JA - Increase IDIQ Capacity Opt 3 17-D-2464 (approved 4.23.21).pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND, HAWAII

400 MARSHALL ROAD

JBPHH, HAWAII 96860-3139

IN REPLY REFER TO:

J&A No. 21-09

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN

COMPETITION

1. Contracting Activity.

Naval Facilities Engineering Command, Hawaii (NAVFAC HI), JBPHH, Hawaii.

2. Description of the Action Being Approved.

a. Contract No. N62478-17-D-2464 A/C EQUIPMENT AND DIRECT DIGITAL

CONTROL (DDC) SYSTEMS MAINTENANCE AND REPAIR SERVICES, VARIOUS

LOCATIONS, OAHU, HAWAII was awarded to Dawson Solutions, LLC (Dawson), as a competitively awarded procurement, on 14 September 2017. The contract is to provide maintenance and repair on air conditioning equipment and direct digital control (DDC) systems by means of a combination firm-fixed price (FFP) and indefinite delivery-indefinite quantity (IDIQ) contract for 12 months. The period of performance included one base period and four one-year option periods. The contract is currently in the 3rd Option Period which is from 5 October 2020 to 4 October 2021.

b. This action is to increase the non-recurring not-to-exceed amount as follows:

Increase Amount From: To:

CLIN 0008 Option 3 $700,000.00 $275,210.00 $975,210.00

This action will increase the cumulative contract price by $700,000.00 or approximately 5.9% from $11,867,079.42 to $12,567,079.42.

3. Description of Supplies/Services

During the current performance period, several A/C units have experienced operational failure due to miscellaneous parts becoming inoperable. Dawson must perform repairs as inoperable units provide unworkable conditions within each building. The current IDIQ capacity is insufficient to complete the required repairs. The following is a list of repairs that are currently pending approval of funds and are beyond the current option period not-to-exceed capacity:

(a) Bldg. 352, Rooms 405E and 405C, demo out existing AHU in the women’s bathroom and replace with a new 6-ton unit

(b) Bldg. 352/400/401, Makalapa, DDC Integration to Smart Grid

(c) Bldg. 401, Makalapa, provide and set-up a 200-ton air-cooled temporary chiller as a backup chiller in the event Chiller #1 fails to provide cooling while the chilled water pump for Chiller #2 at Bldg. 401, Makalapa is being repaired

(d) Bldg. 1101, JBPHH, replace the Cooling Tower #2 fan motor and replace with a new factory motor of the same capacity

(e) Bldg. 520, NCTAMS, repair corrosion on air cooled condensing units (ACCU) and cooling tower piping

(f) Bldg. 662, JBPHH, Compressor A1 and Compressor A2 replacement in the Ground

Chiller

(g) Bldg. 352, Makalapa, repair a corroded condenser water piping for Cooling Tower

#3/Chiller #3

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

The statutory authority permitting other than full and open competition is 10 U.S.C. Section 2304(c)(1), as implemented by FAR 6.302-1. FAR 6.302-1 permits contracting without providing for full and open competition in situations where services are deemed to be available only from the original source for the continued provision of highly specialized services where it is likely that award to any other source would result in 1) substantial duplication of cost not expected to be recovered through competition, or 2) unacceptable delays in fulfilling the agency’s requirements. In addition, 10 U.S.C. Section 2304(c)(2), as implemented by FAR 6.302-2, permits contracting without providing for full and open competition in situations where 1) an unusual and compelling urgency precluded full and open competition, and 2) delay in award of a contract would result in serious injury, financial or other, to the Government.

5. Rationale Justifying Use of Cited Authority

a. The current contract includes recurring and non-recurring work. The recurring or firm-fixed price portion of the contract includes service orders, emergency service orders, urgent service orders and routine service orders; which all have a limited liability threshold of 32 labor hours and $1,000.00 material cost. The contractor notifies the Contracting Officer if the service order will exceed the above liability limit. The Contracting Officer may then issue a non-recurring task order to complete the repair. The Government will incur substantial duplication of cost to solicit for another contractor to complete service orders above the limited liability threshold; these costs are not expected to be recovered through competition.

b. There has been an overall increase in required repairs to various A/C units and DDC systems.

The volume of required repairs over a performance period can be volatile; therefore, it can be difficult to predict when an A/C unit or DDC system will become inoperable. The Contractor is fully mobilized, has a current working knowledge of all A/C and DDC system conditions, and has performed satisfactorily. The Contractor is thoroughly familiar with the building locations, understands all contract requirements, and will provide continuity of services at a reasonable cost to the Government. Additional capacity is required to reduce/avoid the following negative impacts resulting from not having operable A/C units and DDC systems.

(a) Reduced government business efficiency.

(b) Inability to meet mission objectives.

(c) Possible increase in safety and health risks.

c. It would be impractical for a new A/C and DDC system maintenance contractor to mobilize and perform only a portion of the IDIQ orders. The contractor may have work in the same area as the incumbent contractor or on units maintained by the incumbent contractor, which may pose a liability issue. The contractor would be required to provide all submittals (e.g., insurance, safety plan, work plan, etc.). The minimum guarantee is under the FFP portion of the contract and the Government cannot guarantee any work will be ordered under the increased capacity.

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

For the reasons stated in Paragraph 5, no effort was made to solicit offers from other sources.

The requirements fall within the scope of work. It would not be in the best interest of the Government and taxpayers to resolicit for services already covered in the current contract.

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 based on historical costs.

8. Action to Remove Barriers to Future Competition.

None. The current recurring/non-recurring HVAC contract will expire on 4 October 2022.

CERTIFICATIONS AND APPROVALS

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.

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Signature Name (Printed) Phone No. Date

CONTRACTING OFFICER CERTIFICATION

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

Signature Name (Printed) Phone No. Date

APPROVING OFFICIAL (NFAS 6.304)

Upon the basis of the above justification, I hereby approve, as warranted contracting officer acting within the limits of my delegated authority, the solicitation of the proposed procurement described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. Section 2304(c)(1) and 10 U.S.C. Section 2304(c)(2).

Signature Name (Printed) Phone No. Date jennifer.m.hue Typewritten Text Jennifer Hue (808) 471-3199 23 Apr 2021