JA 23-006 Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND PACIFIC

258 MAKALAPA DR STE 100

JBPHH HI 96860-3134

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

J&A No. 23-006

1. CONTRACTING ACTIVITY. Department of the Navy, Naval Facilities Engineering Systems Command (NAVFAC), Pacific, Architect-Engineer (A-E) Contracts Branch, Joint Base Pearl Harbor Hickam, Hawaii.

2. DESCRIPTION OF ACTION BEING APPROVED. Request approval to modify contract N62742-20-D-0004 to increase the not-to-exceed amount by $98,000,000, from $187,000,000 to $285,000,000. This contract is for Indefinite Delivery Indefinite Quantity (IDIQ) A-E Services for various structural and waterfront projects and other projects under the cognizance of NAVFAC, Pacific. The contract was awarded on 8 July 2020 to MNDPI Pacific JV for a base year plus four (4) one-year periods with a not-to-exceed amount of $99,000,000. A contract modification for an increase in capacity by $88,000,000 was awarded on 25 August 2021. The contract is currently in the second option year performance period.

The contract amount obligated to date is $ . The subject contract capacity was used up earlier than expected due to the unanticipated Military Construction (MCON) project P-209, which is a significantly large and complex project with an extremely tight timeline to meet the Mission Need Date (MND). As a result, this action is necessary because the remaining contract balance of $ is insufficient to obtain an estimated $ in additional A-E Design Services and Post Construction Award Services (PCAS) to support one (1) existing task order for design and six (6) follow-on task orders for PCAS, including task order modifications, and still maintain the original intent to provide IDIQ A-E Services for structural and waterfront projects and other projects at locations under the cognizance of the NAVFAC, Pacific.

3. DESCRIPTION OF SUPPLIES/SERVICES. The contract scope is for A-E services for structural and waterfront projects and other projects including, but are not limited to, the execution and delivery of MCON project documentation (DD Form 1391), Functional Analysis and Concept Development (FACD) workshops, 1391/Design Charrettes; Design-Build Request for Proposal (RFP), Design- Bid-Build (DBB) Design contract documents, technical surveys and reports including concept and engineering studies, site engineering investigation, topographical survey, geotechnical investigation, hazardous material survey, munitions of explosive concern (MEC) survey, hydrographic survey and others; construction cost estimates; Collateral Equipment (CEQ) Buy Packages; Comprehensive Interior Design (CID) including Structural Interior Design (SID) and Furniture, Fixtures, and Equipment (FF&E); and Post Construction- Contract Award Services (PCAS). The additional funding is needed for the following contract actions:

TO Mod Description Amount

N6274221F0302- P00009

FY23 P-209 Dry Dock #3 Replacement (DD5) JBPHH, HI –

PCAS

MNDPI Pacific JV is currently under contract as the Designer of Record for the preparation of the modified Design-Build (DB) construction package consisting of full project plans, specifications, detailed cost estimate, and other services required.

Design Phase 1 was from 0% to Concept Design (35%) and was awarded in November 2020. Design Phase 2 was from Concept Design (35%) to Design Development (60%) and was awarded in June 2021.

Design Phase 3 was from Design Development (60%) to Final Design (100%) and was awarded in November 2021.

PCAS services are required as a follow-on modification to this task order once the project is awarded for construction which is planned for

Funds: FY23 MILCON Navy PCAS

N6274221F0332- P00002

FY23 P-324: Combat Logistics Regiment HQ Marine Corps Base (MCB), Guam

MNDPI Pacific JV provided engineering services to prepare the Region/FEC DD1391 in Task Order N6274221F0304. MNDPI Pacific JV provided support and engineering services for preparation of the DBB construction package by NAVFAC Pacific Design and Construction (DC) in-house designers in a follow on task order N6274221F0332. MNDPI Pacific JV services consisted of peer reviews, topographic survey, geotechnical investigation, interior design, landscaping, and general technical consultation services.

PCAS to supplement in-house capabilities is required as a follow-on task order to N6274221F0332 to support the project during construction.

Funds: FY23 MILCON Navy PCAS

N6274221F0324- P00001

FY23 P-325: General Support Combat Logistics Maintenance Facility MCB, Guam

MNDPI Pacific JV provided engineering services to prepare the Region/FEC DD1391 in Task Order N6274221F0300. MNDPI Pacific JV provided design and engineering services for preparation of a DBB package consisting of full project plans, specifications, detailed cost estimate, and other services required in a follow-on Task Order N6274221F0324.

PCAS is required as a follow-on task order to Task Order N6274221F0324 to support the project during construction.

Funds: FY23 MILCON Navy PCAS

N6274222F0358- P00001

FY23 P-870: Engineering and Bridging Complex MCB, Guam – Final Design Authority (FDA)

MNDPI Pacific JV provided engineering services to prepare the Region/FEC DD1391 in Task Order N6274221F0301. MNDPI Pacific JV provided design and engineering services for preparation of a DBB package consisting of full project plans, specifications, detailed cost estimate, and other services required in a follow-on Task Order N6274222F0358.

PCAS is required as a follow-on task order to Task Order N6274222F0358 to support the project during construction.

Funds: FY23 MILCON Navy PCAS

N6274222F0356- P00001

FY24 P-406 Recreation Center, MCB, Guam

MNDPI Pacific JV served as the lead designer for the development of the Activity/PWD DD1391 for the project in Task Order N6274220F0350.

MNDPI Pacific JV continued the DD1391 updates and provided engineering services to prepare the Region/FEC DD1391 as part of Task Order N6274222F0313. MNDPI Pacific JV provided design support to the NAVFAC Pacific DC in-house designers for the preparation of a DBB construction package consisting of full project plans, specifications, detailed cost estimate, and other services required as part of follow-on Task Order N6274222F0356.

PCAS to supplement in-house capabilities is required as a follow-on task order to Task Order N6274222F0356 to support the project during construction.

Funds: FY24 MILCON Navy PCAS

N6274222F0360- P00001

FY24 P-760 Training Center, MCB, Guam

MNDPI Pacific JV served as the lead designer for the development of the Activity/PWD DD1391 for the project in Task Order N6274220F0336.

MNDPI Pacific JV continued the

DD1391 updates and provided engineering services to prepare the Region/FEC DD1391 as part of Task Order N6274220F0336-P00002.

MNDPI Pacific JV provided design and engineering services for preparation of a DBB package consisting of full project plans, specifications, detailed cost estimate, and other services required as part of follow-on Task Order N6274222F0360.

PCAS is required as a follow-on task order to Task Order N6274222F0360 to support the project during construction.

Funds: FY24 MILCON Navy PCAS

N6274223F0301- P00001

FY24 P-676 Polaris Point Pier, Polaris Point, Guam

MNDPI Pacific JV provided engineering services to prepare the Region/FEC DD1391 in Task Order N6274222F0302.

MNDPI Pacific JV is currently providing design and engineering services for preparation of a DBB package consisting of full project plans, specifications, detailed cost estimate, and other services required as part of Task Order N6274222F0359. The Task Order was broken up into a Base (0%-50% design) and an Option (50% to Final design). The Base has been awarded and the Option is planned to be awarded in .

PCAS is required as a follow-on task order to Task Order N6274223F0301 to support the project during construction.

coordinate and perform field effort, and perform calculations to verify the original design before conducting any new design work. Due to the extremely challenging aspects of the project design and the magnitude of the project, duplicative costs required to verify the original design are estimated to be at least approximately % of the original design costs of approximately $ . Duplicative time required to verify the original design are estimated to be approximately 6-8 months. The aforementioned duplicative costs and time are not expected to be recovered through competition. This project design is complete and construction contract award is imminent as soon as funds are available.

Not having an A-E on-board for PCAS when the construction contracts are awarded could put the project at high risk for construction delays and contractor claims against the government. This project is the highest priority project at NAVFAC PAC and highly visible across all of NAVFAC. The construction timeline is extremely tight and there is no allowance for delays or extension to the current timelines. The project cannot fail in meeting the MND of .

P-324, P-325, P-8700, P-406, and P-760: MNDPI Pacific JV is currently working under this contract for NAVFAC Pacific to perform design services for: P-324 Combat Logistics Regiment Headquarters, P-325 General Support Combat Logistics Maintenance Facility, P-870 Engineering and Brigade Complex, P-406 Recreation Center, and P-760 Training Center (which are all located at MCB Camp Blaz, Finegayan, Guam under Task Orders N6274221F0332, N6274221F0324, N627422F0358, N6274222F0356, and N627422F0360, respectively. MNDPI Pacific JV serves as the Designer of Record for P- 325, P-870, P-760, and is supporting in-house designs for P-324 and P-406 as Designer of Record for Geotechnical Engineering and other specialty disciplines. Design of these projects will be completed shortly and the projects will be awarded for construction.

During the design phase for these projects, MNDPI Pacific JV conducted design charrettes and stakeholder meetings, performed site investigations, and is completing the construction package for construction contract award for each project consisting of full project drawings, specifications, basis of designs, and detailed cost estimates. Therefore, they possess the requisite knowledge and experience to continue providing design and engineering services and PCAS for these projects. 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 Estimated Duplication of Costs

P-324 Combat Logistics Regiment Headquarters, MCB Camp Blaz, Finegayan, Guam

P-325 General Support Combat Logistics Maintenance Facility, MCB Camp Blaz, Finegayan, Guam

P-870 Engineering and Brigade Complex, MCB Camp Blaz, Finegayan, Guam

P-406 Recreation Center, MCB Camp Blaz, Finegayan, Guam

P-760 Training Center, MCB Camp Blaz, Finegayan, Guam $

P-676 Design: MNDPI Pacific JV performed design and engineering for Preliminary Design Authority (PDA) services for this project, which included development of a budget-ready design concept consisting of design plans and multi-discipline engineering to a 15% design level and preparation of the Region/FEC DD1391. FDA was issued for this project and MNDPI Pacific JV was awarded a task order under this contract to conduct a design charrette and to develop a 50% design package consisting of design plans, specifications, basis of design, and cost estimate for P-676. The task order also included an Option for continuation of the design from 50% to Final Design for construction solicitation. The task order Option is planned for award in the

. MNDPI Pacific JV has requisite knowledge and experience to continue the design and engineering to complete the preparation of the DBB RFP package (50% design to Final design) and perform PCAS. 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 design, site conditions, requirements, and stakeholders of the projects, and potentially performing some of the Engineering Studies and design again. Professional standards of care for Architects and Engineers would require the new A-E to assume responsibility of the already completed design work or perform redesign. For professional liability purposes before conducting any new design work, the new A-E would need to conduct additional stakeholder meetings to verify requirements, coordinate and perform field effort, possibly perform some of the Engineering Studies again, conduct research and develop calculations to verify the findings of the Engineering Studies, develop or validate the design in progress, conduct a charrette to coordinate the findings of any Engineering Studies that are performed again, and review the progress design. The applicable increase in design cost due to duplicative effort is estimated to be approximately % of the effort required for PDA and the % design development resulting in an amount of approximately $ . The increase in design time to re-perform or validate the Engineering Studies that were conducted, and hold additional meetings and a charrette is estimated to be approximately 4 to 6 months. The duplicative costs are not expected to be recovered through competition.

Conducting a limited competition would not be a viable option due to the required time for such an acquisition (approximately 3 to 5 months), coupled with the fact that conducting such a competition would undermine NAVFAC Pacific’s ability to timely award the A-E services contract, which would introduce multiple transitions during a period of high stress for United States forces within the cognizance of NAVFAC Pacific. There is a solicitation for a competitive follow-on contract with an anticipated award date in , 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 POSSIBLE. 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 J&A 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 second of four available, successive one-year option periods.

8. ACTIONS TO REMOVE BARRIERS TO FUTURE COMPETITION. Efforts are in place to procure a new A-E Structural and Waterfront IDIQ contract. 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.