JA for Other than Full and Open Competition- W9127S20C0008 P00004.pdf

Control Number: DAL-24-0524

Justification Review Document for Other than Full and Open Competition - FAR Part 6

Program/Equipment: Modification to Add Metal Repairs to Contract W9127S20C0008, Wilbur D. Mills Tainter Gate Rehabilitation

Authority: 10 United States Code 3204(a)(1) as implemented in Federal Acquisition Regulation 6.302-1 (a)(2), Only One Responsible Source and no other services will satisfy agency requirements.

Amount: $3,500,000.00

Reviews

I have reviewed this justification and find it adequate to support other than full and open competition.

Prepared by:

Typed Name: _Tv ..... l _er_ M_av ..... s _________ DSN: 501-324-5657

Title: Project Manager

E-mail: john.t.mays@usace.army.mil

Contracting Officer:

Typed Name: Jonathan J. Sawrie

Date Reviewed: 09/05/24

Technical Representative:

Date: 09/05/24

DSN: 501-340-1045

E-Mail: Jonathan.j.sawrie@usace.army.mil

Typed Name: _C _as_ e_y _B_a _k_er _________ DSN: 501-324-5055

Title: Structural Engineer - Operations

Requirements Representative:

Typed Name: Aaron McGee

Title: Operations Project Manager - MKARNS

Date: 09/05/24

DSN: 501-340-1758

Date: 09/05/24

(Source Selection Information - See FAR 2.101 and 3.104-4)

Legal Counsel:

Typed Name: Jennifer Dalton DSN: 501-340-1016 � n Digitallysignedby

S t b 5 2024 u�1n,,,._,, DALTON.JENNIFER.12sa61112a ep em er Signature: _________ oa_Ie_: 2 _024_.o _ s.o_s _os_,2a _,sa_-o_s·o_o·_Date: '

Senior Contracting Official - Dallas Counsel

Typed Name: Ronald J. Goodeyon DSN: (918) 231-2530

R Id J G d Digitally signed by Ronald J Goodeyon

Signature: ona oo eyon oate: 2024.09.1212:s?,26-os·oo· Date: __ 1_2_S_e..._p_te _m_b_ e_r_ 2_0_2_4 ___ _

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION - FAR PART 6

Modification to Add Metal Repairs to Contract W9127S20C0008, Wilbur D. Mills Tainter Gate Rehabilitation

Authority: 10 United States Code 3204(a)(1) as implemented in Federal Acquisition Regulation 6.302-1(a)(2)

Justification and Approval for Other than Full and Open Competition - FAR Part 6

1. CONTRACTING ACTIVITY: U.S. Army Corps of Engineers (USAGE), Little Rock District (CESWL-CTE-C, 700 W Capitol Ave. Little Rock, AR 72203)

2. DESCRIPTION OF ACTION: The proposed action is a Firm Fixed Price (FFP) negotiated modification in the amount of $3,500,000.00 to increase the quantities for metal repairs required on the remaining four Tainter gates, gate numbers 8, 9, 10, and 11 under the current McCormick Industrial Abatement (McCormick) contract, W9127S20C0008. Fiscal Year (FY) 24 Construction General (CG) funding will be used to fund the proposed modification.

3. DESCRIPTION OF SUPPLIES/SERVICES:

a. Background

Contract W9127S20C0008 for the Wilbur D. Mills Tainter Gate Rehabilitation, Pool No. 2, McClellan-Kerr Arkansas River Navigation System (MKARNS), Arkansas County, Arkansas was awarded on a competitive basis to McCormick on 20 September 2020. The contract was comprised of a Base with five Options.

The Base was for the rehabilitation of six Tainter gates, gates 1, 2, 3, 4, 6, and

7. The work required for the rehabilitation included blast cleaning, painting, repair of specific steel components on the gates and performing miscellaneous grinding and welding on the steel components, and anode replacement. Option 1 was for the rehabilitation of four additional gates, Option 2 was for the rehabilitation of two additional gates, Option 3 was for the rehabilitation of two additional gates, Option 4 was for the rehabilitation of one additional gate, and Option 5 was for the replacement of one side seal assembly.

The total value of the contract (Base+ Options) was $11,618,710.00. Option 1 was exercised at time of contract award for the rehabilitation of four additional gates. The total amount obligated for the Base + Option 1 was $8,060,430.00 for a total of 10 gates to be rehabilitated by McCormick. The award was funded with FY20 Construction General (CG) funding.

The original period of performance of the contract was 730 days after Notice to Proceed (NTP). Modification P00001 was executed to issue the NTP on 07 December 2020 and also definitize the completion date as 09 December 2023.

Modification P00002, executed on 13 May 2021, exercised the remaining four Options. This increased the total number of gates to be rehabilitated from 10 to 15, increased the obligated contract amount to $11,618,710.00, and extended the contract completion date to 15 August 2024. Subsequent modifications were executed for other changes and weather delays that ultimately extended the completion date to 22 May 2025.

McCormick's rehabilitation work under the contract could only be completed once necessary structural repairs were completed. At contract award, these structural repairs were planned for completion by the USAGE Little Rock District Operations and Maintenance (O&M) floating plant personnel prior to McCormick's rehabilitation work. In December 2022, other Little Rock District requirements became higher priority, and the floating plant was no longer able to complete the required repairs. Because of this, it was determined to be in the best interest of the Government to have McCormick complete the repair work that the floating plant was originally supposed to complete. The Contracting Officer determined that this change was within the scope of the contract since McCormick was already performing some of the repairs and the rehabilitation work would not be completed unless all of the required repairs were completed.

Modification P00003 was executed on 18 January 2023 to incorporate all of the repairs for gates 9, 10, 11, and 12, increasing the total value of the contract by $1,757547.20, which was roughly a 15% increase from the original total contract value.

To date, McCormick has completed rehabilitation on gates 1, 2, 3, 4, 6, 7 and gates 12, 13, 14, 15, and 16. Gates 1, 2, 3, 4, 6, 7, 15, 16, and a portion of gate 14 structural repairs were completed by the USAGE Little Rock District O&M floating plant before it became unavailable due to the shifting of higher priority requirements in December 2022. At that time, it was believed that there were enough repair quantities on the existing contract for McCormick to perform the required repair efforts on gates 12, 13, and 14, however, it was quickly discovered that gate conditions were worse than anticipated. Additionally, after sand-blasting gates 15 and 16, McCormick found several critical steel members that needed replaced prior to painting, mostly involving rib-to-girder connections and intermediate rib repair. These repairs were missed by the floating plant but were critical to long-term gate integrity. All repair quantities from the existing contract and Modification P00003 were needed to complete repair efforts on gates 12, 13, and 14, 15, and 16.

b. Proposed Modification

CUN

The Little Rock District is seeking approval for a modification that encompasses structural repair increases for gates 8, 9, 10, and 11.

Descriptions of necessary structural repairs are listed in the table below. The proposed contract modification will increase the quantities of the following Contract Line Items (CUNs):

Description Quantity Unit Measure Original Percent Increase: Contract Increase

Proposed CUN to CUNs

Quantities Action

Replace Girder Stiffener 56 Linear Foot 42 33% Plate

Rib to Girder Connection 264 Each 36 633% Repair

Intermediate Rib Repair 408 Each 180 126% (WT8x22.5)

5/16" Fillet Weld Repair 48 Linear Foot 120 40%

Miscellaneous Grindino 48 Linear Foot 120 40%

Strut Arm Flange Repair 12 Linear Foot 40 30%

Strut Arm Web Repair 28 Each 16 75%

4. AUTHORITY CITED: 10 United States Code 3204(a)(1) as implemented in Federal Acquisition Regulation 6.302-1 (a)(2), Only One Responsible Source and no other services will satisfy agency requirements using using the application of FAR 6.302-1 (b).

5. REASON FOR AUTHORITY CITED:. Required metal repairs differ from gate to gate and cannot be quantified until the gates are stop-logged and placed out of service. Typically, a gate is stop-logged and cleared of debris. Once the gate is safe for access, an engineer will make a pre-blast inspection, which can only identify gross damage. From that point, the gate is sand- blasted, and any additional deficiencies are reported to the Government.

The process of identifying necessary repair quantities for all gates is challenging since only two gates can be stop-logged at a time.

At the time of contract award, the plan was for the USAGE Little Rock District

Operations and Maintenance (O&M) floating plant personnel to stop-log the gates, place them out of service, and complete the majority of the structural repairs prior to the start of McCormick's rehabilitation work. McCormick's work under the contract can only be completed once the repairs are completed.

In December 2022, other Little Rock District requirements became higher priority, and the floating plant was no longer able to complete the required repairs. Because of this, it was determined to be in the best interest of the Government to have McCormick complete the repair work that the floating plant was originally supposed to complete. At that time, it was determined that this change was within the scope of the contract because McCormick was required to perform some repair work, and if all the repair work was not performed McCormick could not complete the rehabilitation. That change increased the total value of the contract by $1,757,547.20, which was roughly a 15% increase from the original total contract value. Modification P00003 was issued on 18 January 2023 to incorporate this change for gates 9, 10, 11, and 12.

The immediate modification requirement is to increase repair quantities by the amount listed in section 3.a to complete gate repairs required for full gate rehabilitation for gates 8, 9, 10, and 11. Repair quantities for gates 9, 10, and 11 were increased under Modification P00003; however, the number of necessary repairs were underestimated.

In order to complete a gate inspection, the USACE floating plant has to mobilize to the project site, pull stoplogs from an existing stoplogged gate, install stoplogs on each uninspected gate, and the contractor must set up an elaborate scaffolding system to access the gates bottom, middle, and top pans for visual inspection.

Additionally, not all repairs are known until initial blasting has been completed. The inspection process is time consuming, and it is not feasible to visually inspect all gates at once due to USACE district floating plant priorities and personnel, and contractor personnel and equipment limitations. Gates 8, 9, and 10 have not been visually inspected by USACE personnel, rather Operations Engineering staff conducted a post blast inspection of gates 11 and 12 to better identify likely repairs needed for remaining untouched gates. Additionally, other recently repaired gates unit price CUN quantities were included in the PDT's estimate for anticipated future gate repairs.

This modification is considered out of scope, not due to the nature of the work, but due to the value of the change ($3,500,000.00) in combination with Modification P00003 ($1,757,547.20). Together, these changes increase the value of the original contract by $5,257,547.20, more than 45% of the original contract price.

a. Impact:

The MKARNS averages 12 million tons of commodities shipped annually. Based on prices obtained from Institute for Water Resources and the National Agricultural Statistics Service/USDA, the value of these commodities averages from $2 to $3 billion per year.

Wilbur D. Mills Dam was constructed between 1963 and 1968. Due to high sediment and debris, especially on the lower stretch of the Arkansas River, the Tainter gates must be sand-blasted and painted periodically to maintain their structural integrity.

Due to past funding constraints, regularly scheduled O&M has not always occurred on MKARNS locks and dams. This has exacerbated the need for extensive structural repairs to Tainter gates across the MKARNS system, Mills Dam being a prime example. Mills Dam has not been rehabilitated since the late 1990s.

If the necessary repairs are not made to the Tainter gates, this could cause potential failure to the gate(s) impacting the navigation pool elevation, and potentially shutting down navigation for the entire system. Additionally, catastrophic failure of the dam and its associated Tainter gate(s) could potentially pose a threat to downstream property and potential life loss.

On March 22, 2024, a structural engineer from the Little Rock District Maintenance Engineering Section conducted a pre-blast inspection on gate 11 and a post blast inspection on gate 12. Inspections revealed significant damage to both gates. It was concluded that these repairs, and similar repairs assumed on additional remaining gates, are critical for the stability and longevity of the Tainter gates, and that these repairs should be done in conjunction with the painting efforts. Repair efforts include replacing girder stiffener plates, rib to girder connection repairs, intermediate rib repairs, 5/16" fillet weld repairs, miscellaneous grinding, strut arm flange repairs, and strut are web repairs.

b. Alternatives:

In addition to the course of action proposed via this J&A, the Government has considered other alternatives:

(1) Competitively solicit and award a new contract for necessary repairs.

(2) Terminate existing contract and competitively solicit and award a new contract for metal repairs and remaining rehabilitation efforts.

(3) Allow McCormick to rehabilitate remaining gates (sand-blast and paint only) without including the proposed action.

(4) Partial termination of the rehabilitation of two gates on McCormick's existing contract and utilization of those funds to complete the structural repairs required for two existing gates under the original contract, leaving two gates unrehabilitated.

c. Substantial duplication of cost to the Government and Other Cost Impacts

Alternative 5.d(1),Competitively solicit and award a new contract for necessary repairs, would require the following duplication of costs since these activities have already been performed under the existing contract:

Project, PDT, and PMP formulation:

Plans and Specifications development:

Solicitation of new contract:

Total

$11,065 $154,700 $85,795 $251,560

In addition to the above duplication of costs, this alternative would result in an unreasonable delay to McCormick, potentially up to five years, in which case they would be entitled to delay costs which cannot be feasibly estimated at this time but can be assumed to be exorbitant.

Alternative 5.d(2),Terminate existing contract and competitively solicit and award a new contract for metal repairs and remaining rehabilitation efforts, would include duplication of costs detailed out in alternative 5.d(1) above ($251,560), as well as an unknown negotiated settlement amount to McCormick for contract termination, demobilization, overhead costs, equipment costs, etc.

reducing the overall limited available funds to issue a new contract, consequently reducing or eliminating altogether the amount of repairs that are necessary to keep the gates structural integrity.

Additionally, market conditions have been extremely volatile, resulting in significant increases in the cost of similar gate rehabilitations on the MKARNS.

The rehabilitation efforts for the existing contract, excluding metal repairs, were awarded in 2020 at $696,656 per gate. A similar rehabilitation package for MKARNS Ormond Tainter Gate, awarded in December 2023, with similar design and dimensions as Wilbur D. Mills Dam, was awarded at $1,142,609 per gate, a 165% increase. It is anticipated this inflation would be reflected in a new contract award. The total cost for rehabilitation of four gates under a new contract would equal $4,570,436, plus the $251,560 for plans, specifications, and solicitation/award of a contract: a total of $4,821,996.00.

Alternative 5.d(3), Allow McCormick to rehabilitate remaining gates ,sand-blast and paint only without including the proposed action, would have no immediate duplication of cost; however, allowing McCormick to blast and paint without making necessary structural repairs would have likely ramifications in the future.

Gate failure, with substantial cost and potentially life safety implications is possible. If any gates were to fail in the future, a complete gate replacement would be required. This would almost assuredly happen if rehabilitation efforts are not completed by McCormick under the proposed modification. A complete gate replacement would include duplication of costs outlined in alternative 5.d(1) above ($251,560); however, likely more extensive in nature since this would be a complete re-design, fabrication, delivery, and installation to replace a 61-year-old gate, as well as unknown market conditions creating increased inflation.

A complete gate replacement is estimated to cost $6,289,800 per gate, a 332% increase to current rehabilitation measures, including the necessary structural repairs specified in McCormick's existing contract plus the proposed modification.

Alternative 5.d(4), Partial termination of the rehabilitation of two gates on McCormick's existing contract and utilization of those funds to complete the structural repairs required for two existing gates under the original contract, leaving two gates unrehabilitated, would require a negotiated modification to shift the rehabilitation work to structural repairs and leave two gates unrehabilitated.

The remaining two gates would have to be rehabilitated under a new and separate contract, which would require a budget package submission, receipt of funds, formulation of new plans and specifications, including extensive reviews, and additional acquisition costs for soliciting and awarding the contract. These duplications of the existing contract would cost approximately $251,560 as detailed out in alternative 5.d(1). Because there has already been an approved funding package for rehabilitation of all gates at Mills Dam, there is uncertainty as to whether an additional funding package would be approved in future fiscal years to rehabilitate the two remaining gates.

d. Unacceptable Delays in Filling Agency Requirements

Alternative 5.d(1 ), Suspend work under the existing contract and competitively solicit and award a new contract for necessary repairs, depending on funding assurance, could add an additional 1,970 days to completion of the project.

Anticipate delays are as follows:

Potential Budget Package Submission, receipt of funds:

Project, PDT, and PMP formulation:

Plans and Specifications development:

Solicitation of new contract:

Construction completion:

Existing Contractor remobilization:

1,095 days 90 days 240 days 120 days 365 days 60 days

Additionally, awarding a separate contract for the repair work would require McCormick to demobilize until ALL repair work is completed by the other contractor. There are logistical limitations at the project site that inhibit both contractors to complete work simultaneously.

Alternative 5.d(2),Terminate existing contract and competitively solicit and award a new contract for metal repairs and remaining rehabilitation efforts would mirror anticipated delays detailed in alternative 5.d(1 ).

Alternative 5.d(3), to allow McCormick to rehabilitate remaining gates (sand-blast and paint only) without including the proposed action, would not incur immediate delays. However, this increases the likelihood of catastrophic gate failure(s), at which point any delays become detrimental for reasons described above in "Impacts".

Alternative 5.d(4), Partial termination of the rehabilitation of two gates on McCormick's existing contract and utilizing those funds to complete the structural repairs required for two existing gates under the original contract, leaving two gates unrehabilitated, would leave two Tainter gates in the middle of the dam, where high flows are most prevalent, vulnerable to failure. There is no immediate delay, but the likelihood of catastrophic gate failure is increased, at which point any delays become detrimental for reasons described in "Impacts" above.

6 .. EFFORTS TO OBTAIN COMPETITION: .When utilizing the authority at FAR 6.302-1, the contracting officer shall post a request for information or a sources sought notice and shall include the results of this inquiry in the justification required by FAR 6.303 and PGI 206.302-1. A notice of intent was posted on SAM.gov on June 14, 2024, and closed on July 1, 2024.

7. ACTIONS TO INCREASE COMPETITION: This requirement would normally be competed. There is no necessary action required to increase competition.

Future contracts for Tainter gate rehabilitation will consider these types of repairs.

8. MARKET RESEARCH: Market research was conducted through the notice of intent to sole source to McCormick that was posted on SAM.gov on June 14, 2024, and closed on July 1, 2024, a summary of which is below in Paragraph 9

9. INTERESTED SOURCES: The Government received one response to its notice of intent expressing interest from Royal Bridge, Inc.

Royal Bridge, Inc. 's capability statement detailed five (5) completed projects from 2012 - 2023 that were of similar scope to the work included in W9127S20C0008. Three of the five projects were also similar in size. Even though this contractor is capable to perform the requirement, the Little Rock District's only feasible alternative is to incorporate the repair work into the existing contract with McCormick for the reasons outlined in Section 5 above.

10. OTHER FACTS: Trip Post Blast Inspection Report for Little Rock District Maintenance Engineering Section and Operations Technical Support Branch recommendation is included at Enclosure 1.

(Source Selection Information – See FAR 2.101 and 3.104-4)

Approval

Based on the foregoing justification, I hereby approve the procurement of an increased quantity for metal repairs required on the four remaining Tainter gates, gate numbers 8, 9, 10, and 11 at Wilbur D. Mills Lock and Dam in the amount of $3,500,00.00 under Contract W9127S20C0008 with McCormick Industrial Abatement on an other than full and open competition basis pursuant to the authority of 10 United States Code 3204(a)(1) as implemented in Federal Acquisition Regulation 6.302-1 (a)(2), Only One Responsible Source and no other services will satisfy agency requirements, subject to the availability of funds, and provided that the services and property herein described have otherwise been authorized for this acquisition.

CARRIZALES.R.CQL Digitallysignedby

CARRIZALES.R.COLETTE.1134865349 09/13/2024

Signature: ETTE.1134865349 Date2024 0913135319-07'00' Date: ____________ _

Typed Name: R. Colette Carrizales Title: Alternate Advocate for Competition