JA_CLEANVICapacityIncrease_20240516_Final__Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND PACIFIC

258 MAKALAPA DR STE 100

JBPHH HI 96860-3134

J&A No. 24-019

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Department of the Navy, Naval Facilities Engineering Systems Command, Pacific (NAVFAC PAC), Joint Base Pearl Harbor-Hickam, Hawaii (JBPHH).

2. Description of the Action Being Approved.

Request approval to modify Contract number N62742-23-D-1802 to increase the contract ceiling by $98 Million (M), from $239M to $337M. The subject contract is a Cost-Plus-Fixed Fee (CPFF) Indefinite Delivery Indefinite Quantity (IDIQ) contract for Architect-Engineering (A-E) services Comprehensive Long-Term Environmental Action - Navy (CLEAN VI) including Navy and Marine Corps activities within the NAVFAC PAC Area of Responsibility (AOR). The contract (hereafter referred to as “CLEAN VI”) was awarded to AECOM Technical Services, Inc. on 30 January 2023 with a contract ceiling of $239M and a period of performance consisting of a 12-month base period and four (4) 12-month option periods. The contract is currently in Option year 1 (30 January 2024 – 29 January 2025).

The contract amount obligated to date is . This capacity increase is necessary as the estimated remaining contract capacity of is insufficient to support the projected Environmental Restoration, Navy (ERN) projects as well as the Navy Closure Task Force – Red Hill (NCTF-RH) projects, which were not accounted for while originally soliciting this contract.

Without the increased capacity, the ERN and NCTF-RH programs will not have the contract capacity to execute projects through the remaining period of performance of CLEAN VI.

3. Description of Supplies/Services.

The contract scope is for environmental technical and engineering services in support of the Navy’s Environmental Program at activities under the cognizance of the Naval Facilities Engineering Systems Command Pacific (NAVFAC Pacific), focusing primarily on Environmental Restoration (ER) projects performed under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). Services consist of technical and engineering services, field investigation services, and laboratory testing and related services to perform work for all stages of the CERCLA process and prepare site closeout documentation.

Services may also include all investigation stages in support of the Munitions Response (MR) Program consistent with CERCLA, all in accordance with DoD explosive safety regulations.

MR Program investigation services may include methodologies for Military Munitions and Munitions of Explosive Concern (MEC) detection, clearance, removal and safety, including preparation of Explosive Safety Submittals (ESS). In addition, the Contractor may be tasked to provide environmental technical and engineering services to support various other programs such as Underground Storage Tank (UST), Subsurface Oil Recovery, Asbestos Abatement, Resource Conservation and Recovery Act (RCRA), and National Environmental Policy Act (NEPA).

The capacity demand for CLEAN VI was underestimated due to unforeseen follow-on services required by 1) the increased program requirements to address per-and polyfluoroalkyl (PFAS), and 2) NCTF-RH for projects related to the monitoring and closure of the Red Hill Bulk Fuel Storage Facility (RHBFSF), stemming from the release event from November 2021. Based on the increase in the ERN and NCTF-RH fiscal year (FY) 2024 contracted amounts and the foreseeable FY25 projects, the CLEAN VI contract is anticipated to run out of capacity by the end of FY25. The total estimated cost for the upcoming contract actions through FY25 is as summarized below:

Estimated Remaining Projects

FY24 – 25

Estimated

Requirements NAVFAC PAC AOR ERN Projects NAVFAC Hawaii NAVFAC Marianas NAVFAC Northwest NAVFAC Southwest

Total

Red Hill Monitoring and Closure Efforts Extended Retention of Drinking Water and Environmental Samples for Red Hill Bulk Fuel Storage Facility Red Hill Site Assessment Planning and Tank Closure Support Environmental Services and Testing in Support of 2023 Administrative Consent Order for Red Hill Bulk Fuel Storage Facility Environmental Data Management Services for Red Hill Drinking Water Adit 3 Pilot Studies/Extraction Additional Hold Tank Investigation Air Monitoring for Defueling Operations Extended Drinking Water Monitoring Plan

Total

Combined Total

The pending actions will require an increase of $98,000,000 to the contract not to exceed amount.

Contract Not to Exceed Amount $239,000,000 Contract Awarded Amount to Date Estimated Pending FY24 and FY25 Requirements Estimated Remaining Capacity ($98,000,000)

4. Statutory Authority Permitting Other than Full and Open Competition.

10 U.S.C. 3204(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements, as implemented by Federal Acquisition Regulation (FAR) 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority.

Follow-On Modifications to Existing Task Orders:

The statutory authority of 10 U.S.C. 3204(a)(1), only one responsible source and no other supplies or services will satisfy agency requirements, applies to follow-on modifications to task orders because it involves the continued provision of highly specialized services by the current contractor, and it is likely that award to another source would result in substantial duplication of cost to the Government and unacceptable delays in fulfilling the agency’s requirements as provided by 10 U.S.C. 3204(b)(B) as implemented by FAR 6.302-1(a)(2)(iii) as described below.

NAVFAC PAC AOR FY24-25 ERN Projects.

Modification actions are identified supporting the ER Program and meeting and fulfilling the statutory obligations mandated under CERCLA where restoration efforts have already occurred but will need follow-on services requiring continued provision of highly specialized services.

The follow-on services are to address scope changes associated with uncertainties in the cost type contract actions and/or regulatory changes/reviews. These regulatory time constraints drive the Government’s restoration efforts. Work must be conducted promptly and continue uninterrupted as any delays could potentially subject the Navy to additional costs and significant fines and/or penalties for non-compliance with its obligations under CERCLA. Examples of fines and/or penalties associated with this effort if delayed are monetary fines up to the amount of $10,000 per week for not meeting either the schedule or the objectives required by CERCLA.

For Hawaii alone, there has been increasing advocacy from local organizations, regulators, as well as the Hawaii’s Congressional Delegation to vocalize that the Navy must prioritize addressing remediation of PFAS in Hawaii. Currently, CERCLA is the only applicable environmental regulation to address the potential impact of PFAS to human health and the environment. As such, the ER Program, which performs the Navy’s efforts under CERCLA regulatory framework, has moved to accelerate the investigation of PFAS at several areas including Red Hill. The need to accelerate several of these sites to address potential impact to human health and the environment has reduced the remaining available contract capacity on a more advanced schedule than anticipated.

In addition to possible fines and/or penalties for noncompliance under CERCLA, awarding follow-on work to another contractor would result in a substantial duplication of costs, particularly in the areas of administration, planning, and mobilization and demobilization, as well as rework required for another contractor to become familiar with efforts already completed by the current CLEAN VI contractor. Awarding to another contractor would result in unacceptable delays in meeting statutory requirements for the Restoration Program, which would be unacceptable to regulatory agencies.

Red Hill Monitoring and Closure Projects.

There are existing task orders supporting the Red Hill monitoring and closure efforts that require follow-on and uninterrupted services which are needed to support environmental monitoring and remediation related to the Red Hill fuel release. The scope of the actions are discussed in constant communication between relevant Regulatory Agencies, and are largely unknown until they are finalized, at which point implementation is needed immediately. Increased capacity is critically needed to ensure readiness to respond promptly and efficiently to the evolving demands of the contract and regulatory landscape.

Contract efforts include, but are not limited to, providing drinking water long term monitoring (LTM) services that include drinking water sampling, analytical laboratory services, data validation and data evaluation, investigation on the extent of contamination and potential impacts to the subsurface, and expanding/updating/supporting the Environmental Database Management System (EDMS). These services are necessary to assist the Navy in making well-informed, science-based, and risk-based decisions to meet regulatory requirements, improve consumer confidence, and alleviate concerns of the Stakeholders.

The impact of non-action or not awarding the Red Hill projects under the CLEAN contract are severe. The 2015 Administrative Order on Consent (AOC) and 2023 Administrative Consent Order (ACO) are binding agreements entered into by the Navy and the EPA. In the event that the Navy fails to comply with any requirement, the EPA may assess stipulated penalties and pursue litigation against the Navy. Per the 2023 ACO, the EPA may assess a stipulated penalty against the Navy, in an amount not to exceed $5,000 for the first week (or part thereof) and $10,000 for each additional week (or part thereof) for failure to comply with any requirement, including completion of any work in the 2023 Consent order, and/or within the specified time schedules approved under the 2023 ACO.

The contractor has the resources and technical expertise to operate under the levels of public and regulatory scrutiny leveled at the Navy since the release. Awarding follow-on services for this response effort to another contractor would not be practical or reasonable as there is a steep learning curve on a multitude of issues for the project and new requirements are constantly identified for immediate implementation. Particularly, the loss of corporate knowledge of the complex hydrogeological conditions and the multitude of details of the work done to date will contribute to the duplication of cost and unacceptable delay. The time to phase-in the forthcoming contract and provide a fully executed task order is approximately .

Without the increased capacity and the overlap this provides to utilize the current contract, the task order execution timeline results in unacceptable delays to the FY24-FY25 projected requirements.

Additional Task Orders:

The statutory authority of 10 U.S.C. 3204(a)(1), and FAR 6.302-1(a)(2)(iii), only one responsible source and no other supplies or services will satisfy agency requirements, also applies to the additional task orders planned for award. The scope of task orders will be within scope of the current CLEAN contract to provide follow-on services for ERN Program, and there is no other environmental contract available to provide highly specialized environmental services required for these new requirements. The acquisition process is underway for re-procuring a follow-on CLEAN contract; however, based on current plan of action milestones indicate that a new CLEAN contract will not be awarded until . Waiting for the new CLEAN contract award through competition would result in unacceptable delay in awarding new requirements, which would result in potential failure meeting the agency’s environmental remediation requirements.

The actions taken by the Navy that are awarded under the CLEAN contract, specifically those that support remediation, modeling, and monitoring are necessary to protect public health to ensure that the air and water quality meet State and Federal standards, that the fuel release is properly remediated, and that the environment is adequately monitored to provide the public with transparent results of what the Navy is actively doing. Without the capability to fulfill contract requirements, the government puts a risk on human health due to the amount of housing and school areas within the AOR.

In addition to regulatory requirements, the Navy is under extreme public scrutiny to remediate the environment, and to clean and close the facility in a safe, deliberate, engaged, and committed manner. The public opinion regarding the Navy’s efforts at Red Hill heavily influences Regulatory Agencies, who then impose previously unforeseen requirements on the Navy.

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

Naval Facilities Engineering Systems Command, 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 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 contract has ceiling rates to negotiate labor cost and indirect costs and sufficient historical data available for similar services. Technical experts are available to review the level of effort submitted and the contract is subject to auditing, reducing the risk of overpayment by the government for services rendered

8. Actions to Remove Barriers to Future Competition.

Efforts are in place to re-procure a new CLEAN contract. The new contract is planned for award in The replacement contract will be procured using full and open competition methods at a value intended to ensure that all known requirements would fit within the dollar limits established at the time of award.

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 Cognizance:

Signature Name (Printed) Phone No. Date

Requirements Cognizance:

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.

ASSISTANT COMMANDER FOR CONTRACTING APPROVAL

Upon the basis of the above justification, I hereby approve, as Assistant Commander for Contracting, 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. 3204(a)(1).