JA -SB MACC Group 85-Final_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING COMMAND SOUTHWEST

1220 PACIFIC HIGHWAY

SAN DIEGO CA 92132-5190

20 April 2020 J&A No. 20-17-03

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Department of the Navy, Naval Facilities Engineering Command Southwest (NAVFAC SW), San Diego, California.

2. Description of the Action being Approved.

Request approval to increase the not-to-exceed value of the NAVFAC SW Group 0085 Small Business General Building Construction MACC (SB MACC) for new construction, renovation, and repair of general building construction projects by $58 Million from $240 Million to $298 Million. The SB MACC ordering period ending on6 December 2021 will remain unchanged.

3. Description of Supplies/Services.

The SB MACC was competed as a Small Business Set-Aside using full and open competition after exclusion of sources, pursuant to 10 U.S.C. Section 2304(b)(2) as implemented by FAR 6.203, and was awarded to five (5) firms on 7 Dec 2016 with a capacity of $240 Million. Three

(3) twelve-month option periods have been awarded and the current option expiration date is 6 December 2020.

The original contract awards include:

N62473-15-D-4626 R.A. BURCH CONSTRUCTION CO INC

N62473-15-D-4627 BRISTOL DESIGN BUILD SERVICES, LLC

N62473-15-D-4628 I.E.-PACIFIC, INC.

N62473-15-D-4629 BARNHART-REESE CONSTRUCTION INC

N62473-15-D-4630 BILBRO CONSTRUCTION COMPANY

These contracts will be modified to add capacity and all five (5) contractors will be allowed to compete for new task order work under this MACC upon approval of this Justification and Approval (J&A).

Contracts N62473-15-D-4626 through 4630 provide general construction services for small to medium, multidisciplinary construction projects within North American Industry Classification System (NAICS) Code 236220, Commercial and Institutional (C&I) Building Construction, within a task order range of $8 Million to $15 Million.

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)(2), as implemented by FAR 6.302-2. FAR 6.302-2 permits contracting without providing for full and open competition in situations where 1) an unusual and compelling urgency precludes 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 Statutory Authority.

Naval Air Weapons Station China Lake (NAWSCL) experienced a 6.4 magnitude earthquake on 4 July 2019 followed by a 7.1 magnitude earthquake on 5 July 2019 with aftershocks still occurring. On 8 July 2019, President Trump issued an emergency declaration for the State of California resulting from these earthquakes. Significant damage to installation and tenant command facilities and equipment aboard NAWSCL occurred. Post-earthquake facility assessments commenced shortly thereafter and revealed that a vast number of the installation’s facilities were significantly damaged by the earthquakes, necessitating replacement or repair.

Congress appropriated and the majority of this work is being planned for Fiscal Year (FY) 2020 design/build (DB) construction awards to restore NAWSCL to full mission capability.

This tight FY 2020 timeline requires the use of existing MACC vehicles since the procurement cycle for stand-alone two-phase design-build construction contracts is between months. Awarding via stand alone procedures or waiting for follow-on MACCs to be awarded will jeopardize the FY 2020 awards and further delay the base’s return to being fully mission capable to carry out military operations.

Most NAVFAC SW MACCs for C&I Building Construction cover the time period in which the earthquake recovery contract actions will need to be awarded, but do not have enough contract dollar value capacity to accommodate such a large increase in emergent construction work.

NAVFAC SW’s strategy to accomplish this urgent work is to increase the contract value capacity on existing C&I MACCs to allow for quick response contracting while ensuring competition under a MACC environment to keep prices down while continuing to support our Small Business Program. Follow-on C&I MACCs are in process and are expected to be in place in .

This action will increase the maximum value of the SB MACC to allow award of new task orders in support of the China Lake Earthquake Recovery effort, two non-China Lake projects, and provide a reserve for potential unforeseen modifications that may be required. Of the current $240 Million capacity on the SB MACC, to date $226,701,307 has been expended or planned, resulting in a remaining capacity of $13,298,693. Currently, two (2) replacement or repair projects for the China Lake Recovery Effort have been identified for this MACC, plus two (2) non-China Lake projects with an estimated cost of approximately of . The non-China Lake projects were slated for the follow on SB MACC; however, all resources for the SB MACC were reallocated due to the China Lake Recovery Effort and award has been delayed. The delay was not due to lack of adequate advanced planning.

The cost estimates and projects are still being refined so costs may increase. In addition, NAWSCL is still experiencing numerous earthquake aftershocks, many above a 4.0 magnitude with the largest so far being a 5.0 magnitude. These aftershocks continue to cause additional damage, so it is extremely likely that additional recovery projects will arise and the rate of unforeseen conditions will be much higher than normal. As such, this request includes an additional reserve. A total of $58 Million of additional capacity is requested for this MACC to provide sufficient capacity to award new task orders in support of NAWSCL Recovery Efforts, other urgent projects within the NAVFAC SW Area of Responsibility, and to allow for modifications during construction.

Consistent with FAR 6.302-2, the China Lake Earthquake Recovery effort surge workload, and two (2) BEQ renovations at Camp Pendleton and Port Hueneme, presents such an unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits proposals to those under this

MACC.

Current planned urgent projects to be awarded on this MACC:

(a) RM19-1828, Repair McLean Lab, China Lake - The project shall repair earthquake damage to McLean Laboratory. This includes the West Wing, East Wing, North Wing, exterior, and roof, which consists of structural, fire protection, electrical, and mechanical work. Hardware in the are currently operating at reduced capability due to damage.

(b) RM19-1848, Repair Wunderlich Lab, Building : China Lake The project shall repair earthquake damage to Wunderlich Laboratory. Project scope includes interior and exterior work, which consists of architectural, civil, structural, fire protection, mechanical, plumbing, and electrical work. Project will also bring facility up to current life safety codes.

(c) RENOVATE BEQ PH1517: Port Hueneme, The project completely renovates PH1517, a 23,400 SF, three story Bachelor Enlisted Quarters (BEQ). Architectural, mechanical, and electrical systems throughout the building are severely deteriorated. This project will modernize the building to meet current configuration guidance and safety criteria. The project will replace the roof and repair deteriorated flooring, walls, ceiling, doors, windows, bathroom fixtures, soffits and stairs. The deteriorated hot and cold water supply piping, sanitary sewer piping and gas piping will be replaced. The fire sprinkler and fire alarm systems will also be replaced.

The heating system piping will be replaced and new boilers and air conditioning units will be provided. Electrical work will replace panels and the existing interior transformer, conduits, wiring, switchboards, and lighting to comply with the current electrical codes and energy efficiency standards. This project will also remove hazardous materials including lead and asbestos and seismic strengthening is included in the project.

Delaying this project will Naval Base Ventura County’s ability to provide

(d) PE2133M Repair BEQ Building : MCB Camp Pendleton - This project will repair Bachelor Enlisted Quarters (BEQ) with new exterior finishes, exterior doors, interior walls, doors, flooring, and ceilings. Replace heating fan coil units and exhaust fans and provide air cooled chiller and pumps. All secondary wiring, lighting fixtures, outlets and switches will be replaced. Sidewalks and utilities will be repaired/replaced. This renovation is urgently needed because the building continues to deteriorate, resulting in increased operation and maintenance cost. In addition, plumbing systems, shower enclosures, finishes and sewer drain lines are continuing to deteriorate and fail. Moisture is entering the interior walls that are supported by metal studs, and have been and will continue to deteriorate and lose its structural integrity.

Due to on-going updates to the scope and cost of the China Lake Earthquake Recovery projects, and the risk of funding profile changes for NAWSCL, the Government reserves the right to substitute anticipated NAWSCL projects with different China Lake Earthquake recovery projects and/or add other general building construction projects if there is inadequate capacity on the other general construction MACCs as a result of the China Lake Earthquake recovery efforts.

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

The MACC ensures sufficient competition for new work with five (5) MACC contractors, so the increase in capacity for the new projects does not create a sole source environment. No additional market research was conducted because it was done before the original contract was awarded, and similar conditions exist.

Synopsis of the proposed modifications will not be published to the beta.SAM.GOV Contract Opportunities website due to applicable exception under FAR 5.202(a)(2). No additional market research was conducted because it is not practicable for the reasons discussed above. In accordance with FAR 6.305, the approved J&A will be posted on beta.SAM.GOV within thirty

(30) days after award of the contract modifications.

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 utilizing FAR Part 15 procedures. To ensure adequate price competition and fair and reasonable pricing on new work, task orders will be competed among all current MACC holders.

8. Actions to Remove Barriers to Future Competition.

Three follow-on general building construction MACC procurements are in process:

1) Small Business Set-Aside MACC Award planned for .

2) HUBZone Small Business MACC with maximum capacity of award planned for .

3) Unrestricted MACC with maximum capacity of ; award planned for

The above MACCs will provide a capacity in However, they will not be in place in time for awards.

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5/6/2020