N40080-24-JA-009 SB Blue MACC_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND WASHINGTON

1314 HARWOOD STREET SE

WASHINGTON NAVY YARD DC 20374-5018

J&A No. N40080-24-J&A-009

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

The requiring activity is Naval Facilities Engineering Systems Command (NAVFAC), Washington, District of Columbia (DC).

2. Description of the Action Being Approved.

Approval is sought to award a modification to increase the contract maximum not-to-exceed (NTE) amount on the NAVFAC Washington Regional Indefinite Delivery Indefinite Quantity (IDIQ) Small Business Multiple Award Construction Contracts (SB Blue MACC) for New Construction, Repair and Renovation of Various Facilities at Public Works Department (PWD) Annapolis, PAX River, South Potomac, ROICC Andrews, and other NAVFAC Washington Area of Responsibility (AOR). The modification will increase the contract capacity by , from to .

This additional capacity will allow the Government to competitively compete known, specific requirements which must be awarded in fiscal year (FY) 24 through FY25 Quarter 1 (Q1) and support critical modifications to such requirements. The contract period of performance is not being extended.

3. Description of Services and Supplies.

The following eight (8) IDIQ contracts were awarded by NAVFAC Washington on 07 July 2021.

N4008021D0022 GW MANAGEMENT SERVICES

N4008021D0023 BISCAYNE CONTRACTORS

N4008021D0024 TUCKMAN-BARBEE

N4008021D0025 C.E.R. INC.

N4008021D0026 BELT BUILT

N4008021D0027 EGI HSU

N4008021D0028 DESBUILD, INC.

N4008021D0029 TIDEWATER, INC.

The primary purpose of this IDIQ SB Blue MACC is to affect repairs, renovations, new construction and alterations to shore facilities and utilities belonging to the Government within the NAVFAC Washington at various facilities including Public Works Departments Washington, Joint Base Anacostia-Bolling, Bethesda, and Quantico Area of responsibility

Subj: JUSTIFICATION AND APPROVAL FOR INCREASING THE CAPACITY FOR

THE NAVFAC WASHINGTON REGION SB BLUE MULTIPLE AWARD

CONSTRUCTION CONTRACT

(AOR). Work may also be executed throughout any NAVFAC locations within the Continental United States. Additionally, work may also include but not limited to engaging in installing and serving mechanical, electrical, plumbing, heating, air conditioning, The basic contract includes a twelve (12) month base period and four (4) twelve (12) month options periods. The IDIQ SB Blue MACC is currently on its second (2nd) option period with a maximum expiration date of 07 July 2026.

4. Statutory Authority Permitting Other Than Full and Open Competition.

The statutory authority permitting other than full and open competition is 10 U.S.C.

3204(a)(2) as implemented by FAR 6.302-2, Unusual and Compelling Urgency.

5. Rationale Justifying Use of Cited Statutory Authority.

The SB Blue MACC projects provide essential maintenance and repair of critical structures aboard installations throughout NAVFAC Washington's AOR. Delays in awarding the listed projects below during this timeframe would negatively impact mission need. Most of the facilities impacted are deemed mission sensitive or critical, particularly those related to infrastructure supporting patient care, installation security, critical utilities systems, service of the forecasted projects are high visibility actions related to and supporting essential facilities like hospitals, hangars, alert facilities, visitor centers, command centers, and critical research facilities. Such infrastructure is critical for both national security concerns and life and safety assurance measures.

As noted in section 3, this MACC was awarded in fiscal year 2021. The capacity of the contract vehicle proved inadequate to accommodate the actual workload requested in subsequent fiscal years. Furthermore, delays in the procurement of the MACC led to a cascading effect, causing project timelines to shift, resulting in an imbalance of workloads. During the execution of the current construction contracts in place to support the NAVFAC Washington AOR, there has been additional significant and unforeseen increases in the volume and complexity of work requirements that were not anticipated during the planning and initial contract award phases. As a result, all existing contract vehicles are nearing their planned NTE capacity prior to their period of performance ultimate completion date. Furthermore, NAVFAC Washington has also experienced unforeseen cost and time impacts resulting from volatile market fluctuations, construction projects delays relating to supply chain disruption, worker shortages, health and safety challenges, and accelerated inflation. Some identified causes include the current market conditions driving high material and commodity prices, fuel surcharges, etc.

Action is being taken across the command to mitigate need for future capacity increases to the regional contracts. NAVFAC Washington has been utilizing the FY24 Acquisition Planning process to shift new projects to other vehicles; as well also planning new MACC/Single IDIQ vehicles with larger NTE capacities to meet the growing needs of the region. NAVFAC Wash is currently procuring a new SB Construction MACC, N4008023R0022, with an anticipated award of FY24-Q4, at the earliest. Given such procurement timeline, the new MACC vehicle will not meet the execution timeline needs of the known Q4 FY24/Q1 FY2025 requirements. Procuring the requirements as standalone contracts would require a significant amount of time and resources and will not be likely to garner any significant savings beyond what competing on the MACC already provides.

The additional capacity will be required to execute critical mission-essential projects targeted for FY24 and FY25 Q1 award. The planned amounts are derived through an internal NAVFAC process whereby supported commands conduct a cost analysis based on similar historical projects, 1391s, or other local cost estimating documents. These planned amounts are then used as the basis to obtain approvals for solicitation and track planned capacity needs for outyears. The total of the known upcoming FY24-FY25 Q1 projects is estimated to be $111,848,758.70.

Considering the current contract NTE capacity, ongoing modifications, Request for Proposals, upcoming FY24 and FY25 Q1 awards, and adjustments on ongoing task orders as presented above, an additional capacity of is hereby requested. Not all modifications can be predicted and therefore it is prudent to consider adjustment allowances and effectively plan for the likelihood of additional adjustments during construction.

Total Capacity as of Modification P00006

Capacity Awarded as of 5/10/2024

Planned Modification and Ongoing Request for Proposals

Upcoming FY24-FY25 Q1 Projects

Adjustments during the course of Construction

Subtotal:

ASK

ASK (Rounded)

Increasing the contract value of the current MACC by is the most advantageous imminent and foreseeable contracting requirements while at the same time soliciting the work on a competitive basis. The Government will be able to determine fair and reasonable prices on a per task order level on the basis of competition assuming receipt of at least two (2) proposals. No other resource can satisfy NAVFAC -efficiently as the current SB Blue MACC vehicle.

As described throughout this J&A, procuring requirements outlined herein through full-and-open competition outside of the SB Blue MACC is neither practical nor achievable since it will result in potentially meaningful delays and substantial project cost increases. Procuring requirements outside of this MACC will also expose DON installations to unnecessary risk and potentially negatively affect FAR 6.302-2(b), increasing the ordering capacity of the MACC, as described herein, is essential to meet the infrastructure mission requirements within the NAVFAC Washington AOR and prevent any serious mission or financial injury to the Government.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

Competing the projects on a standalone basis is not in the best interest of the Government.

The administrative effort required to award a new, individual contract is not cost effective and cannot be completed timely, which affects the Government's ability to meet mission essential requirements. It is essential to avoid administrative delays on re-procurement for needs that will secure high-level safety measures and quality of life for the customer bases being served. It is most advantageous for the Government to capitalize on the established relationships within this MACC vehicle to ensure a collaborative environment conducive to addressing the unique challenges that such projects will impose.

In accordance with FAR 6.305, the approved J&A will be posted on SAM.gov within 30 days after award of the contract modification the SB BLUE MACC aggregate capacity.

The IDIQ SB Blue MACC was collectively awarded to eight (8) area contractors. All MACC holders then competitively compete for task order awards for repairs, renovations, new construction and alterations to shore facilities, and utilities, belonging to the Government within the Naval Facilities Engineering Command (NAVFAC) Washington at various facilities including Public Works Departments Washington, Joint Base Anacostia Bolling, as well as various other locations within the NAVFAC Washington Area of Responsibility (AOR). The proposed capacity increase to the current contracts is the only effective method for timely support of operations while still maintaining administrative capacity to put new contract vehicles in place.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

The requiring activity seeks to remove future barriers to competition through several strategies to include opportunities for re-solicitation of existing tools, solicitation for new vehicle opportunities with larger capacities, and an increased focus on appropriate planning for upcoming execution needs. NAVFAC Washington is currently competing a follow-on solicitation for a Small Business MACC, N4008023R0022, planned to award in FY24-Q4. NAVFAC Washington is also currently competing several other contracting vehicles (MACCs and JOCs). Given the recent increase in projected and ongoing workload as detailed above, the command is focusing not only on the procurement of additional new vehicles that enable full and open competition pre-award, full and open competition after exclusion of sources post-award, and small business participation, but vehicles that have an increased capacity capable of handling the forecasted workload into future fiscal years in effort to meet the growing needs of the command.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS

I certify that the facts and representations under my cognizance, which are included in this Justification and its supporting acquisition planning documents, except as noted here in, are complete and accurate to the best of my knowledge and belief.

Signature Name (Printed) Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient

CONTRACTING OFFICER CERTIFICATION

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

ECH II ASSISTANT COMMANDER FOR CONTRACTING APPROVAL

Upon the basis of the above justification, I hereby approve, as the Assistant Commander for Contracting, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 3204(a)(2) Unusual and Compelling Urgency.