G2.5_SAM-Posting-Justification and Approval_Out_Scope_Mod MSC-19D0016_TO#21F0039-ALT SCO_SIGNED_12Jan22.pdf

CUICUI

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

Contracting Activity: Department of the Army, United States Army Corps of Engineers (USACE) Directorate of Contracting, Galveston District (SWG) Galveston Execution Branch.

Description of Action: This approval is being requested for an out-of-scope modification to SWG Freeport Harbor Entrance and Jetty Channel Single Award Task Order Contract (SATOC). Contract No. W912HY19D0016, Task Order No.

W912HY21F0039. The Rough Order Magnitude (ROM) Estimate for the change is $1,502,700.00.

The SATOC was competitively awarded to Manson Construction Company. The task order was issued on 28 Sep 2021 in the amount of $10,019,000. The scope of the TO was for hopper dredging of shoaled material within the Freeport Channel between Station -200+00 to 60+00 with an Option to dredge Station 60+00 to 184+20.

This modification is to address the unanticipated shoaling and the Draft Restriction in the Matagorda Ship Channel. The Matagorda Ship Channel is not within the dredge area of the T.O. Fiscal Year (FY) 22 Matagorda Ship Channel Presidential Budget finding will be used for this requirement.

Description of Supplies/Services: The modification will add Contract Line Item Numbers (CLINs) for (1) Mobilization / Demobilization (estimated 1 day) of the Hopper Dredge, and (2) quantities required to be dredged is 131,000 Cubic Yards (CY) of shoaled material. This requirement is based on Manson Construction utilizing the dredge currently working on the ongoing task order contract to perform the work. The modification will include language that indicates to the prime contractor that any reduction in the existing contract quantities resulting from work performed under this modification will not be eligible for adjustment in the unit price under the variation of estimated quantities clause. The modification is to address the draft restriction at the Matagorda Ship Channel. The intent of the modification is to efficiently utilize dredging resources in the area to minimize costs to perform dredging to clear the shoaling that has taken place. See Sketch 1 below for clarification on where the dredging for this modification will occur.

Sketch 1. Shoaling in the Matagorda Bay Entrance Channel

While the work in the modification is not within the area covered by the TO, it contains the same type of work. Further, the scope of this modification provides the contractor’s dredge plant the ability to take the dredged material to the Ocean Dredged Material Disposal Site (ODMDS) which is very close to the shoaling location.

4. Authority Cited: This requirement is requested under the statutory authority of 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, DFARS 206.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited:

a. Matagorda Ship Channel has adverse sea conditions, which include high waves and fast currents. The entrance channel itself has very fast currents and high waves due to a combination of sea conditions in the area and design of the jetty itself. The 2001 United States Coast Guard (USCG) Ports and Waterways Safety Assessment (PAWSA) panel of experts identified Matagorda Ship Channel as the third most dangerous ship channel in the United States (US). A draft restriction in an already difficult to navigate channel introduces high risk to the pilots and mariners that navigate this waterway. A clear channel will improve the safety of the channel and all that navigate it.

b. The Hopper Dredge is a seagoing vessel that can sail under its own power and can cover long distances and dredge those areas quickly. In addition, a Hopper Dredge needs to be utilized due to a hopper’s ability to navigate the high waves and fast currents in the Matagorda Entrance Channel. A pipeline dredge does not move under its own power and does not have the ability to safely operate in the high waves and fast currents in the Matagorda Entrance Channel.

c. The USACE Headquarters “Status Report, Corps/Industry Hopper Dredges” dated December 7, 2021 was reviewed. The analysis of this report indicated that all Hopper dredges were committed either through Mid-Year 2022 or the end of Calendar Year 2022 with the exception of Manson Construction Company, which is currently working SWG Task Order No. W912HY21F0039 for Freeport Harbor with a Hopper Dredge. The estimated completion date is 30 Jan 2022.

d. FAR 6.302-1(a)(2): “When the supplies or services required by the agency are available from only one responsible source or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for.” Only one type of dredge will satisfy the need. Because there are no Hopper dredges available, other than those owned by Manson, other sources are not available and competing the requirement would cause an unacceptable delay to address the unanticipated shoaling due to the Draft Restriction.

e. The Manson dredge would be available to relocate slightly south to address the shoaling in the Matagorda Bay, which is less than 60 miles from the Freeport Harbor.

This close proximity would allow the Dredge to mobilize to Matagorda Bay and return to Freeport Harbor to resume dredging with minimal cost and schedule implications.

f. Further, the cost to relocate the dredge from its current operation in the Freeport Harbor will be significantly less than mobilizing and demobilizing a different dredge for a completely new contract. The Government, under a separate contract would incur heavy mobilization and demobilization cost that would be disproportionally high due to the removal of such small amount of shoaled material (131,000CY). The estimated mob/demob costs for a different dredge is $3,500,000, while the mob/demob costs of modifying this contract is estimated to be $500,000.

g. A Notice of Intent was published via SAM.Gov notifying Industry of SWG intent to award a Firm-Fixed Price Modification to T.O. W912HY21F0039 to add the additional work of dredging the Matagorda Ship Channel. The notice was posted on November 10, 2021 with a response date of November 24, 2021. No Responses were received in response.

h. Serious injury and damages to the Government by not utilizing the Authority cited in paragraph 4 above, would consist of the following.

The Galveston District is responsible for maintaining safe navigation along the Matagorda Entrance Channel and is responsible for eliminating hazards to navigation which caused by the unanticipated shoaling which is precluding safe movement of vessels in the Matagorda Ship Channel.

(ii) This unanticipated shoaling affects the ability for ships to safely navigate the channel that could result in catastrophic collisions, chemicals release and life-threatening situations.

Efforts to Obtain Competition:

To determine competition for this requirement, the USACE Headquarters “Status Report, Corps/Industry Hopper Dredges” dated December 7, 2021 was reviewed.

The analysis of this report indicated that all Hopper Dredges were committed either through Mid-Year 2022 or the end of Calendar Year 2022 outside of Texas with the exception of Manson Construction Company.

SWG posted a Notice of Intent of SWG modify TO W912HY21F0039 to include dredging the Matagorda Ship Channel. The notice was posted on November 10, 2021 with a response date of November 24, 2021. No Responses were received.

Actions to Increase Competition: CECT-SWG will continue to obtain competition for future maintenance dredging, through posting sources sought announcements in SAM.gov for reviewing Government and commercial databases that provide information relevant to the requirement and reviewing source lists of similar items from other contracting activities.

Dredging has a small pool of contractors and frequently there are insufficient contractor resources to fulfill all of the Government’s needs, accordingly, this group of contractors is fully utilized.

Market Research: See paragraph 6 above.

Interested Sources: To date, no other sources have expressed an interest in writing for this requirement.

Other Facts: N/A

11. Techpjcal Certjfjcatjop: 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.

Name: Belynda Kinman

Title: Chief, Operations Division Navigation Branch

Date:

KINMAN.BEL YNDA.MA �i����.:���ir_MARIA

S RIA LUZ.1535155557 LUZ.1535155557

ignature: ______ o_.,._ : 2022.01.o? 18:59:58-06'00'

12. Reqyjremepts Certjfjcatjop: 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.

Name: Christopher C. Frabotta

Title: Chief, Operations Division

Date:

FRABOTT A.CH R �t���!

g

���l�Y,011002656

S• t . IS 1011002656 Oate:2022.01.10 10:36:17

Igna ure. • -06·00·

13. fajr apd Reasopable Cost Determjpatjop; I hereby determine that the anticipated cost of price will be fair and reasonable. The price reasonableness will be based upon the price proposal received and the Independent Government Estimate (IGE). Due to the (ROM) Estimate of $1,502,700.00, it appears that Certified Cost and Pricing Date will not be required. However, the IGE will be reviewed to determine if Certified Cost and Pricing Date will be required.

Name: Curtis Cole. Jr.

Title: Contracting Officer

01/10/2022 Date: ________ _

Digitallysignedby

COLE.CURTISJ COLE.CLOTM.12310257'

R.1231025746 °'"''°"'"·"""""

Signature: ... ,.,

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

Name: Curtis Cole, Jr.

Title: Contracting Officer

Date: 0111012022

COLE.CURTISJ ��:t���1025- S ig nature: R.123102s746 �.,, .... ,,,.�

JUSTIFICATION REVIEW DOCUMENT

FOR OTHER THAN FULL AND OPEN

COMPETITION

CONCURRENCE:

Date:_________________ Signature:__________________________ Dawn-Carole Harris Counsel to the Senior Contracting Official SWD - U.S. Army Corps of Engineers

CUI

11 JAN 2022

APPROVAL

Based on the foregoing justification, I hereby approve the out-of-scope modification to address the unanticipated shoaling, draft restriction and safety concerns in the Matagorda Ship Channel on other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1) subject to the availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.

DATE:

Michael C. Orr Alternate Advocate for Competition – SCO Dallas U.S. Army Corps of Engineers