Exception_to_Fair_Opportunity_Asarco_Point_Ruston_1.pdf

JUSTIFICATION FOR EXCEPTION TO FAIR OPPORTUNITY

Authority FAR Part 16.505(b)(2)(B), RAF Contracts Manual 4.4.12

1. Agency: U.S. Environmental Protection Agency (EPA), Region 10

Contracting Activity: Asarco Point Ruston (APR) Remedial Design (RD) / Remedial Action (RA) Oversight Support under Remedial Action Framework (RAF), Design and

Engineering Service (DES).

Contractor: CH2M Hill, Inc.

2. Nature and/or description of the action:

EPA Region 10 requires the continuation of oversight activities at the former Asarco Tacoma Smelter Facility (Site), located within the cities of Ruston and Tacoma, to ensure compliance with EPA guidance and reduce the risk of project completion delays. The Site is also adjacent to the Ruston/North Tacoma Study Area. This area is approximately 950 acres, comprising an arc of approximately one-mile radius surrounding the Asarco smelter and the town of Ruston and a northern portion of the city of Tacoma. Soil sampling for arsenic and lead was performed at individual properties within the Study Area and yard remediation implemented. The scope of this project encompasses multiple locations with various buildings and structures, several components (slag: molten and granulated) and contaminants (lead and arsenic), as well as different land uses (industrial and residential, including schools).

This is a sole source procurement for continuation of oversight of the RD/RA being implemented by a Bona Fide Prospective Purchaser (BFPP) at the Asarco Point Ruston Superfund Site. The purpose of this document is to justify an exception to the fair opportunity process and to procure these services from CH2M Hill, Inc. If EPA were to compete a new contract in lieu of justifying an exception to fair opportunity it would require a contractor to start over with getting acclimated to the site, PRP and constructing contractor(s), which would add additional time to and incur duplicative costs that would not be recovered through any savings resulting from competition.

3. Description of the Supply/Service

The contractor shall furnish all necessary and appropriate personnel, including subcontractors, materials, and services needed for, or incidental to, performing and completing RD/RA oversight. Oversight activities include, but are not limited to, review of design documents, Post-Construction Management Plans submitted by the site developer, all Potentially Responsible Parties (PRP) submitted documents, and remedy construction currently projected to be completed June 2022. The BFPP agreement was signed in 2006 and RD/RA work on the property has been on-going since 2004. EPA Region 10 currently has a task order for these services, however, that task order is set to expire prior to the end of the RA (February 2021).

The Estimated value of the task order is $605,305.00.

4. Authority: Action using Simplified Acquisition Procedures

The EPA justifies this sole source procurement in accordance with RAF Contracts Manual 4.4.12 and 16.505(b)(2)(B), Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

5. Reason for Authority Cited:

The current contractor, CH2M Hill, Inc. (CH2M), is uniquely qualified to complete the RA oversight at the Asarco Ruston Point site which is part of the greater Asarco Tacoma Smelter Facility. CH2M has been providing Architectural and Engineering Services at the Site since 2004. As such, CH2M is uniquely qualified to perform the work because of their first-hand experience at the Site, their sensitivity to the relationship EPA has with the local community, and the resources they have cultivated in performing the oversight services. The ongoing work at the Site is in a critical state and a break in coverage would result in a significant impact to human health and the environment, increase the length of time to complete and incur significant additional costs to the EPA.

CH2M has proven its value in successful completion of multiple projects at the Asarco Tacoma Smelter Facility and surrounding communities.

Under contract 68-S7-04-01, Task Order 004, CH2M provided oversight of the RA at the Asarco Tacoma Smelter, located in Tacoma, WA. CH2M was in charge of day-to-day RA Oversight of the 60+acre Asarco complex from May 2004 to June 2016. CH2M provided oversight assistance related to a variety of RA activities including excavation of contaminated materials, placement of contaminated materials in the on-site containment facility (OCF), demolition of on-site structures, site grading, drainage and capping, and review of related PRP documents

Under contract 68-S7-04-01, Task Order 005, CH2M provided oversight of the Ruston North Tacoma Study Area, approximately 950-acres, comprising an arc of approximately one-mile radius surrounding the Asarco Tacoma smelter and includes the town of Ruston and Tacoma, from June 2004 to December 2010. CH2M assisted in reviewing and evaluating reuse plans and redevelopment plans to ensure long-term protectiveness of the RA oversight and remedy; reviewed PRP submittals, provided technical field oversight of PRP activities to ensure construction took place in accordance with EPA accepted plans and specifications, and provided technical meeting support.

Under contract 68-S7-04-01, Task Order 065, CH2M assisted EPA with completion of Ruston/North Tacoma yard remediation and planning for long-term institutional controls from June 2010 to May 2016. Yard remediations are located within the Ruston North Tacoma Study Area, approximately 950-acres, comprising an arc of approximately one-mile radius surrounding the Asarco Tacoma smelter and includes the town of Ruston and Tacoma. Work performed included: staffing an Information Center where information related to property cleanups was made available to the public, re-sampled residential properties to assess if recontamination had occurred, and determined the completeness of the RA.

For each of these task orders, CH2M consolidated, when possible, site visits and inspections to reduce travel-related labor and expenses.

Under contract EP-W-06-021, Task Order 89, Architectural and Engineering Services, CH2M is currently conducting oversight of the RD/RA being implemented by the BFPP and has been since April 2016. Project activities have included: Construction Management Plan reviews, review of Methan Vapor Barrier and Control System, review of PRP Operation and Maintenance reports, commented on Deep Aquifer Memo addressing why deep groundwater monitoring was not necessary, and evaluated the feasibility of constructing a building on top of the OCF landfill. CH2M continually provides review and comments on PRP submitted Quality Assurance Project Plans (QAPPs), groundwater and surface water long term monitoring plans, and construction reports for sub-site building projects

CH2M utilizes a local subcontractor (KWP) who is intimately familiar with the work and the history of the Site.

Having gained extensive knowledge of the site and an understanding of the geo-political environment through the performance of the projects summarized above allows CH2M to not only more efficiently manage costs, but also support the local community.

CH2M has the necessary knowledge, staff, and experience to complete the oversight of the RA in the most cost effective and efficient manner for the EPA. The EPA requires CH2M’s unique expertise, intimate knowledge of the Site and established resources to continue RA oversight through the completion of the Remedial Action. The RA serves as a natural breakpoint in work for a subsequent task order to be awarded. To remove CH2M at this point in the RA will create undue financial burden to the Government (i.e. recompete costs, new contractor acclimation labor, and increased administrative costs) as well as significantly increase the risk of remedy failure (unnecessary delays) by not having continuity of oversight at APR in supporting our mission of protecting human health and the environment.

Based on the above information, competing a new contract may adversely impact remedial action activities and result in incurring significant additional cost.

6. Conclusion:

CH2M has been providing oversight services at all Asarco sites at previously negotiated contract rates which were found to be fair and reasonable. The Contracting Officer has determined that the anticipated cost to the Government will also be fair and reasonable as the rates under the DES contract have also been negotiated and found to be fair and reasonable.

Due to the unique requirements for this project and the need for continuation of on-going services without interruption, no additional market research was conducted. Further, should another firm be found capable of completing the work, the costs associated with re-procurement as well as the delays that will be experienced in meeting mission objectives were determined to not be in the best interest of the Government.

Based on this, only one firm was deemed able to provide the necessary historical knowledge, technical experts and qualifications to continue to support EPA’s mission through performing RD/RA oversight at the Asarco Site. Therefore, I hereby determine that only one capable source is available for this procurement and a sole source Request For Offer will be sent to CH2M Hill, Inc. with an estimated net value of $605,305.00.

EPA will compete future requirements for this type of work utilizing the Agency’s multiple-award Indefinite Delivery/Indefinite Quantity Design and Engineering Services contract. This contract vehicle allows for competition among multiple contract holders which includes multiple small and large business as well as multiple joint ventures.

I certify that the supporting data under my cognizance which is included in this justification is accurate and complete to the best of my knowledge and belief.

Prepared By:

Scott Dandy Contracting Officer

Approved By (Level Above):

Marie D. Noel Lead Contracting Officer EPA Regions 7 and 10

Marie D. Noel

Digitally signed by Marie D. Noel Date: 2020.06.03 10:31:49 -05'00'

Digitally signed by Dandy, Scott Date: 2020.06.03 13:10:52 -05'00'

JUSTIFICATION FOR EXCEPTION TO FAIR OPPORTUNITY

ADDENDUM

Authority FAR Part 16.505(b)(2)(B), RAF Contracts Manual 4.4.12

1. Agency: U.S. Environmental Protection Agency (EPA), Region 10

Contracting Activity: Asarco Point Ruston (APR) Remedial Design (RD) / Remedial Action (RA) Oversight Support under Remedial Action Framework (RAF), Design and Engineering

Service (DES).

Contractor: CH2M Hill, Inc.

2. Nature and/or description of the action:

In June of 2020 the original Justification of Exception to Fair Opportunity was reviewed and approved with an estimated cost basis of $605,305.00. The Justification assumed the follow-on task order would be put into place within a reasonable amount of time. Due to a series of unfortunate events (staffing changes, and management re-prioritization of projects) this project did not start as planned. As a result, the negotiations and time required to complete the project we delayed.

The project was re-engaged in May 2021 and negotiations have been completed. However, the extended period now required to complete the project has increased the total estimated cost to $753,182.72. Since the original Justification was approved at $605,305.00, this addendum requests approval for the variance of $147,877.72.

This is a sole source procurement for continuation of oversight of the RD/RA being implemented by a Bona Fide Prospective Purchaser (BFPP) at the Asarco Point Ruston Superfund Site.

The original estimate of $605,305.00 assumed 2,021 direct hours, field oversight subcontractor costs, and some local travel.

The original Justification was based on this estimate. However, through the negotiation and scoping process, it was found necessary to increase the direct labor costs to 2,369 hours and increase the amount of field oversight subcontractor costs resulting in the total $753,182.72. The primary reason for the increase was the need to extend the project into 2023 whereas previously the work was expected to be complete during 2022. Most of the additional time is based on the need for reviewing PRP submittals as part of the RA Oversight activities. Based on this new information, this addendum to the original Justification is to increase the amount by $147,877.72. Both the original and amended Justification apply to this acquisition and both documents will be placed in the contract file.

3. Description of the Supply/Service

The contractor shall furnish all necessary and appropriate personnel, including subcontractors, materials, and services needed for, or incidental to, performing and completing RD/RA oversight. Oversight activities include, but are not limited to, review of design documents, Post-Construction Management Plans submitted by the site developer, all Potentially Responsible Parties (PRP) submitted documents, and remedy construction currently projected to be completed June 2022, although delays in completing the RA are likely to extend the need for oversight to 2023. The BFPP agreement was signed in 2006 and RD/RA work on the property has been on-going since 2004. EPA Region 10 currently has a task order for these services, however, that task order is set to expire prior to the end of the RA (August 2021).

4. Authority: Action using Simplified Acquisition Procedures

The EPA justifies this sole source procurement in accordance with RAF Contracts Manual 4.4.12 and 16.505(b)(2)(B), Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

5. Reason for Authority Cited:

The reasons cited in the original Justification remain and no additional information is known to the undersigned that would change the premise for the Justification.

CH2M Hill, Inc. (CH2M), remains uniquely qualified to complete the RA oversight at the Asarco Ruston Point site which is part of the greater Asarco Tacoma Smelter Facility. CH2M has been providing Architectural and Engineering Services at the

Site since 2004. As such, CH2M is uniquely qualified to perform the work because of their first-hand experience at the Site, their sensitivity to the relationship EPA has with the local community, and the resources they have cultivated in performing the oversight services. The ongoing work at the Site is in a critical state and a break in coverage would result in a significant impact to human health and the environment, increase the length of time to complete and incur significant additional costs to the EPA.

CH2M has the necessary knowledge, staff, and experience to complete the oversight of the RA in the most cost effective and efficient manner for the EPA. The EPA requires CH2M’s unique expertise, intimate knowledge of the Site and established resources to continue RA oversight through the completion of the Remedial Action. The RA serves as a natural breakpoint in work for a subsequent task order to be awarded. To remove CH2M at this point in the RA will create undue financial burden to the Government (i.e. recompete costs, new contractor acclimation labor, and increased administrative costs) as well as significantly increase the risk of remedy failure (unnecessary delays) by not having continuity of oversight at APR in supporting our mission of protecting human health and the environment.

Based on the above information, competing a new contract may adversely impact remedial action activities and result in incurring significant additional cost.

6. Conclusion:

The Contracting Officer has determined that the anticipated cost to the Government is fair and reasonable as the rates under the DES contract have also been negotiated and found to be fair and reasonable.

Due to the unique requirements for this project and the need for continuation of on-going services without additional interruption, no additional market research was conducted. The costs and delays associated with re-procurement were determined to not be in the best interest of the Government.

Based on this, only one firm was deemed able to provide the necessary historical knowledge, technical experts and qualifications to continue to support EPA’s mission through performing RD/RA oversight at the Asarco Site. Therefore, in accordance with the originally approved Justification and this addendum, I hereby determine that only one capable source is available for this procurement and a sole source Task Order will be issued to CH2M Hill, Inc. with an estimated net value of $753,182.72.

I certify that the supporting data under my cognizance which is included in this justification is accurate and complete to the best of my knowledge and belief.

Prepared By:

Scott Dandy Contracting Officer

Approved By (Level Above):

Donald J. Denno Regional Acquisition Manager EPA Regions 7 and 10

Encl:

- Approved Justification for Exception to Fair Opportunity, dated 06/03/2020

Digitally signed by SCOTT

DANDY

Date: 2021.07.28 11:54:36 -05'00'

DONALD

DENNO

Digitally signed by

DONALD DENNO

Date: 2021.07.28 11:58:28 -05'00'