FSH JA 2020-33 (Redacted).pdf

Control No.: MICC 2020-33 Contractor: Alliant Techsystems, LLC

Program: O&M of Twin Cities Army Ammunition Plant Groundwater Recovery System

Version – September 2018 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR PART 6 JUSTIFICATION AND APPROVAL FOR

OTHER THAN FULL AND OPEN COMPETITION

Program: Contract to provide operations and maintenance services for the Groundwater Recovery Systems (GRS) located at the TCAAP facility in Minnesota.

Authority: 10 U.S.C. 2304(c)(1) as implemented by FAR Part 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Amount: $ 5,528,111.00.

Prepared by:

Contracting Officer:

Technical:

Requirements:

Date: 05 DEC 2019

Date: 04 FEB 2020

Date: 01 JAN 2020

Date: 01 JAN 2020

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Program Manager:

Date: See Digital Signature

Program: O&M of Twin Cities Army Ammunition Plant Groundwater Recovery System

Local Small Business Specialist:

MICC Legal Counsel:

MICC-FSH, Environmental Division Chief:

Director, MICC-Fort Sam Houston:

Assistant Director, Small Business Program:

Program: O&M of Twin Cities Army Ammunition Plant Groundwater Recovery System

FAR Part 6 Justification and Approval for Other than Full and Open Competition

1. Contracting Activity: U.S. Army Mission and Installation Contracting Command – Fort Sam Houston (MICC-FSH), Environmental Acquisitions Division, Ft. Sam Houston, TX 78234-1361

2. Description of Action: The U.S. Army Environmental Command requests the approval for the sole source procurement of a non-personal services, no profit/no fee cost sharing contract for the operation and maintenance services of the GRS located at the Twin Cities Army Ammunition Plant (TCAAP) with Alliant Techsystems, LLC (ATK);

CAGE Code: 1PYT8, at 4700 Nathan LN, N. Plymouth, MN 55442-2512. This contract is a follow-on effort for ongoing environmental remediation at TCAAP managed by ATK.

The operation of this plant by ATK is court mandated and documented in the Twin Cities Army Ammunition Plan 1993 Agreement for Final Apportionment and Settlement dated 14 May 1993. This settlement agreement was enacted among the United States Department of the Army, the Department of Justice, and ATK. As part of this agreement there is a cost sharing arrangement: 80% by the Government and 20% by the Contractor.

3. Description of Supplies/Services: MICC-FSH has a court mandated requirement to provide a follow-on contract for the operation and maintenance of the TCAAP groundwater recovery system. Under the terms of the Twin Cities Army Ammunition Plant 1993 Agreement for Final Apportionment and Settlement, dated 14 May 1993, ATK will continue to operate and maintain the groundwater recovery system until the final remedy is complete. The agreement maintains that until completed, ATK and the Government will share the cost of operating the groundwater recovery system.

Base Period: 01 Apr 2020 to 30 Nov 2020 Value: $ 518,203.00 Option 1: 01 Dec 2020 to 30 Nov 2021 Value: $ 1,231,705.00 Option 2: 01 Dec 2021 to 30 Nov 2022 Value: $ 1,259,359.00 Option 3: 01 Dec 2022 to 30 Nov 2023 Value: $ 1,259,401.00 Option 4: 01 Dec 2023 to 30 Nov 2024 Value: $ 1,259,443.00

Total Value: $ 5,528,111.00

4. Authority Cited: 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: As described at FAR 6.302-1(a)(2), when the supplies or services required by the agency are available only from one responsible source, or for DoD, NASA and the Coast Guard, from only one or a limited number of responsible sources, and no other types of supplies or services will satisfy agency requirements, full

Program: O&M of Twin Cities Army Ammunition Plant Groundwater Recovery System and open competition need not be provided for.

a. The Army Environmental Command (AEC) has a court mandated requirement to provide a contract for the operation and maintenance of the TCAAP groundwater recovery system. This is an annually funded requirement that must be maintained in accordance with the above cited agreement and as indicated below.

1) In 1981, the State of Minnesota discovered contaminated groundwater beneath TCAAP. Subsequent investigations by the Minnesota Pollution Control Agency (MPCA) and the U.S. Environmental Protection Agency (EPA) revealed contaminated soil in certain areas of TCAAP and in regional drinking water aquifers to the south and west of TCAAP. These contaminants impacted the municipal water supply wells of the cities of New Brighton and St. Anthony and several private water supply wells.

2) As a result of the above investigations, the Army and Honeywell Inc. (as the facility operator) were both found responsible for the contamination at TCAAP under the terms of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), 42 U.S.C. section 9601, et seq. as amended by the Superfund Amendments and Reauthorization Act (SARA) of 1986, Pub. L. 99-949. The apportionment agreements were signed on 08 July 1985 and 07 September 1988 between the United States Government, the Army, and Honeywell Inc., establishing plans for remediation on and off TCAAP and to minimize any litigation over legal and financial responsibility between the parties for the contamination. These agreements enabled the parties to expeditiously implement appropriate remedial solutions to the groundwater quality issue.

3) On 28 September 1990, ATK assumed Honeywell’s rights and obligations under the 1985 and 1988 Agreements for conducting operations at TCAAP.

4) Both parties agreed it was necessary to modify the original Plume Groundwater Recovery System (PGRS) defined in the 1988 Agreement as it did not meet the current remedial action objective. The 1985 and 1988 Agreements were consolidated into a single agreement, the Twin Cities Army Ammunition Plant 1993 Agreement for Final Apportionment and Settlement, signed on 14 May 1993 but not fully executed until 8 Jun 1993. This Agreement delineated the respective responsibilities of ATK and the Army for the remediation of all soil and groundwater contamination on, beneath or emanating from TCAAP. The ongoing operation and maintenance of the groundwater recovery system and groundwater monitoring are required under the TCAAP Operable Unit 2 Record of Decision.

5) The consolidated agreement continued the no fee cost sharing arrangement described earlier in this document.

b. This is not a new acquisition. The objectives for the previous contracts have been

Program: O&M of Twin Cities Army Ammunition Plant Groundwater Recovery System met through the successful operation and maintenance of the system as required by the apportionment and settlement agreements referenced above.

c. This acquisition shall be satisfied through the use of a court mandated contract;

there are no other viable alternatives. Therefore, the direct acquisition procedures described at DFARS 217.770 are not applicable. Non-DoD contracts were not considered as this requirement will be a sole source acquisition as specified in the apportionment and settlement agreement referenced above.

d. On 17 September 2017, Orbital ATK, the parent company of Alliant

Techsystems, LLC (ATK), entered into an agreement and Plan of Merger (the “Merger Agreement”) with Northrop Grumman Corporation (Northrop Grumman). In compliance with the terms of the Merger Agreement, Orbital ATK will continue as an ongoing corporation and a subsidiary of Northrop Grumman, changing its name to Northrop Grumman Innovation Systems.

Alliant Techsystems, LLC (ATK) did not change its name as a result of this transaction.

The licensed Alliant Techsystems, LLC will continue to follow the program at TCAAP and shall continue to share the cost of operating the groundwater recovery system.

e. Impact if request not approved. Failure to approve this justification will result in the Army not fulfilling the court order remedy which will result in the Army having to pay fines and miss key milestones.

6. Efforts to Obtain Competition: In accordance with FAR 5.202(a)(4), this action will not be synopsized.

a. Effective Competition: This follow-on requirement is court mandated and not available for competition.

b. Subcontracting Competition: Under a previous TCAAP contract, W9124J-15-C- 0002, a subcontracting plan was submitted by ATK. However, the justification indicated one subcontracting source, that being Conestoga Rovres & Associates (CRA). CRA has operated the GRS since the late 1980s. CRA has experience with the nuances of the GRS operations, the TCAAP QASP, the reporting requirements, and the intimate knowledge of the multi-party relationships at TCAAP. ATK believes it would be a challenge for a new subcontractor to assemble an adequate bid proposal.

Therefore, ATK submitted a similar sub-contracting plan for Solicitation No. W9124J- 20-R-EE06. The one subcontracting source is GHD Services, Inc., formerly CRA.

GHD Services, Inc. is the one subcontracting source who has been performing theses services for this effort since 1983.

7. Actions to Increase Competition: This is a court mandated requirement between the Army, Department of Justice, and the ATK. Under the signed Agreements, ATK will

Program: O&M of Twin Cities Army Ammunition Plant Groundwater Recovery System continue to operate and maintain the groundwater recovery system until the final remedy is complete at TCAAP and shall continue to share the cost of operating the groundwater recovery system. Therefore, no alternative to increase competition for this specific service currently exists.

8. Market Research:

a. In accordance with FAR 19.102(a), the small business size standard is applied by classifying the product or service being acquired. Based on a review of the Small Business Administration’s (SBA) Table of Small Business Size Standards, the services being acquired are best described by NAICS code 562910, Environmental Remediation Services. The size standard in number of employees for this NAICS code is 750. The Federal Supply Code (FSC) for this requirement is F999.

b. These services are not on the AbilityOne procurement list; furthermore, it is court mandated that ATK perform the service.

c. FPI/UNICOR does not currently offer services that can support this requirement.

d. There are no mandatory GSA schedules that apply to this court mandated requirement. In addition, this requirement will be a sole source acquisition as specified under the terms of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), 42 U.S.C. section 9601, et seq. as amended by the Superfund Amendments and Reauthorization Act of 1986, Pub. L.

99-949 between the United States, the Army and Honeywell Inc.

e. MICC – FSH manages an Environmental Remediation Multiple Award (ERMA)

Contract for environmental remediation services in support of the AEC. However, as this is a court-mandated contract for award to ATK, the ERMA Contract cannot be used since ATK is not one of the vendors under this contract.

9. Interested Sources: Based on the Federal Facilities Agreement, 1987 and Twin Cities Army Ammunition Plant 1993 Agreement for Final Apportionment and Settlement, 14 May 1993, ATK is court mandated to perform these services until the final remedy is complete. Therefore alternate sources cannot be currently considered.

10. Other Facts: All of the awards for the operation and maintenance of the TCAAP groundwater recovery system have been awarded to ATK as required by the apportionment and settlement agreement. ATK has accomplished the required work for over 20 years with no performance issues. Prior to award, past performance will be checked utilizing System for Award Management (SAM) / Excluded Parties List System (EPLS). Award will be made to ATK once their offer is found to be fair and reasonable and if they have a favorable SAM/EPLS at time of award. Contractor support will not be used in any part of the evaluation process for this requirement.

Program: O&M of Twin Cities Army Ammunition Plant Groundwater Recovery System

a. Procurement History:

1) Contract No: DAAA09-94-E-0006, Modification P00042 Award Date: 06 November 2001 Amount: $696,705.00 Competitive Status: Non-competitive Authority 10 U.S.C. 2304(c)(1)

2) Contract No: DAAA09-94-E-0006, Modification P00049

Award Date: 20 December 2002 Amount: $529,673.00

3) Contract No: DAAA09-94-E-0006, Modification P00005

Award Date: 28 January 2004 Amount: $581,314.00

4) Contract No: W52P1J-05-C-0022

Award Date: 22 May 2005 Amount: $514,637.00

5) Contract No: W52P1J-10-C-5000

Award Date: 12 January 2010 Amount: $551,412.00

6) Contract No: W9124J-15-C-0002

Award Date: 01 December 2014 Amount: $645,893.00

Program: O&M of Twin Cities Army Ammunition Plant Groundwater Recovery System

Version – September 2018 FOR OFFICIAL USE ONLY

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Date: See digital signature

Contracting Officer’s Representative

12. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Midwest Division Chief, US AEC

Date: See digital signature

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. Price analysis and the cost analysis techniques identified at FAR 15.404- 1(c) will be utilized to determine a fair and reasonable price, assuming reasonable economy and efficiency. The methodology for review and evaluation of costs proposed by ATK for individual cost elements is identified at FAR 15.404-1(c)(2)(iii) to ensure that the final agreed-to price is fair and reasonable. As a part of this basis, certified cost or pricing data will be required.

Date: See digital signature

Contracting Officer

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer

Date: See digital signature

Program: O&M of Twin Cities Army Ammunition Plant Groundwater Recovery System

Approval

Based on the foregoing justification, I hereby approve the procurement of operations and maintenance services for the Groundwater Recovery System located at the Twin Cities Army Ammunition Plant facility in Minnesota an other than full and open competition basis pursuant to the authority of Title 10 United States Code Section 2304(c)(1), as implemented by the Federal Acquisition Regulation Subpart 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. The estimated value of the contract is $5.5 million for a base performance period of 8 months and 4 12-month option periods, from 1 April 2020 through 30 November 2024. This approval is subject to availability of funds, and provided that the services or property herein described have otherwise been authorized for acquisition.

SCOTT D. KUKES

Alternate to the Command Advocate for Competition U.S. Army Mission and Installation Contracting Command, JBSA Fort Sam Houston, TX