SB_MACC_Group_69__JA_9-16-2019_REDACTED.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING COMMAND SOUTHWEST

1220 PACIFIC HIGHWAY

SAN DIEGO CA 92132-5190 IN REPLY REFER TO:

16 SEP 19

J&A No. 19-24-4

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 to increase the not-to-exceed value of the NAVFAC SW Group 0069 Small Business General Building Construction III MACC (SB MACC) for new construction, renovation, and repair of general building construction projects by $92 Million from $105 Million to $197 Million. The contract expiration date of 26 March 2020 will remain unchanged.

3. Description of Supplies/Services.

The SB MACC was competed as a Small Business Set-Aside 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 Million. Four

(4) twelve-month option periods have been awarded and the contract completion date (CCD) is 26 March 2020. Justification and Approval (J&A) No. 18-02-1, dated 11 December 2017, previously increased the capacity of this MACC by $6 Million from $99 Million to $105 Million to accommodate required task order modifications required during construction.

The original contract awards include:

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

Since the award of A&D’s contract under N62473-15-D-2403 of this MACC, the firm has been proposed for debarment. Per FAR 9.405‐1, agencies may continue contracts in existence at the time the contractor was proposed for debarment, but shall not add new work, exercise options, or otherwise extend the duration of current contracts or orders for contractors proposed for debarment. Therefore, A&D’s contract will be modified to allow A&D to continue performance of their active task orders under the MACC; however, A&D will not be solicited for any new task orders under the MACC. Furthermore, Penick Nordic JV IV’s contract N62473-15-D-2418 expired on March 26, 2016 because the first option was not exercised by the Government.

J&A No. 19-24-4

The remaining contracts will be modified to add capacity and all four (4) contractors will be allowed to compete for new task order work under this MACC upon approval of this Justification and Approval (J&A).

Contracts N62473-15-D-2404 through 2407 provide general construction services for small to medium, multidisciplinary construction projects within North American Industry Classification System (NAICS) Code 236220, Commercial and Institutional (C&I) Building Construction, within a task order range of $8 Million to $15 Million.

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)(2), as implemented by FAR 6.302-2. FAR 6.302-2 permits contracting without providing for full and open competition in situations where 1) an unusual and compelling urgency precludes full and open competition, and 2) delay in award of a contract would result in serious injury, financial or other, to the Government.

5. Rationale Justifying Use of Cited Statutory Authority.

Naval Air Weapons Station China Lake (NAWSCL) experienced a 6.4 magnitude earthquake on 4 July 2019 followed by a 7.1 magnitude earthquake on 5 July 2019 with aftershocks still occurring. On 8 July 2019, President Trump issued an emergency declaration for the State of California resulting from these earthquakes. Significant damage to installation and tenant command facilities and equipment aboard NAWSCL occurred. Post-earthquake facility assessments commenced shortly thereafter and revealed that a vast number of the installation’s facilities were significantly damaged by the earthquakes, necessitating replacement or repair.

The earthquake recovery construction requirements are estimated to cost as much as $ and approximately half of this work is being planned for Fiscal Year (FY) 2020 design/build construction awards to restore NAWSCL to full mission capability.

This tight FY20 timeline requires the use of existing MACC vehicles since the procurement cycle for stand-alone two-phase design-build construction contracts is between months. Awarding via stand alone procedures or waiting for follow-on MACCs to be awarded will jeopardize the FY20 awards and further delay the base’s return to being fully mission capable to carry out military operations.

Most NAVFAC SW MACCs for C&I Building Construction cover the time period in which the earthquake recovery contract actions will need to be awarded, but do not have enough contract dollar value capacity to accommodate such a large increase in emergent construction work.

NAVFAC SW anticipates needing to place over $ of the NAWSCL Earthquake Recovery Work on existing C&I MACCs but only has $ of unreserved capacity on these MACCs, resulting in an urgent need for $ more capacity to meet needs.

NAVFAC SW’s strategy to accomplish this urgent work is to increase the contract value capacity on existing C&I MACCs to allow for quick response contracting while ensuring competition under a MACC environment to keep prices down while continuing to support our Small Business Program. Follow-on C&I MACCs are in process and are expected to be in place in late FY20 and early FY21.

This action will increase the maximum value of the SB MACC to allow award of new task orders in support of the China Lake Earthquake Recovery effort in the second quarter of FY20 and provide a reserve for potential unforeseen modifications that may be required. Of the current $105 Million capacity on the SB MACC, to date $104,494,235 has been expended, resulting in a remaining capacity of $505,765. Currently, replacement or repair projects less than $ for the China Lake Earthquake recovery effort have been identified for this MACC with an estimated cost of approximately $ . However, the cost estimates and projects are still being refined so costs may increase. In addition, NAWSCL is still experiencing numerous earthquake aftershocks, many above a 4.0 magnitude with the largest so far being a 5.0 magnitude. These aftershocks continue to cause additional damage, so it is extremely likely that additional recovery projects will arise and the rate of unforeseen conditions will be much higher than normal. As such, this request includes an additional $ reserve. A total of $92M of additional capacity is requested for this MACC to provide sufficient capacity to award new task orders in support of NAWSCL Recovery Efforts and to allow for modifications during construction.

Consistent with FAR 6.302-2, the China Lake Earthquake Recovery effort surge workload presents such an unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits proposals to those under this MACC.

Due to on-going updates to the scope and cost of the China Lake Earthquake Recovery projects, and the risk of funding profile changes for NAWSCL, the Government reserves the right to substitute anticipated NAWSCL projects with different China Lake Earthquake recovery projects and/or add other general building construction projects if there is inadequate capacity on the other general construction MACCs as a result of the China Lake Earthquake recovery efforts.

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

The MACC ensures sufficient competition for new work with four (4) MACC contractors, so the increase in capacity for the new projects does not create a sole source environment. 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. 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.

8. Actions to Remove Barriers to Future Competition.

Three follow-on general building construction MACC procurements are in process:

1) Small Business Set-Aside MACC with maximum capacity of $495,000,000;

2)

3)

The above MACCs will provide a just under of capacity in . However, they will not be in place in time for FY20 awards.

READAL.CINDY.S. Digitally signed by

READAL.CINDY.S.

Date: 2019.09.18 15:37:39 -04'00'