Justification and Approval for Other than Full and Open Competition.pdf

MVSJA-22-0004

Justification and Approval for Other than Full and Open Competition U.S. Army Corps of Engineers, St. Louis District

1. Contracting Agency: U.S. Army Corps of Engineers, Mississippi Valley Division, St. Louis District

Contracting Office, 1222 Spruce Street, St. Louis, MO 63103-2833

2. Description of the Action: This action is to award a Modification to Task Order W912P9-19-F-0259 against construction contract W912P9-19-D-0009 for trenchless rehabilitation of combined sewers and related appurtenance; rehabilitation of manholes and service connections; and cleaning and lining of the pipe sewers and point repairs.

3. Description of Supplies/Services:

The U.S. Army Corps of Engineers (USACE), St. Louis District is awarding a modification to add quantitates to this IDIQ Contract. The current IDIQ contract is not to exceed $9,320,812.50 and the current contract value is $9,302,609.57. This request is to add additional quantities to complete the full section of sewer identified in the original solicitation. The amount being request for this action is $657,739.00. The costs were compared to the previously awarded modification. After review it has been determined the costs for this action are similar to that from the previous contract action, therefore fair and reasonable.

4. Authority Cited: 10 United States Code 2304(c)(1), as implemented in FAR 6.302-1, a written determination to use this authority shall be made in accordance with subpart (a)(2)(iii)(A).

5. Supporting Rationale for Authority Cited:

a. Background

i. Due to unforeseen in-scope differing site condition modifications, the contract value exceeded the IDIQ capacity of $9,320,812.50 prior to completing the full scope of work.

ii. Upon completion of heavy cleaning, SAK identified a portion of sewer pipe which could not be rehabilitated using the theoretical geopolymer lining design. It was alternate trenchless method (Cured in Place Pipe or CIPP) for rehabilitation of the portion of sewer pipe between manholes 16H2-100C and 16H3-248C (see attached map). SAK provided the Government a proposal for $2,773,357.07 which was negotiated to approximately $2.4 Million. During the compliance review, the Contracting Officer identified a contract capacity of $9,320,812.50. The $2.4 Million change exceeded the contract capacity. The Government determined it was in the best interest of the customer to reduce the quantity of rehabilitated pipe to provide maximum rehabilitation of the originally prescribed pipe segments. A contract modification added CIPP rehabilitation of the pipe segment between 16H3-004C and 16H3-076C.

iii. After the beforementioned contract action, SAK submitted a proposal to the Government for $657,739.00 dated 25 October 2021 which included extending the CIPP rehabilitated portion of pipe from 16H3-076C to 16H3-248C. This portion of pipe was scheduled to be rehabilitated in the original contract requirements. The

b. Justification

i. Impacts: Award to other than SAK Construction, LLC would result in substantial duplication of cost to the Government not expected to be recovered through

Brand Name Requirement

U.S. Army Corps of Engineers, St. Louis District MVSJA-22-0004 competition, as follows:

1. If this contract action were to be solicited for competition, multiple activities would be duplicated as described below:

a. Equipment mobilization and demobilization costs would be duplicated through competition. The expected duplicated cost for mobilization and demobilization is approximately $150,000.

b. Mobilization for access to the sewer would be duplicated costs through competition. An access point to the sewer pipe is expected to cost $400,000.

c. Construction management and administration labor costs would be duplicated through competition. Construction management and administration duplicated costs would be approximately $20,000.

d. Contract award labor costs charged directly to the USACE contracting office would be duplicated through competition. The expected duplicated cost is $13,000.

2. At this location, real estate agreements are in place for access to this portion of sewer via a neighboring property. If this contract action were to be solicitated for competition, additional real estate agreements would be required to access the sewer for construction. Based on discussion with the utility owner, MSD, the estimated duration for obtaining appropriate easements is 1 year. The duration to obtain easements is an unacceptable

ii. Benefits: Modification of this contact will provide the following benefits:

1. No duplication of cost to the Government.

2.

iii. Unique Circumstance

1. The sources sought document for this project identified this project as specialized work considering the small space and deep sewer rehabilitation.

2. Contract was awarded with no additional capacity, yet a significant number of unknown conditions existed eliminating the opportunity to complete all specified work at the time of contract award.

3. Two significant differing site conditions were identified during the period of performance at a cost exceeding $800,000.

4. The current Contractor is tasked with completing rehabilitation at both ends of the subject sole source will prevent additional mobilization, demobilization, and administrative costs.

5. The property owner where this work is located does not want to allow work to be performed at the ground surface on their property. The current contractor can perform the work with minimal access to the property owners land and has an outstanding agreement with the property owner to temporarily use portions of their property for access to the sewer.

iv. Alternatives

1. Alternatives to CIPP only include complete removal and replacement of the sewer pipe. Full replacement is a duplicate cost of administrative fees, higher

U.S. Army Corps of Engineers, St. Louis District MVSJA-22-0004 construction costs, and creates significant disruption to existing infrastructure.

2. Geopolymer was considered as the original alternative to rehabilitating the pipe. Due to the condition and shape of the pipe, geopolymer lining of the pipe is not a cost-effective solution.

6. Efforts to Obtain and Increase Competition:

No efforts were made to obtain competition for this contract action. The primary cost saving is directly related to awarding to the current contractor, SAK Construction, LLC who is currently onsite performing sewer rehab.

7. Market Research:

No additional market research was performed to complete this work. The primary cost driver is dependent on the existing contractor performing the work.

8. Other Factors:

Financial and other impacts if this action is delayed, the Government will incur duplicate administrative and construction costs. Furthermore, if delayed, the Government will be defaulting on the partnership established with the non-federal customer, MSD.

9. Contracting Officer Certification & Approval Signature Block

I certify that this justification is accurate and complete to the best of my knowledge and belief Based on the foregoing justification, I hereby approve the procurement of (state equipment/services being procured) on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1), subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Signature: _____________________________

JACOB PREBIANCA

Contracting Officer

U.S. Army Corps of Engineers, St. Louis District MVSJA-22-0004

Review & Signature Page

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: Eric Piel

Title: Project Engineer Signature: __________________________________

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: Ashley Rasnic

Title: Project Manager Signature: __________________________________