Justification_and_Approval_IA-NMAAEC_Ceiling_Increase_1.pdf

United States Department of the Interior Office of the Assistant Secretary - Indian Affairs

Washington, DC 20240

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

AUTHORITY: FAR 6.302, 41 U.S.C. 253(c)

Contract #: 140A1620D0003, 140A1620D0004, 140A1620D0005, 140A1620D0006, 140A1620D0007

Control #: 23-0058

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by FAR 6.3 and in accordance with the requirements by FAR 6.303-1, use of FAR 6.303-2, Unusual and Compelling Urgency, as the pertinent authority under FAR 6.3 is justified by the following facts and rationale:

1. Identification of the agency and the contracting activity, and specific identification of the document as a “Justification for other than full and open competition.”

Contracting Activity: This document is a justification for other than full and open competition for the Department of the Interior, Bureau of Indian Affairs, Central Office, Construction Team in support of Division of Facilities, Management and Construction (DFMC) and other Indian Affairs activities.

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

Requirement:

☐New ☐Follow-on Requirement ☒Modification to existing IDIQ

Pricing:

☒Firm-Fixed Price ☐Time & Materials ☐Other

IDIQ Holders:

Blue Arrow Architecture, LLC 2118 Lamar St, Ste200 Houston, TX, 77003

(713) 842-7500

Encompass Architects, P.C.

151 N 8th St, Ste 220 Lincoln, NE, 68508-

(402) 477-2404

Indigenous Design Studio + Architecture (IDSA) 8008 Pennsylvania Cir NE Albuquerque NM, 87110

(505) 226-2565

Joseph David Associates LLC 18908 Ainsworth Rd.

Spiro, OK, 74959

(479) 221-6085

Seven Generations Architecture & Engineering, LLC 600 E Michigan Ave, Ste B Kalamazoo, MI, 49007

(269) 585-2253

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

Indian Affairs (IA) has an on-going need for full range of architectural and engineering services including studies, investigations, surveying and mapping, tests, evaluations, consultations, comprehensive planning, program management, conceptual designs, plans and specifications, value engineering, construction phase services, soils engineering, drawing reviews, preparation of operating and maintenance manuals, and other related services. These services are vital to IA executing its AE projects and construction (e.g., Design-Build (DB) and Design-Bid-Build (DBB)) projects. The NAICS Code is 541330, Engineering Services, with a size standard of $22.5M. The Product and Service Code (PSC) is C1KZ – Architect and Engineering- Construction.

Indian Affairs has a current Indefinite-Delivery/Indefinite-Quantity (IDIQ) Multiple Award Contract (MAC) for these services called the National Multiple Award Architect-Engineering Contract (NMAAEC). This IDIQ was awarded in 2020 with a base year and four (4) option years and with a total ceiling value of $45M shared amongst its five IDIQ holders.

The NMAAEC IDIQ is currently in Option Year 2 (1 May 2022 – 30 April 2023), but IA is projected to reach the NMAAEC IDIQ’s current ceiling of $45M by the end of second quarter of Fiscal Year (FY) 2023. IA is currently in the process of procuring the follow-on contract (AE- MAC) by the end of FY 2023. However, the anticipated gap between reaching the ceiling of the existing IDIQ and award of the new IDIQ will leave IA without a method for procuring required AE services during the third and fourth quarters of FY 2023.

IA has currently obligated $39,261,650.53 under the NMAAEC IDIQ and has $5,738,369.47 remaining to be obligated before the $45M ceiling is reached. Current program needs total approximately $7.5M through the end of FY 2023 which, if met under this IDIQ, would exceed the ceiling by approximately $1.75M. IA has factored modifications to existing task orders, requirements that are not currently programmed, and possible schedule slippage in the re-procurement to determine that a $15M increase in the amount of the ceiling of the NMAAEC IDIQ will assure that IA’s program needs are met. This will increase the final total ceiling amount of the IDIQ to $60M.

Current ceiling for the IDIQ: $45,000,000.00 Current dollar value that has been used: $39,261,650.53 Amount ceiling will be increased by: $15,000,000.00 Final Total Ceiling Amount via this modification/increase: $60,000,000.00

Please note that $15M is essentially an estimated amount since this is an IDIQ contract. All task order awards will be awarded using the Brooks Act process to select and negotiate with AE firms, and definite dollar values for each task order will be determined at the time negotiation of each task order is complete.

After the re-procurement AE-MAC IDIQ is awarded, all new requirements will be solicited against the new AE-MAC IDIQ. But modifications to existing task orders under the NMAAEC IDIQ may continue to draw on the additional $15M added to the ceiling and approved by this justification document.

No extension is required or requested for the ordering period of the NMAAEC IDIQ.

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

FAR 6.302-2 -- Unusual and Compelling Urgency. 41 U.S.C. 3304(a)(2)

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

IA currently manages 47 million gross square feet of space encompassing 7,452 buildings. These building sites are located at schools, agencies, and detention centers in various regions nationwide. Indian Affairs manages the continual renovation, repair, and replacement of these assets, many of which are currently in poor condition.

IA does not have the manpower or expertise to perform the planning, conceptual design, and construction design of these renovation, repair, and replacement projects internally. The AE services obtained under the current NMAAEC IDIQ are essential IA’s ability to maintain these assets, and the need for these services is continual, as many new AE projects are awarded each quarter to support current and downstream construction projects.

During fiscal year 2017, IA transitioned most high dollar and complex AE projects to the IA Central Acquisition Office to award and administer. Based on internal and GAO audits, this approach is required due to the lack of construction and AE acquisition knowledge at the regional level. However, IA Central Acquisition Office is not resourced to support the procurement of each AE requirement as a separate contract. The office requires the efficiency of ordering from IDIQs in order to meet requirements with the resources available.

IA has identified several reasons why the ceiling of the NMAAEC IDIQ was inadequate to meet five years of program needs. They key reason is an unanticipated increase in funding for construction and therefore programming for AE. The second key driver was a change in delivery method for construction projects, with a greater emphasis on the design/bid/build delivery method, which requires a much more costly 100% design from AE firms rather than a conceptual design required for the design/build delivery method. While IA continues to use both delivery methods, lessons learned and changes in leadership focus in the past few years have led to an increased use of 100% design.

The existing NMAAEC IDIQ is the only contract vehicle available to IA to provide on-going AE services before the re-procurement AE-MAC IDIQ is awarded. In order to comply with the Buy Indian Act, IA must award AE projects to Indian Small Business Economic Enterprises (ISBEEs). Only the NMAAEC IDIQ allows IA to award AE projects set-aside to ISBEEs under an efficient IDIQ arrangement. No other AE services IDIQs available to Department of the Interior contracting officers are set-aside for ISBEEs, and therefore no other IDIQs meet IA needs.

Without this increase in ceiling, IA will not be able to award all programmed AE projects in the third and fourth quarters of FY 2023. An inability to award would have follow-on effects, including delaying an estimated 10 design projects in first quarter FY 2024 and further as IA struggles to catch up once the new AE-MAC IDIQ is awarded. It will also have follow-on effects on the construction projects being designed, pushing out construction schedules throughout FY 2024.

Among many others, specific projects that will be delayed without this ceiling increase include:

• The replacement of Shonto School, the design of which is funded with FY 2022 GAOA funds.

• The replacement of Window Rock detention center, with planning anticipated for this year.

• Several other school replacements with planning or design anticipated this year, including:

o Cottonwood School o Aneth Community School o Wah He Lut School

6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies.

The NMAAEC IDIQ includes five firms. No additional sources will be included in the NMAAEC IDIQ, but the re-procurement will be open to all ISBEE AE firms. A sources sought for the re-procurement of the AE-MAC IDIQ was released on 11 October 2022 and closed on 11 November 2022. Twelve ISBEE AE firms responded to that sources sought, as documented in the market research report for the re-procurement. The re-procurement will be synopsized in accordance with Subpart 5.2. Award of the AE-MAC IDIQ is expected by September 2023.

The AE-MAC IDIQ will feature an increased ceiling of $150M.

No further market research will be conducted because no other firms can meet the requirement of already being included in the NMAAEC IDIQ pool, and therefore immediately available to fulfill the Government's urgent need for AE services in the last two quarters of FY 2023.

This Justification for Other Than Full and Open Competition will be posted to SAM.gov. Note that this posting is not a request for proposals or quotes, but rather a synopsis of a modification to a current IDIQ under the authority cited due to unusual and compelling urgency. While the 33% ceiling increase to the existing IDIQ contract that is explained and justified in this document might be considered a reasonably anticipated, in-scope modification, the synopsis of this action is being posted as a matter of transparency and due diligence.

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

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. A Contracting Officer determines that the anticipated price(s) will be fair and reasonable based on the negotiation of each individual task order. AE task orders are procured using the Brooks Act process described in FAR Part 36.6 and selection is not based on price competition. Following selection based on technical qualification, negotiation begins with the most highly rated firm.

Labor rates are the driver for AE pricing, and all labor rates were negotiated at the time of IDIQ award for the five years (1 base and 4 option years) of the ordering period. Upon exercise of each option year, the Government examines the labor rates and confirms the fair and reasonableness of those rates in comparison to the current market. No time extension is requested, so existing pre-negotiated labor rates will continue to control pricing for task orders.

Each task order will be negotiated, and in addition to comparison with the pre-negotiated labor rates, the Contracting Officer for each task order will determine the price fair and reasonable, generally using comparison to the IGE as a basis, in accordance with FAR 15.404-1(b)(2)(v).

Any of the other price or cost analysis techniques at FAR 15.404-1(b) or (c) may also be used, as appropriated.

8. A description of the market research conducted (see Part 10) and the results or a statement of the reason market research was not conducted.

Please see paragraph 6, Efforts to Obtain Competition.

9. Any other facts supporting the use of justification of other than full and open competition, such as:

No additional facts are presented.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

Please see paragraph 6, Efforts to Obtain Competition. This action to increase the ceiling of the existing MAC IDIQ has not been synopsized.

11. A statement of any actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

Please see paragraph 6, Efforts to Obtain Competition. The market research and outreach on the re-procurement effort have the express aim of reaching all existing AE ISBEE firms in the market. When the synopsis for the re-procurement is posted, further outreach will be conducted by the Contracting Officer and Headquarters Small Business Specialist, with outreach through the Small Business Association Native American Procurement Technical Assistance Centers (PTACs).

12. Contracting officer certification that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief.

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

Jessica Kidd Contracting Officer

13. Requirements personnel certification.

I certify that the technical data which forms a basis for this justification is complete and accurate and meets the Government’s minimum needs.

Andrew Robinson Branch Chief, Engineering Services DFMC

14. Reviews and Approvals

Concur/Approve:

Brian Schoellkopf Chief of the Contracting Office

Concur:

Jim Weiner Solicitor

Concur:

Erica Nemmers Bureau Competition Advocate

Approve:

Anthony Lomelin Head of the Contracting Activity