JA for Sector A -WSP-Ceiling Increase Final 11 June 2024 signed__Redacted.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

41 U.S.C. 3304(a)(7)

J&A Control No.: 24-167

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.3 and in accordance with the requirements of FAR 6.303-1, the justification for the use of the statutory authority under FAR Subpart 6.3 is justified by the following facts and rationale required under FAR 6.303-2 as follows:

1. Agency and Contracting Activity.

The Department of Homeland Security, Federal Emergency Management Agency (FEMA), Office of the Chief Component Procurement Officer (OCCPO) 500 C St. SW, Washington DC 20472, henceforth referred to as “FEMA”, proposes to modify an existing contract 70FA6020D00000003 on a basis of other than full and open competition.

2. Nature and/or Description of the Action being Approved.

FEMA proposes to issue a modification to single award Indefinite Delivery/Indefinite Quantity (IDIQ) Contract 70FA6020D00000003 to increase the maximum amount by $34,896,731 from $65,000,000 to $99,896,731 for Sector A (see Section 2(d) for details). This is one of three geographic sectors to provide Hazard Mitigation Technical Assistance Program (HMTAP) support services nationwide on behalf of FEMA’s Resilience Office.

Sector A includes all required HMTAP support services for FEMA Regions 8 through 10, and FEMA HQ Office of Environmental and Historic Preservation (OEHP) and Risk Management Directorate (RMD), as set forth in task orders. No increase to the maximum amount for the IDIQ Contracts issued for the other Sectors is anticipated at this time.

(a) Nature of action:

FEMA proposes to modify IDIQ Contract 70FA6020D00000003 for Sector A to increase the maximum amount by $34,896,731 [see table 2(d)] due to unforeseen increases in the magnitude of work for this sector. This increase is needed due to a significant increase in the magnitude of requested grant sub-application review support services for HMTAP as discussed herein. The increase reflects the Government’s minimum need for continuity of the required services until the competitive follow-on for all three incumbent HMTAP contracts are in-place for all three sectors which is anticipated by

When the IDIQs were procured it was essential that all three HMTAP Sectors, A through C, be sought under a single solicitation since Offerors were precluded from the award of more than one sector pursuant to FAR 6.202(a)(4) and (5) to ensure the continuous availability of a reliable source of supplies or services and to satisfy projected needs based on a history of high demand. A D&F was approved by FEMA’s Head of Contracting Activity (HCA) permitting this limitation on April 20, 2020. As such, FEMA has single award IDIQ contracts in-place for the required HMTAP services with three different contractors. All three HMTAP contracts have an ordering period of performance through September 30, 2025.

The contractors for all three Sectors have developed efficient and effective partnerships with the numerous stakeholders at the Federal, state, tribal and territorial levels for their assigned sector since the IDIQ contracts were awarded on September 30, 2020. The need for HMTAP support, particularly in the Western states and Pacific islands has increased the volume of work for the Sector A contractor.

As such it would not be in the Government’s best interest to reprocure all three sectors with only a little more than 12 months remaining in the 60-month IDIQ Contract ordering period (inclusive of options). Rather, the Government seeks to simply increase the ceiling on the Sector A IDIQ Contract.

Further, the program office needs to continue to monitor the HMTAP workload for each sector during the remainder of the 2024 hurricane season to identify trends in the volume of work to obtain the necessary data to realign the three geographic sectors for a more even distribution of work for the planned competitive follow-on.

(b) Name and address of the contractor.

WSP USA Environment Infrastructure Inc. (WSP) 751 Arbor Way Suite180 Blue Bell PA 194221972

(c) Contract type (Example: Firm Fixed Price).

The IDIQ Contract permits task orders to be issued on Cost-Plus Fixed Fee (CPFF) and Firm Fixed Price (FFP) bases, as approved by the HCA via a D&F for other than FFP contract type.

(d) Estimated total value (including options). Provide breakdown as shown below:

The total estimated increase (inclusive of options) is $34,896,731 as summarized below: This will increase the maximum amount of the IDIQ Contract from $65,000,000 to $99,896,731 as follows:

The sector approach allows HMTAP to improve upon its success by streamlining the process to satisfy projected needs based on a history of high demand for support during declared disasters. The number of declared disasters is trending upward. The National Oceanic and Atmospheric Administration (NOAA) listed 2010-2019 as “a landmark decade of U.S. billion-dollar weather and climate disasters.”

Task orders can be expedited by negotiating with a single contractor covering the sector impacted by the disaster. Other advantages of the sector approach include the following:

• The contractor will not be overburdened supporting multi-disaster events in more than one sector and build synergic relationships with the FEMA Regions, state, local, tribal, and territorial stakeholders within their sector. Each sector has unique disaster threats and environmental and historical preservation regulations.

• The contractor will be able to focus on providing innovative solutions to accomplish the work within the designated sector.

• The Government reduces the overall risk of program failure as a result of default of any of the contractors.

3. Description of Supplies/Services. Describe the supplies or services to be acquired. Include the purpose the supplies or services are intended to fulfill or the function the supplies or services provide.

This requirement is to provide a range of FEMA hazard mitigation support services for Sector A and includes studies, analyses, technical reviews of Hazard Mitigation Assistance (HMA) grants, environmental technical assistance, and other non-A&E and non-IT technical assistance for FEMA hazard mitigation activities. This modification will enable FEMA to meet the increased volume of work for the subject services until all three sectors are re-procured on a competitive basis under a single solicitation.

4. Identification of Statutory Authority Permitting Other Than Full and Open Competition.

Identify the most applicable statutory authority that will be used to justify other than full and open competition from the seven listed under FAR 6.302.

The statutory authority permitting other than full and open competition is 41 U.S.C.3304(a)(1) implemented by the FAR Subpart 6.302-1 entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Identification of Exception to the Buy American Statute (Section is required to be completed when the J&A includes the exception listed under FAR 25.103(b)(2) or FAR 25.202(a)(2)). Identify the nonavailability exception listed under FAR 25.103(b) or FAR 25.202(a)(2).

N/A

6. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited. This paragraph is one of the most important parts of the J&A and should clearly identify why the proposed action must be accomplished through other than full and open competition. Provide a well-reasoned, detailed discussion of the issue that will make it clear to someone who is unfamiliar with your organization or your requirement why full and open competition cannot be used for this procurement. The following information must be included:

(a) Rationale for using the authority cited in section 4 of the J&A;

WSP is the only known source with the required experience and specialized expertise for Sector A without any transition-in or ramp-up period. As discussed above the Sector B and C contractors were restricted from Sector A pursuant to FAR 6.202(a)(4) and (5) during the initial IDIQ Contract procurement, and they continue to provide services for their respective Sectors. Sector A includes:

FEMA Region VIII: Colorado, Montana, North Dakota, South Dakota, Utah, Wyoming;

Region IX: Arizona, California, Hawaii, Nevada, Pacific Islands;

Region X: Alaska, Idaho, Oregon, Washington.

Sector A also supports the Office of Environmental and Historic Preservation (OEHP) and Risk Management Directorate (RMD).

In addition, new mandates were placed on HMTAP since initial contract awards which resulted in a substantial higher spend rate under these contracts.

On November 15, 2021, the President signed the $1.2 trillion infrastructure bill to tackle climate crisis and strengthen resilience across the nation. The infrastructure bill provided FEMA with $6.8 billion to further the Agency’s resilience efforts through the Flood Mitigation Assistance (FMA) grant program, Building Resilient Infrastructure and Communities (BRIC) grant program, Dam Safety grant programs, the STORM Act establishing FEMA’s first revolving loan program, and Cyber Security grant programs.

All HMTAP Sectors were impacted by the surge of grant application reviews. Each of the Sectors have received multi-million-dollar task orders in their respective Sectors as a result of the BRIC program funding, which was greatly and unexpectedly increased by Congress in 2021. Each Sector has experienced an increased volume of work resulting in increased ceiling amounts for each and then again for Sector B in 2022. Now Sector A has experienced a continuous need for disaster support in regions 9 & 10. This is the primary driver of this increase.

A large share of Sector A’s work comes from grant application review work in FEMA Regions 9 &

10. The two regions account for 86% of all funds awarded to Sector A Task Orders thus far. In addition, since this award has been in effect, FEMA Regions 8, 9, and 10 which are covered under this Contract have experienced 150 declared disasters totaling over a billion mitigation dollars from FY 21 through the current date (see Table below).

While it is not possible to predict the number or size of disasters that may occur in the remainder of 2024 or 2025, we do know that on average the Sector A Regions experience an average of 45 declared disasters in the past 4 years with a total value of over $1 Billon. The widely publicized the need to increase the maximum amount for Sector A include the following:

The Bipartisan Infrastructure Law (BIL)/Infrastructure Investment and Jobs Act (IIJA) was signed into law in November 2021, providing $1.2 trillion to tackle climate crisis and strengthen resilience across the nation. For FEMA, BIL provides $6.8 billion to further the agency’s resilience efforts through the Flood Mitigation Assistance (FMA) grant program.

The Building Resilient Infrastructure and Communities (BRIC) grant program, which will support states, local communities, tribes, and territories as they undertake hazard mitigation projects, is for reducing the risks they face from disasters and natural hazards. BRIC is a new FEMA pre-disaster hazard mitigation program that replaces the existing Pre-Disaster Mitigation (PDM) program. Within the last year, more than $3 Billion in funding was directed by the Federal Government specifically for the BRIC Program, and Flood Mitigation Assistance Program. A large portion of the funding increase is due to the bipartisan infrastructure law, which is infusing $900 million into the two HMA programs which includes $700 million for FMA and $200 million for BRIC. The rest will come from FEMA’s Disaster Relief Fund.

The Dam Safety Grant program, which focuses on High Hazard Potential Dam’s (HPPD) grants.

All the above programs are being supported in part by the HMTAP Program. HMTAP contracts are being impacted as funding increases for each of the above programs using HMTAP to fulfill support roles for their efforts.

(c) Summarize alternatives considered and why they will not work; and

The competitive follow-on for all three Sectors is in-progress with planned award(s) in

There are no other alternatives at this time. As is otherwise discussed herein, only one letter of interest (from a source that did not adequately understand the requirement) was received in response to public posting of the Government’s intent and two other contractors are already servicing Sectors B and C.

(d) Impact to the mission that would result if the J&A is not approved and, consequently, the product or service not provided.

FEMA mitigation mission needs, including current and requested disaster relief and program support needs would not be met. Progress would be significantly slowed, and work would fall on an already overburdened workforce that does not have the capacity to meet all the requirements of the HMTAP scope of work.

WSP is currently the only known source in-place with the needed resources and specialized experience that is prepositioned for Sector A including specialized labor to address the unique challenges of this sector. They have established relationships with the local communities and developed a channel of reliable subcontractors to support work in remote areas such as the Pacific islands. The majority of the work done under this sector is a continuation of non-severable work. WSP has acquired valuable experience and established rapport with the various stakeholders who make up Sector A providing the needed support.

(e) Rationale for use of the nonavailability exception to the Buy American statute, including detailed information explaining why the particular articles, materials, or supplies of the class or kind to be acquired, either as end items or components, are not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality (Section is required to be completed when the J&A includes the exception listed under FAR 25.103(b)(2) or FAR 25.202(a)(2)).

This is not a Buy American requirement.

• If using “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency

Requirements” as your authority, also include the following:

The current IDIQ Contract with WSP is the only strategy for fulfilling this current FEMA Mitigation need in a timely manner. The current IDIQ Contract expires in September 2025, and the ongoing competitive follow-on requirement is projected to be awarded in This service gap is too lengthy and risky. This modification will assist in averting a potential lapse in service and will allow for a continuation of existing FEMA hazard mitigation support services within Sector A. WSP is currently HMTAP’s only choice for averting a lapse in service due to the expertise already established on the current IDIQ Contract. Specifically, their ongoing and pending disaster mitigation support in regions 9 & 10, for which they have established the necessary framework and understanding of both state and tribal communities in the affected areas to do the work efficiently and consistently without having a gap in service, which would be detrimental to HMTAP at this time since training and transition time would be needed.

The competitive follow-on requirement (FIMA 1) is in the initial stages of development and is not projected to be solicited until the summer of FY24. Any lapse in services would be detrimental to the life and safety of the grant recipients in Sector A. It is in the best interest to the Federal Government to continue ongoing services with WSP until the new IDIQ Contract is in-place using full and open competition.

As stated above; the sector approach allows HMTAP to improve upon its success by streamlining the process to satisfy projected needs based on a history of high demand for support during declared disasters. The number of declared disasters is trending upward. By utilizing pre-positioned resources, HMTAP will be ready when disasters strike. By having vendors limited to one contract award ensures the continuous availability of reliable hazard mitigation services and satisfies projected needs based on a history of high demand for HMTAP support during Presidentially declared disasters. Limiting each Offeror to one contract award ensures the following: the Contractor(s) will not be overburdened supporting multi-disaster events in more than one Sector; the Contractor(s) will be able to focus on providing innovative solutions to work accomplished within the designated sector; and the Government reduces the overall risk of program failure as a result of default of any of the Contractors(s).

It is not in the best interest of the Federal Government to pursue any other vendor to fulfill this requirement since it would result in a lapse in services, FEMA would not meet congressional mandates, and work would fall to an already overburdened federal workforce that doesn’t have the capacity and expertise to meet all the requirements of the HMTAP scope of work.

WSP is in the unique position in that they have acquired the manpower and institutional knowledge of the FEMA Mitigation community as well as they understand the scope of the HMTAP requirements for Sector A.

There are no possible alternatives to increasing the maximum amount for Sector A. The following options were considered but were not found to be viable:

Solicitation and award of individual task orders via Governmentwide Acquisition Contracts (GWACs), GSA Federal Supply Schedule, or DHS Strategic Source vehicle, would not be an efficient or fiscally responsible use of resources. Regardless of how streamlined such vehicles purport to be, they still require multiple stages of acquisition procedures, which take much more time than an award of a task order through the current IDIQ. This is not feasible due to the integral nature of the work, etc.

This is a sole-source IDIQ. If these needs cannot be met by WSP (the incumbent), there are no other Contractors that can quickly step in and resume work. In addition, WSP has acquired the manpower and institutional knowledge of the FEMA Mitigation community which make it the best option for the Government. In conclusion, it is not in the best interest of the Government to consider making use of alternatives to the current contractor and contract vehicle.

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable. This section should include the following information:

The Government’s intent was posted in SAM.gov on May 13, 2024, for the required 15-days. One (1) letter of interest or capability statement was received. However, after review it was determined that the vendor did not have a sufficient understanding of the HMTAP Program requirements.

8. Determination by the Contracting Officer that the Anticipated Cost to the Government will be

Fair and Reasonable. This paragraph should always begin with a sentence similar to: “The contracting officer determines that the anticipated price(s) will be fair and reasonable based on….”

The section should include information such as commercial pricelists or prior acquisition history that will help the contracting officer determine that the anticipated cost is fair and reasonable (see FAR Subpart 15.4 and HSAM 3015.4 for contract pricing).

The Contracting Officer determines the anticipated cost and pricing will be fair and reasonable based on FAR Part 15 certified cost and price data, and cost details in accordance with FAR 15 Table 15-2.

This includes comparison with the previously approved fixed prices for this contract, the Independent

Government Cost Estimate (IGCE), and the prior acquisition history that has been completed since 2020 and is ongoing under this contract.

9. Description of Market Research. Market research is required by FAR Part 10, and the results of the market research should be summarized here. Include the following information:

(a) Describe the market research techniques utilized, the specific results of the market research, the date when the market research was conducted, and how the market research was used by the contracting officer to determine price reasonableness.

Market research included the notice of intent posted on SAM.gov on May 13, 2024. Pursuant to HSAM 3010.001(b), continuous market research is being obtained and gathered during the performance of the contract and addressed in a determination and findings during the exercise of each option period applicable to the contract.

Task orders have previously been awarded under this existing IDIQ Contract for work with similar levels of complexity and dollar values. The Contracting Officer is in compliance with FAR Part 10, and in particular FAR 10.002. Continuous market research has demonstrated that the marketplace, pricing, and other conditions in the market demonstrate that increasing the ceiling of this contract is most advantageous to the Government given the limited amount of time left with the period of performance and current efforts to begin the recompete process for new IDIQ contracts in 2025. There are no known changes or other factors to modify or otherwise invalidate prior market research results relating to the recompete process for the IDIQ contracts to be awarded in 2025. That market research was completed by June 30, 2023, remains valid for 18 months pursuant to FAR 10.002(a)(1), and is instructive for purposes of this sole source award.

(b) Describe the market research results that support the determination that the items are nonavailable (Section is required to be completed when the J&A includes the exception listed under FAR 25.103(b)(2) or FAR 25.202(a)(2)).

N/A

(c) If market research was not conducted, a reason for its absence must be cited here.

See above.

(d) If patents, copyrights, and/or intellectual property are applicable to the acquisition, describe the circumstances for acquiring a patented or copyrighted product on the representation of the intellectual property holder that has not been licensed for resale.

There are no patents, copyrights, and/or intellectual property involved.

10. Any Other Facts Supporting the Use of Other Than Full and Open Competition. This section presents an opportunity to strengthen the justification by presenting supplemental or supporting information. Do not summarize or duplicate information already stated in previous sections.

This section should include information such as:

(a) An explanation why technical data packages, specifications, statement of work, or purchase descriptions are not suitable for full and open competition.

(b) Discuss why your requirement cannot be modified to enhance competition.

(c) For a proposed contract subject to the restrictions of FAR 6.302-1 for follow-on acquisitions as described in 6.302-1(a)(2)(ii), all Components except USCG must provide an estimate of the cost to the Government that would be duplicated and detailed information on how the estimate was derived. Similarly, for a proposed contract subject to the restrictions of FAR 6.302-1 for follow-on acquisitions as described in 6.302(a)(2)(iii), the USCG must provide an estimate of the cost to the Government that would be duplicated and detailed information on how the estimate was derived.

(d) For a proposed contract subject to the restrictions of FAR 6.302-2(d) or HSAR 3006.302- 270 and where FAR 6.302-2 is cited as the authority, describe the exceptional circumstances allowing for an award for a period of performance in excess of the one-year limitation (applicable to all federal agencies) or the DHS-specific statutory 150-day limitation.

There are no other facts supporting the Use of Other Than Full and Open Competition.

11. A Listing of the Sources, if Any That Expressed, in Writing, an Interest in the Acquisition.

As required by FAR 5.201(b)(1)(ii) and 6.302-1 (d)(2) a synopsis of the Government’s notice of intent to increase the maximum amount of WSP’s contract was posted to SAM.gov for 15 days from May 13, 2024 to May 28, 2024. One letter of interest or capability statement was received. However, after further review, it appears the vendor did not have a sufficient understanding of the HMTAP Program requirements.

12. A Statement of the Actions, if Any, the Agency May Take to Remove or Overcome Any Barriers to Competition Before Any Subsequent Acquisition for Supplies or Services Required. Include a statement of actions taken or that will be taken to increase competition for future acquisitions of the same item/service. Include information such as:

(a) Will the Government revise overly technical specifications, acquire data rights, etc.?

Currently HMTAP is in the beginning stages of recompeting all three IDIQ Contracts under a single solicitation. The Sector B and C Contracts have a sufficient amount of ceiling remaining and it is not anticipated these will require an increase. It is anticipated this competitive procurement will be awarded in By increasing the ceiling of the Sector A IDIQ Contract there will be sufficient capacity to continue to award task orders under the contract while the HMTAP