Justification.pdf

Justification for an Exception to Fair Opportunity

Subj: Justification for an Exception to Fair Opportunity Process For Project # 9344826, Wharf Repairs Follow-On at USCG Base Honolulu, Hawaii

Ref:

(a) FAR 16.505(b)(2)

(b) CGAP SUBCHAPTER 3016.505

The purpose of this document is to justify an exception to the fair opportunity process as required by reference (a).

(1) Agency and Contracting Activity:

The Department of Homeland Security, U.S. Coast Guard (USCG), Civil Engineering Unit (CEU) Honolulu.

(2) Nature and/or Description of the Action Being Approved:

The U.S. Coast Guard proposes to award a logical follow-on task order on our Regional Multiple Award Construction Contract (RMACC) to perform additional wharf repairs at Base Honolulu at an estimated cost of $950,000. The anticipated period of performance is 4 months from the date of award.

(3) Description of Supplies/Services:

This follow-on task order includes additional concrete deck repairs to Wharf E at Base Honolulu.

The original project included deck repairs, however the wharf has continued to deteriorate rapidly in the last few years, and recent soundings have found that there is now more than ten times the amount of deck repairs than had originally been anticipated for Wharf E and the repairs are anticipated to create a cost increase of more than 20% of the total task order value. This is outside the scope of the existing task order because these increased quantities are beyond what the original proposing contractors could have reasonably anticipated and will therefore need to be completed under a new task order.

If these repairs are not completed, the wharf will continue to deteriorate rapidly and become structurally unsound. This will leave the base with unsafe working conditions for its employees and the Coast Guard will not be able to use this wharf for mission operations.

(4) Exception to Fair Opportunity:

In accordance with FAR 16.505(b)(2)(i)(C), the order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract. All awardees were given a fair opportunity to be considered for the original order, and award had been made based on low price. The original task order, HSCG86-16-J- PHV001, was awarded to Pacific Tech Construction in the amount of $3.25M for wharf repairs at Base Honolulu in January 2016. The current contractor is ahead of schedule and plans to

Commanding Officer United States Coast Guard Civil Engineering Unit

300 Ala Moana Blvd., Rm. 8-134 Honolulu, HI 96850-4982 Phone: (808) 535-3474 Fax: (808) 535-3479 Email: Tammy.K.Kao@uscg.mil

March 23, 2017 complete the current work around July 2017. During the project, significant amounts of additional wharf repairs were found to be needed on Wharf E. The additional repairs are the same type of repairs and are located on the same wharf as the current contract work. The contractor is currently mobilized on site and is already working on other similar wharf repairs on Wharf E. Awarding a logical follow-on to the same contractor will allow the government to receive the additional repairs more economically and efficiently as discussed in (6) below.

(5) Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable:

The original task order was competed amongst all contract holders. Through this competition, Pacific Tech won the award with the lowest price. The Government will compare the proposed unit prices for this new task order with the winning prices from the last competed task order, as well as compare it with other historical prices for similar work, to ensure that the government continues to obtain a fair and reasonable price.

(6) Any Other Facts Supporting the Justification:

Pacific Tech and its team have extensive wharf repair experience and their work on the current wharf repair task order has been excellent. Awarding the follow-on task order to the same contractor will ensure that the Government continues to receive the same high quality work.

Having the same contractor complete the additional repairs will also eliminate any problems with warranty issues that could arise if we had two contractors performing similar repairs in adjacent areas of the same wharf.

Mobilization and demobilization costs on projects of this size and type usually run between $100,000-$200,000. Pacific Tech is currently mobilized on site. Awarding the follow-on project before they demobilize could save the government hundreds of thousands of dollars in mobilization costs.

The current contractor is already familiar with Base Honolulu procedures, has determined which repair methods work best for these conditions, developed measures to perform the work safely, learned which Coast Guard personnel they need to contact for specific information, which State personnel they need to coordinate with, who to contact during emergencies, etc. Re-teaching a new contractor all the things that the current contractor has already learned this past year would result in a loss of hundreds of man-hours of Government personnel time, thousands of taxpayers’ dollars, and an overall substantial duplication of cost to the Government.

The current work and the additional new work are in the exact same location on Wharf E, therefore it is impossible for two contractors to work in the exact same spot at the same time. If this work were to be conducted by a new contractor, they would not be able to start mobilizing until the current project is complete which would further delay the work. The new work is expected to take approximately 4 months from the date the new task order is awarded if the current contractor completes the work. A new contractor would take at least 8-12 months for a scope of work of this magnitude since they will need time after task order award to obtain approval of their submittals, mobilize on site, build their concrete forms, develop best work methods, etc., which the current contractor has already completed during the current project.

These delays in project completion will affect operations at Base Honolulu.

There is also another time sensitive construction project planned for Wharves A-D at Base Honolulu that is anticipated to start in July 2017. If Wharf E is not fully repaired before the

Wharves A-D project begins, the government will incur additional costs and man-hours to arrange alternate berthing arrangements for the ships until the Wharf E repairs are complete.

Awarding a follow-on may still leave some overlap between the Wharves A-D project and this additional work, however this would reduce the overlap by several months, which will result in substantial cost savings and reduced Coast Guard man-hours in coordinating alternate berthing arrangements. This will also allow regular Coast Guard operations to resume months earlier.

Awarding a logical follow-on will allow this work to be completed more economically and efficiently.

(7) Statement of the Actions, if Any, the Agency May Take to Remove or Overcome Any Barriers That Led to the Exception to Fair Opportunity Before Any Subsequent Acquisition for the Supplies or Services is Made:

Once these repairs are completed, no additional wharf repair work is anticipated to be needed for many years to come.

(8) Contracting Officer’s Certification:

I hereby certify that the justification in this decision document is accurate and complete to the best of my knowledge and belief.

Contracting Officer:

Senior Field Contracting Officer:

Chief of Contracting Office:

(9) Technical/Requirements Personnel Certification:

I certify this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for this justification, is complete and accurate.

Technical Representative:

(10) Approval Certification:

I have determined based on the above information that the exception as found in FAR 16.505(b)(2)(i)(C) applies to this task order. This decision document is hereby approved in accordance with references (a) and (b).

Legal Review:

CG CPACA: