Final JA signed Redact.pdf

21-0011

PROCUREMENT SENSITIVE INFORMATION

DISCLOSURE LIMITATIONS AS OUTLINED IN FAR 2.101 AND 3.104 APPLY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Department of the Navy, Naval Facilities Engineering Systems Command, Pacific (NAVFAC PAC), Joint Base Pearl Harbor-Hickam, Hawaii (JBPHH).

2. Description of the Action Being Approved.

Request approval to modify Contract No. N62742-17-D-1800 to increase the contract ceiling by $80,000,000, from $140,000,000 to $220,000,000 to accommodate unanticipated requirements.

The subject contract is an Indefinite Delivery, Indefinite Quantity (IDIQ) Cost-Plus-Award-Fee (CPAF) Contract for Architect-Engineering (A-E) services for Comprehensive Long-Term Environmental Action - Navy (CLEAN V), Naval Facilities Engineering Systems Command, Pacific (NAVFAC PAC). The contract is the fifth NAVFAC PAC CLEAN contract and was awarded to AECOM Technical Services, Inc. on 29 August 2017 for a base year plus four one-year options, with a not-to-exceed amount of $95M. On 26 February 2020, the contract ceiling was increased by $45M from $95M to $140M. The contract is in its third option year, and if all options are exercised, contract will expire 28 August 2022.

The contract amount obligated to date is $118,684,852. This action is necessary because the remaining contact balance of $21,315,148 is insufficient to support the A-E environmental services CLEAN program identified for FY21 and early FY22. Efforts are in place to re-procure a new CLEAN contract, and it is expected be awarded in .

3. Description of Supplies/Services.

The contract scope is for environmental technical and engineering services in support of the Navy’s Environmental Program at activities under the cognizance of the Naval Facilities Engineering Command Pacific (NAVFAC Pacific), focusing primarily on Environmental Restoration (ER) projects performed under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). Services consist of technical and engineering services, field investigation services, and laboratory testing and related services to perform Preliminary Assessment/Site Inspection (PA/SI), Remedial Investigation/Feasibility Study (RI/FS), Engineering Evaluation/Cost Analysis (EE/CA), Remedial Design (RD), Remedial Action Work Plan (RAWP), Post-Construction Award Service (PCAS), and prepare site closeout documentation. Services may also include investigation stages in support of the Munitions Response (MR) Program consistent with CERCLA, progressing from PA/SI through RACR, all in accordance with DoD explosive safety regulations. MR Program investigation services may include methodologies for Military Munitions and Munitions of Explosive Concern (MEC) detection, clearance, removal and safety, including preparation of Explosive Safety Submittals (ESS). In addition, the Contractor may be tasked to provide environmental technical and

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engineering services to support various other programs such as Underground Storage Tank (UST), Subsurface Oil Recovery, Asbestos Abatement, Resource Conservation and Recovery Act (RCRA), and National Environmental Policy Act (NEPA).

The demand under CLEAN V contract has been greater than anticipated due to the expansion of NAVFAC Pacific’s AOR, now including NAVFAC SW and NAVFAC NW, unforeseen follow-on services for Red Hill Fuel Storage Facility (RH FSF), and substantial increase from FY20 and now for FY21 Environmental Restoration Navy (ER,N) budget authorization. Based on current projection for FY21/early FY22, the CLEAN V contract will run out of capacity in early FY21.

The total estimated cost for the upcoming contract actions through early FY22 is as summarized below:

Follow-on work FY21 Requirements FY22 Requirements Total

(Qtrs1,2) (FY21 & FY22, Qtrs 1 and 2)

Restoration Program

Funds: FY21 Environmental Restoration, Navy

(ERN)

Funds: FY2 Environmental Restoration, Navy

(ERN)

Red Hill Fuel Storage Facility

Funds: DOD Navy Working Capital

Funds: DOD Navy Working Capital

Total Follow-On by FY

The pending actions will require an increase in the contract not-to-exceed amount by $80,000,000.00.

Contract Not to Exceed Amount: $140,000,000 Contract Amount to Date: $118,684,852 Upcoming Task Order and Mods:

Remaining Capacity: ($ 79,110,988)

Additional Capacity Requested: $80,000,000

4. Statutory Authority Permitting Other than Full and Open Competition.

10 U.S.C 2304(c)(1), Only One Responsible Source and No Other Services Will Satisfy Agency Requirements, as implemented by Federal Acquisition Regulation (FAR) 6.302-1.

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5. Rationale Justifying Use of Cited Statutory Authority.

Follow-On Modifications to Existing Task Orders

The statutory authority of 10 U.S.C. 2304 (c)(1), permitting other than full and open competition, applies to follow-on modifications to task orders because it involves the continued provision of highly specialized services by the current contactor, and it is likely that award to another source would result in substantial duplication of cost to the Government and unacceptable delay in fulfilling the agency’s requirements as provided by 10.U.S.C. 2304(d)(1)(B) as implemented by FAR 6.302-1 as described below.

Environmental Restoration Program (follow on modifications). Modification actions are identified supporting Restoration Program where effort has already occurred but will need follow-on services requiring continued provision of highly specialized services. The follow-on services are to address scope changes associated with uncertainties in the cost type contract actions and regulatory changes/reviews. Awarding such follow-on work to another contractor would resulted in a substantial duplication of cost and unacceptable delay in meeting statutory requirements for the Restoration Program which would be unacceptable to regulatory agencies.

The duplication cost and unacceptable delay are likely as some rework are expected and more effort will be required to complete the projects as another contractor would need to familiarize with the work already done by current CLEAN contractor to continue with follow-on services.

Red Hill Fuel Storage Facility (RH FSF)(follow-on modifications). There are two task orders supporting the RH FSF where effort has already occurred but will need follow-on services. Task Order N6274218F0126 is to provide environmental technical services for addressing an Administrative Order on Consent (AOC), Sections 6 and 7. Task Order N6274219F0152 is to provide environmental technical services related to processing an application for permit to operate the RH FSF. At the end of 2013 and into early 2014, a release of 27,000 gallons of aviation fuel occurred from one of twenty Underground Storage Tanks that comprise the RH FSF. The RH FSF is an active facility administered under the Navy Compliance program and funded by the Defense Logistic Agency (DLA). The facility underground storage tanks are located directly over one of the largest sources of drinking water for the island of O’ahu. Subsequent emergency actions initiated in 2014 have received extensive publicity in the media with direct and sustained scrutiny from state and federal regulatory agencies, the Governor of Hawaii, the Assistant Secretary of the Navy, the Hawaii Federal Congressional delegation, the general public, and multiple special interest groups. Subsequent to the initial response, the U.S. Environmental Protection Agency and Hawaii Department of Health negotiated an Administrative Order on Consent (AOC) with the U.S. Navy and the DLA.

After utilizing separate Navy contract vehicles that covered different response issues, the NAVFAC PAC CLEAN contract was identified in 2015 as the most appropriate existing Navy

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environmental contract vehicle to address overall expertise and scale of services needed for AOC Statement of Work (SOW) Section 6 (Investigation and Remediation of Releases) and Section 7 (Groundwater Protection and Evaluation). Additionally, legal challenges introduced in 2019 by stakeholder groups on permits needed to maintain RH FSF operations have resulted in additional work needed by the Navy. Based on actual contract execution during FY2017 through FY20, it is anticipated that approximately follow-on support is required for the RH FSF during FY21 and early FY22.

The CLEAN V contactor has already played a key role in the scoping and negotiation of the RH FSF AOC and has built up a trust factor in its working relationships with the Navy, regulatory agencies, and other major stakeholders. The contractor also has the resources to operate under the unprecedented levels of public and regulatory scrutiny leveled at the Navy since the release.

Awarding follow-on services for RF FSF to another contractor would not be practical or reasonable as it would have an extremely steep learning curve on a multitude of issues, particularly the loss of corporate knowledge of the RH FSF area, complex hydrogeologic conditions, details of the work done to date, the nuances in provisions of the AOC, and rebuilding existing trust levels and working relationships, particularly with the regulators and the other stakeholders on the AOC, which all will contribute to the duplication of cost and unacceptable delay. The additional cost associated with unacceptable delay is monetary fines stipulated in the AOC for not meeting either the schedule or the objectives of the substantive AOC requirements.

Additional Task Orders (Environmental Restoration Program FY21/FY22)

The statutory authority of 10 U.S.C. 2304 (c)(1), permitting other than full and open competition, also applies to the additional task orders planned for award. The scope of task orders will be within scope of the current CLEAN contract to provide follow-on services for Environmental Restoration Program, and there is no other environmental contract available to provide highly specialized environmental services required for these new requirements. The acquisition process has been underway for re-procuring a follow-on CLEAN contract; however, based on current plan of action milestones indicate that new CLEAN contract will not be awarded until

Waiting for new CLEAN contract award through competition would result in unacceptable delay in awarding new requirements, which would result in potential failure meeting the agency’s environmental remediation requirements.

Much of the work performed under CLEAN contract is in support of the Navy’s Environmental Restoration Program in meeting and fulfilling the statutory obligations mandated under CERCLA. The CLEAN efforts are driven by CERCLA and its regulatory interactions CERCLA requires and the fact that cleanups place enforceable legal requirements, including time requirement on the Navy. These regulatory time constraints drive the Government’s restoration

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efforts. Work must be conducted promptly and continue uninterrupted as any delays could potentially subject the Navy to significant fines and/or penalties for non-compliance with its obligations under CERCLA.

There is a unprecedented increase in investigation needs to address high concern/high visibility emerging contaminants (primarily per-and polyfluoroalkyl [PFAS] substances and 1,4 dioxane) and radiological issues. The sites with PFAS concerns have especially drawn significant attention and visibility by the general public on the national level as it may pose a potential direct threat to public and private drinking water supplies for residential communities adjoining Navy bases. To respond to the issues, the Assistant Secretary of the Navy directed that installation conduct wide assessments to identify all potential PFAS release sites. Intense resulting pressure is placed on the Navy to address the PFAS concerns, in particular for sites under NAVFAC NW and MIDLANT. The emerging contaminant issues are being addressed by existing CTOs under the CLEAN V contract. For new requirements under FY21 and FY22 Environmental Restoration Program, it is in the best interest of the Government to increase current CLEAN contract capacity, as delay in awarding new requirements may pose a threat to human health and environment as well as potential CERCLA penalties.

Based on the NORM mid-year projection for FY21 2nd quarter through FY22 2nd quarter environmental restoration requirements to be ordered under CLEAN contract is approximately

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

Naval Facilities Engineering Systems Command, Pacific has not published and does not intend to publish a Notice of Intent to Sole Source in accordance with FAR 5.203(a). This proposed contract action is made pursuant to the terms of an existing contract that was previously synopsized in sufficient detail to comply with the requirements in FAR 5.207 with respect to the current proposed contract action. Accordingly, the requirements for an exception under FAR 5.202(a)(11) have been met and no synopsis is currently required. A market survey was not conducted and an increase of the subject contract capacity is considered the only reasonable means to accomplish the work in a timely manner.

7. Determination of Fair and Reasonable Cost. The Contracting Officer has determined the anticipated cost to the Government of the services covered by this J&A will be fair and reasonable since the contract has ceiling rates to negotiate labor cost and indirect costs and sufficient historical data available for similar services.

8. Actions to Remove Barriers to Future Competition. Efforts are in place to re-procure a new CLEAN contract. The new contract is planned for award in The replacement

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contract will be procured using full and open competition methods at a value intended to ensure that all known requirements would fit within the dollar limits established at the time of award.

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CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

Signature Name (printed) Telephone No. Date

Requirements Cognizance:

Signature Name (printed) Telephone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Signature Name (printed) Telephone No. Date

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

Signature Name (printed) Telephone No. Date

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CHIEF OF THE CONTRACTING OFFICE (NAVFAC PACIFIC) REVIEW

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

Signature Name Telephone No. Date

DISCLOSURE LIMITATIONS AS OUTLINED IN FAR 2.101 AND 3.104 APPLY

JUSTIFICATION AND APPROVAL FOR

OTHER THAN FULL AND OPEN COMPETITION

APPROVED BY:

ASSISTANT COMMANDER FOR CONTRACTING, NAVAFACHQ

Upon the basis of the above justification, I hereby waive the requirement in DFARS PGI 206.302-1, to post a request for information or a sources sought notice, and I approve the proposed modification described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304 (c)(1).

Signature Name Telephone No. Date