JUSTIFICATION AND APPROVAL- Redacted.pdf

Control No:

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN

COMPETITION

1. Contracting Agency: U.S. Army Corps of Engineers, Memphis District, Contracting Division (CECT-MVM)

2. Description of Action: Request the approval of a sole-source modification to provide additional capacity in the amount of on the existing Mississippi (MS) River Stone Structures Multiple Award Task Order Contract (MATOC), Contracts W912EQ19D0001 through W912EQ19D0005. The additional capacity will permit award of two (2) critical stone projects for which delayed award will result in an increased risk for additional scour and degraded channel conditions that may result in the need for emergency channel dredging to maintain the congressionally mandated 9 feet deep by 300 feet wide navigation channel. The current contract ordering period, Schedule E Year 5 (2023), which is currently valid between 20 July 2022 and 19 July 2023 will be utilized to award the anticipated task orders. The two task orders

Channel Improvement Construction funds and 2022 Disaster Relief Supplemental Appropriations Act (DRSAA) funds. A new Mississippi River Stone Structures MATOC is being developed; however, the new MATOC will not be awarded in time to meet the mission requirements to prepare for a flood event, protect the system, and award 2 critical stone projects resulting in a need for an approximate increase in the existing MATOC capacity.

3. Description of Supplies/Services : The work to be performed under this contract consists of furnishing all plant, labor, materials, and equipment for the construction of various types of stone navigation structures to include all types of dikes, chevrons, bendway weirs, hardpoints, and other river training structures in the Mississippi River between River Miles 954.0 to 320.0 AHP within the boundaries of the Memphis and Vicksburg Districts as laid out in individual task orders. Additional work may include placement of stone fill and longitudinal peaked stone toe protection in specified areas such as dike fields, revetments, and other locations along top bank of the river and riprap bank paving to include bank clearing, grading and excavation. The total contract value will be increased from .

Two critical task orders are proposed to be awarded with the increased capacity. The first task order is a stone paving project at Lower Bullerton Revetment (River Mile 784R) requiring placement of 220,000 tons to protect 3,200 linear feet of an actively scouring bank in an area where maintaining channel alignment is critical for safe navigation. The estimated cost for this task order is , and the required award date is 31 July 2023. The second task order is a dike construction project at Stewart Towhead Dikes (River Mile 871R) requiring placement of 110,000 tons of stone to restore and raise 4,100 linear feet of an existing dike and construct a new 1,000 linear foot trail dike. This area was dredged in 2022, and this project will restore degraded channel conditions to ensure authorized channel dimensions for safe navigation. The estimated cost for this task order is , and the required award date is 30 June 2023.

4. Authority Cited: Federal statutory authority is 10 U.S.C 3204(a) (1) implemented by FAR 6.302-1(a)(2)(iii) (only a limited number of responsible sources). FAR 6.302-1(a)(2)(iii) provides that full and open competition need not be provided for when the procurement is for highly specialized services, and it is likely that the award to any other source would result in (A) substantial duplication of cost to the Government that is not expected to be recovered through competition; or (B) Unacceptable delays in fulfilling the agency s requirements to fulfill mission goals.

5. Reason for Authority Cited:

a. Background:

The Mississippi (MS) River within the boundaries of the Memphis and Vicksburg Districts is currently experiencing above action level high water and for some gages, above flood stages during the 2023 high-water season which typically runs from mid- March to mid-presently exists a higher-than-normal snowpack in the upper Midwest and Plains as well as the Appalachians, and an above normal projected springtime precipitation forecast for the Midwest and South. These conditions indicate conditions likely to contribute additional copious amounts of runoff that will add significant additional water into the system and push the current high river stages even higher increasing risk of scour and emergency flood measures necessary to maintain the stability of the riverbank and the navigation channel. At this time, there is high confidence that the Mississippi River will be at or near major flood stage throughout the next 30 to 60 days, if not longer.

Performing stone placement on the structures of the Lower MS River requires a highly specialized and technically competent contractor due to the depths required for stone placement and swift velocities encountered in this portion of the river increasing the technical complexities of the work required. These characteristics of the river are not encountered outside the area covered by this MATOC such that contractors from outside the area of responsibility do not have the experience to complete the required need properly and safely. Required key personnel include experienced superintendent(s), engineer(s), surveyor(s), quality control manager, and safety officer, in addition to equipment operators and deckhands. This team must understand the challenges of quickly placing large quantities of stone underwater in the swift currents and deep depths of the MS River.

Specialized equipment is needed to ensure the successful underwater placement control of large quantities of stone. This equipment includes multiple draglines, excavators, spud barges, winch barges, high-power tow boats, and advanced hydrographic survey equipment. There are a limited number of qualified offerors for this highly specialized work. Market research performed in April 2022 shows that there are currently only 3 interested capable offerors with experience in projects of this size, scope, and complexity (see Market Research section below). In additional, procurement history (see Section 8.

Other Factors) demonstrates that the current pool of capable contractors is very limited and those contractors are included in the current MATOC pool.

Presently there is no other contract vehicle in place but this MATOC for major stone construction and maintenance projects for river engineering structures of the Lower MS River in the Memphis and Vicksburg Districts. This MATOC is a regional contract shared between MVM and MVK with approximately in remaining capacity with an estimated need for of planned awards for 2 critical stone navigation projects (1 dike project and 1 revetment stone paving project) within the next 2 months for FY23.

Disapproval of the requested sole-source modification and use of separate stand-alone contracts would lead to increased mobilization and demobilization for the projects on stand-alone contracts versus the issuance of task orders under the existing MATOC. These additional mobilization/demobilization costs were derived from historical pricing received within the last three (3) years on similar stand-alone acquisitions.

A new MS River Stone Structures MATOC is currently being developed and is scheduled to be awarded by 31 August 2023. The Consolidations Determinations and Findings (D&F) and Formal Acquisition Plan were approved by SCO-ATL on 1 March 2023 and the solicitation is currently scheduled to be issued by 15 July 2023, contingent upon the completion of the SCO-chaired Phase 1 Peer Review (SRB) which is currently ongoing. However, there is an urgent need to have a stone placement contracting vehicle in place to award the 2 critical stone navigation projects within the next 90 days to prevent further scouring and degradation of the channel. In addition, the region must be postured to quickly respond in the event that the current or expected high river causes unexpected damages to existing infrastructure that necessitates the need for the Contracting Officer to issue an emergency task order for flood damage repairs. Stand-alone IFB contracts are being utilized to the maximum extent possible to award additional stone structure projects. However, the only viable path forward for executing the critical stone navigation projects in a staggered and timely manner to support protecting the system, and for being postured to respond to a flood emergency, is to increase the capacity of the existing MATOC, bridging the gap until a new MATOC is established.

b. Justification: Without an additional contract vehicle in place, projects cannot be awarded in time to meet the typical start of construction in late spring/early summer 2023 to best protect against additional revetment scour and provide a safe and reliable navigation channel. In addition, the MS river is in flood season with high water and a possible flood event this spring. This increased capacity MATOC is the most efficient vehicle for emergency flood damage repairs. Performing stone placement on the structures of the Lower MS River requires highly specialized and technically competent contractors with key personnel that possess the technical capability and experience, and highly specialized equipment for performing the complex stone placement requirements.

This portion of the MS River has increased depths required for stone placement and swift velocities increasing the technical complexities of the work required; therefore, contractors unfamiliar with the Mississippi River conditions do not have the highly specialized experience to be successful and safely perform the work. There are a limited number of qualified offerors for this highly specialized work and market research shows that all are in the pool of the current MATOC.

c. Impact: Failure to obtain an increase in MATOC capacity would have several adverse impacts to the government. Stand-alone contracts would lead to increased mobilization and demobilization , increased acquisition timelines on the order of 90 days, delays to start of construction of 4-6 months and increase the risk for additional scour and degraded channel conditions.

Additional scour at Lower Bullerton Revetment would increase the scope of the revetment stone paving project by as much as 10-20% , and degraded channel conditions at Stewart Towhead Dikes may result in the need for emergency channel dredging at an estimated per day (MVM Dredge Hurley 2022 costs). This increased capacity would also prepare the region to be able to respond to flood emergencies and would decrease the likelihood for major hazards and delays to the navigation industry on the Lower MS River. Delays in award dates will delay construction start, increase risk for additional revetment scour and channel dredging, and delay critical mission requirements for providing a safe and reliable navigable channel.

d. Alternatives: The Memphis District does not have adequate personnel, technical expertise, and equipment to place the amount of stone required with hired labor units.

Stand-alone contracts are being utilized to the maximum extent possible; however, it is not feasible for all stone structure projects due to the increased lead time for award of multiple stand-alone contracts prior to the end of the fiscal year as well as anticipated increased mobilization/demobilization costs of per award using IFBs versus MATOC task orders. MATOC task orders can be awarded within 60 days, while stand-alone contracts require 90 to 120 days minimum. Delaying work until the next MATOC is awarded would avoid the increased mobilization and demobilization costs but would not avoid the increased risk of additional scour on the existing revetment and the requirement for more costly flood protection measures and degraded channel conditions requiring emergency dredging due to delays in critical contract awards.

6. Efforts to Obtain Competition: A Notice of Intent (NOI) to issue a sole-source modification was posted to SAM.gov on 26 May 2023 to ensure fair opportunity was made available to any and all additional parties capable of performing the work. There was one response received from Ozark Bloomsdale JV, LLC which is a small disadvantaged business. Based on their submitted capabilities, Ozark Bloomsdale does not have the ability to complete the work of this project. The information provided by Ozark Bloomsdale of projects similar in nature to work on this project were not relevant in terms of size, scope and complexity. The underlying contract was advertised as an unrestricted RFP based on market research with HUBZone Evaluation preference and was solicited on a competitive basis to provide opportunities for all qualified offerors to participate in the awarded pool to include small and disadvantaged firms.

A total of five (5) proposals were received and awards were made to all 5 contractors deemed to be technically competent. However, since award, 2 of these contractors have either ceased operations as companies or sold their equipment and resources to other contractors in the award pool. As described below, the sources sought notice for the FY23 MATOC award also shows that the current 3 contractors are the only 3 contractors interested and capable of performing this work. All work to be completed with the increased MATOC capacity will be awarded through competitive offers amongst the existing remaining pool (3) of capable stone contractors.

7. Actions to Increase Competition: This J&A supports a discrete requirement that will end when the project is complete. Therefore, there are no planned actions to increase competition for the requirement covered by this J&A.

8. Market Research: Current market conditions indicate that all interested and technically capable stone placement contractor are in the offeror pool of the current MATOC. A sources sought was posted to SAM.gov on 23 May 2018 for this acquisition and again on 29 April 2022 for the current planned FY23 MS

River Stone Structures MATOC. After analyzing all responses from both instances of market research, it was determined that there were no small businesses deemed capable of satisfying the contract requirements. 10 interested contractors responded to the sources sought; however, only 3 were deemed capable by Memphis District Construction Management based on past performance in similar size, scope, and complexity of the highly specialized river work. In addition, the current MATOC contract contains the most technically capable yet limited pool of contractors (3) that can perform the work. Previous and current market research has not identified additional contractors capable of performing this type of specialized river construction work; thus, the Memphis District Contracting Officer has determined that modifying the existing MATOC for additional capacity is the best option for procuring the work and being postured to respond to a flood emergency.

9. Interested Sources: Current market conditions indicate that all interested and technically capable stone placement contractor are in the offeror pool of the current MATOC. A Notice of Intent (NOI) to issue a sole-source modification was posted to SAM.gov on 26 May 2023 to ensure fair opportunity was made available to any and all additional parties capable of performing the work. There was one response received from Ozark Bloomsdale JV, LLC which is a small disadvantaged business.

Based on their submitted capabilities, Ozark Bloomsdale does not have the ability to complete the work of this project. The information provided by Ozark Bloomsdale of projects similar in nature to work on this project were not relevant in terms of size, scope and complexity. The new MATOC solicitation for MS River Stone Structures will be awarded to all qualifying offerors that meet the technical requirements as outlined in the solicitation and approved SSP.

10. Other Factors:

a. Procurement History: The Memphis and Vicksburg Districts have procured large stone contracts for the previous 14 years utilizing an unrestricted MATOC with HUBZone evaluation preference. All task orders have been awarded to contractors in the available offeror pool, if still in business (multiple mergers and acquisitions between capable stone placement contractors). The Memphis District has awarded two separate MATOCs with task orders totaling approximately , with a yearly average annual execution of , in MR Stone Placement contracts over the past five years. All solicitations were advertised unrestricted with resulting awards made to both large and small businesses; however, there has not been a single competition in the past five years for a task order or stand-alone contract that included two or more awardable small business bids for any comparable Mississippi River stone work. Details are below:

anticipated that these same river contractors will submit proposals on the 2 critical stone task orders to be issued under this J&A and be considered for award along with any additional technically qualified offerors, thus competition is preserved via the MATOC and ensures the government will be able to meet agency and mission goals on the Mississippi River.

b. Acquisition Data Availability: Adequate specifications were available for this action.