FSH JA 2020_53_Redacted.pdf

Control No: MICC 2020-53 Contractor: Environmental Chemical Corporation

Program/Equipment: Environmental Remediation Services

Version – September 2018 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR PART 16 EXCEPTION TO FAIR OPPORTUNITY JUSTIFICATION

For Actions Exceeding the Simplified Acquisition Threshold (SAT)

Program/Equipment: Environmental Remediation Services in support of the Army Environmental Command

Authority: 10 U.S.C. 2304c(b)(1) as implemented by FAR Part 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.

Amount: $ 2,095,127.00

Prepared by:

Contract Specialist

Contracting Officer:

Contracting Officer

Technical:

Environmental Service Support Mgr

Requirements:

Environmental Service Support Mgr

Reviews: I have reviewed this justification and find it adequate to support an exception to fair opportunity.

Program Manager:

U.S. Army Environmental Command

Date: See Digital Signature

Program/Equipment: Environmental Remediation Services

Version – September 2018 FOR OFFICIAL USE ONLY

MICC Legal Counsel:

Director, MICC-Fort Sam Houston:

Assistant Director, Small Business Program:

Program/Equipment: Environmental Remediation Services

Version – September 2018 FOR OFFICIAL USE ONLY

FAR Part 16 Exception to Fair Opportunity Justification Under Multiple Award Indefinite Delivery Contracts

For Actions Exceeding the Simplified Acquisition Threshold (SAT)

1. Contracting Activity: Mission and Installation Contracting Command, Fort Sam Houston, Environmental & Energy Division, 2205 Infantry Post Road, Fort Sam Houston, Texas 78234-1361

2. Description of Action: The Army Environmental Command requests a firm-fixed-price task order modification to Contract W9124J-18-D-0004 Task Order W9124J-19-F- 0083 with the Environmental Chemical Corporation (ECC). The Government projects award for April 17, 2020 and fiscal year 2020 Operations and Maintenance funds will be used. An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

3. Description of Supplies/Services: This requirement is to modify Task Order W9124J-19-F-0083 under Contract W9124J-18-D-0004 to add Long-Term Monitoring (LTM) for three sites and Land-Use Control (LUC) management at nine sites at Volunteer Army Ammunition Plant (VOAAP) in Chattanooga, Tennessee. These additions were foreseen prior to task order award and incorporated into the PWS as a possibility. This modification will add three new performance-based CLINs (5000, 5001 and 6001) to the existing Performance-Based Acquisition (PBA) Contract (W9124J-18- D-0004), with three additional optional CLINs annually for 2021 through 2023 (5002- 5004 and 6002-6004).

FY20 CLINS to be added (POP’s are approximate):

CLIN # Period of Performance Value 5000 (Core Doc Base) 20 April 20 - 19 Jun 20 $69,138.00 5001 (LTM Base) 20 April 20 - 19 Oct 21 $405,960.00 5002 (Optional) 20 April 21 – 19 Oct 22 $415,848.00 5003 (Optional) 20 April 22 – 19 Oct 23 $426,000.00 5004 (Optional) 20 April 23 – 19 Oct 24 $436,653.00 6001 (LUC MGMT Base) 20 April 20 – 19 Oct 21 $89,972.00 6002 (Optional) 20 April 21 – 19 Oct 22 $91,833.00 6003 (Optional) 20 April 22 – 19 Oct 23 $79,265.00 6004 (Optional) 20 April 23 – 19 Oct 24 $80,797.00

Total Value: $2,095,127.00

4. Authority Cited: 10 U.S.C. 2304c(b)(1) as implemented by FAR Part 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:

a. This task order was awarded as a fair opportunity on 22 May 2019 against the Indefinite Delivery Indefinite Quantity (IDIQ) Environmental Remediation Multiple Award (ERMA) Contract resulting in award to ECC. The Contractor is currently performing the environmental remediation services at Milan, Tennessee, under the Installation Restoration Program (IRP). This task order addresses the necessary Remedial Action- Operations (RA-O) and Long Term Management (LTM) work at the installations that must be completed pursuant to the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and Resource Conservation and Recovery Act (RCRA). In order to provide the U.S. Army Environmental Command (USAEC) and VOAAP a complete and viable product, the Contractor is required to submit a final RA- O/LTM Report for review and approval following completion of the monitoring/ operations. The RA-O and LTM are non-severable requirements and the Contractor is currently performing LTM and LUC at VOAAP. Given ECC’s current efforts at VOAAP, it is evident that ECC is the only source capable of completing the tasks at the additional VOAAP sites at the same level of quality required, within a reasonable timeframe, and at lower cost, e.g. no mobilization costs.

b. VOAAP was a U.S. Army government-owned and contractor-operated (GOCO) facility in Chattanooga, Tennessee. It was built between 1939 and 1941 to support the World War II effort, and operated subsequently during the Korean and Vietnam conflicts and on a limited basis through 1977. At present, no production or storage of TNT takes place at the facility. In 1998, VOAAP was declared excess government property, and in 2005, all remaining VOAAP property was sold or otherwise transferred to the City of Chattanooga and Hamilton County. Portions of the transferred property required continued environmental remediation under cleanup actions conducted by the Army.

An Administrative Order (Docket No. RCRA-04-2001-02) under Section 3008(h) of RCRA was issued to the U.S. Army (Army) by the U.S. Environmental Protection Agency (EPA) Region 4 for the VOAAP facility on December 4, 2001. In 2009, the EPA, the Tennessee Department of Environment and Conservation (TDEC), and the Army agreed that the most efficient and cost effective path forward at the facility was to consolidate all ongoing corrective action under an enforceable document with the Division of Solid Waste Management of TDEC as the lead agency. Subsequently, TDEC issued a Final Consent Order (Case No. HWM11-CA01) for the facility on September 22, 2011, effectively transferring regulatory control of VOAAP from the EPA to TDEC. In 2014, the modification process for the 2011 TDEC Order was conducted to document the final CMs across VOAAP and document that no sites require further investigation. Currently, there are 37 Solid waste Management Units (SWMU) and Administrative Orders on Consent (AOC) identified at VOAAP. Of the 37, twenty-one units were determined to be no further action. Of the remaining SWMUs and AOCs, 10 required LUCs, 1 required LUCs and long term monitoring (LTM), 3 required LUCs, LTM, and institutional controls (ICs), and 2 require LUCs, ICs, and MNA. Based on comments received by the Tennessee Department of Environment and Conservation, LTM and LUC is required at additional sites, as described above. For the same reasons used to consolidate the remediation efforts stated above, it is in the Government’s best interest to add the sites requiring LTM and LUC to this current task order for reasons of economy, efficiency, and oversight. These additional sites were, after all, foreseen and included in the PWS prior to award.

c. The modification is urgently needed for reasons of continuity, schedule, and to avoid an expiring wastewater permit:

1) Groundwater sampling and LUC management were conducted for the sites identified in Table 1 of the PWS through the end of January 2020, with project planning and development of work plans to begin in February 2020 under this task order. In order to include the additional efforts in the current schedule, the Contractor needs this modification to include these additional sites within their current schedule and work plans. In accordance with the Consent Order, sampling shall be performed in the spring and fall. As part of the effort, it is a practice that sampling takes place before springtime ends (March – May), otherwise they would have to wait until fall which could cause schedule delays.

2) VOAAP’s wastewater permit fee is due by 20 April 2020. The State of Tennessee has warned VOAAP by letter dated 20 March 2020 that if their wastewater permit, No. R-101, is not paid by 20 April 2020, they could be rendered noncompliant and the permit rendered invalid. The customer would then have to reapply for a permit which would delay the accomplishment of this additional work and VOAAP could be determined noncompliant with TDEC’s original order and possibly face penalties.

Therefore it is requested that award of this modification be made no later than 17 April 2020, with performance beginning on 20 April 2020, thus providing a means for the fee to be paid right away.

d. In conclusion, it is in the Government’s best interest that this modification be awarded to ECC as an exception to fair opportunity for the reasons cited above. It is because not only are they the only awardee capable of providing the remediation services at the required level of quality and within the timeframe remaining on the current task order, but they will also do so at the lowest possible additional cost to the Government as the incumbent.

e. Alternative(s): There is only one alternative: Compete the LTM and LUC Management as a fair opportunity under the ERMA contract, as there are no in-house resources available to do this work. This is unacceptable for the following reasons:

1) A competitive action would require a minimum of 120 days and result in unacceptable delays for the entire project. ECC is on target to complete the project by 31 October 2021 provided they begin this work by 20 April 2020.

2) Awarding to other than ECC, the Government would incur additional, mobilization and equipment costs. By modifying the current task order with ECC, the Government would only be paying for the cost of additional sites.

3) A new task order award would require a new schedule. This would likely result in excessive delays and increased costs to the Government in both labor and equipment.

4) A competitive award would result in unnecessary delays inherent with coordinating work with another prime contractor. This could result in extensive delays depending on the contractor’s familiarity with the project and location, and immediate capacity to fulfill the task.

5) There could potentially be two prime contractors working on the same task order if ECC were not to win the competitive award. ECC’s progress on the current task order would be impacted by the other contractor’s performance of the additional work, potentially causing additional delays.

In conclusion, to delay this project by seeking a competitive award for this work is not feasible due to the risks described above, and overall not in the Government’s best interests for an effort that is close to completion. Furthermore, the cost of pursuing a competitive acquisition for this requirement would far exceed the cost of this modification.

f. Other considerations:

1) It is estimated that the additional work will take 18 months which is within the time remaining on the task order, no extensions would be required with this modification.

2) The onsite contractor has the personnel and equipment readily available. To stop operations and await a new contract would incur additional mobilization costs in addition to the unavoidable delays discussed above.

6. Actions to Increase Competition: Stopping operations and competing the remaining LTM and LUC management requirement was strongly considered. However, the initial award of this task order proved to have little interest as only three (3) of the eight (8) contractors in the Multiple Award IDIQ submitted proposals for this work.

7. Market Research: This task order was awarded with a specified number of hours and labor categories for the work to be performed. The contract specialist verified that the same labor categories and rates were proposed for the additional work, and properly applied to the additional hours proposed.

8. Other Facts:

Procurement History: This contract task order was awarded on 22 May 2019 to ECC on a Lowest Price Technically Acceptable basis resulting from a Fair Opportunity amongst the suite of small businesses having IDIQ contracts under the Environmental Remediation Multiple Award (ERMA) contract. The three competing proposals were determined technically acceptable;

It is unlikely that a competitive award for the additional work would result in a more competitive action. It is, therefore, in the best interest of the Government to award a modification to ECC for this additional, in-scope remediation work. This will avoid the risks described above, and be less costly to the Government.

Program/Equipment: Environmental Remediation Services

Version – September 2018 FOR OFFICIAL USE ONLY

9. 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

Environmental Service Support Manager

10. 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.

______________________________________ Date: See Digital Signature

Environmental Service Support Manager

11. 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. This determination will be made using price analysis. As a part of this basis, certified cost or pricing data will not be required and the following exception applies (FAR 15.403):

Prices that will be agreed upon are based on adequate price competition and the contract action is a modification to a contract or subcontract for commercial item(s).

______________________________________ Date: See Digital Signature

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

__________ Date: See Digital Signature

Approval

Based on the foregoing justification, I hereby approve the modification of the existing contract task order to add Long-Term Monitoring (LTM) for three sites and Land-Use Control (LUC) management at nine sites at Volunteer Army Ammunition Plant (VOAAP) in Chattanooga, Tennessee, with a value of $2,095,127.00, using an exception to fair opportunity pursuant to the authority of FAR 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 subject to availability of funds, and provided that the services or supplies 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