. A modification for new/additional work can be issued on the current order; with the increase in value, the maximum ordering value ceiling of the CTRIC III IDIQ contract value will not be exceeded.

The new work cannot be accomplished under the Changes Clause, therefore this ETFO is being executed to justify the basis for this sole source acquisition through a supplemental agreement bilateral modification.

4. Justification Rationale The use of the established contractor greatly reduces cost and risk to the Government. CH2M has operations in-country, and has established relationships with the Azerbaijan Ministry of Health who are involved in implementation, including access agreements to the site. CH2M experienced site access issues causing a 30 day delay to the project and another 40 day delay to begin Remediation. Full site acces was not granted until 5 months after the initial request to the Ministry of Health. An estimated cost impact of $600,000 to the contractor and Government. Achieving these same milestones for a new contractor would cause significant delays and greatly impact cost. The Government does not expect to receive a better price by competing this task amongst other contract holders. The use of the established contractor eliminates the need for integration costs, and project management office expenses associated with establishing a new office and project management team. There are also delays caused COVID, including lost days to quarantine, travel restrictions and additional requirements to travel.

The proposed work is necessary to the current work being performed to achieve facility commissioning and third party validation. All required steps to ensure the facility is able to perform its designed and intended function safely and in accordance with internationally accepted best practices and protocols. As the contractor currently performing the work, CH2M is the only contractor able to complete this work in the timeframe required. Execution of this modification is needed to maintain commissioning and third party validation schedules. This task is a direct outcome of the facility assessment done by CH2M under CLIN 0001 of the current task order, granting them an in-depth understanding of the scope of work, and risks to project success. Continuing this effort with the current contractor is the most advantageous approach for the Government. A re-compete under the CTRIC III vehicle, or full and open competition, would generate significant schedule risk, and have negative cost implications including duplication of costs for work already performed.

The Statement of Work has been modified to clarify and explicitly refer to the identified follow- on tasks; due to the increase in project cost, an exception to fair opportunity memo is required. The contractor will be required to submit a cost and technical proposal which will be evaluated by the Government. An independent government cost estimate (IGCE) has been developed and will be used as a tool to evaluate the reasonableness of the contractor’s proposed pricing. Negotiations will be conducted, if needed, to arrive at a fair and reasonable price.

5. Market Research Market research showed other CTRIC contractors could perform the work being added under this contract; however, selecting a new contractor for this project related tasking would result in much higher costs, significant delays, and duplication of efforts already performed by CH2M. Conducting a new fair opportunity competitive action would be disadvantageous to the Government in terms of performance, cost, and schedule. Market research was also conducted prior to the procurement resulting in the current order which was competitively awarded. During a down selection, CH2M was found as the most qualified offeror in terms of cost and technical approach.

6. Other Supporting Facts None.

7. Subsequent Actions Supporting CCEDI remediation, commissioning and third party validation is one of the final actions in Azerbaijan, capping 10+ years of capability projects. CCEDI is the pinnacle of Azerbaijan’s Threat Reduction and Detection (TDAR) system serving as the final stop for dangerous pathogens and confirmatory diagnostics.

Technical Certification I certify the data and information forming the basis for this justification is accurate and complete to the best of my knowledge and belief.

PORTER.MICAH. J.1178699594

Digitally signed by PORTER.MICAH.J.1178699594 Date: 2021.01.11 15:58:00 -05'00'

11-Jan-2021

Project Manager Date

Contracting Officer Certification and Determination I certify this justification is accurate and complete to the best of my knowledge and belief. Additionally, I determine that the order represents the best value consistent with Federal Acquisition Regulations.

Digitally signed by LEVAC.GAGE.N.1019304104 Date: 2021.01.11 16:15:12 -05'00' )11-Jan-2021 Contracting Officer Date

General Counsel Coordination This justification is legally sufficient.

FRATARCANGELI.JOSEP H.VINCENT.1237282457

Digitally signed by FRATARCANGELI.JOSEPH.VINC ENT.1237282457 Date: 2021.01.12 09:36:47 -05'00'

12-Jan-2021

Attorney Date

Approval Based on the justification, I hereby approve accomplishment of this acquisition by means of limited sources.

Elizabeth R. Braxton

Digitally signed by BRAXTON.ELIZABETH.R.1231040 222 Date: 2021.01.26 09:58:03 -05'00'

26-Jan-2021

Competition Advocate Date image1.png image2.png