ID03180030_-_REPO_Exception_to_Fair_Opportunity_(7.15.20) redacted.pdf

ITSS Order ID: ID03180030 07/15/2020 GSA, FAS Mid-Atlantic Region

Justification for an Exception to Fair Opportunity Naval Facilities Engineering Command (NAVFAC)

Resilient Energy Program Office (REPO) Support Services Modification 29

Note: This document is prepared in accordance with the requirements of FAR 16.505(b)(2)(ii)(B).

1. Identification of the Requiring Activity and Contracting Activity:

The requiring activity is Naval Facilities Engineering Command’s (NAVFAC) Resilient Energy Program Office (REPO) /Public Works 8 (PW8) located in Washington, DC. The contracting activity is the General Services Administration (GSA) Federal Acquisition Service (FAS), Mid-Atlantic Region - Philadelphia, PA.

This document is hereby identified as a Justification for an Exception to Fair Opportunity.

2. Nature and/or Description of Action Being Approved:

The action being approved is a modification to the Resilient Energy Program Office (REPO) Support Services order number 47QFMA18F0032 under Deloitte Consulting LLC OASIS IDIQ GS00Q14OADU113 in order to provide crucial support at the Navy Secretariat’s direction for REPO to pursue Energy Security initiatives.

REPO was competitively awarded in the amount of on 07/11/2018 with a base period of 11 July 2018 through 10 July 2019 with two (2) one-year option periods.

3. Description of Supplies/Services Required To Meet the Agency's Needs:

The requirements for this action are necessary to provide the requisite support for Navy REPO in order to accomplish its global mission to ensure world-wide effective implementation of large-scale, third-party financed “utility scale” energy projects that achieve Navy-wide energy goals. NAVFAC requires extensive energy program knowledge, engineering expertise and consultative services for discrete energy security and energy-related projects at CONUS installations and OCONUS locations.

This effort includes program/project management, engineering, analytical, and ancillary services to assist with the integration and operation of centrally managed large-scale smart grid systems, facilitate communications and coordination for timely implementation of complex systems, optimize shore investments, support utility cost savings, and to assist the Navy in achieving strategic objectives related to data management and analytics, cybersecurity, and cloud readiness.

4. Identification of the Exception to Fair Opportunity and the Supporting Rationale:

The authority for this action is FAR 16.505(b)(2)(i)(A) – The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

This task order includes optional tasks which were created with Government established Not-To-

Exceed (NTE) ceiling amounts in support of future Energy Security Smart Grid Program Management and Integration Support, Optional Project Services, and Optional Utilities Management Support requirements. NAVFAC had more work than initially anticipated as a result of high demand signal for energy security services. Therefore, a ceiling increase is necessary to provide the crucial support without delay.

Deloitte Consulting LLC (Deloitte) is currently supporting REPO and has provided acceptable support for this task order since July 2018. Deloitte possesses the in-depth knowledge and technical expertise to continue supporting resilient energy requirements without interruption. Providing fair opportunity for the services would result in unacceptable delays which would significantly impact project schedules and costs and negatively impact NAVFAC as a provider of resilient energy services.

Soliciting competition for the services would result in a substantial duplication of cost to the Government that is not expected to be recovered. Unrecoverable costs include the time of technical and contracting personnel to determine an acquisition strategy, review and evaluate the proposal, and prepare documentation for award. The Government would also be impacted by the costs associated with credentialing a new contractor and further delays as a result of the time that would be required for a new contractor to be brought up to speed and execute the requirements.

Furthermore, soliciting this effort to other than Deloitte would lead to unacceptable delays in fulfilling NAVFAC’s requirement to ensure world-wide effective implementation of discrete energy security and energy-related projects at CONUS installations and OCONUS locations. The following Resilient Energy programs and projects will be negatively impacted as a direct result of not continuing this work under the current task order:

The smart grid program would not be able to continue support reviews of policies, guidance, legislation, and project execution to determine gaps, impacts, and risks in the global standup of the Navy Facility Energy Operations Centers (FEOC). The primary role of the FEOC is to maintain and calculate a return on investment (ROI) including energy savings and maintenance costs for energy systems it monitors.

The Office of the Secretary of Defense (OSD) Energy Resilience and Conservation Investment

Program (ERCIP) would not have the expertise required to review historical studies and workshops, analyze infrastructure, and perform risk assessments and mission assurance requirements for an installation-wide OCONUS microgrid project that would support numerous military bases. The new build-up is a significant infrastructure investment and must incorporate current energy security policy/legislation and guidance to ensure Federal, Department of Defense (DoD), Department of Navy (DoN), and various stakeholder energy security requirements are met.

The Commander, Navy Installations Command (CNIC) Installation Energy program would not be able to comply with the necessary management, coordination and execution of Installation Energy Program Summaries (IEPS). IEPS is an integration of applicable installation- and higher-level strategic guidance, plans and policies into a holistic roadmap that enables the installation to work constructively towards its energy security goals to include resilience, reliability and efficiency. In FY18, the Assistant Secretary of Defense for Energy, Installation, and Environment (ASD EI&E) issued a DoD wide policy of compliance with IEPS. Aligned with recent FY19 briefings to ASN and OSD, all Navy installations are developing IEPS in accordance with the prioritized schedule. Furthermore, delaying this work could impact Navy’s ability to achieve goals set by Congress, the White House, Department of Defense (DoD), or Components, which may include energy use intensity and other energy efficiency, greenhouse gas, renewable energy, energy resilience, water efficiency, and alternative fuel use objectives.

Modernization efforts for enhanced use leases and other real estate transactions including business case evaluation and assessment of project alternatives would be impacted. Delays directly impact the development of energy security opportunities on government owned land as continued support is needed to track, report, and monitor these projects in order to facilitate timely program execution and risk management. In addition, the Government would no longer be able to provide the required engineering and technical support in order to meet the technical requirements for these complex systems.

NAVFAC is currently working with limited government resources that are focused on IT control audit remediation and requires this support to expand control compliance as well as execute innovative technologies in support of NAVFAC’s broader goals. As such, delaying this effort would further reduce the already limited resources in support of the Energy Security Program and strategic objectives for implementing necessary data integrity, preparing critical business systems for migration to the cloud environment, and implementing the proper IT controls to create resilient NAVFAC business systems.

Implementing proper IT controls includes audit readiness, cyber security hygiene and sustainment for NAVFAC’s audit-relevant IT systems that materially impact the Navy’s financial statements and utility payment processes that play a critical role in the Resilient Energy Program Office's business processes and execution.

Energy Mission Integration Group (EMIG) support for NAVFAC and CNIC would be limited.

For instance, the Government would not have contractor support for the Phase 2 Analysis of Alternatives (AoA) process which includes managing Courses of Action (COA) development timeline, expectations, execution, and final deliverables for 20 electrical and 5 water security gaps. In addition, the Government would not have support to improve upon current AOA processes and to develop and maintain the Energy Security Scope (ESS) EMIG analysis tool.

The Advancing Navy Commodities Cost Reduction (ANCCR) program conducts analysis to support cost savings and optimize business decisions where utility rates are impacted.

Delaying support would negatively impact the program's ability to achieve cost-optimization. In addition, Deloitte currently supports the Utility Tariff Rate Management System (UTRMS) which is a business intelligence tool that pulls from existing DON utility data systems of record and external market data to drive intelligent analysis for utility procurements and utility bills impacted by energy projects. The ANCCR program and Deloitte have been collaborating with the NAVFAC Information Technology Center (NITC), the Chief Information Office (CIO), and the Command Analytics Office (CAO) to establish UTRMS data and visualization capability within the Business Information Management System (BIMS). Deloitte’s continued support is necessary to assist ANCCR in the testing, deployment, and maintenance of the system to enable ongoing use, enhancement, and sustainment of all required data and visualization capability.

The information above reinforces the fact that it is imperative that this work continue under the current task order in order to prevent unacceptable delays. Deloitte is capable of providing the required services immediately in order to sufficiently support NAVFAC’s requirements. Deloitte has the requisite energy program knowledge and the analytical, technical, engineering expertise and consultative services to effectively perform this work without unacceptable delays. In addition, competing this work will have a significant impact on NAVFAC’s mission and enhancing Energy Security ashore.

5. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable:

In order to determine whether the contractor’s proposed cost is fair and reasonable, the Contract Specialist and Contracting Officer will review the proposed cost against various price analysis techniques IAW FAR 15.4040-1(b)(2). It is anticipated that the rates proposed for this effort will reflect either a close similarity or the same rates as currently being paid to Deloitte under the existing REPO task order. If the contractor’s proposed price appears to be questionable for reasonableness, a justification from the contractor will be required in order to determine whether the proposed price is fair and reasonable. The Contracting Officer will determine the cost to be fair and reasonable before award.

6. Other Facts Supporting the Justification:

None.

7. Actions the Agency May Take to Remove or Overcome Any Barriers that Led to the Exception to Fair Opportunity Before Subsequent Acquisition For the Supplies or Services:

The Government is planning to re-compete this task order in FY21 and these tasks will be included and competed. After this ceiling increase, we will carefully limit optional work on this task order while the re-compete is being worked.

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