JA 20-2407 IDIQ Capacity Increase Revised 4.6.22 Posting 4.20.22.pdf

J&A No. 22-10

JUSTIFICATTON AND APPROVAL

FOR USE OF OTHER THAN FULL AND

OPEN COMPETITION

1. Contracting Activity.

Naval Facilities Engineering Command, Hawaii (NAVFAC HI), FSC ACO, Code PRJ232.

2. Description of the Action Being Approved.

a. Contract No. N62478-20-D-2407 HSQ SCADA System Maintenance at Various Locations, Oahu, Hawaii was awarded to HSQ Technology, A Corporation (HSQ) as a sole source procurement on 2 July 2020. The contract was to provide maintenance service, technical services and parts for NAVFAC HI Utilities Engineering Management (UEM) Department’s Supervisory Control and Data Acquisition (SCADA) Systems for 12 months, commencing 1 August 2020 to and including 31 July 2021, with four one-year options.

b. The action being taken is to increase the Indefinite Delivery Indefinite Quantity (IDIQ) capacity for Option Periods One through Four as follows:

i. For Option Periods One through Four, the IDIQ capacity will increase by respectively.

ii. This action will increase the total ELIN amounts as follows:

Current Increase by Increase to

Base Period

Option Period 1

Option Period 2

Option Period 3

Option Period 4

Total

This action will increase the IDIQ capacity price by . For the entire contract, the IDIQ capacity price will change from to .

3. Description of Supplies/Services.

In accordance with OPNAV M-5090.1 specific to Safe Drinking Water Compliance Ashore, and Interagency Drinking Water System Team (U.S. EPA, Hawaii Dept. of Health [DOH], NAVPAC HI) guidance, the Navy water system requires in-water analyzers (In Line Analyzers) that provide early detection and notification for prompt response to minimize future impacts to human health and the environment.

This addition, alteration and/or replacement of the system will provide screening and analysis of drinking water in the distribution systems, as required by the applicable standards, codes and requirements, described above.

The In-Line Analyzers will be procured under a different contract, however, the software and remote programming for the analyzer system to properly function, will be executed under the subject contract awarded to HSQ.

Option Period One The increase of capacity for the HSQ SCADA contract is needed for the execution of the In-Line Analyzer task order.

The Navy is implementing real-time water monitoring within its distribution system to promote oversight of drinking water quality information, transparency, and technical credibility with the public and government agencies. This repair action will support the mission to identify contaminants, protect public health and safety, and reestablish public confidence, with the overarching goal of providing all users with potable water in accordance with all applicable requirements.

The In-Line Analyzer requires specific software and remote programming in order to properly function.

Option Period One through Option Period Four

The increase of capacity for the HSQ SCADA contract is needed to cover the cost of aged equipment. The contract capacity is crucial to both the NAVFAC Hawaii Potable Water SCADA and the Industrial Commodities SCADA systems.

Now that system is in a critical state. If new equipment isn't procured, there is possibility that the system could experience a failure. The increase of capacity will allow the system upgrades and also retain enough funds to cover periodic maintenance visits and emergency assistance should that arise.

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. Section 2304(c)(1), as implemented by FAR 6.302-1. FAR 6.302-1 permits contracting without providing for full and open competition in situations where services are deemed to be available only from the original source for the continued provision of highly specialized services where it is likely that award to any other source would result in 1) substantial duplication of cost not expected to be recovered through competition, or 2) unacceptable delays in fulfilling the agency’s requirements. In addition, 10 U.S.C. Section 2304(c)(2), as implemented by FAR 6.302-2, permits contracting without providing for full and open competition in situations where 1) an unusual and compelling urgency precluded full and open competition, and 2) delay in award of a contract would result in serious injury, financial or other, to the Government.

5. Rationale Justifying Use of Cited Statutory Authority.

HSQ is the manufacturer of the existing SCADA System including the remote logic processors components, software for logic processor, and the SCADA System Central Software. Compatibility requirement for additional components are proprietary to HSQ and not available to other firms. The HSQ SCADA system ensures vital reliability and system accountability in providing the Navy, associated military activities, and their customers with safe drinking water and essential fire-fighting capabilities. The Navy’s Potable Water distribution system serves an estimated 90,000 customers and has distribution piping and pumping stations throughout the island of Oahu, Hawaii. The HSQ SCADA System enables remote operations, monitoring and historical data at all sites. SCADA allows remote monitoring of equipment and distribution lines by monitoring irregularities in system pressures, temperatures, flows and water quality. SCADA is imperative in the prevention of impending failures before they become catastrophic, costly or harmful to customers and consumers. It is mission critical to minimize any system down time, and thus, sufficient IDIQ capacity is required so that corrective actions can be implemented for the necessary repairs, modifications, and upgrades during the remaining four option years of the contract.

The IDIQ quantities on contract were based on projective and historical quantities. Increasing the IDIQ capacity for Option Periods One through Four to perform mission critical updates is determined the most efficient and cost-effective method to procure the services and parts to ensure the HSQ SCADA system is fully functioning and operational according to mandatory requirements.

Use of other than HSQ SCADA technology would have a detrimental effect on critical mission elements of the agency’s infrastructure. Use of incompatible equipment/software will create problems with integration and the control of the new equipment with the existing equipment, preventing timely response to critical changes within the system. Integration from other manufacturers would also require additional personnel training costs, the procurement of additional equipment, maintenance and support contracts for another manufacturer’s hardware and software, and the maintenance of an additional parts inventory.

Using and maintaining different brands of SCADA equipment and software is inefficient and would increase the total costs of ownership and manpower, thereby negating any benefits obtained through competition.

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

For the reasons stated in Paragraph 5, no additional market research was conducted. The requirements fall within the IDIQ scope of work. The proposed modification to the IDIQ portion of the HSQ contract is the only feasible option to ensure secure industrial utilities systems, safe drinking water and essential fire-fighting capabilities for the Navy, associated military activities, and their customers.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the services covered by this J&A will be fair and reasonable based on historical costs.

8. Actions to Remove Barriers to Future Competition.

At this time, NAVFAC HI has no plans to compete future actions for the types of supplies/services covered by this document. The contract is currently in Option Period One. If another potential source emerges, NAVFAC HI will assess whether competition for future requirements is feasible.

J&A No. 22-10

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL/REQUIREMENTS COGNIZANCE:

Signature Name Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

APPROVING OFFICIAL

Upon the basis of the above justification, I hereby approve the solicitation of the proposed procurement described herein using other than full and open competition, pursuant to the authority of 10 U.S.C.(c)(1).