JA Rapid Response 20M Capacity Increase W9128F20D0050.pdf

CUI

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN

COMPETITION

Unrestricted Rapid Response SATOC Capacity Increase Omaha District

13 Jan 2022

1. CONTRACTING AGENCY: U.S. Army Corps of Engineers (USACE), Northwestern Division, Omaha District (NWO), Contracting Division, Environmental Branch (CECT-NWO-E), 1616 Capitol Avenue, Omaha, NE 68102.

2. DESCRIPTION OF ACTION: The request is for a contract capacity increase to the existing Rapid Response Unrestricted Single Award Task Order Contract (SATOC), W9128F20D0050, which was competitively awarded to Weston – ER Federal Services, LLC on 26 August 2019. The total capacity increase to the SATOC is $20,000,000 from $80,000,000 to $100,000,000. The modification to the existing SATOC under this Justification and Approval (J&A) did not change the nature of the services set forth in the scope of work or the ordering period of the contract, but increased contract capacity, allowing the contractor to perform an emergency response at Aliamanu Military Reservation (AMR) and Red Hill, Honolulu, HI, as well as critical needs such as issuing modifications to this and existing urgent actions. The Period of Performance for this action is 11 December 2021 through 10 December 2022 (12 months) and utilized Operations and Maintenance (O&M) appropriation funds. This is an after-the-fact J&A, the Head of the Contracting Activity gave verbal approval of the J&A action on 9 Dec 2021.

The Rapid Response Unrestricted SATOC, W9128F20D0050, did not have sufficient remaining capacity to execute the crucial Potable Water System POL Mitigation requirement. Prior to the award of the emergency response in Hawaii, $56,816,393.49 had been obligated against this SATOC, leaving a remaining contract capacity of $23,183,606.51. Omaha District is currently processing a modification to a previously awarded task order that is estimated at $12M. Accounting for this modification only left $11,183,606.51 in available contract capacity. While $11,183,606.51 of contract capacity is currently not obligated, the active task orders under the contract are cost reimbursable actions. The remaining capacity provides the Government the opportunity to increase the existing budgets through the limitation of cost clause if actual costs exceed current obligations or address changes within the scope of work to ensure the required outcomes are achieved. As a result, the request is to increase the contract capacity by the estimated amount of the POH emergency project requirement of $20M to avoid potential impacts on the existing actions. The POH project requirement is within the scope of the existing Rapid Response Unrestricted SATOC.

3. DESCRIPTION OF SERVICES: Work being performed under the SATOC consists of Emergency/Immediate/Rapid Response for Environmental Remediation Services (ERS).

“Emergency/Immediate/Rapid requirements” are defined in this acquisition as requirements or projects that may require the contractor to mobilize and initiate field work within 24 hours, 72 hours, and 30 days, respectively.

The specific requirement consists of time-critical treatment of water at Aliamanu Military Reservation and Redhill to remove contaminants of concern (i.e. petroleum and petroleum-related contaminants) originating from the Joint Base Pearl Harbor – Hickam Water (JBPHH) System to maintain applicable standards and public health requirements. This project requires the U.S. Army Corps of Engineers (USACE) to perform time-critical emergency mitigation of petroleum and petroleum-related contaminants in local water supplies.

The potable water is stored in two six (6) million-gallon (MG) reservoirs located at Halawa (S1 and S2 tanks located just outside the westside of AMR). Smaller storage tanks are also located at Red Hill and Camp Smith. Daily, these three sources provide approximately 12 to 22 MG of potable water to customers throughout JBPHH and AMR, which includes over 7,000 military families. The Navy is responsible for potable water treatment and distribution within Navy AOR and conveys potable water to affected Army housing at Aliamanu Military Reservation and Redhill.

4. AUTHORITY CITED: 10 U.S.C. § 2304(c)(2) as implemented by FAR 6.302-2, Unusual and Compelling Urgency.

5. REASON FOR AUTHORITY CITED:

Justification: During November 2021, petroleum and/or petroleum-related contaminants were detected in samples taken from the Red Hill. The JBPHH includes three (3) water sources located at Waiawa, Halawa, and Red Hill. The transmission/ distribution system needed to convey water throughout the Shaft/complex consists of approximately 250 miles of pipelines ranging in size from four (4) inches to 42 inches in diameter.

The Hawaii Department of Health on Wednesday, 1 Dec 2021, announced that its tests found petroleum products in samples taken at Red Hill Elementary School. It subsequently advised all residents on the Navy water system to avoid using the water for drinking, cooking, or oral hygiene. Additionally, those who smelled any odor should avoid using the water for bathing, dishwashing, and laundry.

The Navy confirmed Thursday, 2 Dec 2021, that a well near Pearl Harbor is contaminated with a petroleum product. Pacific Fleet Deputy Commander said that the service's Red Hill well had tested positive for petroleum hydrocarbons. He added that the Red Hill well "had been isolated" since 28 Nov 2021 meaning the Navy took it out of service on 2 Dec 2021.

Military family members have become ill, developing headaches, rashes and nosebleeds, and experiencing vomiting, diarrhea, and other health symptoms that have sent them to not only military health clinics but civilian urgent care and emergency rooms.

As the result of the above, there is urgent need to sufficiently treat and remove petroleum hydrocarbons, jet fuel, and the like, to applicable standards for potable water usage in the timeliest manner possible.

Alternatives: The existing SATOC is a critically important contracting tool that USACE must have in its contracting toolbox to effectively provide the technical resources and ability to provide an immediate response to projects. For its part, NWO examined several alternatives for fulfilling these requirements, but no other alternative would allow for performance covered by the scope of this SATOC to begin immediately. The only viable alternative is to increase the existing SATOC capacity to allow for the award of a task order within days and to begin performance immediately. Due to the nature and urgency of the lack of potable water for over 7,000 military families, this streamlined approach allows the existing SATOC-holder with proven expertise to be boots on the ground within 72 hours from award of a task order.

While the initial award to enact the water mitigation services utilized the Rapid Response SATOC, the Government intends to compete the Operations and Maintenance (O&M) of the mitigation system. This creates a transition to a competitive long-term solution.

Impact: USACE must provide an expeditious contracting solution to ensure prompt and comprehensive emergency operations to fulfill this critical potable water system POL mitigation. The affected communities are facing and will continue to face additional serious health and safety hazards, both personal and ecological, and economic loss if repair efforts are delayed. Military family members have already become ill, developing headaches, rashes and nosebleeds, and experiencing vomiting, diarrhea, and other health symptoms that have sent them to not only military health clinics but civilian urgent care and emergency rooms.

6. EFFORTS TO OBTAIN COMPETITION: Due to the time-critical requirement to provide potable water to over 7,000 military families in Hawaii, competition was not sought for the action. However, the approved Acquisition Strategy/Plan for the Rapid Response program authorized the development of a SATOC based on a best value evaluation of all offers submitted on a full and open competitive basis. The current contractor was selected as the best value from multiple competitive firms.

7. ACTIONS TO INCREASE COMPETITION: NWO is mindful of the requirement in FAR 6.302 to request offers from as many potential sources as practicable under the circumstances. The Unrestricted Rapid Response SATOC being used for this requirement was awarded on a full and open competitive basis. NWO will continue to provide the opportunity for competition for future SATOCs within the Rapid Response Program.

In addition to competing the award of the Rapid Response SATOC, the Government evaluates opportunities to transition from the initial response activities covered by the contract to extended services that may be competed, when appropriate. The Government intends to transition the initial award to enact the water mitigation services utilizing the Rapid Response SATOC to a competed contract for the continued Operations and Maintenance (O&M) of the mitigation system. This creates a transition to a competitive long-term solution.

8. MARKET RESEARCH:

Market research was conducted by reviewing mandatory sources, Government systems and databases, category management, and consulting knowledgeable individuals in Government. The review did not identify any mandatory sources for the required services. The review of the Government systems identified multiple firms capable of completing the required services; however, the time critical nature of the requirement did not allow for solicitation, analysis, award, and performance by any of these firms without existing contracts.

The category management analysis was completed in accordance with AFARS Part 5137 Revision, dated 31 MAR 2021. Omaha District has used the Acquisition Gateway Solutions Finder to identify any tiered solutions for this type of work. The following search criteria were used to explore existing Spend Under Management (SUM) contracts: Federal Category 4.4: Facilities & Construction — Facility Related Services.

Two (2) Tier 3 solution were identified (BMO: Building Maintenance and Operations FSSI and Facility Reduction Program (FRP: USACE) (BICs); however, neither of the solutions have the appropriate NAICS or PSC code. One (1) Tier 2 solution was identified (Multiple Award Schedule: Facilities and Construction);

however, the solutions do not have the appropriate NAICS or PSC code. As a result, these are not viable solutions for this requirement. Therefore, it was determined that a task order under a Tier 1 contract would be the best solution in addressing Category Management.

In accordance with FAR 10.002(b)(2)(i), knowledgeable individuals in the Government were consulted.

The Product Delivery Team (PDT) assembled at NWO has significant experience with time critical requirements. The PDT evaluated the urgent requirement for mitigation of POL contaminants from the potable water system at AMR and Red Hill to determine the best course of action. Items of considerations included the impact on the military families, the critical timeframe to provide potable water, logistical challenges to obtain, ship, install, and operate mitigation equipment, overall magnitude of the project, and other challenges.

The PDT collectively agreed to pursue the acquisition of the subject project by means of the Rapid Response (OTSB) SATOC W9128F-20-D-0050 with Weston ER Federal Services. GAC units, valves, pressure transducers, flow meters, electronic controls, booster pumps, and commissioned must be procured, leased, mobilized from mainland to island, commissioned in two (2) weeks post award to meet potable water standards for AMR and Redhill, which is extremely aggressive schedule, massive logistical challenge, and technical construction resource need that stretches Small Business; therefore, SB Rapid Response contract was not considered for this requirement. The Market Research was completed using known Omaha District contracts, IDIQ SATOC and MATOC contracts, and other relevant information including small business dynamic search. The immediate need for this requirement supports the utilization of this contract vehicle to provide rapid response actions for Environmental Remediation Services for rapid response type activities related to support of Joint Base Pearl Harbor – Hickam Water (JBPHH) System to remove contaminants of concern (i.e. petroleum and petroleum-related contaminants) from the Joint Base Pearl Harbor – Hickam Water System to maintain applicable standards and public health requirements.

9. INTERESTED SOURCES: In this instance, the need to initiate mitigation of the water as soon as possible is of such unusual and compelling urgency that the Government would be seriously injured unless NWO is able to increase existing SATOC capacity. In accordance with FAR 5.202(a)(2) a synopsis will not be posted.

10. OTHER FACTS: NWO will post the justification upon completion of the review process.

The Rapid Response ERS SATOC requires the firm to maintain capabilities to respond within 24-72 hours to emergency or immediate response needs. While NWO has multiple existing Indefinite Delivery Indefinite Quantity (IDIQ) contracts in place for ERS work, the terms of these contracts do not require the firms to have the ability to respond within these timeframes.

For the current requirement, the Government executed award of a task order within two (2) days of issuance of the Request for Task Order Proposal (RTOP). This provided the contractor approximately one (1) day to develop a proposal. Furthermore, the contractor had personnel on-site with 24 hours of award. This response time was only attainable due to the experience and expertise of the current SATOC holder.

Further, the Rapid Response SATOC holder has a DCAA-approved accounting system to allow for both firm-fixed-priced and cost-reimbursable task orders. NWO supplements the DCAA audits by conducting price and cost analysis on all actions in accordance with FAR Part 15.404. NWO has operating procedures in place to review daily work plans and identify any issues prior to performance of tasks. These daily work plans are also used as source documentation for the invoicing process to ensure only allowable, allocable, and reasonable costs are paid by the Government. Finally, NWO has personnel that are trained in administering cost reimbursement task orders and on-site personnel that interact directly with the Rapid Response contractor after task order award.

11. 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.

Name: Timothy P. Gouger Date: 13 January 2022 Title: Program Manager Signature:

12. 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.

Name: Timothy P. Gouger Date: 13 January 2022 Title: Program Manager Signature:

13. FAIR AND REASONABLE PRICE DETERMINATION:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable.

The original rates established in the contract were found to be reasonable using proposal analysis techniques in accordance with FAR 15.404. In addition to the firm having an approved accounting system as discussed in paragraph 10 above, cost and/or price analysis will be conducted on each action to determine the proposed amounts are fair and reasonable and, if applicable, are realistic for the work to be performed.

Name: John Tucker Date: 13 January 2022 Title: Contracting Officer Signature:

14. CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: John Tucker Date: 13 January 2022 Title: Contracting Officer Signature:

TUCKER.JOHN.HE

NRY.II.1102827879

Digitally signed by

TUCKER.JOHN.HENRY.II.1102827879

Date: 2022.01.13 09:31:18 -06'00'

TUCKER.JOHN.HE

NRY.II.1102827879

Digitally signed by

TUCKER.JOHN.HENRY.II.11028278

Date: 2022.01.13 09:32:36 -06'00'

GOUGER.TIMOTH

Y.P.1231351341

Digitally signed by

GOUGER.TIMOTHY.P.12313513

Date: 2022.01.13 10:12:51 -06'00'

GOUGER.TIMOTH

Y.P.1231351341

Digitally signed by

GOUGER.TIMOTHY.P.1231351341

Date: 2022.01.13 10:13:24 -06'00'

JUSTIFICATION AND APPROVAL

RAPID DISASTER INFRASTRUCTURE (RDI) MATOCS

U.S. ARMY CORPS OF ENIGNEERS, OMAHA DISTRICT

SATOC Capacity Increase Omaha District

APPROVAL

Based on the foregoing justification, I hereby approve modification of the Unrestricted Rapid Response Environmental Remediation Services Single Award Task Order Contract. The total contract capacity is increased by $20,000,000 for support of an urgent requirement for Potable Water System POL Mitigation, Aliamanu Military Reservation (AMR), and Red Hill, Honolulu, HI. The action is completed using other than full and open competition basis pursuant to the authority of 10 U.S.C.

2304(c)(2) as implemented by FAR 6.302-2, Unusual and Compelling Urgency, subject to the availability of funds and provided the work herein described has otherwise been authorized for acquisition.

Jill E. Stiglich Date Head of Contracting Activity jill stiglich Digitally signed by jill stiglich Date: 2022.02.23 17:23:29 -05'00'