JA-SILC-EnvironmentalIncreaseHCAsigned.pdf

CLASS JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

10 U.S.C. 3204

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.3, the following facts and rationale justify the use of such authority:

1. Agency and Contracting Activity:

The Department of Homeland Security (DHS), United States Coast Guard (USCG), Shore Infrastructure Logistics Center Construction Contracting Division (SILC CON).

2. Nature and/or Description of the Action Being Approved:

(a) Nature of the action: SILC CON intends to execute modifications to all nine (9) USCG Nationwide Environmental Engineering Services Indefinite Delivery Indefinite Quantity (IDIQ) Multiple Award Task Order Contracts (MATOCs) to increase the maximum total value. Specific demand from the USCG is to address prompt responses on an as-needed basis for miscellaneous environmental engineering services and other environmental services to address USCG needs associated with environmental compliance, restoration, liabilities, planning, sustainability, and training while the re-procurement of a new and enhanced contract vehicle is completed ahead of the final ordering period conclusion in December 2028.

Approval is sought for an increase in capacity by $50 Million. No change in the contract ordering period is required. Discipline and indirect rates including annual escalation have been negotiated and determined fair and reasonable.

All contractors will continue to receive fair opportunity on task orders that are consistent with Brooks Act, qualifications-based selection. A list of the active contracts is provided below.

(b) Name and address of the contractors: The IDIQ MATOC consists of nine (9) separate IDIQ contracts as follows:

Large Business Firms:

70Z05019DARCADI01: Arcadis U.S. Inc.

70Z05019DLEIDOS04: Leidos, Inc.

70Z05019DTETRAT07: Tetra Tech, Inc.

70Z05019DWESTON08: Weston Solutions, Inc.

70Z05019DWEAISI09: Wood Environment & Infrastructure Solutions, Inc.

Small Business Firms:

70Z05019DBBECPI02: BB&E, Inc.

70Z05019DBRENGR03: Brice Engineering, LLC 70Z05019DMSESFE05: MSEnSafe SB-JV, LLC 70Z05019DPHEBKE06: PHE-Baker JV, LL

(c) Type of action: Contract Modifications.

(d) Estimated total value (including options): The aggregate capacity increase is $50,000,000; from $75,000,000 to $125,000,000.

(e) Type of funding: Applicable at task order level

(f) Year of funding: Applicable at task order level.

(g) Background information about the requirement.

The Architectural/Engineering (A/E) award was synopsized as 70Z05018RENVES200. The contract was awarded 19 December 2018 with a capacity of $75 Million for ten years (base of 5 years, with one 5-year option) through 18 December 2028. As of 8 August 2024, there is approximately $9.6 Million in remaining capacity. Based on the USCG’s programed acquisition needs for the upcoming 6 months, it is anticipated the that remaining capacity will be exhausted at the end of FY24 or early FY25. No change in the contract ordering period is required. Discipline and indirect rates including annual escalation have been negotiated and determined fair and reasonable.

3. Description of Supplies/Services.

The Nationwide Environmental Engineering Services A/E contract provides professional A/E Services for the USCG. Work shall be confined to the 50 states and its territories (Puerto Rico and Guam), and includes critical human and ecological health projects, environmental compliance, restoration, liabilities, planning, sustainability, and training. The contract vehicle is critical for USCG mission execution.

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

The statutory authority permitting other than full and open competition is 10 U.S.C. 3204 (a), implemented by the FAR Subpart 6.302-1 entitled "Only One or a Limited Number of Responsible Sources and No Other Supplies or Services Will Satisfy Agency Requirements."

5. Identification of Exception to the Buy American Statute.

Not applicable.

6. Demonstration that the Proposed Contractor's Unique Qualifications or the Nature of the

Acquisition Require Use of the Authority Cited.

The existing contract was awarded consistent with FAR Subpart 36.6 Architect-Engineer Services and the Brooks Act. The contractors have unique specialized experience and competencies that were assessed during the procurement process. These include the ability to perform specialized investigations and remediation design for various contaminants and media, compliance assistance visits, permitting support, planning and design. Each existing contract has discipline and indirect rates that have been determined fair and reasonable. The USCG has reviewed its other A/E IDIQ contracting vehicles and they do not have the specialized experience or competencies needed to perform. Development of the re-procurement strategy and market research will take place in FY25. Recent A/E IDIQ procurements have averaged two years to award. Additionally, sufficient dollar capacity will be needed for task order modifications and options.

Currently, the Nationwide Environmental Engineering A/E IDIQ contract has nearly reached the maximum capacity stated in the contract ($75 Million); however, the anticipated period of performance has significant time remaining (final option goes through 19 December 2028). This contract was unrestricted with a small business reserve and provides for competition among nine top-tier A/E firms who specialize in the type of work required by the terms of the contract. The current contract provides both a highly efficient method to award individual tasks and it ensures an immediate response from the highly qualified A/E firms who already have working relationships with our offices. Task orders can be awarded in four to six months. Other existing USCG A/E IDIQs do not have the specialized capabilities, comprehensive AOR coverage, nor compatible scopes of work that align with the Nationwide Environmental A/E IDIQ.

The initial contract capacity of $75 million was based on an assumption of 75% of the annual Environmental Compliance and Restoration (EC&R) appropriation of $10 million per year for 10 years.

Following the 2018 award, unforeseen funding allotments and special projects began depleting capacity at a higher rate:

• Between 2019 and 2021, approximately $26 million of supplemental EC&R funding was received for various special projects.

• In 2022, the EC&R appropriation for projects was raised from $10 million to $18.5 million.

• In 2023, an additional $8 million was received as part of the Inflation Reduction Act for environmental work related to emerging contaminants.

• The total aggregate interest rate from 2019 to 2024 is approximately 20%, which includes a relatively large increase of 8% in 2022.

This increase allows for the restoration of capacity depleted by these events and the increased funding level of the EC&R appropriation, which is expected to be sustained.

A modification to increase the aggregate capacity that the government may order on the contract, while keeping the current contract ordering period stated in the original contract, is needed. Without this additional capacity on the new contract, the contracting offices would be forced to utilize less efficient contracting methodologies with the result that there would be compounded problems with the progress of ongoing programs and the efforts to award the new contract. If the aggregate capacity of the existing contract is not increased, there will be substantial duplicate and inefficient efforts to award other contracts that will erode resources necessary to restore mission essential Coast Guard facilities in accordance with the appropriations provided by Congress that specifically stipulated the increased efforts.

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable.

This justification will be made publicly available on SAM.gov Contract Opportunities within fourteen (14) days after contract modification.

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

The contracting officer determines that the anticipated price(s) will be fair and reasonable based on negotiated discipline and indirect rates listed on the IDIQs that have been determined fair and reasonable. Each task order that is awarded with the additional capacity will be assessed and determined fair and reasonable by methods consistent with FAR 15.4. The methods will include comparison to an independent government estimate, use of technical analysis, and historical information.

9. Description of Market Research.

Market research was conducted July 2017 prior to procurement of the existing Nationwide Environmental A/E contract and as part of the re-procurement efforts will take place in FY25. The optimal course of action is to extend aggregate dollar capacity while ongoing re-procurement is developed and executed. This will ensure effective and efficient approach to meet mission critical environmental requirements.

10. Any Other Facts Supporting the Use of Other Than Full and Open Competition.

None

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

Not applicable because the USCG intends to modify all nine (9) existing contracts.

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.

The USCG has does not foresee any barriers to competition. Under these MATOCs, contract holders can compete for task order. In addition, the USCG is currently in the process of planning the re-procurement of the contract vehicle under full and open competition.

13. Contracting Officer's Certification.

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Dannetta Townsend Deputy Chief of the Contracting Office (dCOCO)

14. Technical/Requirements Personnel Certification.

I certify that this requirement meets the Government's minimum need and that the supporting data, which forms a basis for the justification, is accurate and complete.

Robert S. Reali, P.E.

Technical Representative

RECOMMENDED FOR APPROVAL:

Mark Snell Date Chief of the Contracting Office (COCO)

Frederick Steward Date Procuring Activity Advocate for Competition (PAAC)

APPROVAL:

Keith J. O’Neill Date Head of the Contracting Activity (HCA)