N6247315D2405_SB_MACC_Group_69_JA.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING COMMAND SOUTHWEST

1220 PACIFIC HIGHWAY

SAN DIEGO CA 92132-5190

IN REPLY REFER TO:

J&A No. 18-02-1 11 December 2017

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Department of the Navy, Naval Facilities Engineering Command Southwest (NAVFAC SW), San Diego, California.

2. Description of the Action Being Approved.

Request approval for the use of other than full and open competition, upon the basis of the following justification and approval (J&A) document, to increase contract capacity by only 6% or $6,000,000 from $99,000,000 to $105,000,000 on the NAVFAC SW Group 0069 Small Business General Building Construction Multiple Award Construction Contract (MACC) for new construction and repair of general building construction projects.

The original MACC was competed using full and open competition after exclusion of sources (pursuant to 10 U.S.C. Section 2304(b)(2), as implemented by FAR 6.203) and was awarded to six (6) firms on 27 March 2015 with a capacity of $99,000,000. The four (4) contractors listed below have active task orders under the MACC which require the increase in capacity.

N62473-15-D-2403 A&D GC, Inc. (A&D) N62473-15-D-2404 Bristol General Contractors, LLC (Bristol) N62473-15-D-2405 Cox Construction Co. (Cox) N62473-15-D-2406 I.E.-Pacific, Inc. (I.E.-Pacific)

The remaining two (2) contractors below do not have any task orders under the MACC. Their contract capacity will not be increased.

N62473-15-D-2407 Insight Pacific, LLC N62473-15-D-2418 Penick Nordic JV IV

3. Description of Supplies/Services.

Contracts N62473-15-D-2403 through 2407 and 15-D-2418 provide MACC services for multidisciplinary construction projects within North American Industry Classification System (NAICS) Code 236220 within a task order range of $8,000,000 to $15,000,000. The MACC was awarded in March 2015 with one (1) base year and four (4) twelve-month option periods. The contract completion date is 26 March 2020. Approval of this J&A will allow completion of the task orders already awarded and add a contingency reserve for unforeseen modifications that may be required under ongoing task orders. No new task orders will be awarded on this contract.

It was not anticipated that the capacity would be exceeded on this MACC. However, due to numerous protests that delayed the award of another MACC vehicle (Group 0079 HUBZone General Building Construction MACC), projects that were previously slated for that vehicle were diverted to this MACC and the capacity was prematurely depleted. The situation was exacerbated by the award of an option under N62473-15-D-2406, task order 0003 that had not been identified as a planned action. The award of the option increased the task order from $6,484,380 to the current amount of $13,239,883. Of the ten (10) total task orders awarded under the MACC, nine (9) task orders are still open with pending modifications, and four (4) of the nine (9) task orders are in the design stage of design-build projects.

Of the $99,000,000 capacity, to date $98,591,412 has been expended, resulting in a remaining capacity of $408,588. There are planned and known potential modifications to existing task orders in the amount of $2,656,293. Since four (4) of the nine (9) open task orders are still in the design stage of the design-build projects, the full extent of the capacity requirement is unknown. Since all planned modifications have not yet been negotiated and construction has not yet started under four (4) task orders, this request includes an additional $3,343,707 contingency reserve for unforeseen requirements under the existing task orders.

A total of $6,000,000 is requested to provide sufficient capacity to complete all awarded task orders.

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. Section 2304(c)(1), as implemented by FAR 6.302-1. FAR 6.302-1 permits contracting without providing for full and open competition in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in 1) substantial duplication of cost to the Government that is not expected to be recovered through competition, or 2) unacceptable delays in fulfilling the agency’s requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

Consistent with FAR 6.302-1(a)(2)(iii), award of this contract action to any other sources would result in substantial duplication of costs that could not be recovered through competition and unacceptable delays in fulfilling Government requirements. For the five (5) task orders in construction with pending modifications, it would not be practical and costs could not be recovered through competition without terminating the existing contracts for convenience to the Government, leaving the projects incomplete and unusable. For the four

(4) design-build task orders still in the design stage, the costs to prepare the designs could not be recouped. Although the Government could resolicit after terminating the existing task orders for convenience, the current less favorable bidding environment may result in higher prices due to a robust construction climate, making it highly unlikely to have sufficient funds for the re-procurements. Due to these factors, the Government would not recover its cost through competition.

In addition, the Government would assume liability for the designs. Impacts to each open task order are further explained below:

(a) N62473-15-D-2403, Task Order 0002: P-379, F-35C Training Facility at Naval Air

Station (NAS) Lemoore converts space in an operational training facility to support F-35 flight readiness system training. The modernized spaces will include mission planning classrooms, an aviator learning center, a classified coursework data center, and coursework development rooms. It also constructs a connector to the F-35C full mission simulator. This project was authorized in the fiscal year (FY) 16 military construction (MILCON) program. The task order was awarded to A&D on 17 March 2016 in the amount of $6,344,000. The current contract amount is $7,026,202. Construction is 90% complete; however, there is known in-scope modifications.

(b) N62473-15-D-2403, Task Order 0003: P-218, Range Training Facility Officer and

Mission Debrief Facility at NAS Lemoore constructs an 11,614 square feet (SF) applied instruction building for air-to-air and air-to-ground range operations tactical combat training systems (TCTS), a night vision goggle lab, and a multifunctional information distribution system facility in support of sixty (60) strike fighter aviators. This project was authorized in the FY16 MILCON program to support the F/A-18 E/F and F-35C aircraft. The task order was awarded to A&D on 10 May 2016 for a total dollar amount of $6,389,000. The current contract amount is $6,398,278, and the current contract completion date (CCD) is 15 January 2018. This design-build task order is in the design stage of the project, and an in-scope modification to the design scope is anticipated to account for new security requirements. The CCD will be extended and there are modifications anticipated. Since the project is not in construction, further modification requirements are currently unknown.

The Facilities Engineering and Acquisition Division Director was consulted to determine mission impacts if the command terminated this task order and re-competed the requirement. There are operational demands to proceed with this task order. Cancellation of the current task order and its subsequent re-solicitation would cause significant delays in mission capability.

(c) N62473-15-D-2403, Task Order 0005: Q-1126, Combat Service Support Facility for

Marine Corps Forces Special Operations Command (MARSOC) at Marine Corps Base (MCB) Camp Pendleton constructs a 24,220 SF headquarters, operations, and maintenance support facility for the West Coast-based combat service support organizational units of the 1st Marine Special Operations Support Battalion assigned to MARSOC. The project was authorized in the FY16 MILCON program. The task order was awarded to A&D on 8 August 2016 in the amount of $9,656,000. The current contract amount is $10,655,861 with a CCD of 3 March 2018. There are modifications pending subject to negotiations.

(d) N62473-15-D-2404, Task Order 0002: PE 1217M, Repair Bachelor Enlisted Quarters

(BEQ), Building 620597, 62 Area at MCB Camp Pendleton repairs a 63,109 SF BEQ by replacement of the plumbing, mechanical, and electrical systems; roof; and interior finishes to bring the facility to current quality of life standards. The task order was awarded to Bristol on 12 February 2016 in the amount of $9,340,395. The current CCD is 20 August 2017. Only the design portion of the design-build project has been completed.

Since the contractor has not started construction, it is possible that unforeseen condition will result in additional modifications.

(e) N62473-15-D-2404, Task Order N6247317F4334: P-111, Relocate Naval Operations

Support Center at NAS Fallon constructs a new 23,702 SF reserve training facility. The project was authorized in the FY16 MILCON program. The task order was awarded to Bristol on 17 August 2017 in the amount of $13,379,398. The current CCD is 25 February 2019. This design-build project is currently at the concept design stage.

(f) N62473-15-D-2405, Task Order 0002: ST10-6802, Repair Fleet Operations/Training

Facility, Building 24 at Naval Base Point Loma provides extensive interior and exterior repairs to Building 24. The task order was awarded to Cox on 11 February 2015 in the amount of $11,799,000. The current contract amount is $12,849,365

. There are modifications identified subject to negotiations.

(g) N62473-10-D-2405, Task Order 0003: P-1119, Special Operations Forces

Communication/Electrical Maintenance Facility, 41 Area at MCB Camp Pendleton constructs a 40,000 SF communications and electronics maintenance facility for the MARSOC. The project was authorized in the FY15 MILCON program. The task order was awarded to Cox on 29 September 2015 in the amount of $11,080,000. The current contract amount is $12,501,030 with a CCD of 11 October 2017. There is currently one

(1) contract modification identified subject to negotiations.

Construction is substantially complete.

(h) N62473-15-D-2406, Task Order 0003: RM12-2110, Modernize Buildings 01394 and

01396 at NAS China Lake repairs BEQs 1394 and 1396 for permanent party E1-4 enlisted personnel to meet current codes and reconfigure the facilities to market style standards for unaccompanied military housing. The task order was awarded to I.E.- Pacific on 29 September 2015 in the amount of $6,484,380. The current contract amount is $13,239,883 . There are modifications pending subject to negotiations.

(i) N62473-15-D-2406, Task Order 0004: YU 1751MR and YU 1729MR, Repairs and

Alterations to Hangars 101 and 103 at Marine Corps Air Station Yuma completely renovates Hangars 101 and 103 for occupancy of new commands. The task order was awarded to I.E.-Pacific on 16 November 2016 in the amount of $12,661,000. The current contract amount is $13,191,000 with a CCD of 3 August 2018. The design-build project is currently in the design phase of the project. It has the potential for modifications . There are currently no modifications identified; therefore, this amount is not included in the known modification figure.

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

Synopsis of the proposed modifications was not published to the Federal Business Opportunities (FBO) website due to applicable exception under FAR 5.202(a)(6). No additional market research was conducted because it is not practicable for the reasons discussed above for any sources other than the respective MACC contractors to provide the required construction services. In accordance with FAR 6.305, the approved J&A will be posted on FBO within fourteen (14) days after award of the contract modifications.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the services covered by this J&A will be fair and reasonable utilizing FAR Part 15 procedures.

Task order modifications will be negotiated with each contractor.

8. Actions to Remove Barriers to Future Competition.

No new task orders will be placed on this contract vehicle. A follow-on, competitively procured small business general building construction MACC was awarded by NAVFAC SW on 7 December 2016 with a capacity of $240,000,000. NAVFAC SW now includes a contingency reserve under each MACC to account for task order modifications during construction, which had not previously been done. In the future, a higher contingency reserve will be utilized to account for unforeseen circumstances and possible reprogramming.

JUSTIFICATION AND APPROVAL #18-02-1

CONTRACTS #N62473-15-D-/2403/2404/2405/2406

CERTIFICATIONS AND APPROVAL

TECHNICAL AND REQUIREMENTS CERTIFICATION

J&A No. 18-02-1

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 ccurate to the best of my knowledge and belief.

JO

CI siness Lead

NAVFACSW

LEGAL SUFFICIENCY REVIEW

(619) 532-2649 Phone No.

I have determined this Justification is legally sufficient.

Senior Associate Counsel

NAVFAC SW

(619) 532-1313 Phone No.

CONTRACTING OFFICER CERTIFICATION

L7'.l ~t,Jfl Date

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

(619) 532-3779 Phone No.

ECHELON IV CHIEF OF CONTRACTING OFFICE CERTIFICATION

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

RENAE A. KVENDRU

Chief of Contracting Office

NAVFACSW

(619) 532-2339 Phone No.

\ /?J/UJ1<o Date

ECHELON IV COMMANDING OFFICER APPROVAL

Upon the basis of the above Justification, I hereby approve the proposed contract modifications described herein using other than full and open competition, pursuant to the authority of I 0 U.S.C. 2304(c)(l).

Captain, CEC, U.S. Navy Commanding Officer

NAVFAC SW

(619) 532-2317 Phone No.

rz.~ JB Date