JA for ANCSE AE IDIQ 24R2016 APPROVED (1)_Redacted.pdf

JUSTIFICATION REVIEW DOCUMENT

OTHER THAN FULL AND OPEN COMPETITION

PROJECT/EQUIPMENT: Architectural Engineering Services, Arlington National Cemetery Southern Expansion Project at Arlington National Cemetery, Arlington, VA

CONTROL NO: CENAO 24-06

AUTHORITY: 10 U.S.C. 3204(a)(1) AMOUNT: $15,000,000

SIGNATURES ARE REQUIRED BELOW:

I have reviewed this J&A and find the justification adequate to support other than full & open competition.

CENAO 24-06

DEPARTMENT OF THE ARMY

NORFOLK DISTRICT CORPS OF ENGINEERS

FORT NORFOLK

803 FRONT STREET NORFOLK, VIRGINIA 23510-1096

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. CONTRACTING AGENCY:

The U.S. Army Corps of Engineers (USACE) Norfolk District, 803 Front Street, Norfolk, Virginia 23510-1011.

2. DESCRIPTION OF ACTION:

In accordance with Federal Acquisition Regulation (FAR) 6.302-1, Circumstances permitting other than full and open competition, the Norfolk District U.S. Army Corps of Engineers proposes to award, (W91236-24-D-2016) ("the Contract"), a follow-on Firm Fixed Price Architect-Engineer (A/E) Indefinite Delivery/Indefinite Quantity (IDIQ) Contract, on a sole source basis, to HNTB Corporation ("HNTB") in support of the Arlington National Cemetery Southern Expansion Project (ANCSE) Arlington, Virginia.

The Norfolk District intends to establish a seven-year IDIQ contract (five-year base and two, one-year options) with $15M in capacity. HNTB is the Designer of Record (DOR) for the original design of ANCSE. HNTB will not perform work for any other project or program under this specific contract action.

3. DESCRIPTION OF SUPPLIES/SERVICES:

The requiring activity for this contract action is the U.S. Army Corps of Engineers, Norfolk District (CENAO), Programs and Project Management Division, Arlington National Cemetery Branch. The Arlington National Cemetery Branch provides critical support services to Arlington National Cemetery.

The USACE Project Management Team has identified A/E services required to support the program through the remaining design and construction of ANCSE. The scope of work primarily consists of design, acquisition support, program management, and construction phase services. A breakdown of anticipated future task orders is reflected in Table 1 below. The work to be included in the IDIQ consists of multidiscipline design and/or other Architect-Engineer Professional Services as required for design, acquisition, program management, and construction phases services support exclusively for the Arlington National Cemetery Southern Expansion assigned to the Norfolk District, U.S. Army Corps of Engineers, North Atlantic Division.

Based on historical data, $15M is an accurate engineering estimate inclusive of all anticipated A/E services necessary to complete the ANCSE project entirely. The actual price schedule will be negotiated in accordance with the scope of work of the IDIQ, and each task order will be negotiated separately based on pre-established contract rates. Task orders issued will be funded with the Cemetery Expenses, an Army appropriation. The anticipated future task orders are reflected in Table 1 below.

Initially, the magnitude for construction was thought to be 4 The initial acquisition planning did not provide for “additional design services required to support the road realignments” as they were not anticipated during project development leading up to 2014.5 d.”6

The initial planned IDIQ capacity was the “minimum necessary” to achieve the objective(s) of the IDIQ.

The strategy also indicated the need for a contract of sufficient capacity to fully support the project.7 The initial planning considered a five-year base however it was determined there was “…insufficient information was available to provide supporting documentation and approval.”8 At that time, the project's “…conceptual development has yet to be formulated, the final disposition of the real estate aspects of the project remain unknown, and political nature of the required funding to support the continued development of this project are beyond the control of…” the requiring activity.9 A five-year IDIQ with one base year and 4 options was chosen for the reason of “continued excellent performance and the continued political support and funding to maintain forward progress on this project's ultimate development.”10 It was assumed at the onset of the project that 5 years was sufficient for design and construction.

The current IDIQ has neither the requisite time, nor the capacity to award Task Orders needed to complete the remaining ANCSE A/E work. The current remaining capacity W91236-14-D-0035 is of $48,500,000.00 which is insufficient to procure the DOR’s services necessary to complete the ANCSE. Also, task orders issued under the current contract must end within one year of the last date to order 28 July 2024 and there are A/E requirements needed following that date.

b. Project Background:

The ANCSE A/E services requirement has a very protracted planning and design history necessitated by complex project site investigation requirements and a constantly evolving design concept. The advent of the project began during BRAC of 2005 which identified this land to be transferred to the Cemetery following the construction of the Marks Center and demolition of the existing improvements on the site.

The Navy Annex Project’s goal, (also referred to as the Southern Expansion Project), was to “…repurpose land which was formerly the site of administrative and parking areas into a development suitable for inclusion as a part of the National Shrine which is Arlington National Cemetery.”11 At the time the IDIQ procurement was initiated, no development plan existed as ARMY’s planning and engineering efforts to repurpose the land had not begun.12

At the onset, it was assumed that $35M and 5 years was sufficient to complete design and construction. However, over the course of the planning and design, significant changes occurred which expended the scope and increased the execution time for planning, design, and construction. The ANCSE project has expanded greatly since the initial planning stage. The statement of work in support of the first task order, in July 2014, indicated that the total Program Amount was $269M. However, in March of 2019, the Cemetery submitted to Congress its comprehensive plan for Southern Expansion, as required under Public Law 215-144. The working estimate was for planning & design and for construction activities. This represents a 30% increase in the total program as compared to when the initial A/E ordering capacity was

4 Id. at 7.

5 Id. at 7.

6 Id.

7 Id. at 6.

8 Id. at 3.

9 Id. at 4.

10 Id. at 5.

11 Norfolk District (USACE) Contracting Office, Acquisition Plan, Architectural-Engineering Services in Support of The Navy Annex Site Development, Arlington National Cemetery, (2014), at 4.

12 Id. at 5.

established. Shortly after the initial design charrette, the Cemetery decided to relocate the current ANC Operations Complex to the South Parcel to increase contiguous interment space. This change also expanded the administrative space and incorporated the Air Force Memorial into the Cemetery. Along with increasing the administrative area, this modification also included the Air Force Memorial within the Cemetery. Due to the increased operational complexity, this led to a major contract modification in July 2019 that included proposals for how the Air Force Memorial should be best integrated into the Cemetery. The Cemetery then requested the Design team to conduct an investigation to see if the Air Force Memorial (AFM) was eligible for inclusion into the National Register of Historic Places. After the determination was made that the AFM was eligible for inclusion, the Cemetery requested a new geotechnical and landscaping plan to incorporate the AFM and its entrance into the Cemetery. This customer requested change also included planning and design efforts for a new ANC Operations Complex. A modification was executed, in the amount of , to design the new elements through the 35% submittal. The scope related to the 65% and 100% design packages in 2019 was a separate modification to appropriately account for new project elements and necessary changes.

After the 2019 time and capacity extension to W91236-14-D-0035, the first three task orders involved planning and other pre-design activities. The fourth task order, and its related modifications, obligated the 15%, 35%, and 65% design packages and established a priced option for the final 100% design package.

ANC subsequently requested the following: (1) redesign of Patton walk, design changes due to LEED waiver denial; (2) request for a time lapse camera to be installed and managed by the AE; (3) DAR construction Coordination and support; (4) Cost reduction measures and Sheridan Gate removal; (5) to further reduce costs the project was split into two additional phases; (6) a furniture and equipment relocation plan and coordination for the customer; (7) construction bid options development; (8) Sheriden gate historic redesign in Phase III final design. One of the more significant modifications was the splitting of ANCSE into two additional phases, post 100% design. In order to mitigate increasing cost risks associated with the volatile market, post-covid construction, and extended gaps in site turnover of project parcels from predecessor projects, ANC directed the team to split the operations complex and cemetery expansion into two discrete projects. The decision posed significant technical challenges and complexities with phasing the contracts to ensure complete and useable facilities were maintained operational while Phase III is under construction.

Based on the multiplicity of design changes experienced since the award of W91236-14-D-0035, it is reasonable to assume additional design changes are highly likely, as further direction is provided from the Cemetery, additional project constraints are identified, and/or impacts from Phase I and Phase II construction are realized. Additionally, the continuity in the provisioning additional A/E task orders will be necessary until construction is complete to ensure that the design intent satisfying the customer’s requirements are met.

By way of acquisition history, the Contract capacity has been obligated or reserved during the planning and design development phases sequentially, as indicated in the Table 2 below:

for the continued provision of highly specialized services when it is likely that award to any other source would result in--Unacceptable delays in fulfilling the agency's requirements.

The follow-on contract is planned for the continued provision of highly specialized services; the award to any other source would result in unacceptable delays. As the DOR, HNTB developed the design intent for ANCSE and acquired extensive expertise, experience, and knowledge of the site, project requirements, and the design over the last 10 years. HNTB has built and maintained an excellent working relationship with all associated stakeholders and a familiarity with the customer. The DOR’s highly specialized services are a critical component of the project’s success.

The period of performance is based on the forecasted project timelines. As of November 2018, construction for the ANCSE, as a single phase of construction, was expected to run from 2QFY23 through 4QFY25. The current programmatic construction schedule, as of February 2024, based on phasing splits and construction delays, estimates the completion of Phase III in August 2028. Phase I and Phase II construction delays are likely and will impact the start and therefore finish of Phase III. The follow-on IDIQ contract’s ordering period could be set to end at the currently projected construction complete date; however, the team anticipates continued challenges with program phasing and differing site conditions which will have unknown impacts to overall construction duration. Therefore, the ordering period is set at a duration of five years with two, one (1) year option periods to ensure DOR support through the completion of construction.

The capacity requested on the AE IDIQ will primarily be used for construction phase services (CPS) of the ANCSE program. The level of the DORs involvement in the first nine months of Phase II construction identified additional needs beyond the initial CPS scope and informed the assumed capacity of the new IDIQ. The team also considered the lessons learned from the last expansion of Arlington National Cemetery, the Millenium Project, which incurred significant requests for information (RFI) and differing site conditions.

An A/E consultant, unfamiliar with the project, could not readily provide the necessary services.

Experience has shown it is highly improbable that any new consultant would be willing to accept the liability of redesigning a portion of another consultant’s design documents without extensive examination of the site, project requirements and original design documents, which would take six or more months to complete. Thus, utilizing a different firm to complete this project would require (1) substantial procurement time, (2) significant design revalidation time. A competitive procurement pursuit will lead to a disruption of A/E critical services.

The DOR has amassed a tremendous amount of corporate knowledge in the ANCSE project. HNTB’s specialized experience and expertise is required to maintain accountability and ensure that any required redesign consistent with the design intent and effectively consider any opportunities, constraints, and challenges associated with the adjacent and preceding projects. As historically recognized throughout the course of the ANC Millennium Project, and currently experienced on Phase I and Phase II, CENAO anticipates a high degree of engagement by the DOR is necessary to address construction challenges in a timely manner.

Were another firm to take over A/E consultancy for this project, it would present significant and intolerable risks, arising with respect to design quality and schedule that will lead to unacceptable delays that will impact future construction and the completion of ANCSE.

On this basis, the uninterrupted continuation by the DOR’s services is critical to this project’s success.

HNTB is the only responsible source with the highly specialized project knowledge to complete this complex Megaproject’s requirements, in a way that will minimize any impact.

Considering the combination and breadth of the A/E selection criteria specific to this project, the proven performance record, the indispensable project knowledge gained, and government’s investment in these professional services the DOR must be relied upon moving forward. HNTB's continued performance under the proposed follow-on contract constitute a continued provision of highly specialized services in accordance with FAR 6.302-1.

The design and construction of ANCSE is highly technical with substantial political visibility and public interest. Retaining the DOR throughout the duration of construction, with their depth of program knowledge gathered over the last 10 years, is critical to mitigating risks on the project that would stem from a loss of institutional knowledge. Due to the significance of the program to the nation, every action should be taken to minimize unacceptable delays.

The anticipated unacceptable delays that would likely ensue, should this request not be approved, are discussed in the "impact" section below.

d. Impact

ANCSE Phase II was designated as one of North Atlantic Division’s FY24 Mega Projects. As such, it attracts significantly more scrutiny from USACE division and headquarters leadership. The program garners considerable public attention because of substantial impacts on communities and its meaning to the country as the program expands our nation’s most hallowed grounds. The risks, such as cost and time overruns, associated with mega projects are well documented. ANCSE is a project of vast complexity and a large investment commitment. Any disruption of a project of this magnitude would have more significant consequences than a typical construction project.

There are numerous items that would cause significant unacceptable delays, of up to 18 months, if an openly competed new consultant were selected to perform CPS, bidding support, and redesigns for ANCSE. The Norfolk District estimates the delays associated with openly competing a new requirement for this project would be as follows:

1. Based on recent district procurement times for A/E IDIQs, acquisition of a new contract is approximately twelve months. A recompeted solicitation would take eight months, on an aggressive schedule, but more reasonably twelve months.

2. A recompeted contract would require revalidation of the current design by the new A/E. The revalidation is expected to take six months for each phase.

Beyond Phase II active construction delays, the Phase III construction solicitation will likely end in late August 2025, after the current contract’s expiration date in July 2025. Without support by DOR, the government would be unable to respond to bidders’ technical questions regarding the contract documents and the solicitation may need to be cancelled or extended until the time when a new consultant completed their revalidation.

Sheridan Gate will only be a concept design at the expiration of the existing IDIQ. Sheridan Gate is already the critical path to Phase III Acquisition; the final design will be amended into the solicitation. If the final design had to wait to begin until the competed IDIQ was in place, and the new A/E validated the studies, assessments, and concept design, then the delay to Phase III Acquisition would be on the order of 18 months. An 18-month delay to acquisition, equates directly to an 18-month delay in construction, which is a significant impact to ANC’s operations.

ANC has committed to Congress that all of ANCSE will be awarded by FY25, any date beyond FY25 is unacceptable and will have political and financial ramifications. Phase III Construction award must take place by the end of FY25. Thus, DOR solicitation support is critical for program success.

The multi-agency team, comprised of FHWA and their designer, USACE and their designer, and ANC, is currently exploring courses of action (COA) that would help to mitigate impacts of construction delays.

The COAs require resequencing of features of work, additional subphases, and potential redesigns to deconflict touchpoints. If HNTB is not under contract to incorporate the additional subphases and resequencing, Phase III would experience significant delays as outlined above, and ANC would not be able to meet their commitment to Congress of awarding the entirety of ANCSE by the end of FY25.

Additionally, ANC’s primary mission is to inter veteran’s and their families with honor. ANC requires the expansion to continue their mission; at current interment rates, they will run out of space by 2041.

ANC’s operations are already constrained with only a few sections open to new burials; they perform an average of 30 interments per day. Any delay to the opening of the Southern Expansion will have a grave impact on their mission and is unacceptable.

Approval for a sole source follow-on Contract would allow the government to avoid unacceptable delays to the project schedule and cost, as predicted above. Approval for this action would enable USACE to meet ANC requirements, complete this project to the satisfaction of all parties involved and meet commitments made to Congress, while minimizing the cost to the Government.

Beyond the time and financial impact, a re-procurement introduces the possibility that HNTB’s unique resident expertise may not be available upon conclusion of a re-procurement which could result in an uncalculatable impact to the quality and continuity of the project execution. For all these reasons, HNTB is deemed the only source capable of completing the design and performing critical construction phase services.

e. Alternatives

Two alternatives exist to obtain necessary A/E Services: borrowing capacity from another district or a new IDIQ with full and open competition. HNTB has an active contract with the Kansas City District (NWK) for civil works planning and flood risk management. The scope of ANCSE does not fit within the active IDIQ with NWK, and therefore cannot be used for the ongoing needs of ANCSE. The second alternative would be to secure these services through another firm after a lengthy second A/E selection process, which could take an excess of eight to twelve months. The original selection criteria stipulated very highly specialized expertise required to perform the Contract. Not all A/E firms had the knowledge, experience and expertise called for in the original synopsis notice.

The Selection Board evaluated SF330s of the only five prospective firms who rose to the requirement, submitting qualification statements (SF330’s). At that time, HNTB was found to possess the best qualifications for this complex design requirement, as approved by the District Commander. The selection report noted HNTB’s inclusion of an accomplished landscape architect; extensive transportation and site development project experience in the NCR; extensive experience gaining approvals from CFA and NCPC; extensive experience at ANC including supporting the development of the Master Plan and significant cemetery design in general; demonstrated ability and extensive experience analyzing and solving difficult slope stability problems with unstable soils; and presented potential design solutions for the project during its interview, including a 3D model demonstrating a clear understanding of the project issues.

Re-competing the requirement would likely result in re-affirming HNTB as most qualified, in any event since they possess the highly specialized experience given their current corporate knowledge of the ANCSE project including the design plans and specifications place them in a position to provide lower proposal pricing.

There is no method for the Government to transfer or enforce HNTB's professional responsibility and liability for design errors or deficiencies should any arise in performance of this a new contract to another firm. Under the Spearin Doctrine, the drafter of the design specifications assumes the responsibility that the design will work as intended. No other firm can take responsibility for interpreting HNTB's design philosophy unless it undertakes considerable investment to assume such responsibility. It would take countless man-hours and significant cost to have another firm assume professional A/E responsibility and liability.

A/E firm will need to review and validate the existing design to ensure integration of the complex array of requirements needed to provide contiguous Cemetery expansion, including the closely related road realignment project to be completed under the Defense Access Roads program authority.

Potential delays, duplication of costs, and potential risk-of-loss of critical highly specialized expertise arising from a re-procurement to another firm are so substantial that there is no plausible way that the costs would be recovered, or impacts overcome through competition. Without additional time and capacity provided through follow-on Contract for HNTB, USACE will not be able to complete the design on schedule, much less administer the current construction contract. The follow-on Contract the most efficient method of procuring the required service to reasonably mitigate the duplication of costs and losses.

6. EFFORTS TO OBTAIN COMPETITION:

The competitive bidding process is not possible or right for this requirement. As stated in paragraph five

(5) above, HNTB is the only responsible source to complete the remaining work that can provide the most efficient and effective approach for the Government to obtain design and construction support in accordance with the project demands and strict schedule requirements. The prime contractor will be required to submit a subcontracting plan to advance Government’s objectives to support small businesses.

Based upon the information in paragraph 5, competition for this action was not feasible.

9. INTERESTED RESOURCES:

No other viable sources have expressed interest in the requirement to date.

10. OTHER FACTS:

The Contractor will be required to submit a Small Business Subcontracting Plan that will be reviewed prior to issuing the follow-on award.

11. CERTIFICATIONS AND APPROVALS

TECHNICAL CERTIFICATION:

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

REQUIREMENTS CERTIFICATION:

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

LEGAL SUFFICIENCY REVIEW:

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION:

I hereby determine that the anticipated cost and price to the Government under this IDIQ on the W91236- 24-D-2016 Arlington National Cemetery A/E follow-on IDIQ Contract will be fair and reasonable.

Proposed prices will be compared to the independent government estimate that has been developed using historic costs and similar industry pricing to facilitate the evaluation of a fair and reasonable price for each contract action.

Certified cost and pricing data will be obtained when required as none of the exceptions listed in FAR 15.403-1(b) 1-5 apply to this acquisition.

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

APPROVAL

Based on the foregoing justification, I hereby approve follow-on IDIQ contract for, General A/E Services Support of the Arlington National Cemetery Southern Expansion project on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 3204(a)(1), as implemented by FAR 6.302- 1(a)(2)(iii)(B) in the amount of $15M, subject to the availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition, for the period of performance of five years with two, one (1) year option periods.