HGR 4 PIM 2023 JA 1.pdf

JUSTIFICATION REVIEW DOCUMENT

Program/Equipment: Architect-Engineer (A-E) Type C Services in Support of VGLZ 1790510 Construct HGR4

Authority:

10 U.S.C. 2304c(b)(3) as implemented by FAR Part 16.505(b)(2)(i)(B) – (B) Only one awardee can provide the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

Amount: $743,527.49.

Prepared by: Steven Stocking DSN: 273-4881

Contracting Specialist Date: 15 June 2023 Email: steven.stocking2@us.af.mil

Contracting Officer: Jeremy Starrett DSN:273-4731 Contracting Officer Date:

Email: jeremy.starett.1@us.af.mil

Technical: Derek Probstfeld, P.E. DSN: 273-4136 COR Date: 14 Jun 2023 Email: derek.probstfeld@us.af.mil mailto:steven.stocking2@us.af.mil mailto:jeremy.starett.1@us.af.mil mailto:derek.probstfeld@us.af.mil

Justification for an Exception to Fair Opportunity Under FAR 16.505(b)(2)

1. Contracting Activity: 127 MSC, 43200 Maple Street, Bldg. 105, Selfridge ANGB MI

2. Description of Action: 127th CE requests a sole source award to Tetra Tech. The Government projects award for 2023 and Air National Guard MILCON 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). This document has been prepared to justify a sole source award to Tetra Tech written of under the terms and conditions the AF NEXT AE (Architect Engineering) IDIQ (Indefinite Delivery Indefinite Quality) contract

FA890321D0013.

3. Description of Services: This is an A-E requirement to perform Type C services in support of the construction of VGLZ 179051 Construct Hangar 4 at Selfridge Air National Guard Base.

The construction contract was awarded on 23 March 2023. The period of performance of this A- E action will mirror the construction contract award (reference construction contract W50S8523C0002 of 730 calendar days after issuance of the notice to proceed. There are no options required for this acquisition. The independent government estimate for this Type C contract action is $743,527.49.

Type C services include documenting and providing answers to Contractor’s requests for information (post award), review of submittals, attendance and records at job progress meetings, review of lab results, preparation of as-built drawings, multiple site visits to inspect the progress and quality of construction to ensure the construction contractor is following the approved design.

The Type C requirement was previously negotiated and awarded, along with Type A and B services to Tetra Tech Inc as an option via task order W912JB19F5022, which was awarded under the terms and conditions of now expired National Guard Bureau IDIQ contract W9133L16D0007. The Type C option on W912JB19F5022 could not be exercised since the Type C option level of effort was negotiated based on a projected 365 calendar day period of performance (POP) level of effort in support of the construction of their design. The POP evolved, over the course of the design to 730 calendar days based on current material lead times and the complexity of the construction. The change in project length, resulted in a significant cost increase for Type C Services, thus making the option un-awardable.

4. Authority Cited: 10 U.S.C. 2304(c)(1), as implemented by FAR 16.505(b)(2)(i)(B) – Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: This requirement is a follow-on contract action for follow on work to a previous contract. There is only one responsible source for this follow-on work‐‐Tetra Tech Inc. The Type C requirement was previously negotiated and awarded as an option via task order W912JB19F5022 which was awarded under the terms and conditions of now expired National Guard Bureau (NGB) Indefinite Delivery Indefinite Quantity (IDIQ) contract W9133L16D0007. The task order included Type A and B services for the design of the Hangar 4 project. Type A services included the basis of design (specifically the design intent), the development of the project concept, and associated site investigations. The Type B services included the design narrative and the development of the construction documents.

An award to a new A-E firm other than Tetra Tech would increase the risk associated with these issues and potentially affect the Government’s rights under FAR 52.236-23, Responsibility of the Architect-Engineer Contractor, if another A-E were to represent or attempt to revise the current drawings and/or specifications. This clause states that the “Contractor shall be responsible for the professional quality, technical accuracy, and the coordination of all designs, drawings, specifications, and other services furnished by the Contractor”. However, if a new A-E firm were to make recommendations during the Type C services to revise or deviate from the original drawings or specifications, any liability resulting from those changes could not be attributed to the original A-E. This could potentially create a dangerous and complicated scenario if the Government needed to hold the responsible A-E party liable for any errors or deficiencies in the designs, drawings, and/or specifications. Both Tetra Tech and Mead and Hunt share the liability for the Hgr 4 Design jointly in accordance with paragraph d of FAR 52.236-23. Because Tetra Tech co-designed and certified the drawings and specifications and is liable for the quality of their design, it is economical and efficient to award the Type C services as a sole source follow-on contract. There is tremendous performance and liability risk associated with another A-E firm taking over the Type C services for a project that was designed by a different firm. Having an original designer, Tetra Tech on contract to perform the construction phase services is necessary for the Government to ensure responsibility for their design, including ensuring the design is constructible, maintainable, and operable, that the project documentation is clear, sufficiently detailed, accurate and coordinated, and contains minimal errors.

Unfortunately, a replacement contract vehicle for the Type C Services is needed since W9133L16D0007 is expired and a follow-on task order for the current scope of Type C Services cannot be awarded to Tetra Tech Mead and Hunt JV in accordance with FAR 16.505(b)(2)(i)(C). This section of the FAR allows for a sole source follow on for the sake of efficiency and economy provided that all awardees were given a fair opportunity to be considered for the original order. Market research was undertaken (see paragraph 8 below) and it has been ascertained that the Air Force AE NEXT IDIQ contracts are the most suitable replacement contract vehicles for the type C Services. Therefore, the 127 MSC formally engaged both Mead and Hunt and Tetra Tech on 17 November 2022 as to who could be the prime contractor for Type C Services. This as both Mead and Hunt and Tetra Tech are separate awardees on the AF NEXT AE IDIQ contracts. After internal discussions between these two venturers Tetra Tech requested to be the prime contractor for Type C Services on 21 November 2022. Mead and Hunt will serve as a subconsultant on this task order. This scenario is very agreeable to the Contracting Officer as it substantially mitigates risk of an unsuccessful contract performance. Therefore, the AF NEXT AE IDIQ contract FA890321D0013 will be utilized for this requirement because NGB has been granted capacity off the AF Next IDIQ contract vehicles.

6. Efforts to Obtain Competition: No efforts were made to obtain competition for this one-time requirement due to the rationale described in paragraph 5. This Justification Document will be made public after award through the Government Point of Entry in accordance with FAR 6.305 an FAR 16.505(b)(2)(D)(1).

7. Actions to Increase Competition: No actions were taken to increase competition since this is a one-time requirement following on to a previously competed project.

8. Market Research: Professional Services equivalent to Type C Services are a core competency of many architect and engineering firms regardless of a firm’s business size and, as applicable, small business socioeconomic category. These services abet and streamline the construction of an AE firm’s design work product while providing the design firm with an additional revenue stream and substantially reducing risks to the project owner. Ultimately awarding a contract for Hangar 4 Type C Services to any AE firm other than Tetra Tech (and Mead and Hunt) would carry significantly more cost and performance risk of facilitating the construction of Hangar 4. Tetra Tech is a designer of record for the project. Tetra Tech previously completed the Hangar 4 Type A services which included the basis of design (specifically the design intent), and the development of the project concept, and associated site investigations as well as the Type B services which included the design narrative and the development of the construction documents for Hangar 4.

These Type C services are to be performed under as sole source follow on to design services previously performed design by a Tetra Tech/Mead & Hunt Joint Venture written to Tetra Tech under the terms of AF NEXT AE IDIQ contract# FA890321D0013 IAW FAR 16.505 as this is the best available contract vehicle available for this acquisition. The AF NEXT AE IDIQ contracts are for professional A-E services and are considered as a noncommercial service in accordance with Federal Acquisition Regulation (FAR) subpart 36.6, Architect Engineer Services. The FAR prohibits the use of commercial services for A-E services. The Market Research for the basic contracts was addressed in the formal acquisition plan for the master contract. The AF NEXT A-E contracts have a shared program ceiling of $2 Billion. The minimum amount per order is $3,000; the maximum amount per task order $100 Million. The AF NEXT A-E IDIQ contracts were synopsized in accordance with FAR subpart 5.2, Synopses of Proposed Contract Actions; and competed in accordance with FAR subpart 36.6, Architect- Engineer Services. Additionally, the AF IDIQ contract feature pre negotiated hourly rates that are fully burdened save for gross profit percentage which must be negotiated on a task order by task order basis per the terms of the IDIQ. NGB has been granted open capacity against the $2 Billion ceiling as a replacement for their expired AE IDIQs. The use of the AF Next IDIQ will save several months of acquisition lead time as much of the planning, market research, publicizing, negotiating, and contract writing required for procuring these Type C services has already been accomplished. As previously noted, Tetra Tech is willing to be contracted for the Hangar 4 Type C services under the overarching terms and conditions of the AF NEXT AE contracts.

8. Interested Sources: A listing of interested sources was not solicited or received for this acquisition.

9. Other Facts: Procurement History: Tetra Tech previously profoundly contributed to the below related task orders that are fundamentally related to the Hangar 4 Type C Services:

(1) : Task Order W912JB19F5022 for Type A and B (and optional Type C) Services in support of VGLZ 179051 Construct HGR 4. On 8 August 2018 a notice was be issued by the task order contracting officer, to all 8 NGB National A&E IDIQ vendors via Declaration of Interest form. All contractors, unless the contractor has notified the Contracting Officer of non-interest, or does not have available capacity, was provided a fair opportunity to compete for this project The Government utilized the procedures in FAR 36.602 when selecting firms for this requirement. The evaluation criteria specified in FAR 36.602-1 (a) was utilized and supplemented as appropriate and will be specified in the notice. The Government then entered into priced level of effort negotiations with the most qualified A/E firm as per FAR 36.606. This task order was written to TT MH JV and is referenced because this is the contract vehicle for the HGR 4 Design. The type C level of effort was priced and codified as an option CLIN on the task order.

Date: 2023.06.14 13:27:29 -04'00'

(2) Task Order W912JB19F5012 for Type A and B (and optional Type C) Design Services in support of VGLZ162323 ADAL FUEL CELL & CORROSION CONTROL – BLDG 154: A notice was issued by the task order contracting officer, to all 5 Lansing, MI USFPO A&E IDIQ vendors via Declaration of Interest form on 27 June 2018. All contractors, unless the contractor has notified the Contracting Officer of non-interest, was provided a fair opportunity to compete for this project as no FAR 16.505(b) (2) exceptions applied. The Government utilized the procedures in FAR 36.602 when it selected Mead and Hunt for this requirement.

The evaluation criteria specified in FAR 36.602-1 (a) was utilized and supplemented as appropriate and will be specified in the notice. The Government subsequently completed priced level of effort negotiations with Mead and Hunt A/E firm as per FAR36.606. This task order is referenced because the mission critical water-based fire suppression system for Hgr 4 is to be anchored by the Bldg. 154 design. A new 54 ft tall/300,000-gallon prefabricated steel water storage tank and a pumping station will be built to supply water for fire suppression to future renovated and constructed Hangars 3, 4, and 5 and Building 154. The new pumping station will provide a new 10-inch water distribution loop to the new water-based fire suppression systems and fire sprinkler systems in B154, H3, H4 and H5. The Fire Protection Engineering, electrical engineering, and civil engineering for the Bldg. 154 fire suppression design was largely accomplished by Tetra Tech. The renovation of H3 and H5 was also designed by the TT MH JV as part of task order W9121JB19F5022. Type Cs were negotiated as an option. The type C level of effort was priced and codified as an option CLIN on the task order.

10. 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.

Typed Name: Derek Probstfeld, P.E. Date:

Title: Contracting Officer Representative Signature:

Digitally signed by

PROBSTFELD.DEREK.M.16056

26234 Date: 2023.06.14 12:38:29 -04'00'

11. 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.

Typed Name: Stephen M. Klenke, P.E. Date:

Digitally signed by

KLENKE.STEPHEN.MARK.1265

Title: Acting BCE Signature: .MARK.1265947693 947693

12. 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 Fair and Reasonable will be determined IAW FAR 15.404-1 (b)(ii), (v) and (vii) in comparison of proposed prices to historical prices paid for similar items, the Independent Government Estimate, and Certified cost and pricing data or other than certified cost and pricing data provided by the offer. It is noted that the AF Next contract hourly rates incorporated into

PROBSTFELD.DER

EK.M.1605626234

KLENKE.STEPHEN

the contract are not fully burdened as profit is to be negotiated at the task order level. Therefore, an alternate structured approach will be used to negotiate a fair and reasonable profit percentage for this task order level of effort.

This determination will be made using the following: ☐ cost analysis ☒ price analysis ☐ should cost ☒ IGCE: ☐ audit: ☒ other: Previously negotiated level of effort for Type C services were contracted as an option on W912JB19F5022. This Type C level of effort was analyzed and found to be fair and reasonable in the Price Negotiation Memorandum (PNM) that was approved by NGB AQ on 9 August 2019. However, the Type C option cannot be exercised as scope and hourly fee rates need to be updated to reflect the current Type C requirement. It is noted that the Type C level of effort for the follow-on task order will be reduced to the one that was previously accepted by the Government due to available funding. The reduced scope is tied to the negation of full-time onsite construction inspection services. However, additional construction inspection related job site visits by AE contractor personnel during the 24-month period of performance will be negotiated. A revised cost estimate has been generated for the Type C level of effort to reflect the updated scope. Outside of the full-time inspection hours and the additional site visits, the quantity of hours for each discipline as well as travel and reproduction costs on the IGCE has not otherwise changed from the previously accepted Type C proposal. The hourly rates on the IGCE match the current IDIQ rates for the AF NEXT Tetra Tech AE IDIQ Contract #FA8903-21-D-0008. Any variations on the previous accepted level of effort will be subject to proposal analysis on a (POM/) PNM to be approved by NGB AQ. The revised IGE also includes an estimate of the Contractor’s profit rate, and the subsequent proposal analysis will also feature an analysis of the accepted profit rate. The revised IGE was promulgated with a gross profit rate of 10%. This figure was assumed based on procedures outlined in DFAR 215.404-4, as referenced in UDG 5115.404-73 update 1, dated10 April 2020, assigning a value of 0.04 for Technical Difficulty, 0.04 for Length Factor, and 0.02 for Support of Socioeconomic Program Factor.

As a part of this basis, certified cost, or pricing data:

☐ will be required.

☒ will not be required and the following exception applies (FAR 15.403):

☒ The estimated cost of the contract action is less than the threshold for certified cost or pricing data.

Typed Name: Jeremy L. Starrett Date:

Title: Contracting Officer Signature:

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

Typed Name: Jeremy L. Starrett Date:

Title: Contracting Officer Signature: