Justification_and_Approval_for_Other_than_Full_and_Open_Competition_-_47PD0320D0002.pdf

Justification for Other than Full and Open Competition Richmond Micro IDIQ Construction Term Contract

Various Cities and Counties in the Commonwealth of Virginia

1. Identification of the agency and the contracting activity:

The contracting activity is the General Services Administration (GSA), Public Buildings Service (PBS), Acquisition Management Division (3PQ1), 100 S.

Independence Mall West, Philadelphia, PA 19106.

2. Nature and/or description of the action being approved:

This is a justification for other than full and open competition to increase the Maximum Order Limitation (MOL) to the existing single-award Indefinite Delivery Indefinite Quantity (IDIQ), Contract No. 47PD0320D0002, for minor general repair and alteration services for the following areas within the Commonwealth of Virginia:

Areas within the City of Richmond, City of Chesapeake, City of Hampton, City of Newport News, City of Norfolk, City of Portsmouth, City of Virginia Beach, City of Suffolk, City of Charlottesville Henrico County, Albemarle County, Gloucester County, and Sussex County. This document shall reference the geographic area of coverage as the “Richmond, VA and surrounding area”. This single-award IDIQ contract is the sole indefinite delivery vehicle used by the field office in Richmond, Virginia to procure minor general repair and alterations services under the Simplified Acquisition Threshold (SAT) for the area of coverage identified above.

The current MOL for this IDIQ is $2,000,000. Approval of this action would increase the MOL by $1,000,000 from $2,000,000 to $3,000,000.

3. Description of the supplies or services required to meet the agency’s needs (including the estimated value):

The above reference IDIQ currently supports the Richmond Field Office’s operational needs in regards to their repair and alterations program, which has shown a steady demand for small, below the SAT, repair and alteration construction projects. The NAICS Code for this procurement is 236220, entitled “Commercial and Institutional Building Construction” and the small business size standard (for NAICS Code 236220) is $39.5 million.

The IDIQ is a sole-source contract awarded on January 21, 2020 under the authority of the Small Business Administration (SBA) 8(a) Business Development Program in accordance with FAR 19.805-1 and the GSA/SBA Memorandum of

DocuSign Envelope ID: C20404EC-8B96-4D76-A45E-57DF56BCB2B5

Understanding. Per these FAR provisions, sole-source contract awards are permitted with the acceptance and approval of the SBA and so long as the total estimated value of the procurement does not exceed $4,500,000. The current MOL of $2,000,000 is well below the sole-source threshold mentioned above. In addition, the intent of original MOL (of $2,000,000) was to support the future operational needs of the Richmond Field Office from 02/01/2020 - 01/31/2025; an ordering period of five (5) years comprising one (1) base year and four (4) one-year option periods.

The field office requirements procured through this vehicle are funded by our own internal budgetary activities via BA54, BA61 (up to $50,000) and also externally via BA80 for reimbursable work requests from external customer agencies. As of 11/20/2023 the MOL usage/obligations is $1,839,513.37; meaning that the remaining balance on the MOL is only $160,486.63. The field office has already programmed out an estimated $160,000 worth of work from now until the end of the current option period 1/31/2024. Moreover, the field office has already identified additional requirements prior to 1/31/2024 exceeding the current MOL capacity. Once the MOL is reached this contract cannot be used to place any further task orders unless it is increased.

Currently, there is approximately 2 months left on the current ordering period through 1/31/2024 and there is another, fourth and final, option period left to exercise. The FY24 operational needs of the Richmond Field Office well exceed what is currently available on the MOL. We are seeking to increase the MOL under our own agency authority so that we can continue supporting work requests using the IDIQ vehicle through the end of the next option period, which ends on 1/31/2025.

The Richmond Field Office confirmed their program for FY24 and into Q1 of FY25 and anticipate that there will be approximately $1,000,000 worth of project requirements; inclusive of contingency/emergency requirements. As such, it is the intent of the Acquisition Management Division, Programs and Policy Branch to execute a modification to increase the MOL by approximately $1,000,000 to support current and future requirements of the Richmond Field Office. Increasing the MOL will support use of a proven IDIQ vehicle that expedites the execution of requirements for the Richmond Field Office saving administrative time and taxpayer dollars.

4. Identification of the statutory authority permitting other than full and open competition:

The statutory authority permitting other than full and open competition is41 U.S.C. 253 (c) (1) as implemented by FAR 6.302-1. Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Demonstration that the proposed contractor’s unique qualifications or nature of the acquisition requires use of the authority cited:

The contractor, KAU, Inc. provides excellent service to meet and exceed requirements for the Richmond Field Office. They have forged an excellent relationship with the field office Construction Management team; keeping them abreast of progress and issues and providing cost-saving solutions. Their proven track record and customer service towards the GSA Project Team and our external customers has instilled much confidence in the Richmond Field Office’s repair and alteration program.

In addition, this particular IDIQ also uses over 400 pre-negotiated line items generally used to cover all the federal building and lease locations within the set geographic boundaries. The use of the pre-negotiated line items provides the program office with an efficient method of scoping out order requirements and provides the acquisition team with a streamlined approach towards determining price reasonableness. Historically, the field office has placed, on average, approximately 22 task orders every fiscal year since the award of the vehicle.

Approximately 75% of the task orders placed are below $25,000. In addition, the contractor, KAU, Inc., is managing anywhere between 3-6 projects in different locations simultaneously.

Due to the steady increase in demand to provide repair and alteration services within the Richmond, Virginia and surrounding area, there is an urgent need to ensure continuity of service from the incumbent contractor, KAU, Inc. by increasing the MOL by $1,000,000 from $2,000,000 to $3,000,000. The incumbent’s MOL is not sufficient to meet the current and outgoing programmatic needs of the Field Office; not inclusive of emergency repair and alteration requirements.

6. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable:

Since this is a justification for continued use of placing task orders against a single-award IDIQ procurement vehicle, other sources will not be solicited.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

In accordance with FAR 19.805, 52.243-4 “Changes”, 52.216-18 “Ordering” and 52.216-19 “Ordering Limitations”, the MOL increase of $1,000,000 is the most efficient and effective way to meet the Government's needs for construction projects valued under the SAT in the Richmond, VA and surrounding area.

The Contracting Officer has previously determined that the pre-negotiated IDIQ contract line item pricing is fair and reasonable and determines that the anticipated cost to the Government, via task orders placed against this vehicle, will be considered fair and reasonable. Any costs that have not been pre-negotiated shall be analyzed by the ordering Contracting Officer and the Contracting Officer's Representative for price reasonableness.

8. Description of the market research conducted:

Market research was conducted to determine if there are any other immediate sources that have the ability to take on multiple small repair and alteration projects within the Richmond, VA and surrounding area. There is a high level of confidence that there are no other contractors that can satisfy the Richmond Field Offices immediate programmatic needs. The acquisition delivery method of placing task orders against this IDIQ contract with KAU, Inc. has proven invaluable in regards to saving administrative time and taxpayer dollars.

Moreover, the capacity and capabilities of the contractor have increased over the years. KAU, Inc. and so has the demand to use them for various construction projects.

9. Other facts supporting the use of other than full and open competition:

The current MOL for this IDIQ is $2,000,000. While this initial MOL seemed sufficient to support the programmatic needs of the Richmond Field Office, it is now apparent that it will not satisfy the future needs of the office from now until the end of the current option period date of 1/31/2024 and beyond. Increasing the MOL so that we can utilize this vehicle through the 4th and last option period will save administrative time and taxpayer dollars and will provide continued use of a proven successful vehicle to deliver best value and excellent workmanship for future construction requirements. For the reasons mentioned above, increasing the MOL of the current IDIQ is in the best interest of the government. Lastly, during the remaining period of performance GSA, PBS Acquisition Management Division shall replace this IDIQ contract with a new vehicle that supports the operational needs of the Richmond Field Office.

10. List of any sources that expressed, in writing, an interest in the acquisition:

None.

11. Statement of the actions, if any, the agency may take to remove or overcome any barriers to competition:

GSA shall continue to anticipate upcoming needs for the Richmond Field Office and shall endeavor to alleviate the need for future modifications of this nature by using the period of performance timeframe to establish a new IDIQ vehicle. This new vehicle will either be a single award or a multiple award vehicle to cover the Richmond Field Office’s geographic area mentioned in Section 2 above with the same structure of a base period of one year and four one-year option periods for a total of five years. It is the intent of this acquisition office to keep this requirement within the SBA Small Business Development Program. Indefinite Delivery Vehicle (IDV) MOL requirements that are above $4.5 Million are generally set-aside for competition within the Small Business Administration (SBA) 8(a) Business Development Program; thus understanding the outgoing future needs of the field office will ultimately help to establish the new MOL moving forward and will be the keystone driving factor in regards to obtaining competition. Historically, it is difficult to obtain healthy competition when there is not a substantial amount of work to be spread out to multiple contractors. Market research shall be conducted prior to the establishment of any new vehicle in order to determine the magnitude of the MOL for this future requirement for minor repair and alteration services and the availability of industry competition.

12. Contracting Officer Certification:

I hereby certify that the above information is accurate and complete to the best of my knowledge.

Oliver Lester Date Contracting Officer (3PQ1P)

13. Technical/Requirements Certification:

I certify that the facts and representations under my cognizance which are included in this justification and which form a basis for this justification are complete and accurate.

Robert Quinn Date Contracting Officer’s Representative (3PSRC)

DocuSign Envelope ID: C20404EC-8B96-4D76-A45E-57DF56BCB2B5

11/21/2023

11/21/2023

CONCURRENCES/APPROVALS:

Doreen Waltrich Date Contracting Director (3PQ1)

Robert Notigan Date Regional Counsel (LD3)

Tom Lyman Date Competition Advocate (3P)

Joanna Rosato Date Head of Contracting Activity / Regional Commissioner (3P)

DocuSign Envelope ID: C20404EC-8B96-4D76-A45E-57DF56BCB2B5

11/21/2023

11/23/2023

11/27/2023

11/27/2023