MRPO Rock Supply JA_Final.pdf

Control No.: CECT-NWO-20-16

SOLE SOURCE JUSTIFICATION REVIEW DOCUMENT

PROGRAM/EQUIPMENT:

Missouri River Project Office (MRPO) Rock Supply

AUTHORITY: FAR Subpart 13.5 procedures in accordance with 41 U.S. Code§ 1901

AMOUNT: $700,000.00

NAME: David Neal

PREPARED BY:

PHONE: 402-995-2988

DATE: 14 August 2020 TITLE: Contracting Officer EMAIL: david.w.neal®usace.armv.mil

CONTRACTING

NAME: David Neal

DATE REVIEWED:

OFFICER

PHONE: 402-995-2988

August 2020

EMAIL: david.w.neal@usace.army.mil

NAME: Thomas Aldmeyer

DATE REVIEWED:

TECHNICAL TITLE: Project Manager August 2020

PHONE: 402-995-2468

NAME: Thomas Aldmeyer

DATE REVIEWED:

REQUIREMENTS TITLE: Project Manager August 2020

PHONE: 402-995-2468

SIGNATURES ARE REQUIRED BELOW

I have reviewed this J&A and find the justification adequate to support other than full and open competition.

SIGNATURE: DATE:

DEPUTY FOR SMALL BUSINESS

NAME: Daniel M. Curado PHONE: 402-995-2910

ASSISTANT DISTRICT COUNSEL

SIGNATURE:

NAME:

FOR OFFICIAL USE ONLY

DATE:

PHONE:

SOLE SOURCE JUSTIFICATION AND APPROVAL

MISSOURI RIVER PROJECT OFFICE (MRPO) RIPRAP SUPPLY

1. CONTRACTING AGENCY: United States Army Corps of Engineers (USACE), Northwestern Division, Omaha District (NWO), Contracting Division, Civil Works Branch (CECT-NWO-C), 1616 Capitol Avenue, Omaha, NE 68102.

2. DESCRIPTION OF ACTION: The Omaha District proposes to execute a sole source purchase order, which will be titled Missouri River Project Office (MRPO) Riprap Supply. The District intends to award a Firm-Fixed Price purchase order with a delivery date of 30 November 2021, for a total amount of $700K, on a sole source basis to Martin Marietta Materials, Inc.

The purchase order will be funded with Operation and Maintenance, General, Corps of Engineers, Civil (96X3123) appropriations.

3. DESCRIPTION OF SUPPLIES/SERVICES OR NATURE OF CONSTRUCTION:

The purpose of this contract is to supply, deliver, and load 20,000 tons of quarried riprap onto government barges for the operation and maintenance of approved structures of the Missouri River Bank Stabilization Navigation between river mile 498 near Rulo, NE and river mile 753 near Ponca, NE.

The Omaha District, MRPO will be the Requiring Activity. It is estimated that the value of the combined work under the proposed contract is $700K based on amount of rock needed.

4. AUTHORITY CITED: Sole Source - FAR Subpart 13.5 procedures in accordance with 41 U.S. Code § 1901

5. REASON FOR AUTHORITY CITED:

a. Background. NWO historically has used BPA's for the acquisition of riprap to support the MRPO. Martin Marietta, located on the Missouri River new Fort Calhoun, NE, has been the only source that has been able to meet the government's requirements. However, recent market research revealed potential new sources to provide riprap.

NWO advertised two IDIQ supply SATOCs in May 2020, one for the North section of the Missouri River and one for the South Section of the Missouri River. Two proposals were received for the South solicitation and zero proposals were received for the North solicitation. Both proposals provided the same technical approach, which proposed a loading dock in St. Joseph, MO. The riprap price submitted was by both offerers was also more than double the IGE.

The cost to the government to move barges down to St. Joseph and

FOR OFFICIAL USE ONLY

back, combined with the price submitted for the riprap, would have been cost prohibitive.

Martin Marietta did not submit a proposal for either IDIQ SATOC;

however, NWO anticipated receiving a proposal. NWO followed up with Martin Marietta to discuss why they didn't provide a proposal.

Martin Marietta stated they did not submit a proposal due to short term constraints on their quarry operation that is expected to impact the next two to three years and will limit their production capability to less than 40,000 tons of riprap per year. They made a company decision not to submit a proposal because they would not be able to fulfill the requirements of the SOW for the IDIQ over the five-year ordering period and did not want to over commit themselves. Martin Marietta stated they would be able to meet short term needs for lesser quantities.

b. Justification. Martin Marietta is the only known source that can provide the required riprap at a price that is fair and reasonable.

Previous contracts have resulted in award to Martin Marietta, where they were the only contractor who responded to the solicitation.

There are no additional known riprap sources within the boundaries of the Missouri River where the riprap is needed in relation to where the government barges can travel without being cost prohibitive.

There are potential sources outside of the boundaries of the Missouri River, but the rock would have to be trucked in versus loaded directly onto government barges. The cost would increase significantly and would not be in the best interest.

c. Impact. NWO has an immediate need for riprap to support requirements related to recent flooding events along the Missouri River. The government intended to award two IDIQ SATOCs to meet current and future riprap needs; however, no acceptable proposals were received. Success of the work along the Missouri River is contingent upon ensuring there is an adequate supply of riprap for construction efforts that the MRPO helps with and performs in house.

Alternatives. The following alternatives were assessed and determined not possible for the stated reasons.

(1) Utilize Existing IDIQ or other contract vehicles - This option has been eliminated for many of the reasons previously discussed. USAGE does not have any existing contracts that could be used to perform this work.

6. EFFORTS TO OBTAIN COMPETITION: A sources sought notice covering the requirement for two SATOCs was posted on BetaSAM on 20 April 2020. The notice requested potential firms to provide documentation to support their technical capability to provide the riprap. No responses were received.

7. ACTIONS TO INCREASE COMPETITION: In addition to the actions described in

Section 6 of this document, USACE has taken other measures to increase competition. The PDT has periodically conducted brainstorming sessions and similar discussion to determine if any opportunities are being overlooked. There have been potential contractors that the government thought may be capable, but after discussing with the contractors, determined that they would not be able to meet the government's needs.

8. MARKET RESEARCH: See Sections 6 and 7 of this document. The PDT has examined whether the requirement can be structured or fragmented in such a way as to provide opportunities for competition or Small Business concerns. This is not feasible because there have not been any contractors that are able to provide the required riprap and a reasonable cost. Whereas competition generally helps the government receive the best value for its money, the opposite is true in this case for the reasons previously stated in this document.

9. INTERESTED SOURCES: No sources expressed interest from the sources sought. The two contractors who submitted a proposal for the South SATOC were determined unacceptable. In accordance with FAR 5.201, a notice of proposed contract action will be published on BetaSAM and will identify Martin

Marietta as the intended source with a statement of the reason justifying the lack of competition. Additionally, the notice will include a statement that all responsible sources may submit a bid, proposal, or quotation which shall be considered by the agency. The solicitation will include evaluation criteria and a statement that the criteria will only be used to evaluate offers from responsible sources.

10.OTHER FACTS:

a. There have not been any changes in the circumstances justifying the sole source strategy for this requirement. Throughout this document, a wide range of reasons have been given to justify why this requirement is not suitable for competition, and why it is not feasible to break the scope down in separate requirements.

11. 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: Thomas Aldmeyer

Title: Project Manager

12. REQUIREMENTS CERTIFICATION:

ALDMEYER.THOMAS.E.136737 Digitally •lgood by

ALDMEYER.THOMAS.E.1367377891

Signature: 7a91 0""2020 ...... , •• 10,,-0,·oo·

Date: 8/14/2020

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: Thomas Aldmeyer

Title: Project Manager

ALDMEYER.THOMA Digitally •igoed by

ALDMEYER.THOMAS.E.1367377891

Signature:

s.E.1367377891

Date: 8/14/2020

Date: 2020.08.14 16:11:20-05'00'

13.FAIR AND REASONABLE COST DETERMINATION:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. The determination will be based on utilization of cost analysis, audit, independent government estimate, and historical and commercially available costs.

Name: David W. Neal

Title: Contracting Officer

Signature:

Date:

14.CONTRACTING OFFICER CERTIFICATION:

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

Name: David W. Neal

Title: Contracting Officer

Signature:

Date:

APPROVAL

Based on the foregoing justification, I hereby approve the procurement for

Missouri River Project Office (MRPO) Rock Supply on an other than full and open basis pursuant to the authority of FAR Subpart 13.5 procedures in accordance with 41 U.S. Code § 1901, subject to availability of funds, and provided that the supplies and services herein have otherwise been authorized for acquisition.

David W. Neal

Contracting Officer

FOR OFFICIAL USE ONLY

(Date)