N40080-25-JA-002 SB Blue MACC_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND, WASHINGTON

1314 HARWOOD ST, BLDG 212, WASHINGTON NAVY YARD, DC 20374

J&A No. N40080-25-J&A-002

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, 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 $100 Million, from $398 Million to $498 Million. This additional capacity will allow the Government to competitively compete known, specific requirements which must be awarded in fiscal year (FY)

FY25 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

(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, building’s equipment and other specialized trades.

The basic contract(s) include(s) a twelve (12) month base period and four (4) twelve (12) month options periods. The IDIQ SB Blue MACC is currently on its third (3rd) 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 members’ quality of life, and capital improvements. Many 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.

NAVFAC Wash awarded a Small Business MACC in July 2024. Subsequent to award, multiple protests with the GAO were filed delaying the availability of contract for work performance.

The additional capacity will be used to execute known critical mission-essential projects targeted for early FY25 Award. This is damaging to the Navy’s mission as America’s warfighters require sufficient facilities to house, train, and support in. The planned amounts for these known requirements are established 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. See Table Below:

Current NTE Capacity $398,000,000

Awarded $355,330,242*

Say $100,000,000*

*rounded to the nearest dollar

Considering the current contract NTE capacity, ongoing modifications, Request for Proposals, upcoming for FY25 Q1/Q2 awards, and potential adjustments for new task orders as presented above, an additional capacity of $100 Million in 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.

Increasing the contract value of the current MACC by $100 million is the most advantageous way to fulfill the Government’s 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 Washington’s needs as completely and cost-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 as great as 12 months and substantial project cost increases.

Procuring requirements outside of this MACC will also expose DON installations to unnecessary risk and potentially negatively affect the DON’s mission objectives in NAVFAC Washington. In accordance with 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 supported command’s 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 informing industry of Government’s intent to increase 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 to 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 has recently awarded several IDIQs in support of minor construction, and is currently awaiting finalizing award of the award decision for the SB Anchor MACC. The Government will shift projects to the newly awarded SB MACC once available for use. 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

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.

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 APPROVAL

Upon the basis of the above justification, I hereby approve, 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.