JA_24-18 UNR MACC Increase Capacity FY24 28 MAY 2024 - Redacted.pdf

CUI

J&A No. 24-18

DISTRIBUTION LIST

CONTRACTING OFFICER (CON31)

CONTRACT SPECIALISTS (CON31)

LEGAL COUNSEL

OTHERS WITH A LEGITIMATE NEED TO KNOW AS APPROVED BY

THE CONTRACTING OFFICER

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND, HAWAII

400 MARSHALL ROAD

PEARL HARBOR, HAWAII 96860-3139

N REPLY REFER TO:

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), Hawaii, Construction Contracting (Code CON31), Joint Base Pearl Harbor-Hickam (JBPHH), Hawaii.

2. Description of the Action Being Approved.

NAVFAC Hawaii intends to increase the contract maximum not-to-exceed value of its Design-Build (DB)/Design-Bid-Build (DBB) Unrestricted Multiple Award Construction Contract (MACC) Nos. N62478-20-D- 4001/4002/4003/4004/4005/4006/4007/4013/4014/4015, Various Locations, State of Hawaii, by $61,000,000, from $990,000,000 to $1,051,000,000.

The current amount obligated under this Unrestricted MACC is

The contracts are currently in the third option year expiring 9 June 2024, and there is one additional option year that may be exercised, with a final contract expiration date of 9 June 2025 or a not-to-exceed amount of $990,000,000, whichever occurs first.

3. Description of Supplies/Services.

The FY20 Unrestricted MACC was awarded to the following ten contractors on 10 June 2020 with a base year and four one-year options and a maximum not-to-exceed value of $990,000,000:

N62478-20-D-4001 Aptim-Harper Construction JC, LLC N62478-20-D-4002 B.L. Harbert International, LLC N62478-20-D-4003 Hensel Phelps Construction Co.

N62478-20-D-4004 Kiewit Infrastructure West Co.

N62478-20-D-4005 Mortenson Construction N62478-20-D-4006 RQ-Absher, JV N62478-20-D-4007 Stronghold Engineering, Inc.

N62478-20-D-4013 HHM Laulima Constructors, JV N62478-20-D-4014 Nan, Inc.

N62478-20-D-4015 TNT Constructors

The work under this FY20 Unrestricted MACC includes, but is not limited to, labor, supervision, tools, materials and equipment necessary to perform new construction, repair, alteration and related demolition of existing infrastructure based on DB/DBB requirements for infrastructure within the State of Hawaii.

The minimum and maximum task order limits under the Unrestricted MACC ranges from $15,000,000 to $200,000,000. The proposed increase in capacity of $61,000,000 will be used to award the following time-sensitive, mission-critical fiscal year (FY) 24 projects, which range in value from and have an estimated total value of

Table 1

Projected Actions for the Unrestricted MACC Estimate Award

FY24

FY24

FY24

4. Statutory Authority Permitting Other Than Full and Open Competition

The statutory authority permitting other than full and open competition is Title 10 U.S.C. Section 3204(a)(2), as implemented by FAR 6.302-2 – Unusual and Compelling Urgency. FAR 6.302-2 permits contracting without providing for full and open competition in situations where 1) an unusual and compelling urgency precludes 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.

The requested capacity increase of $61,000,000 to the FY20 Unrestricted MACC is necessary to timely award urgent, mission-critical work, avoiding serious injury to the Government.

The need for additional capacity on the FY20 Unrestricted MACC is not a result of poor planning. Rather, the MACC’s capacity was drastically and unforeseeably depleted within its first two option years, inhibiting the ability to award projects in the MACC’s remaining two option years.

The additional projects in Table 1 require award in FY24 to avoid serious injury to the Government, and the Unrestricted MACC is the only contracting vehicle that will ensure a timely award.

These projects can only be awarded in FY24 as task orders under the FY20 Unrestricted MACC, which typically take within in order to meet critical mission needs. Due to the projects’ estimated dollar values, they cannot be awarded under any of NAVFAC Hawaii’s other MACCs for small business concerns. Further, the projects are inappropriate for award under NAVFAC Hawaii’s only other Unrestricted MACC, as this MACC is for waterfront construction projects. Additionally, competitive standalone contracts are anticipated to take from for each of these projects, which would not meet the mission need, and require significant time and resources to develop, solicit, and execute.

Therefore, timely award of these projects is possible only as task orders under the FY20 Unrestricted MACC.

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

For the reasons herein, it is not practicable to award the anticipated projects as task orders under any other MACC, nor as standalone contracts. Therefore, additional market research was not conducted.

Notably, prior market research conducted before award of the Unrestricted MACC revealed no reasonable expectation of receiving two or more offers from reasonable, responsive 8(a), Historically Underutilized Business Zone (HUBZone), Service-Disabled Veteran-Owned Small Business (SDVOSB), Woman-Owned Small Business (WOSB), or Small Business firms, and the FY20 Unrestricted MACC was competed on a full and open competition basis.

The requested increase in capacity for new projects on the FY20 Unrestricted MACC will ensure sufficient competition among its ten contractors. All ten contractors are large businesses with approved small business subcontracting plans in accordance with FAR 19.7, to maximize small business participation in subcontract performance.

Therefore, adverse impact on small business opportunities, if any, will be minimal.

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.

8. Actions to Remove Barriers to Future Competition.

CERTIFICATIONS AND APPROVAL