Justification and Approval FAR Part 6 FA910122DB010 Threshold Increase_Redacted.pdf

This is a Justification and Approval (J&A) document for Other Than Full and Open Competition submitted by Air Force Test Center (AFTC)/PZIC Arnold AFB, TN. The document justifies a contract ceiling increase for an existing Indefinite Delivery/Indefinite Quantity (ID/IQ) architectural and engineering (A&E) services contract FA910122DB010 with Schmidt-Prime Group, LLC valued at $1,470,000. The contracting activity is AFTC/PZ (Arnold), and the dollar value falls in the $750,000 to $15M range. The authority cited is 10 USC 3204(a)(2), Unusual and Compelling Urgency.

The J&A documents that the original contract with a ceiling of $4,900,000 has been nearly exhausted (with only $6,464.93 remaining) within three years of the five-year ordering period. This rapid utilization is driven by a 40% surge in A&E services use over the last year, reflecting strategic emphasis on design efforts for near-future construction projects aimed at renovating critical test facilities. AEDC is building and renovating new test facilities requiring critical A&E services before construction can commence. The proposed action increases the contract ceiling to $6,370,000 to meet mission requirements through August 2026. Schmidt-Prime Group was selected from six independent architectural firms based on demonstrated competence and qualifications. Market research conducted in December 2025 confirmed Schmidt-Prime Group's suitability, with the contractor providing satisfactory and exceptional performance ratings (49% and 23% respectively) on 353 completed evaluations. The contractor agreed to continue services under the same pricing arrangements, terms, and conditions without requesting price adjustments. The negotiated fair and reasonable fully burdened labor rates remain in effect until contract expiration on August 17, 2027, or until the revised threshold is met.