Justification and Approval for Other than Full and Open Compeition - Sole Source Acquisition of Additional Contract Capacity_Redacted.pdf

MVSJA 22 0009

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CUI – Controlled Unclassified Information Source Selection Information, See FAR 3.104

Justification and Approval for Other Than Full and Open Competition:

Sole Source Acquisition of Additional Contract Capacity to Continue On-Site Remedial Services for the St. Louis Downtown Site, the St. Louis Airport Site and Vicinity

Properties and the Iowa Army Ammunition Plant (IAAAP) FAR Part 6

1. Contracting Activity: U.S. Army Corps of Engineers (USACE), St. Louis District Contracting Office, 1222 Spruce Street, St. Louis, MO 63103

2. Description of Action: The U.S. Army Corps of Engineers, St. Louis District Contracting Office proposes a modification to increase the capacity of contract W912P917D0014 (base contract) with LEIDOS, Inc. by $ for the continuation of laboratory and environmental services at the Formerly Utilized Sites Remedial Action Program (FUSRAP) sites located in the St. Louis, Missouri area and the Iowa Army Ammunition Plant (IAAAP) in Burlington, Iowa. The St. Louis Sites include the St. Louis Downtown Site (SLDS), the St.

Louis Airport Site (SLAPS) and SLAPS Vicinity Properties (SLAPS VPs) including a fifteen mile stretch of Coldwater Creek (CWC).

Detailed information including site history, recent status, maps, and photos for the St. Louis Sites as well as many of the reports produced under the subject contract are available at

FUSRAP CW no-year funds will be committed via a modification to task order W912P921F0260 after adding additional capacity to the base contract.

3. Description of Supplies/Services: This J&A is to facilitate continuation of remediation services in support of the USACE St. Louis District�s requirement to address residual radioactive contamination at FUSRAP sites without interruption. Contract W912P917D0014 was awarded on 8 March 2017 as a Single Award Task Order Contract (SATOC), Indefinite Delivery, Indefinite Quantity (IDIQ) with a maximum amount (capacity) of $49,500,000.00 and an ordering period of one year (1 September 2017 � 31 August 2018) plus four option periods of one year each and an additional 6-month option under FAR 52.217-8 Option to Extend Services. The contract has a current expiration date of 31 August 2022, with another unexercised six-month option period from 1 September 2022 to 28 February 2023 in accordance with FAR 52.217-8. As of 30 June 2022, the remaining capacity is $ . Effectively, the contract has exhausted capacity due to unforeseen

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radiological contamination discovered in August 2021 on residential and public properties at an exceptionally fast past of remediation work at the St. Louis FUSRAP sites.

It is requested that the current $49,500,000 maximum contract amount be increased by $ to allow the cost-plus-fixed-fee task order W912P921F0260, St Louis FUSRAP project, currently underway to be extended and increased to be utilized to bridge the gap until a competitive contract and subsequent task order can be awarded along with a necessary transition time for the new contractor. With the additional capacity and time the affected task order would be increased by the amount necessary to have a new contractor in place and fully performing the required services. Any extension of the task orders time would be limited to the period necessary for the transition.

As discussed in section 5(a)(iii) the anticipated award of a new base contract, task order, and subsequent transition period and small amount of contingency is anticipated to last until the end of July 2023. The required capacity increase is based on an expected burn rate of $ per month for a period of approximately 13 months (July 1 2022 through 30 July 2023), equating to $ , to create a bridge until a new completive contract is awarded and transitioned to a new contractor. W912P921F0260 is the final task order issued under this SATOC. The task order amount is anticipated to be increased by a maximum amount of approximately $ , which is included in the $ amount of this J&A, to allow the task order to be fully utilized to successfully bridge the period necessary until a new competitive contract can be awarded plus a subsequent task order off that contract and transition period to a new contractor to take over the work.

The environmental services provided by LEIDOS under W912P921F0260 include, but are not limited to, operating existing on-site radiological laboratories, conducting radiological testing, analysis, quality control, data interpretation, data management and results reporting, remedial design review, field sampling and verification especially regarding radiological constituents of concern, ensuring compliance with and advising on Multi-Agency Radiation Survey and Site Investigation Manual (MARSSIM) and Hazardous, Toxic and Radioactive Waste (HTRW) regulatory requirements, environmental monitoring of soil, surface water, groundwater, air and sediment, radiological and other environmental site investigation and reporting, and safely handling low level radioactive and HTRW contaminated material. The needed services are comprehensive and specialized. Required personnel include health physicists, chemists, hydrogeologists and other science and engineering professionals. The services for the base contract are being performed at three locations: consisting of two sites located in St. Louis, Missouri and one site in Burlington, Iowa.

There have been no other Justifications and Approvals submitted or approved for an increase in capacity to the base contract.

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4. Authority Cited: 10 U.S.C. 3204(a)(1) as applied by 10 U.S.C. 3204(b)(2) and implemented by FAR 6.302-1(a)(2)(iii), Only one responsible source and no other supplies or services will satisfy agency requirements.

Note: The FAR currently cites to 10 U.S.C §2304(c)(1)(B) as authority for DoD. 10 U.SC.

§2304 was repealed effective Jan 1, 2022. Pub. L. 116-283, div. A, title XVIII, §1881(a), Jan.

1, 2021, 134 Stat. 4293. Authority for use of procedures other than competitive procedures is now set forth in 10 U.S.C. 3204. See, 10 U.S.C.§3204(a)(1) and 10 U.S.C. §3204(b)(2) for statutory authority.

5. Reason for Authority Cited: The incumbent is licensed by the State of Missouri for laboratory testing and investigative services and is currently performing the work at the St.

Louis FUSRAP sites under the base contract. If this capacity increase is not approved, LEIDOS will be required to demobilize from the on-site radiological laboratories and required laboratory testing, remediation verification, and investigative services will discontinue. This will require the current remediation contractors, to demobilize and discontinue their work due to the lack of testing. Thus, the remediation of radiological contamination would stop until the contract capacity is increased for LEIDOS or another contract can be put in place to continue the required environmental services. The sole source increase in base contact capacity will be used exclusively to complete the ongoing effort under Task Order W912P921F0260 and bridge the gap until a new contractor can take over the work. No new task orders will be issued under the SATOC.

a. Background:

i. Base Contract

Contract W912P917D0014 was awarded on 8 March 2017 as a Single Award Task Order Contract (SATOC), Indefinite Delivery, Indefinite Quantity (IDIQ) with a maximum amount (capacity) of $49,500,000.00 and an ordering period of one year (1 September 2017 � 31 August 2018) plus four option periods of one year each and a 6-month option period under FAR 52.217-8 Option to Extend Services. The contract was awarded to LEIDOS, Inc. to perform laboratory testing and investigation of environmental programs and projects managed by St. Louis District for FUSRAP at various locations. The St. Louis FUSRAP sites are being remediated in accordance with the terms and conditions found in the 1990 Federal Facility Agreement (FFA) originally negotiated between the Department of Energy and the U.S. Environmental Protection Agency. The U.S. Army Corps of Engineers, St. Louis District has followed the provisions (e.g., timetables, deadlines and funding associated with the protection of the public health and welfare) contained in the FFA since it was delegated

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authority for the cleanup of FUSRAP waste at the St. Louis sites by the Energy and Water Development Appropriations Act of 1998, and subsequent reauthorizations of the Act. The IAAAP was later added by Congress as a site for the St. Louis District�s FUSRAP and an FFA was negotiated for the IAAAP in 2006. The FUSRAP account receives its annual appropriation funding under the Energy and Water Development Appropriation Bill. The St.

Louis District�s FUSRAP program is incrementally funded under the Civil Works Program FUSRAP account.

In addition to the industrial and commercial areas being addressed, the ongoing characterization activities at the FUSRAP St. Louis Sites have found additional contamination over the past four years related to Manhattan Engineer District/Atomic Energy Commission (MED/AEC) activities present in soil in residential areas and public parks surrounding Coldwater Creek in North St. Louis County. The entire 10-year floodplain of Coldwater Creek is now being investigated with field samples and laboratory analysis as contamination continues to be found downstream from the source. Media of concern are soil, sediment, shallow ground water, surface water, and soils adhered to the surface of buildings and structures. Exposure pathways include dermal contact (non-radionuclides), direct gamma (radionuclides), soil/sediment ingestion, and dust inhalation. Ground water is not considered a complete exposure pathway because there are no contaminants in the deeper potentially usable ground-water unit.

Extensive remediation sampling and analysis has been done since the inception of this SATOC. It was originally anticipated that remediation requirements would trend downward in the later years of the contract and the current contract with LEIDOS would be sufficient to fully support site remediation over the five-year period of performance. However, this was not the case, as contamination continues to be found in the Coldwater Creek floodplain beyond what was initially anticipated when the SATOC was awarded. The lack of capacity was discovered during negotiations for W912P921F0260, which occurred in August 2021, when new material was identified that far exceeded original estimates. After it was discovered, a new IDIQ contract was immediately pursued as described in section 5(a)(iii) below, however, sufficient time did not exist to award a competitive contract and an interim bridge contract is necessary to continue performance until a completive contract and subsequent task order is awarded to take over the work.

The LEIDOS provided the required Limitation of Funds notification to the Contracting Officer on February 10, 2022, for task order W912P921F0260 (the task order). Due to capacity limitations on the base contract, task order funding will be exhausted 1 July 2022.

Without increased capacity on the LEIDOS contract, the two remediation contractors at the St. Louis Sites and IAAAP as well as their subcontractors that utilize the environmental services provided by LEIDOS will be required to stop work and demobilize due to the lack of laboratory testing and remediation verification. In addition to the three primary contractors

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[LEIDOS and two remediation contractors], their subcontractors and other contractors that provide services directly to USACE such as quality assurance and transportation and disposal will be impacted and will be required stop work, demobilize, and have their contracts renegotiated. LEIDOS performs laboratory testing, remediation verification and investigative services for all three locations (two sites in St Louis, MO and one site in Iowa).

performs the remediation of contaminated soil for the two St Louis MO sites. performs the remediation of contaminated soil for the Iowa Army Ammunition Plant (IAAAP) in Burlington, Iowa. The soil remediation by will stop if LEIDOS is not able to continue its laboratory testing and investigative services.

ii. Task Order W912P921F0260

The RFP for Task Order W912P921F0260 was issued on July 14, 2021 and was awarded on September 10, 2021. The additional $ capacity will allow the completion of the task order including necessary extension along an additional $ to account for the additional capacity needs discovered that are necessary to bridge the gap until a competitive contract and subsequent task order is awarded. The task order period of performance, including the exercise of the FAR 52.217-8 option, will currently run through 8 March 2023 but will need to potentially be extended to as late as the end of July 2023 to allow for full transition to a new contractor. Any extension will be limited to the time necessary to fully transition the work to a new contractor. The scope of work for the task order includes five cost plus fixed fee (CPFF) tasks for work at the St. Louis Downtown Site, the Coldwater Creek Vicinity Properties and Iowa Army Ammunition Plant. These sites encompass hundreds of individually owned and occupied properties. The first task encompasses requirements for completion of technical documents including pre-design investigation (PDI) work plans (WP), pre-design investigation reports (PDIRs), post remediation action reports (PRARs), Final Status Survey Evaluations (FSSE), annual reports, environmental monitoring plans and reports, and procedures, technical reviews, safety audits, quality control reports and other documents as needed. The second task includes requirements for field work including soil characterization surveys and sampling, soil remediation verification surveys, air, surface water, and sediment environmental compliance monitoring, safety and health inspections and related field equipment, supplies and services. Task 3 is for project support services and community involvement. General project support includes participation in meetings with USACE and the remediation and other contractors, production of program and project review materials, and environmental compliance, health physics. and other technical support as needed. Community involvement includes production of materials for public meetings, websites, letters to property owners, and day-to-day community information requests. Task 4 is for sample analysis and management of the on-site radiological laboratory. The main laboratory provides analytical services for each of the three primary remediation sites. There is also a small satellite laboratory at the St. Louis Downtown Site. The task also includes

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maintenance and repair of the laboratory equipment. The final task, task 5, is for information management services including validation of the laboratory analytical work and network administration.

iii. Planned Recompete of IDIQ Contract

b. Justification:

This action is a follow-on contract for W912P917D0014 and involves the continued provision of highly specialized services. Specifically, the environmental services provided under the scope of the contract require highly trained and specialized personnel due to the technical services necessary to support remediation of radiological contamination.

Additionally, award to any other source would result in substantial duplication of costs to the government that is not expected to be recovered through competition. Furthermore, there is insufficient time to award a new contract, which would result in a break in service and unacceptable delays in completing remediation. Both the substantial duplication of costs and the unacceptable delays each independent justify this action. The original contract was competitively awarded; any subsequent contract is not anticipated to result in cost savings.

i. Task Order Scope

The additional $ capacity will allow LEIDOS to complete highly specialized services negotiated in the current task order with the addition of approximately $ to the task order amount to fully utilize the FAR 52.217-8 option and necessary extensions to

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bridge the gap until a competitive contract and subsequent task order can be awarded and the requirements successfully transitioned. The -8 option and any additional extension will only be used for the timeframe necessary until a new contractor can take over the work under the new competitively awarded contract, subsequent task order, and any necessary transition period. With the caveat that any technical assumptions will continue to change with continued discovery of contamination, the negotiated scope includes the completion of approximately five Pre-Design Investigation (PDI) Work Plans (WP) at CWC, twenty eight Pre-Design Investigation Reports (PDIRs) at CWC, four Post Remedial Action Reports (PRAR)/Final Status Survey Evaluations (FSSE) at CWC, eight PDI and/or PRAR/FSSE reports at the SLDS, five PDI and/or PRAR/FSSE at the IAAAP, environmental monitoring and compliance reports at all three sites, four risk assessments at IAAAP, field work within the ten mile flood plain along two one mile stretches of CWC, approximately 30 verification surveys at North County remediation sites, approximately 30 verification surveys at the SLDS remediation sites, approximately 20 verification surveys at the IAAAP remediation sites, environmental, safety and health inspections reports at all three sites, and engineering management, public affairs, and other general and technical support at all three sites. The anticipated rate of laboratory analyses is about 2000 per month including quality assurance and control samples. The analytical laboratory testing will include radio analytical testing of multi-matrix samples via gross alpha/beta, gamma spectroscopy, chemical separations followed by alpha spectroscopy, total uranium by Kinetic Phosphorescence Analysis, and other environmental analytical techniques as requested by USACE. Sampled constituents will include soil, water, air filter samples, vegetation, sediment, concrete, and other aggregate materials. Work will include data interpretation, analysis, management and reporting for both on-site and off-site analytical services including quality control, environmental monitoring, remedial action contractor wastewater, waste management, and other samples. The $ capacity increase is also needed for associated miscellaneous expenditures including laboratory and field supplies, equipment maintenance and repair, training, information system network, geographic information system and computer aided design and drafting support and laboratory waste management and disposal.

ii. Duplicate Costs

Increasing the capacity of the SATOC would allow the current contractor to continue to provide services already being performed, and consequently, would avoid substantial duplication of costs that would result from awarding an interim contract to another contractor. Three prime contractors will be affected if the capacity is not increased on this IDIQ. LEIDOS performs laboratory analysis, remediation verification, and environmental services. performs remediation for the St Louis MO sites and performs remediation for the IAAAP site. Remediation cannot continue without the laboratory, verification and environmental services provided by LEIDOS. The duplication of costs would include not only the mobilization, demobilization and administrative actions for LEIDOS, but similar duplication of costs will be incurred by and their subcontractors.

MVS estimated that LEIDOS� demobilization and another contractor�s mobilization to the site will be $ . This estimate is based on LEIDOS� proposal to the Government in

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August 2021. If LEIDOS demobilizes from the three FUSRAP locations (one location in Iowa and two locations in the St Louis area), the remediation work being accomplished by will also be put on hold without the ability to have testing and both contractors would also have to demobilize from their respective sites until a new replacement contract for the testing services can be established and then remobilize once a new contract is in place. MVS estimates the demobilization and remobilization for will be $ for each of the two locations in St Louis totaling $ in mob/demob costs for

. This estimate is based on proposal for the remediation work. The total cost for de-mob and re-mob for (located in Iowa) is $ , which is based on original proposal submitted for remediation at the IAAAP located in Iowa.

Total demobilization and remobilization costs for all three contractors located at the three FUSRAP sites is $ . In addition to mobilization and demobilization costs there would also be costs associated with transitional labor costs such as job and location specific training, on the job training with replacement contract personnel working side by side with current personnel, and the coordination, administrative and hiring activities required to hand off the contracted services from one contractor to another, and penalties assessed by EPA and other regulatory agencies. However, the mobilization and demobilization costs alone are a substantial duplication of costs which are not expected to be recovered through competition and justify this action. The $ of mob/demob costs when compared to the value of the total amount of the increase of the base contract ($ ) represents approximately 10.2% of those costs that would not be recovered through competition and are determined to be substantial duplication of costs not expected to be recovered through competition.

iii. Insufficient Time to Award a Replacement Contract

More importantly, a replacement cost-plus fixed fee contract will take time and cannot be awarded by 1 July 2022. As described in section 5(c) below discussing procurement alternatives, there is insufficient time to complete a procurement action and get a new contractor established, which will result in a break in service and unacceptable delay in completing remediation and fulfilling the agency�s requirements. This break in service and delay would be unacceptable due to the extensively studied but unquantifiable perception of risk to public health and the environment. Because of the perceived risk and a desire to accelerate remediation, FUSRAP has prioritized the remediation and Congress has provided additional funding. Funding levels have doubled what was anticipated for the current fiscal year, demonstrating national priority to expeditiously execute remedial action. The break in service would also result in delays in returning to beneficial use of hundreds of individually owned properties, the inability to support electric, water and other utility maintenance work that requires excavation in impacted areas, the inability to support ongoing interstate highway construction activities, and limit FUSRAP�s ability to respond to unplanned events.

Furthermore, a break in service of the LEIDOS contract would result in the two remediation contractors having to stop work and demobilize, potentially causing an inability to comply with the terms and conditions of the FFAs and the North St. Louis County, SLDS, and IAAAP Records of Decision.

In summary, a break in service between LEIDOS�s contract and the award of a replacement contract would have numerous negative consequences. A break in service will result in

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substantial duplication costs to the government of more than $ , not expected to be recovered through competition. Furthermore, a break in service will cause an unacceptable delay in remediating low-level radioactive contamination located on residential properties, parks, and other public, commercial and industrial properties. This delay may endanger public health and the environment and lead to a decrease in public confidence that remediation is being executed in a timely and efficient manner. Finally, a break in service is anticipated to result in a failure to comply with terms and conditions of FFAs and Records of Decision which is also an unacceptable delay and could result in additional financial impact to the government and taxpayer in the form of stipulated penalties and increased costs which would further exceed the already substantial duplication of costs discussed.

c. Alternatives:

i. IDIQ SATOC with subsequent Task Order

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ii. C-Type Contract: Firm fixed price and fixed unit rate contracts were evaluated but none could be implemented within an acceptable timeframe.

iii. Off-site Commercial Lab

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Because the use of an off-site commercial lab will not meet mission requirements, contracting for laboratory services is not an acceptable option.

iv. Efforts were made to identify and borrow capacity using the USACE Total Record of Acquisition Capacity (TRAC) tool and other community networking. No available capacity was found that met applicability requirements.

d. Impact:

Increasing capacity of the contract with LEIDOS allows the laboratory testing and environmental services to continue, while maintaining consistency in the field, reducing threat to human health and the environment, avoiding negative public perceptions, and remaining compliant with the terms and conditions of the FFAs and the Records of Decisions. If LEIDOS services are stopped, then the remediation efforts being performed by must be suspended or terminated. Total demobilization and remobilization costs for all three contractors located at the three FUSRAP sites is estimated to be more than $ and result in a substantial duplication of costs not expected to be recovered through competition. In addition, all work to remediate the radioactive contamination will stop for several months until a new contract can be issued to provide laboratory and environmental services resulting in unacceptable delays in fulfilling the agency�s requirements.

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6. Efforts to Obtain Competition: Since this is a continuation of services and no viable alternative exists to the selected course of action, no efforts were made to obtain competition for this action, however competition will be sought on the follow-on contract.

a. Notice of Intent to Sole Source: A notice of intent to increase the capacity of the contract was posted to the Government point of entry (GPE), SAM.gov on 23 March 2022. The notice, required by FAR 5.201, gave vendors the opportunity to voice concerns with the sole source action and/or submit capability statements which include their experience, skills, and ability to satisfy the requirement by 10:00am CST, 30 March 2022. No responses were received.

b. Subcontracting Competition: USACE requires and verifies that at least three competitive bids are obtained by the prime contractor for any subcontracted activities.

7. Actions to Obtain Competition: While no alternatives existed to be able to compete this bridge action, the follow-on SATOC contract will be competed

This acquisition supports a long-standing program requirement of the St.

Louis District to provide services that support and validate remediation response actions at the FUSRAP sites. The nature, complexity, size, and critical timing of the work required to support these environmental remediation initiatives far exceeds the capacity of the St. Louis District to execute this work with the available in-house work force. Historically, this need has been met via competitive acquisition for the single award of an Indefinite Delivery, Indefinite Quantity (ID/IQ) Cost Plus Fixed Fee (CPFF) Single Award Task Order Contract (SATOC) for environmental services. Award was made to the best overall proposal that was determined to be the most beneficial to the Government.

8. Market Research: LEIDOS is capable of immediate and continuous response because they are already performing the laboratory testing and environmental services required at the St.

Louis FUSRAP sites. Market Research for the new contract revealed that very few contractors can perform this work as a cost reimbursable contract, due to the requirement to have an approved accounting system. In addition, it has been determined that the requirement cannot be satisfied through the use of existing contracts. In accordance with FAR 10.001, market research was conducted on the subject acquisition to determine if sources capable of satisfying the government's requirements exist. A Sources Sought Notice was used as it is the preferred method of market research for acquisitions. The resulting information was used to identify competitive market forces and commercial practices, support the development of an effective acquisition plan, and determine whether the acquisition may be set aside for small business.

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Market Research for the follow-on contract was performed in the form of a Sources Sought Notice. This Notice was released on SAM.Gov on October 7, 2021, with responses due on October 29, 2021. In the notice, the Government requested submission of capability statements from interested businesses to determine how many of the respondent vendors were highly qualified to perform the minimum requirements of this acquisition. Based on the Market Research Report dated November 21, 2021, firms responded to the sources sought. Below are the contractors who provided responses:

9. Interested Sources: Notice of Intent to increase the capacity through a sole source action was posted at the GPE, SAM.gov on 23 March 2022. The notice, required by FAR 5.201, gave potential vendors the opportunity to submit capability statements to include their experience, skills, and ability to provide the requirement. No responses were received in response to increasing the capacity under the existing FUSRAP IDIQ contract.

10. Other Facts: none

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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: Date: 1 July 2022_____

Title: Contracting Officer�s Representative

Signature:

11. 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: Date: 1 July 2022_____

Title: Program Manager

Signature:

12. 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. Provide the basis for this determination (e.g., describe techniques to be used to determine fair and reasonable price, such as cost analysis, price analysis, audit, should cost, independent Government estimate, etc.). As part of this basis, indicate whether certified cost or pricing data will be required or if one of the exceptions in FAR 15.403 will apply.

Name: Date: 1 July 2022______________

Title: Contracting Officer

Signature: ____

13. Contracting Officer Certification

I certify that this justification is accurate and complete to the best of my knowledge and belief:

Name: Date: 1 July 2022___________

Title: Contracting Officer

Signature: ____

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SCO Legal Counsel Concurrence

I have reviewed this justification and find it adequate to support other than full and open competition.

Name:

Title: SCO-ATL Regional Contracts Counsel Signature:

Approval

Based on the foregoing justification, I hereby approve the increase in current contract capacity on contract W912P917D0014 for continued environmental remediation verification and laboratory services at FUSRAP St. Louis District Sites in the amount of $14,300,00 on an other than full and open competition basis pursuant to the authority of 10 U.S.C. §3204(a)(1), as implemented by FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements, subject to availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.

Name:

Title: Alternate Command Advocate for Competition Signature:

US Army Corps of Engineers____________________