JA 20-14 Redacted.pdf

J&A No. NA 20-14

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING COMMAND, ATLANTIC

6506 HAMPTON BLVD

NORFOLK VA 23508-1278

IN REPLY REFER TO:

N62470-19-D-8022/23/24/25/26/27

ACQ3: SW

5 MAY 2020

J&A No. NA 20-14

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity:

Department of the Navy, Naval Facilities Engineering Command, Atlantic, Norfolk, Virginia.

2. Description of the Action Being Approved:

Approval is sought to increase the contract maximum not-to-exceed (NTE) amount for the Global Construction Contingency – Multiple Award Contract (GCC-MAC) by $1,000,000,000 from $1,087,443,694.32 to $2,087,443,694.32. Authority to act under this class justification expires on 25 May 2021.

3. Description of Supplies/Services:

The subject contract performance area is worldwide. The work includes providing supervision, equipment, materials, labor, travel and all means necessary to provide the Navy, the Navy on behalf of the Department of Defense (DoD), and the Navy on behalf of other Federal agencies when authorized, an immediate response for civilian construction contract capability. The construction and related engineering services respond to natural disasters, humanitarian assistance, conflict, and projects with similar characteristics. This includes occasional projects to ensure readiness to perform under emergency situations. The scope includes the capability to provide general mobilization services (embarkations) for personnel, equipment, and material in support of Naval Construction forces (NCF) mobilization efforts and similar mobilization efforts.

Work also includes the capability to set up and operate a Material Liaison Office (MLO) at a deployed site in support of NCF operations. The contractor may be tasked to participate in military exercises. Work is predominately construction. However, the contractor, incidental to the construction effort, may be required to provide limited Base Operating Support (BOS) Services such as Air Operations; Port Operations; Morale, Welfare, and Recreation support;

Galley; Billeting; Facilities Support; Utilities; Base Support Vehicles and Equipment; and Environmental. These services are primarily anticipated in support of facilities overseas, but may also be ordered for work in the United States in support of disaster recovery efforts and other contingency operations.

The GCC-MAC was competitively sourced, and the existing indefinite delivery/indefinite quantity (IDIQ) contracts are currently used to award competitive task orders for construction and related engineering and services to respond to natural disasters, humanitarian assistance, conflict, or projects with similar characteristics. The resulting contracts were awarded on 29 March 2019 to six contractors:

N62470-19-D-8022, AECOM

N62470-19-D-8023, APTIM

N62470-19-D-8024, CH2M HILL/JACOBS

N62470-19-D-8025, Environmental Chemical Corporation

N62470-19-D-8026, FLUOR

N62470-19-D-8027, PERINI

The GCC-MAC has a base period and four one-year option periods. The current contract is in option year one, with a completion date of 28 March 2021. The contract has three additional options that could extend the ordering period to 28 March 2024. However, due in large part to an unusually active and destructive hurricane season, as well as a severe earthquake significantly impacting DoD assets, requirements for the contract have exceeded capacity in its first year. A new GCC contract is being procured and is currently in the pre-solicitation phase. The award date will not be in time for this new urgent requirement.

Funds will generally be Military Construction (MILCON) or Operations and Maintenance, Navy (O&MN) and are task order specific.

4. Statutory Authority Permitting Other Than Full and Open Competition:

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(2), as implemented by FAR 6.302-2, Unusual and Compelling Urgency.

5. Rationale Justifying Use of Cited Statutory Authority:

The GCC-MAC is a unique contract within DoD and serves the Navy, DoD, and other federal agencies with immediate recovery responses, through the use of competed task orders among the six qualified contractors. The nature of this contingency vehicle requires that there be capacity available to allow a rapid response to contingency requirements. It is the primary vehicle used for response to natural disasters, such as hurricanes and earthquakes, to provide an ability to deploy teams for immediate response, damage assessment and stabilization efforts. For events such as hurricanes, the GCC also provides an ability to deploy teams immediately prior to a storm landing to ensure they are in place even if access routes are shut down by the storm. The current GCC-MAC is out of capacity due to continued Hurricane Florence recovery efforts in the Southeast United States , U.S. Naval Observatory Master Clock project , earthquake recovery efforts at China Lake, CA , and other smaller contingency efforts. For these reasons, as in our planning we could not have anticipated such severe situations, we are out of capacity as we enter into the next hurricane season. As this is a contingency vehicle, designed to enable response within a matter of days, we are at risk of being unable to provide the contingency support required if we do not have sufficient capacity. There is an urgent need for additional capacity due to the projection of an unusually severe hurricane season and to enable response to potential urgent contract actions such as those that may be required due to COVID-19. The latest seasonal forecasts from Colorado State University, Tropical Meteorology Project for the 2020 hurricane season predict one of the most active Atlantic hurricane seasons in the last 30 years, with a greater than normal number of major hurricanes.

As exhibited by the extensive impacts in the last few years, capacity under the GCC vehicle is essential to enable immediate response, damage assessments, and initial recovery to enable continuation of DoD’s critical missions in the aftermath of such storms. Additionally, the COVID-19 crisis has highlighted the need for capacity on the GCC. It is the contract vehicle that is looked to not only by the Navy, but also by the United States Army Corps of Engineers, (USACE), the Federal Emergency Management Agency (FEMA), and other federal government agencies, as NAVFAC has received inquiries regarding its availability for work for medical facilities and incidental services due to the impacts of COVID-19. NAVFAC is working currently with the USACE to assess sites for potential utilization in response to COVID-19 needs. This response is a fluid situation, and while the anticipated work cannot be fully defined as the situation is still evolving, the expectation that this contingency vehicle will be available for use as needed to allow NAVFAC to immediate respond as soon as a requirement is fully defined illustrates the necessity to maintain available capacity on this contract vehicle until the procurement of a replacement contract, which is already well underway, can be completed. The GCC allows for competition, as there are six contract holders, and task orders provide the flexibility for either Cost Plus Award Fee or Firm Fixed Price orders. In keeping with the spirit of DoD and DoN’s initiative for innovative and expedited acquisition tools, the addition of capacity to the GCC enables a flexible and rapid response with competition to the extent possible through the use of a MAC vehicle under which orders can be accelerated to award within days of a requirement. Therefore, additional capacity under this existing tool is requested in order to remain at a ready status for potential crisis/disasters.

The Government’s need for this work is not predictable, but any request to utilize this contract vehicle becomes of such urgency that providing for additional competition would result in unacceptable delays. Given the developing nature of the requirements and the urgency of having a contract vehicle with capacity and a team of contractors with the capability to respond to emerging needs, it is not possible to compete and award discrete contract vehicles for each requirement as it manifests. As an example, hurricanes are unpredictable and their course is generally not known until just days before landfall. It is imperative to have a set of contractors with adequate capabilities to respond to multiple locations with widespread damage in order to protect mission critical sites. Local resources may also be utilized, but in cases of extreme devastation, the GCC- MAC contractors have far-reaching resources to ensure immediate response when needed.

While the source selection for a new full and open competitive GCC MAC vehicle with significantly greater capacity is underway, it will not be available in time to meet urgent needs such as those developing as a result of the COVID-19 pandemic or the upcoming hurricane season, when task orders must often be issued within a very small time window as the path of a storm becomes apparent. Generally, the preferred approach would be to develop and approve a Justification for each individual project as the need arose; however, due to the time required to develop and execute these individual authorizations, even that process would result in delays that would hamper the ability of NAVFAC to respond to the urgent requirements that are anticipated.

Further, adding capacity in the manner requested by this Justification alerts the contract holders of the potential for additional taskings, enabling them to prepare to handle such an influx of work. For these reasons, it is imperative to have a contract vehicle with sufficient capacity to execute immediately task orders for projects within the scope of this contingency vehicle, such as renovation or retrofitting of facilities to provide hospital space, initial response and damage assessment after hurricane impacts, or other urgent work. The GCC vehicle was designed to provide exactly this capability.

Use of the authority cited above is deemed appropriate due to the agency’s need for the required services, which is of such unusual and compelling urgency that without additional capacity there will not be any available contract vehicles to procure this essential work. The capacity provided by this Justification will be used for a period of not more than one year, consistent with FAR 6.302-2(d), and as noted in paragraph 2 above.

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

Public notification will be provided within thirty days after implementation of the proposed action in accordance with FAR 6.305(b). No additional market research beyond the qualifications of the GCC MAC was conducted because as set out in paragraph 5 above, the GCC MAC is the only contract vehicle available that can meet the anticipated needs. The GCC MAC was competed utilizing full and open competition. Moreover, the nature of the initial award, as a MAC with six awardees, means that there will be competition for task order awards that use the additional capacity sought here; therefore, offers will be received from as many sources as practicable, adhering to the spirit of competition.

7. Determination of Fair and Reasonable Cost

The Contracting officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable, as task orders will be competed among all the MACC holders, and offerors’ certified cost and pricing data will be obtained if required.

8. Actions to Remove Barriers to Future Competition:

This action is a unique measure taken due to an unforeseeable event. The unanticipated need for work under the GCC due to unusually severe weather conditions as noted above, combined with emerging urgent requirements related to the Coronavirus Disease 2019 pandemic, has driven the requirement for this capacity increase. The capacity to address critical mission essential requirements is urgently needed. A new multi-billion dollar competitive GCC contract is already underway to satisfy requirements for future disasters, humanitarian efforts, and projects with similar characteristics, and the new contract will be subject to full and open competition.

SENIOR PROCUREMENT EXECUTIVE APPROVAL

Upon the basis of the above justification, I hereby approve, as Senior Procurement Executive of the Navy, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(2), Unusual and Compelling Urgency.