JA20-04-01 dated Jan 2020.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING COMMAND SOUTHWEST

1220 PACIFIC HIGHWAY

SAN DIEGO CA 92132-5190

21 January 2020

J&A No. 20-04-01

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 0081 Unrestricted Commercial and Institutional (C&I) II Multiple Award Construction Contract (MACC) for new construction, renovation, and repair of general building construction projects by $92,000,000 from $240,000,000 to $332,000,000. The contract expiration date 28 August 2021 will remain unchanged.

3. Description of Supplies/Services.

The C&I II MACC was competed as an Unrestricted procurement using full and open competition, and was awarded to seven (7) firms on 29 August 2016 with a capacity of $240,000,000. Three (3) twelve-month option periods have been awarded and contract completion date is 28 August 2021.

The original contract award include:

N62473-16-D-1881 Harper Construction Company, Inc.

N62473-16-D-1882 Hensel Phelps Construction Co.

N62473-16-D-1883 M.A. Mortenson Company N62473-16-D-1884 R.A. Burch Construction Co., Inc.

N62473-16-D-1885 RQ Construction, LLC N62473-16-D-1886 SOLPAC Construction, Inc.

N62473-16-D-1887 Straub Construction, Inc.

These contracts will be modified to add capacity, and all seven (7) contractors will be allowed to compete for new task order work under this MACC upon approval of this Justification and Approval (J&A).

Contracts N62473-16-D-1881 through 1887 provide general construction services for large, multidisciplinary construction projects within North American Industry Classification System (NAICS) Code 236220 within a task order range of $15,000,000 to $50,000,000.

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.

The earthquake recovery construction requirements are estimated to cost as much as $2.9 Billion and approximately half of this work is being planned for Fiscal Year (FY) 2020 design/build construction awards to restore NAWSCL to full mission capability.

This tight FY20 timeline requires the use of existing MACC vehicles since the procurement cycle for stand-alone two-phase design-build construction contracts is between 12 and 18 months. Awarding via stand-alone procedures or waiting for follow-on MACCs to be awarded will jeopardize the FY20 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 anticipates needing to place over $1.1 Billion of the NAWSCL Earthquake Recovery Work on existing C&I MACCs but only has $540 Million of unreserved capacity on these MACCs, resulting in an urgent need for $560 Million more capacity to meet needs.

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 late FY20 and early FY21.

This action will increase the maximum value of the C&I II MACC to allow award of a new task order in support of the China Lake Earthquake Recovery effort in the fourth quarter of FY20 and provide a reserve for potential unforeseen modifications that may be required. Of the $240M capacity, to date $178,110,320 has been awarded. Planned projects or modifications built in eProjects equal $11,714,984, and include a $10,000,000 contingency reserve for other unforeseen conditions that may arise during the construction phase of the planned task orders.

This results in a remaining capacity of $50,174,696. The $92M increase to maximum contract capacity is needed to cover one (1) NAWSCL Earthquake Recovery Project, account for modifications to existing and future task orders under the MACC, and allow for contingencies to lily.pang Highlight lily.pang Highlight lily.pang Highlight lily.pang Highlight lily.pang Highlight lily.pang Highlight lily.pang Highlight lily.pang Highlight chad.a.slade Highlight cover unforeseen conditions and impacts of earthquake aftershocks. The project for the China Lake Earthquake recovery effort identified for this MACC has an estimated cost of

$142,000,000; however, the cost estimates and projects are still being refined so costs may increase. The cost of the project, less the currently available capacity ($50,174,696) results in a need of additional capacity of $92,000,000.

Consistent with FAR 6.302-2, the China Lake Earthquake Recovery effort surge workload 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.

The current planned unusual and compellingly urgent NAWSCL Earthquake Recovery project to be awarded on this MACC:

PROJECT RM19-1867 FY 20 REPAIR WING 2-5, MICHELSON LAB; PA ~ $142M

Project includes repairs to Michelson Lab, Building 00005, Wings 2-5 caused by the earthquakes on 4 and 5 July 2019. Building 00005 consolidates those activities that comprise the Michelson Lab for weapons testing and development that otherwise do not require Intelligence Community Directive -705 specialized security requirements or unique testing and lab space. While maintaining the historical exterior appearance, the repair creates standardized and flexible areas that multiple activities can occupy from across the lab. The repair brings the building into compliance for health, life, and safety codes, and increases the reliability for power and environmental systems throughout the building. Scope includes: hazardous materials abatement, demolition, interior repairs, seismic retrofit upgrade, anti-terrorism/force protection, mechanical and electrical systems repairs/replacement of damaged components, fire protection system installation, cybersecurity, and site repair and reconstruction. Architectural renovation will be based on systems replacement previously stated in coordination with the State Office of Historic Preservation.

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 seven (7) 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 was not published to the BETA.SAM.GOV Contract Opportunities website due to applicable exception under FAR 5.202(a)(6). 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.

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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 with maximum capacity of $495,000,000; Award planned for FY20.

2) HUBZone Small Business MACC with maximum capacity of $495,000,000; award planned for FY 20.

3) Unrestricted MACC with maximum capacity of $999,000,000; award planned for FY21.

The above MACCs will provide a little less than $2 Billion of capacity in FY20 and 21;

however, they will not be in place in time for the FY20 award of the above referenced project.

NAVFAC SW’s follow-on contracts include a higher dollar value than previous MACCs and include a contingency reserve in each to account for task order modifications during construction, unforeseen circumstances, and possible reprogramming; however, although some contingency reserve is included, the contract capacity amounts would not fully absorb the impact of another natural disaster.

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CERTIFICATIONS AND APPROVAL

TECHNICAL AND 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.

____________________________ (619) 532-2649 ______________ JOHN W. COON Phone No. Date CI Business Lead

NAVFAC SW

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

___________________________ (619) 532-3801 ______________ DEANA JAEGER Phone No. Date Associate Counsel

NAVFAC SW

CONTRACTING OFFICER CERTIFICATION

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

____________________________ (619) 532-1933 ______________ E. CHEVALIER Phone No. Date Contracting Officer

NAVFAC SW

ECHELON IV CHIEF OF CONTRACTING OFFICE CERTIFICATION

____________________________ (619) 532-2339 ______________ RENAE A. KVENDRU Phone No. Date Chief of Contracting Office

NAVFAC SW

ECHELON III CHIEF OF CONTRACTING OFFICE CERTIFICATION

____________________________ (808) 474-2038 ______________ JILL E. NII Phone No. Date Chief of Contracting Office NAVFAC Pacific jill.nii Typewritten Text 2/11/2020

ASSISTANT COMMANDER FOR ACQUISITION APPROVAL

Upon the basis of the above Justification, I hereby approve the proposed contract modifications described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(2).

____________________________ (202) 685-9157 __________ CINDY READAL Phone No. Date Assistant Commander for Acquisition

NAVFAC