JA 8(a) MACC Final redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND, HAWAII

400 MARSHALL ROAD

JBPHH, HAWAII 96860-3139

IN REPLY REFER TO:

J&A No. 21-17

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Facilities Engineering Systems Command, Hawaii (NAVFAC Hawaii), Procuring Contracting Officer for Construction, Code ACQ31.

2. Description of the Action Being Approved.

Request approval to increase the not-to-exceed value of the 8(a) Design-Build/Design-Bid-Build Multiple Award Construction Contract (MACC), Various Locations, State of Hawaii for new construction, repair, alteration and related demolition of existing infrastructure within the State of Hawaii by $80,000,000, from $98,000,000 to $178,000,000. The contract expiration date is 7 April 2023 and will remain unchanged. The increased capacity provided by this Justification is expected to be used within one year, consistent with FAR 6.302-2(d).

3. Description of Supplies/Services.

The MACC was competed as a 100% 8(a) set-aside and was awarded to five (5) firms on 8 April 2020 with a capacity of $98,000,000. The MACC has a one (1) year base period and two

(2) twelve-month option periods. The contract completion date is 7 April 2023 and will remain unchanged. It is currently in its first option period with a remaining capacity of .

The contracts are:

N62478-20-D-4008 CCI Utility and Construction Services, LLC N62478-20-D-4009 Dawson Enterprises, LLC

N62478-20-D-4010 GSI North America Inc.

N62478-20-D-4011 International Construction Inc.

N62478-20-D-4012 Silver Mountain Construction, LLC

The total contract value of the 8(a) MACC will be modified to add $80,000,000 and all five (5) contractors will be allowed to compete for new task order work under this MACC upon approval of this Justification and Approval (J&A).

Contract Nos. N62478-20-D-4008 through 4012 provide general construction services for construction projects within North American Industry Classification System Code 236220 within a task order range of $250,000 to $5,000,000.

J&A No. 21-17

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)(2), as implemented by FAR 6.302-2. 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 8(a) MACC is nearing its maximum dollar capacity of $98,000,000 for task order awards in the range of $250,000 to $5,000,000. The first option period of the 8(a) MACC was executed in April 2021. To support the Facilities Engineering & Acquisition Divisions’ multitude of minor construction and repair executions, this MACC has become an important and viable tool and as a result, it is close to capacity while in its first option. At the time of award, this was the only MACC available to NAVFAC Hawaii for task orders within this range. From the time of award in April 2020 through August 2021, NAVFAC Hawaii experienced a heavy spike in unplanned emergent mission-critical work requirements that would have ultimately affected the health, safety and welfare of our military personnel. This unusual spike in work significantly decreased the capacity of the 8(a) MACC within its first year and four months.

With approximately one year and eight months remaining on the 8(a) MACC, the demand for its use has not lessened. Increasing its capacity is critical for the successful completion of life/safety and mission-critical projects that must be awarded in Fiscal Year (FY) 22. Some of these projects include:

The projects above total , which is anticipated to be awarded under the 8(a) MACC.

NAVFAC Hawaii must also retain approximately to allow for unanticipated requirements as well as modifications.

Due to the need for these critical projects to be awarded in FY22, they cannot be solicited and awarded via full and open competition or as 8(a) sole source procurements. Specifically, NAVFAC Hawaii would require a significant amount of time to develop, solicit, and execute each and every one of these projects as stand-alone contract actions. As a result, many of the above-named projects would not be awarded by their FY22 deadline. Thus, NAVFAC Hawaii would be at great risk of losing any authorized funding due to the inability to meet timely execution of these projects and ultimately affect our mission to support our warfighters.

Consistent with FAR 6.302-2, this workload presents such an unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits proposals to those under this MACC.

Finally, this tight FY22 timeline requires the use of existing MACC vehicles since the procurement cycle for stand-alone two-phase design-build construction contracts is between 12 to 18 months. Awarding via stand-alone procedures or waiting for the follow-on MACC to be awarded will jeopardize the FY22 awards and further delay the mission capable to enable supporting the warfighter. The follow-on 8(a) MACC is scheduled to be awarded in , which will not be in time to accommodate the requirements named herein for FY 22. This action will increase the maximum value of this 8(a) MACC to allow award of new task orders in support to carry out our mission critical requirements.

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

The 8(a) MACC was issued on Navy Electronic Commerce Online, limited to qualifying 8(a) firms serviced by the Hawaii District Office (HDO) of the U.S. Small Business Administration (SBA) and those not serviced by the HDO but with a bona fide place of business in the HDO geographical area. The 8(a) MACC ensures sufficient competition for new repair work with five

(5) MACC contractors and the increase in capacity does not create a sole source environment.

For the reasons indicated herein, efforts were not made to solicit these projects from offerors outside the 8(a) MACC, there is insufficient time to meet the FY22 award deadline.

Notably, the previous market survey for this 8(a) MACC indicated that all 8(a) MACC contractors’ prices were priced competitively and each demonstrated a proven track record for successfully completing projects with satisfied customers, therefore no additional market research was conducted because it was done before the original contract was awarded, and similar conditions exist.

Synopsis of the proposed modification will not be published to the SAM.GOV Contract Opportunities website due to applicable exception under FAR 5.202(a)(2). In accordance with FAR 6.305, the approved J&A will be posted on SAM.GOV within thirty days after award of the contract modifications.

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 utilizing FAR Part 15 procedure. To ensure adequate price competition and fair and reasonable pricing on new work, task orders will be competed among all current MACC holders.

8. Actions to Remove Barriers to Future Competition.

NAVFAC Hawaii plans to award a follow-on 8(a) MACC in FY23-Q3 that contractors can compete for.

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.

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.

ECHELON IV CHIEF OF THE CONTRACTING OFFICE CERTIFICATION

ECHELON III CHIEF OF THE CONTRACTING OFFICE CERTIFICATION

ASSISTANT COMMANDER FOR ACQUISITION APPROVAL

Upon the basis of the above justification, I hereby approve the proposed contract modifications described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304 (c)(2).