JA 15D0012_18F4624 Roof Replacement_Redacted.pdf

J&A No. 19-JA-FEACQ-0010

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Facilities Engineering Command (NAVFAC FE), Public Works Department (PWD) Atsugi

2. Description of the Action Being Approved.

Execute an out of scope, negotiated task order modification on an unusual and compelling urgency basis to Contract N40084-15-D-0012, Task Order N40084-18-F- 4624 (Convert CPO Club Building 1342 to Security Office) in order to address significant leaking which must be immediately addressed in order to avoid potential significant damage to Building 1342 at Naval Air Facility (NAF) Atsugi.

3. Description of Supplies/Services.

The purpose of this action is to modify the scope of the task order to include all material, labor and equipment necessary to fix the south, southwest and southeast wall leaks of Building 1342 by applying waterproof coating to the exterior face. The contractor shall also fix roof leaks in Rooms 204, 205, 212 and 214 by replacing built-up roofing to include asphalt membrane, reflective top coat, gutter, drain covers, downspouts, SUS vents, fascia, flashing, eaves, insulation, etc. Work includes removal and reinstallation of existing A/C outside units.

An estimated 149 calendar days will be required to complete this work. The estimated construction cost for the scope of work associated with the proposed firm-fixed price modification is . This contract modification will be accomplished in FY 19 and therefore funded with FY19 Operations and Maintenance funding.

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

10 U.S.C. 2304(c)(2), as implemented by Federal Acquisition Regulation (FAR) Subpart 6.302-2, "Unusual and Compelling Urgency."

5. Rationale Justifying Use of Cited Statutory Authority.

Contract N40084-15-D-0012, Task Order N40084-18-F-4624 to convert the CPO Club at Building 1342 into a Security Office was competitively awarded to Kanagawa Nabco Pty. Ltd. on 17 August 2018 in the amount of ¥497,250,000/$4,466,190.33. The task order facilitates the conversion of the two-story reinforced concrete CPO Club (Building 1342) to a Security Office facility at NAF Atsugi. The work involves converting the kitchen, dining, multi-purpose hall, and bar to meet the functional needs of a security building. This includes removal and disposal of kitchen equipment, dining furnishings and bar counters, modification of building layout, lighting, heating, ventilation, and air-conditioning (HVAC) system, and related electrical work, LAN and telephone ports, fire alarm system, asbestos abatement, sprinkler system, and relocating a standalone generator from Building 22. Accordingly, the task order is focused on interior renovations necessary to convert the usage of the facility; exterior renovations, including but not limited to roof repairs and/or replacement, were planned to be accomplished through a separate competitive future task order. Performance under the task order is approximately 67% complete.

After a significant rain storm, the contractor identified leaking within Building 1342. The contractor attempted to seal the building envelope, but a subsequent rain storm resulted in further leaking within the interior of the building. The Government reviewed this matter and verified the wall and roof leaking in Building 1342. The Government further determined that if the wall and roof leaking was not immediately repaired, such leaking could result in significant water damage to the interior repairs and renovations being accomplished under the facility conversion task order’s scope of work. In an effort to minimize potential damages, the Contracting Officer directed the contractor to stop work on all interior work until the wall and roof leaking issues are corrected. Accordingly, the contractor is currently stopped from performing further work under the task order due to the imminent threat of water damage which may result in damage to the new renovation/facility conversion work being performed under Task Order N40084-18-F- 4624.

The Government’s review of the leaks identified four known areas of ceiling leaking and 39 areas of wall leaking within the building. However, the Government and contractor have not identified the specific origin/location of the roof leak sources. Consequently, the Government’s Design Manager determined that applying waterproof coating to the exterior face is necessary to address the wall leaks and a whole roof replacement is the only solution that will address the roof leaks. These solutions will provide a watertight building envelope to ensure no future leaking and avoid potentially compromising the facility conversion scope of activities being performed under the task order.

The full extent of the wall and roof degradation was unknown to the Government before its recent discovery. As a consequence, wall repair and roof replacement is not included in the scope of work under the task order. The Government determined that without an immediate wall repair and roof replacement to provide proper building waterproofing, the renovation/conversion task order will likely be severely damaged and require extensive and recurring repairs. The urgency of addressing the wall and roof leaks is heightened due to the impacts of the current typhoon season in Japan where storms can present abnormally high rainfall amounts in short periods of times.

The Government and the contractor are not able to adequately provide protection to the work accomplished under the renovated facility task order in the event of a typhoon or significant rainfall without accomplishing wall repair and a complete roof replacement.

As such, wall repair and a roof replacement is urgently required to protect the Government’s $4.5M investment in the Building 1342 conversion project.

Under the circumstances, urgency precludes the use of full and open competition and the Government would be best served by utilizing the contractor currently performing work in support of the conversion project to repair the wall and replace the building's failing roof. Specifically, Kanagawa Nabco Pty. Ltd. is already on-site performing the building renovation and is well placed to carry out this urgent wall repair and roof replacement requirement which is necessary to preserve the structure and its contents from imminent damage. In fact, Kanagawa Nabco Pty. Ltd. is mobilized on-site and is able to imminently begin work in support of this requirement.

Award of the wall repair and roof replacement requirement to a contractor other than Kanagawa Nabco Pty. Ltd. would require extensive coordination between these two contractors which would likely result in unacceptable delays and project completion risks. For example, another contractor would require time to mobilize. Such additional mobilization time would present an unacceptable risk of damage to the facility. Another contractor would also, at a minimum, need on-site offices, storage space for the repair material, and space for temporary structures or cranes to conduct the repairs. Kanagawa Nabco Pty. Ltd. is currently working on a constrained work site and has taken up all available laydown space and staging areas. Therefore, it would be impractical to facilitate two separate contractors on the site. Furthermore, phasing in a separate contractor's work could result in a building that does not meet the minimum technical requirements. It is also unlikely two competing contractors could achieve the required level of coordination and there would be a high potential for failed installations and rework items which would result in delays to the wall repair and roof replacement and/or voided warranties from both contractors. Awarding the wall repair and roof replacement requirement to Kanagawa Nabco Pty. Ltd. as an out of scope modification eliminates the issues identified above and will ensure the Government receives the proper warranties under both the current task order and through the out of scope modification.

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

In accordance with FAR 6.302-2(c)(2) and Navy Marine Corps Acquisition Regulation Supplement 5206.303-2, the Government considered the possibility of conducting a limited competition among qualified contractors that regularly conduct business with PWD Atsugi and the cost/benefits of conducting a limited competition. However, as detailed in Section 5 above, the Government determined that it is not practical under the circumstances to request offers from multiple contractors and that it is in the best interest of the Government to solicit an offer only from the contractor currently performing the facility conversion project at Building 1342 under Task Order N40084-18-F-4624.

In accordance with FAR 5.202(a)(12), the Contracting Officer is not required to transmit a synopsis notice to the Governmentwide Point of Entry.

This Justification and Approval (J&A) will be published in accordance with FAR 6.305(b) within 30 days after contract award.

7. Determination of Fair and Reasonable Cost.

The FEAD Design Branch developed an Independent Government Cost Estimate (IGCE) in support of this proposed requirement. The Contracting Officer will determine whether the price for this acquisition is fair and reasonable pursuant to FAR Part 15 before accomplishing the out of scope modification.

8. Actions to Remove Barriers to Future Competition.

As described in Section 5 above, this roof replacement requirement was only recently identified as an urgent and compelling requirement. Roof repair/replacement was not a part of the original project approval authority (i.e., DD-1391) or awarded facility conversion task order contract.