JA IDIQ Capacity Increase_N3943023D4051_Final_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING AND EXPEDITIONARY WARFARE CENTER

1000 23RD AVENUE

PORT HUENEME CA 93043-4301

IN REPLY REFER TO:

JA-25-0022

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

The contracting activity is Naval Facilities Engineering and Expeditionary Warfare Center (NAVFAC EXWC), Acquisition Operations Team 7 (CON77), Port Hueneme, CA.

2. Description of Action Being Approved.

This Justification and Approval (J&A) authorizes and approves the use of other than full and open competition to increase the capacity by , from to for Contract N39430-23-D-4051, awarded to CH2M Hill / Clark Nexsen Joint Venture (JV). All other terms and conditions of the contract remain unchanged.

3. Description of Supplies/Services.

This Architect-Engineer (A-E) Service Indefinite Delivery Indefinite Quantity (IDIQ) contract has a base ordering period of 60 months from 18 September 2023 to 17 September 2028. The purpose of this contract vehicle is to provide A-E support for the NAVFAC EXWC, Energy security projects and services which include shore facilities and utility systems at various locations worldwide. These services require highly specialized expertise in installation and facility of energy, water, and utility systems, with supporting architectural, mechanical, electrical, civil, structural, and environmental disciplines as it pertains to Department of Defense (DoD) utility systems and energy consuming systems within the naval shore infrastructure.

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

10 U.S.C. § 3204(a)(2), Unusual and Compelling Urgency

5. Rationale Justifying Use of Cited Statutory Authority.

This is currently the only specialized energy IDIQ contract vehicle available to perform energy security design, audits and expert engineering analysis for shore facilities and utility systems worldwide. NAVFAC EXWC uses this contract to provide engineering services to multiple US Navy clients, including NAVFAC HQ and CNIC, as well as other DoD entities, which have added to the cumulative and unforeseen A-E support demand signal.

Historically, NAVFAC EXWC awarded /year for energy efficiency services in FY22.

However, this requirement increased dramatically in FY23 and FY24, with sixteen (16) active task orders currently totaling with a remaining capacity of , which will cover critical end of fiscal year requirements. NAVFAC EXWC has been contacted by various Navy clients to perform similar assessments and studies in coming fiscal years. There are currently twelve (12) critical new project task orders planned to be awarded this fiscal year

FY25, totaling an estimated and an additional in options. The critical new projects support NAVFAC Headquarters, Pacific, Atlantic, Commander Navy Installations Command, Shipyard Infrastructure Optimization Program Washington Navy Yard, Navy Cyber Defense Warfare Defense Group, and Marine Corps Installations Command. This would result in utilization of approximately for this year with three years remaining in the ordering period, leaving a remaining capacity of approximately . The estimated remaining capacity increases risk to task orders, that potentially come in higher than the Government estimated cost estimates and pose great risk to projects not being awarded due to insufficient ceiling capacity.

There is also approximately anticipated in utilization FY26-FY28 for work supporting Marine Corps Installation Command throughout the Far East region. These current, planned and emergent requirements described herein demonstrate a viable need for an increase in ceiling to the amount proposed A significant part of the demand increase was driven by delays that occurred during FY20-FY22 when many operations and programs were put on pause until installations were fully operational. There have also been new global energy focused efforts to become more energy secure, and standardization across Navy installations which require larger scale efforts and coordination between all clients involved. Unanticipated efforts of similar scope and magnitude are expected to continue and even increase for the remainder of this contract through FY28.

The current contractor brings a heightened level of experience and understanding of the background, methods and protocols along with the requisite knowledge, expertise, capabilities, and resources to perform the required services in a consistent and efficient manner without interruption. Introducing a new contractor would not be in the Government’s best interest. This would involve a significant learning curve and result in inefficiencies and the high probability of execution delays, potentially putting the Government at serious risk of not meeting requirements associated with Navy initiatives which may result in profound implications to the national strategy.

This is the only NAVFAC EXWC Energy focused contract available for the performance of these specialized and highly critical services on a worldwide basis. With the high likelihood of a major increase in demand for such services, it is in the Government’s best interest to increase the ordering capacity of the current contract to the levels requested to adequately meet requirements.

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

The AE IDIQ FFP contract was competitively procured through the Selection of Architects and Engineers statute (formerly known as The Brooks Act). As such, only one offeror is selected due to the technical complexity and to award to the best qualified firm. Also, there is a likelihood of substantial duplication of costs if currently active projects cannot be completed by the current contractor, and planned projects cannot be awarded using the current contract.

The proposed contract action will be synopsized on the SAM.gov website and in accordance with FAR Part 5, synopsizing is required to reflect the increased contract dollar capacity as a result of this modification. In accordance with FAR 6.305, the approved Justification and Approval (J&A) will be posted on SAM.gov within fourteen (14) days after award of the contract modification.

7. Determination of Fair and Reasonable Cost.

The rates were evaluated during the award of the basic contract and were determined to be fair and reasonable. The Contracting Officer has determined the anticipated cost to the Government of the services covered by this J&A will be fair and reasonable.

Actions to Remove Barriers to Future Competition.

A follow-on contract is actively being sized and prepared prior to the expiration of this current contract in order to account for the long-term increase in demand from NAVFAC EXWC customers following the completion of this IDIQ. This current contract capacity increase will serve to mitigate a reoccurrence of capacity constraint related issues and the need for future capacity increases while the new contract is being procured.

(Signatures supporting this J&A appear on the following page)

J&A No. JA-25-0022

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.

Program Manager Naval Facilities Engineering and Expeditionary Warfare Center

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Acting Associate Counsel Naval Facilities Engineering and Expeditionary Warfare Center

I certify that the facts and representations for this request for authorization of this Justification are accurate and complete to the best of my knowledge and belief.

Naval Facilities Engineering and Expeditionary Warfare Center

APPROVING OFFICIAL

Upon the basis of the above justification, I hereby approve the proposed procurement described herein using other than full and open competition, pursuant to the authority of 41 U.S.C. 4106(c)(1).

CAPT, United States Navy Commanding Officer Naval Facilities Engineering and Expeditionary Warfare Center