N6247015D6009_SVA_JA-PPV_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING COMMAND, ATLANTIC

6506 HAMPTON BLVD

NORFOLK VA 23508-1278 tN REPLVREFE~TO

JUSTIFICATION AND APPROVAL

N624 70-15-0-6009

ACQJS: LCS

9 October 2018 J &ANo.: 19-02

FOR OTHER THAN FULL AND OPEN COMPETITION

UP TO ADDITIONAL EIGHT-MONTH EXTENSION TO PERIOD OF PERFORMANCE

FOR CONTRACT N624 70-15-D-6009, PUBLIC PRIVATE VENTURE (PPV) CONTRACT

1. Contracting Agency.

Department of the Navy, Naval Facilities Engineering Command, Atlantic, Norfolk, VA

2. Description of the Action.

The action being approved is a modification for a one-month extension with seven one-month options, to the period of performance for the Public Private Venture (PPV) Contract. The PPV contract provides professional support services to the NA VF AC Public Private Venture and Renewable Energy Program Office .. On 20 March 2015, NA VF AC Atlantic awarded a single award ID/IQ Time and Matedals type contract with provisions for Firm-Fixed Priced Orders to The Concourse Group with a one-year base period plus two one-year option periods (N62470- 15-D-6009). A protest was received on 31 March 2015, as a result a stop work notice was sent to The Concourse Group the same day. On 9 June 2015, the protest was dismissed by GAO and a cancellation of the Stop Work Notice was sent to The Concourse Group on 15 June 2015. A modification was issued to the contract on 20 January 2016 clarifying the period of performance as 15 June through 14 June for each of the base and the two option periods. The combined maximum order quantity for the contract's three year ordering period is Not-to-Exceed $29 MilJion. The contract's ordering period expired 14 June 2018. The initial bridge authorization request with a period of performance of 15 June 2018 through 14 August 2018 and two one month options was prepared and approved on 21 May 2018. The J&A for the initial bridge request was prepared and approved on 31 May 2018. The current bridge contract expires on 14 October 201 8. The proposed extension period would extend the end date of the ordering period from 15 October 2018 to as late as 14 May 2019 (depending on whether options are necessary) with the maximum ordering quantity remaining at Not-to-Exceed $29 Million.

The proposed extension is necessary to ensure that a contract remains in place so NA VF AC has a means to continue to accomplish essential PPV professional support services in the interim between the expiration of the current ID/IQ contract and award of the follow-on ID/IQ contract in accordance with all applicable laws and regulations.

To date, a total of 22 Task Orders (TOs) have been issued with a dollar vaJue of approximately $16,882,129.00 providing for remaining capacity in the amount of $12,117,871.00.

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The follow-on contract is cu11'ently ill.the source selection process With all parties proceeding :diligently, and award to bem~e as: 59on as p~ctica,ble; hQwever, this justificafion_is ne~s~at:y to ensure.continuation of essential setviees for the DoN,s PPV program and upcopiing PPV:and EUL reqWz-e1pents.

3. Description ·Of Supplies/Services_.

The contractor ;shaU provide ptofessio·na1 support ·senrices .is support of the DoN PPV Progqun.

The contra~tor shall prpv~d~ advic.e and assistam;i~·to ):he DoN and conduct.the IJecessary · · researcli'aod aha.lysi s to present. DoN decisfon::makers: with a.ccl,Jr~te and relevant irifonnitioi1 pertaining to residential and cpmmercial real estate development and large scale real estate p9rtfolio 1p~agemetit. T.he contractor i$ also requir((d .to ·bring b(}.$.t busfo~s~ practices fro,u the.

private seGtor to assist the.DoN with all.aspects of the special venture.acquisitions.including faini,ly .c:i.nd. upac~ompanied housing public private v~ntur~$, .. enhanc~d :use lea.sing, and other public-private venture oppo11tunities<such as energy, utHities and k~qgihg .. The work includes technical .advi'sory services the.Naval Facilities Engineering Command {NA VF AC) Headquartets Special Venture Acqt1isitfo11 Offlce and the NA VF Ac component commands. for the purpose of providing professional ·services; project development, execution, portfoli"o management~dvice and supp<?.11 consistent with the privatization approach adppted by the. DQN.

No additional funds are.required for"tlie ·ex.tension as the contract has a remaining c~pacity of $12, 117 ,871.00. The potential ma.ximum v.alue c.;ifwork that may be ord~red dt!ring-·llie· extension period is not known at the'-present tin1e; however,. the contract's current e~piration date ofl4 October 2018. will affect the continuity of services cur-rently being provided under multiple essential and til)1e-sensitive:·prbjects, fw which· 11ew task orders will need to he, issue9. .afte_r the current orderin~ period expires, but1ikely before award .of a ne:w contract is possible.

4. Statuto1y Authority permitting Other Than Full and Open ·ComPeti'tion.

The.autho11ity perbiitti:µg other th.an full and open competition i~ 1)Jle 10 'U.$.C. 2304(c)(2).as i.mplemented by Fed.eral Acquisition Reguiation (FAR) 6.3.0Z-2, Unusual and Compelling Urgency. · · ·· · .

'5 . . Rationale Justifying Use of Cited Authotitv.

Competitive sou.rce sy1ecti0n isi.mderway_for-a.f9llow-onconfract wi~h all.padies pi:oce~g diHgently, and award to be made· as soon as practicable. This-justification and approval is necessary for-:.contim.;1ed essen~ial support .l.IDderllie ClJITent coi:it.ract untj[ award of-tl]e follow-on..con~ct Thi_s.

contract provides· critical consultant :setvides in.·support of the DoN housing privati0llion progr~ and the Renew?ble Energy _Program -Offi..ce, The incumbent provides prqjecr development, execution and post-execu#on support, including key finaoeial mOd~ling·and analysis, by providing advice· on sound business decisions to protect the· DoN's· significant ·financial inve~tment in MiHtary Priva~izec:l .flou~ing Inifa~.tfve (MHFI). These deals were structured .to .. self-sustaiii for fifty years knowmg .that requirements .and eapi~a1 market$ would nonnally tluc;tu.at~ and require modifications to remain solvent. Th~se ate.large complex Real

Estate transactions that involve bundreds·:ofbilfions of dollars to be.managed andTeinvested-for the te~m of the deals. The.Navy qoes not typi_cally grow the skillset required to over~.e these~ types of private transactions. The PPV portfolio requires financial and technical guid?Ji.c(( to -mstj:tute sustainm,ent model$~ continue thexpll out of resident paid utilities· and other renewable energy initiatives, All en~a\~ors ]?reviqusly mentioned require signifiean~ negotiation and modification of complex Busines·s Docmnents· in a condensed timeframe.

Specific·examples of the projects on which Contow-se. has expended significant effort~ and :on which theNayYwill require their 9ontinuedi.Q.voivement over· the next ·6o~t20 days in otder to n:1eet ~ission requirements ihciude (but are .not Jiitii~ed ·to):

(1) ~ve~ett. ~I D,issolµtion. One PPV ]?rojeqt, .ret~ried to as. "Ever.eti. U;', recently sold all ofits assets,.'and the Navy Member and Managing Member are in the'proc.e.ss of winding up the busfoe~s, making distribµtions ofremaining ~sets, and di~solving the .LLC, ·which is anticipated to be· completed in the next'60·90 days. Thi~. is ·cµJ.. iµcr.edibly- 9omplex and det~il-oriented ac.counting effort which requires the expertise and familiarity of those who have brought the di$.solution to this pojnt We· do not aJ1ticip~~ itwoulq be effi9font or even feasible.for anew support contractor to gain the required level offamifiafity with lhe status of the dissolutiq~ and S\lpport.fue. final cl'osing.on the nece.ssary schedule.

(2) Section 603 Payment Program. ·~~rection 603. of the FYl 8 NOAA required the services to 'begin rri.aJ4ng pay~en~ tq the-P.PV t}ntities to offset 'BAH reductions 1m.piemente.ci. by the Secretary of Defense, Since ~e release of ~he NDAA earlier this c~endar year,_ C;oncom:se has expended significant effort developing a· sophisticated macro to rec0ncile thre.e.independent d~t~ sow:ces ro enable refovan"t Navy empl_oy~e5 to certify these payments. The payments were to have started atthe beginning ofCY.18,,andhavenot yet be.en made; ilieJ are already.behind and musfbegin ~s. sqon as possibl~ to meet Congr~ss ~s expectations, th.us increasing the urgency ofthis proj~ct. Tr would not be feasible for a-,1ew cop.tractor to. get up: to speed and complete thfo efforl as quiCkty·asis.needed under the circumstances.

(3) South Texas Restrnctute .. Restructuring of the"S'o.uth Texas project became necessary a~;a te$u~t'pfthe 'impacts of2Ql 7 hurricane activity·. Th~ projectis. ne~itJ.g t4e end qfhurricane recovery and monitothig the use·ofinsu:rance.pro·ceeds. Once that fa· complete, there will be an inup.ediate m~ed fol;' support offoll9w-on a~tions necess~y to; ensure: the ongofog success of the South Texas project. Concourse: has beeii-i~strumentai in ·guiding the· Navy through this .

complicated restruGturing- effort~ Md bas the· nece.ssary understandinR to complete this effort at the current crucial stage. It wouldh~· ex_tre1J1ely difficult, if not impossible, for !lllother contractor to pick up anbis stage and complete the 'effort on the current timeline. If ·~pport services are not provided for.an interim period, the Navy will not be as successful at minimizing the financial .lrr;pact to the projects· as :·a result ·of the natural disaste.r, Which will adver$ely _.llp:pact the: ability to ensure quality .houiing is- pro.vided to sailors/families atthese locations.

The·incumbent:contractor, The.Concourse Group, is the only company that. is currently in-a position to properly perf onn the work witQ.oµt a lapse of servic~ and additional phase~in or mobilization requirements. Concourse bas it;t~placre train~d perso~el, eqµf pmerit; ~d.facili~i~s· nec~ssary · to ens.ure. uninterrupted support of workto Julfi:Ira possible gap in essential services.

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Concours.e.'.is. currently working on the afi;u:em~ntioned projects. which w~ll .ove~lap .into the period of ti~e ta. .be cover~d by the anticipated .. extension, and it would be impossible to. hav~· another support contractor onboard, becmp.e familiar vv.ith the backgro~d and current.s_tari:is of those projects, and provide the required support ·ih such a sho1t timefraine. _If the Navy were to .atteinpt<!Uowing anqther co~tra~tor to .eomplete th~s~ proje_cts;it ·coul.d create significant legal and financial .Problems. Thus,, compelling urgency exists to su,pport.the extension .. of the term of the curregt ~~mtracf with Gon~ourse.

A competitive award of an interim contract is in1practicable-for both the Government arid an interim contractor. 11J_e logistical and administrative tasks necessary to prepare, negotiate and .award a competed contract exc.eeds the time remaining· on the curr~nt conti:a~t. E~tending· tb.e ·tenn of tJ1e ~tu-rent coniractto .. provide continued .services eliminates the risks· identified. above.

and the·risk that another contractor Will not havetl1.e spe<;;fa.Iized experience in o~going ef:forls. to provide· the r.equired ·services in .a timely t>r· functional irial'rner. Theincurhbent co1,1tf.aqtor,. The \:'.bncourse Group. is the only company that is in a: position to properly perform t he: work without a .lapse of service. Concourse has been providing th~e se:r;vices for NA VFAC for the last three years,.<;md has an in-depth familiarity-wjth ongoing projects and possesses a fully qualified _staff to ensuretinintertupted conti~~ation oftl,i,es.e e~~enJi~ servic~s,. Any other proc,ess would result in a loss ofe$Sential service to theNA VFAC PPV Program, which would aqversely impaet the· Na~y's ability to ensur:e $ail01:s/fan:iilies have ~ec.ess to quality ho.using· nationwide. ·

~. Efforts to Obtain Competition from as Many Offerors as Practicable.

Pursuant to FAR 5.202(a)(2) a synopsis is not required when an µnus·ual and cqn'.lpy1ling lJrge.n~y precludes cop:tpetiti<?n and the Gove~ent. wot!ld be serio-usly injwed ifthe agency complied with the notice.requirements. $pecified by 'tbe Tegtilations. Info1mation _herein demoa,strates tht:::· l!Tgeqtnatureofthis a<;tion.and the--inj_ury the Agency.would exper!enee-.ifrequired to c.O~ply with Vienotice:requirements. Additionally, in a~o_ra$J.~e. with FAR 6.305(b), the J&A will-be posted within 10'·daysafter the execution oftlie mbdificatioh.

7. Determination. of .Fair arid Reasoi1~ble .Pricei.

The· basic contract-was procured coinpet_itively. The Rates established in th~ contract were det~nnined faji: and reasonable ~ed on ptice analysis. Rates for option periods were 'determined fair arid reasonable in ·accordance with FAR I i207 crjte~ia for exercisjng opti<;ms. The. Contr~tingOfficer will determine that prices for future task order actions are fair and. reasonable by ·pe1fomririg price analysis a)'td comparjng price: proposals to.the Government Estimates (GEs ); and historical expenses incurred for siiniJattasks.

8. Actions to Remove Barriers to Future Competiti6n.

The follow-o.nPPV contraot'is being competed asa Small Busine.ss set-as~de· and is cutrentlyin the .source selectio11 prpcess with aUpartfos·pro9eeqing dili$~ntly, and award io be 'made as soon:

as practicable. This.bddge actiohjs:j;l~cessary to. en~re. conti.nuity of ~~sential se,rviGes un(lerihe current contract until award of the foliow~o.n contraet.as t11e cilrrent contract.provides critiCal consultant services in support of the DoN liousingPrivatization Prograni al)~ tbe Renewable

Energy Program Office. The long-term requirement is being competed, and future requirements are also planned to be competed. As such, there are currently no additional actions needed to remove barriers for future competition.

9. Contracting Point of Contact.

The point of contact at NAVFAC Atlantic is Linda Stein, Contracting Officer, 757-322-4489 or email linda.stein@navy.mil.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

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 herein, are complete and accurate to the best of my knowledge and belief.

___________________________ 202-685-9341 ____________ James T. Vazquez Phone No. Date Director, Special Venture Acquisition Naval Facilities Engineering Command, Headquarters

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

___________________________ 757-322-4204 ____________ Sandra Simmons Phone No. Date Assistant Counsel Naval Facilities Engineering Command, Atlantic

APPROVING OFFICIAL (NFAS 6.304)

Upon the basis of the above justification, I hereby approve the award of the proposed procurement action described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304 (c)(2).

___________________________ 757-322-4070 ____________ Stuart Wirth Phone No. Date Director, Special Program Division Naval Facilities Engineering Command, Atlantic linda.stein Highlight linda.stein Highlight linda.stein Highlight linda.stein Highlight linda.stein Highlight linda.stein Highlight linda.stein Highlight linda.stein Highlight linda.stein Highlight linda.stein Highlight linda.stein Highlight