Exception_to_Fair_Opportunity_-_Hamilton_Labree_1.pdf

JUSTIFICATION FOR EXCEPTION TO FAIR OPPORTUNITY

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

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

Contracting Activity: Hamilton Labree Remedial Investigation (RI) / Feasibility Study under Remedial Action Framework (RAF), Design and Engineering Service

(DES).

Contractor: CDM Federal Programs Corporation dba CDM Smith

2. Nature and/or description of the action being approved:

EPA Region 10 requires the remedial investigation and feasibility study at the Hamilton Labree (Site) to ensure compliance with EPA guidance and the Record of Decision (ROD). The Site is located in Chehalis, WA, west of Interstate 5 at the intersection of North Hamilton Road and Labree Road. The primary contaminates of concern are chlorinated volatile organic compounds that have impacted soil, sediment, and groundwater through historic dumping and offsite runoff. Groundwater contamination extends for at least 20 acres to the northwest of the known source areas; the leading edge of the groundwater plume is currently undefined.

EPA took responsibility for the site in July 2000, after it was added to the National Priority List. In 2006, EPA entered into a settlement agreement with the only known responsible party, Breen, LLC (Breen). The Site was divided into 2 separate operable units (OUs) whereby EPA was to complete a remedial investigation of operable unit 1, and the responsible party was to complete the investigation of operable unit 2. After years of unsuccessful cooperation with the responsible party, Breen agreed to a cash-out settlement in 2020, with payment to EPA to complete the investigation. This requirement is for a new task order that will cover work for the contractor to supplement previous environmental investigations done by EPA and the responsible party, and to develop a final site-wide Remedial Investigation and Feasibility Study.

The purpose of this document is to justify an exception to the fair opportunity process and to procure these services from CDM Smith (CDM). This new task order under the national EPA Remedial Action Framework – Design and Engineering Services (DES) contract platform will be to supplement and complete a site-wide Remedial Investigation and Feasibility Study (RI/FS) and build upon the Draft Operable Unit 1 Remedial Investigation developed by CDM in 2011. CDM was the primary subcontractor of EA Engineering, Science, and Technology, Inc. under EPA Task Order #EP-W-06-004_0121 and is EPA’s oversight contractor for the ongoing interim remedial action at the Hamilton-Labree Groundwater Site. CDM is uniquely qualified to perform activities in this contract as a result of more than 10 years of site experience and ongoing involvement. If EPA were to compete a new task order in lieu of justifying an exemption to fair opportunity, it would result in considerable project delays with potential lapses in groundwater monitoring which would pose a risk to public health as residential properties are located directly downgradient of the contaminated groundwater plume. Project delays would also result in an increase is cost to the Government.

3. Description of the Supply/Services required to meet the agency’s needs:

The contractor shall furnish all necessary and appropriate personnel, including subcontractors, materials, and services needed for, or incidental to, completing a Remedial Investigation and Feasibility Study.

Required activities include reviewing existing site characterization, identifying and summarizing data gaps, completing additional investigation to address data gaps, and using the compiled data to summarize the nature and extent of contamination in a final site-wide remedial investigation report. EPA also plans to include options to complete a treatability study for use in the site feasibility study.

The Remedial Project Manager prepared a detailed cost estimate for this project. Based on this estimate, the value of the task order is estimated at $1.48M if a sole source award can be made to CDM. If not, the total amount is estimated at $1.73M due to additional requirements for allowing a new contractor to acclimate to the

Hamilton Labree RI/FS

Site and review all of the background information.

4. Identification of the exception to fair opportunity and supporting rationale:

The EPA justifies this sole source procurement in accordance with RAF Contracts Manual 4.4.12 and FAR 16.505(b)(2)(i)(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.

CDM has highly unique site-specific experience through over a decade of site history and ongoing involvement in the interim remedial action. Coordination and understanding of the interim treatment results is necessary to combine with the Site-wide RI. Additionally, the focus of the new task order will be to define the currently unknown boundaries of a dissolved-phase contamination groundwater plume that poses risk to 11 residential properties that lie immediately downgradient of source areas. This work is considered high priority and time sensitive in order to protect public health. Based on preliminary cost estimates, selection of CDM for the task order will result in an Agency savings of approximately $250K and allow for time-critical investigation to commence sooner than would otherwise be possible if awarding to a new recipient.

In this task order, the contractor will be updating and merging supplemental work from the OU2 RI into the 2011 OU1 Draft RI. Since CDM authored the OU1 draft report, they possess more than a decade of site history including familiarity with the site-specific hydrogeology and existing monitoring well network. A new contractor would require an expanded Statement of Work (SOW), that would require additional document reviews of more than 10 years of Site characterization. The additional work is estimated at approximately $250K. The additional time necessary to bring a new contractor up to speed on Site history and current conditions would ultimately delay the investigation and thus present a potential risk to public health as the current plume boundary is still not understood.

Issuing the proposed new task order to CDM to continue this effort represents the best decision to meet the Government’s need without causing significant financial harm, creating unnecessary and potentially harmful delays, and damaging ongoing remedial and community engagement actions. The contractor is uniquely qualified to complete the work on this project. They have the necessary knowledge, staff, and experience to complete this work in the most cost effective and efficient manner for the EPA. Transitioning this project through another contract competition would impact project schedule and incur additional costs.

5. Fair and reasonable determination:

CDM has been providing oversight of remedial activities at the site since 2010 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.

6. Other facts supporting the justification:

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 nor for public health or the environment.

Based on these considerations, 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 the RI/FS at the Hamilton Labree Site. The potential savings of approximately $250K will provide the Government a cost savings benefit in addition to continuity of operations. A new contract action will most likely cause a stop-work for the project and increase the risk to the general public. 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 CDM with an estimated net value of $1.48M.

7. Actions the agency will take to overcome barriers to future exceptions to fair opportunity:

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.

8. CO determination:

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.

9. Program certification:

The information presented above, which is the basis for the justification, was compiled by the Region 10 Remedial Project Manager, and is certified and accurate as evidenced by signature.

Robert Tan Remedial Project Manager

Prepared By:

Elaina D. Atkins Contract Specialist

Reviewed By (Level Above):

Scott Dandy Lead Contracting Officer EPA Regions 7 and 10

Atkins, Elaina Digitally signed by Atkins, Elaina Date: 2021.03.01 06:40:56 -08'00'

Digitally signed by SCOTT

DANDY

Date: 2021.03.01 09:17:41 -06'00'

Donald J. Denno Regional Acquisition Manager

10. Determination that one of the circumstances in paragraphs (b)(2)(i)(A) through (E) and (G) of this section applies to the order:

Approved By (Level Above):

Tommie Madison Agency Advocate for Competition

DONALD

DENNO

Digitally signed by

DONALD DENNO

Date: 2021.03.01 10:20:21 -06'00'

Madison, Tommie Digitally signed by Madison, Tommie Date: 2021.03.03 12:01:49 -05'00'

ADDENDUM

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

1. Agency: U.S. Environmental Protection Agency (EPA), Region 10 Contracting Activity: Hamilton Labree Remedial Investigation (RI) / Feasibility

Study (FS) under Remedial Action Framework (RAF), Design and Engineering Services (DES)

Contractor: CDM Federal Programs Corporation dba CDM Smith

2. Nature and/or description of the action being approved:

In March of 2021 the original Justification of Exception to Fair Opportunity was reviewed and approved with an estimated cost basis of $1.48M. The justification assumed the task order would be put in 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 were delayed.

The project was re-engaged in January 2022, and negotiations have been completed. However, during the initial scoping process between the EPA and CDM several tasks were found to be insufficient in order to provide a quality outcome for the project, therefore an overall increase in LOE of 4,706 hours over the IGE (8,469) was agreed to. Additionally, CDM proposed increases to both the level of effort (LOE-hours) and labor discipline levels (Mid to Senior). Significant increases were to Technical Project Planning Meetings, Project Management and Reporting, Filed Investigation, Treatability and Feasibility Studies, and Remedial Design Support. These increases were analyzed and justified based on project needs and complexity. It is EPA’s expectation that within any given task, CDM will distribute less complicated work to junior category professionals and more complicated duties to senior professionals.

This is a sole source procurement for completing the remedial investigation and feasibility study at the Hamilton Labree (Site) to ensure compliance with EPA guidance and the Record of Decision (ROD).

3. Description of the Supply/Services required to meet the agency’s needs:

The contractor shall furnish all necessary and appropriate personnel, including subcontractors, materials, and services needed for, or incidental to, completing a Remedial Investigation and Feasibility Study. Required activities include reviewing existing site characterization, identifying, and summarizing data gaps, completing additional investigation to address data gaps, and using the compiled data to summarize the nature and extent of contamination in a final site-wide remedial investigation report. EPA also plans to include options to complete a treatability study for use in the site feasibility study.

4. Identification of the exception to fair opportunity and supporting rationale:

The EPA justifies this sole source procurement in accordance with RAF Contracts Manual 4.4.12 and FAR 16.505(b)(2)(i)(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. Fair and reasonable determination:

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 been negotiated and found to be fair and reasonable.

6. Other facts supporting the justification:

Due to the unique requirements for this project and the need for continuation of on-going RI/FS services without additional interruption, no additional market research was conducted. CDM is uniquely qualified to complete the work on this project and has institutional knowledge that other contractors are not likely to have. They have the necessary knowledge, staff, and experience to complete this work in the most cost effective and efficient manner for the EPA. Further delays for a re-procurement are not in the best interest of public health and the environment as delays in defining the currently unknown boundaries of a dissolved-phase contamination groundwater plume that poses risk to 11 residential properties that lie immediately downgradient of source areas.

Based on these considerations, only one firm was deemed able to provide the necessary historical knowledge, technical expertise, and qualifications to support EPA’s mission through performing the RI/FS at the Hamilton-Labree Site. Through the DES scoping process and negotiations, I hereby determine that only one capable source is available for this procurement and a sole source a task order will be awarded to CDM with a negotiated ceiling of $2.7M (inclusive of options).

7. Actions the agency will take to overcome barriers to future exceptions to fair opportunity:

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.

8. CO determination:

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.

9. Program certification:

The information presented above, which is the basis for the justification, was compiled by the Region 10 Remedial Project Manager, and is certified and accurate as evidenced by signature.

Robert Tan Remedial Project Manager

ROBERT

TAN

Digitally signed by

ROBERT TAN

Date: 2022.05.13 13:14:18 -07'00'

Prepared By:

Scott Dandy Lead Contract Officer

Koni B. Fritz Regional Acquisition Manager

10. Determination that one of the circumstances in paragraphs FAR 16.505(b)(2)(i)(A) through (E) of this section applies to the order:

Approved By (Level Above):

Tommie Madison Agency Advocate for Competition

Digitally signed by SCOTT

DANDY

Date: 2022.05.16 06:26:56 -05'00'

KONI

FRITZ

Digitally signed by KONI FRITZ Date: 2022.05.16 07:30:16 -05'00'

TOMMIE

MADISON

Digitally signed by TOMMIE

MADISON

Date: 2022.05.20 15:45:34 -04'00'