JA 20-0003 Increase Capacity Redacted.pdf

J&A No. 25-016

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Department of the Navy, Naval Facilities Engineering Systems Command (NAVFAC), Pacific, Joint Base Pearl Harbor Hickam, Hawaii.

2. Description of the Action Being Approved.

Request approval to modify contract N62742-20-D-0003 to increase the contract not-to-exceed amount by $41,000,000.00, from $60,000,000.00 to $101,000,000.00. This single-award contract is for Indefinite Delivery Indefinite Quantity (IDIQ) Architect-Engineer (A-E) services for various electrical engineering projects and related services at various locations in all areas under the cognizance of NAVFAC Pacific. The contract was awarded on 21 July 2020 to Power Engineers, Inc. for a base year and four (4) one-year option periods with a not-to-exceed amount of $60,000,000.00. The contract is currently in the fourth option period.

As of June 2025, $ has been obligated. The total obligations for the contract increased more than originally estimated due to unanticipated Military Construction projects related to the Typhoon Mawar Recapitalization efforts. Additional obligations were also needed to issue ordering authority to NAVFAC Hawaii, NAVFAC Marianas, and NAVFAC Far East, and to fund large and complex projects such as P-614 Joint Consolidated Communications Center and P-678 Satellite Communications Facility that had underestimated the costs for design work. The current remaining contract capacity in the amount of $ is insufficient for the estimated $ in planned projects for additional A-E design services and A-E Post Construction Award Services

(PCAS).

3. Description of Supplies/Services.

The contract scope is for A-E design and engineering services required for the preparation of various electrical engineering projects and related services at various locations under the cognizance of the NAVFAC, Pacific. The AE's work will include, but will not be limited to, design and engineering services for the preparation of Region/Facilities Engineering Command Team Military Construction Department of Defense 1391 project documentation, engineering studies, specifications utilizing the Department of Defense SPECSINTACT program, cost estimates utilizing the MII cost estimating system, and other services such as design and engineering services for Functional Analysis and Concept Development, Request for Proposal (RFP) documentation for Design-Build projects, RFP documentation and plans and specifications for Design-Bid-Build projects, and post construction award services.

If another A-E were to assume these duties, there would be a substantial duplication of costs to the Government and unacceptable delays to the Government due to the learning curve associated with familiarizing themselves with the project designs, site conditions, requirements, and stakeholders of the projects. Professional standards of care for Architects and Engineers would require the new A-E to assume responsibility of the already completed design work, resulting in extensive redesign time and effort to verify the original work prior to making any design modifications. For professional liability purposes, the new A-E would need to conduct additional stakeholder meetings to verify requirements, coordinate and perform field effort, and perform calculations to verify the original design before conducting any new design work, resulting in duplicative costs and unacceptable delays to the Government. Duplicative costs required to verify the original design are estimated to be approximately % of the original design costs and are shown below. Duplicative time required to verify the original design is estimated to be approximately 4-6 months per project. Estimated duplicative costs are not expected to be recovered through competition. The designs for these projects are nearing completion and will be solicited for construction contract award in the near future. Not having an A-E on-board for PCAS when the construction contracts are awarded could put the projects at risk for construction delays and contractor claims against the Government.

Project Number and Title

Estimated Duplication of Costs

FY24 P-614 JOINT CONSOLIDATED COMMUNICATIONS

CENTER, GUAM

FY26 P-1181 HARDEN CRITICAL FEEDERS, GUAM $

FY24 P-678 SATELLITE COMMUNICATIONS FACILITY,

GUAM

The Government anticipates that approximately 3 to 5 months of additional time would be needed to identify a new A-E firm under another IDIQ contract, familiarize themselves with the project scope, solicit a proposal, negotiate, and award the task order. There is a solicitation for a competitive follow-on contract with an anticipated award date of , as described in Paragraph (8) below. However, it is anticipated that there will be an unacceptable delay in A-E services should the current contract’s capacity not be increased.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

NAVFAC Pacific has not published, and does not intend to publish, a Notice of Intent to Sole Source in accordance with FAR 5.203(a). This proposed contract action is made pursuant to the terms of an existing contract that was previously synopsized in sufficient detail to comply with the requirements in FAR 5.207 with respect to the current proposed contract action. Accordingly, the requirements for an exception under FAR 5.202(a)(11) have been met and no synopsis is currently required. A market survey was not conducted and an increase of the subject contract capacity is considered the only reasonable means to accomplish the work in a timely manner.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the services covered by this Justification and Approval will be fair and reasonable since the rates were established with the basic contract award. Those rates are applicable and in effect, as the contract is currently in the fourth of four available, successive one-year option periods.

8. Actions to Remove Barriers to Future Competition.

Efforts are in place to procure a new contract for IDIQ A-E services for various electrical engineering projects and related services at various locations in all areas under the cognizance of NAVFAC, Pacific.

The new contract is planned for award in . The new contract will be procured using full and open competition methods at a value intended to ensure that all known requirements will fit within the dollar limits established at the time of award.