Annex 1 JA 24-67-4_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND SOUTHWEST

750 PACIFIC HIGHWAY

SAN DIEGO CA 92132-5190

IN REPLY REFER TO

June 10, 2024 J&A No. 24-67-4

JUSTIFICATION AND APPROVAL

FOR USE OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

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

2. Description of the Action Being Approved.

Approval is sought to obtain authority to use other than full and open competition to issue a modification extension to contract N62473-19-D-4429, task order N6247321F5072 for recurring and non-recurring services to provide inspection, maintenance, and repair services of aboveground storage tanks (AST) and underground storage tanks (UST) and associated fuel system equipment located at various locations within the footprint of NAVFAC SW metropolitan area. This contract action will extend performance on a sole source basis to King & George, LLC. located at 320 Hemphill St., Fort Worth, Texas, 76104.

3. Description of Supplies/Services.

Task order N6247321F5072 is a firm fixed-price commercial services task order that was competed amongst the four (4) contractors that make up the 8(a) Reserve Center Multiple Award Service Contract (MASC). The Reserve Center MASC was procured utilizing Federal Acquisition Regulation (FAR) Subparts 6.2 Full and Open Competition After Exclusion of Sources, with award to the following four (4) contractors on October 1, 2019: Chugach Consolidated Solutions, LLC, N62473-19-D-4427; Terranul, LLC, N62473-19-D-4428; King & George, LLC, N62473-19-D-4429; and Miramar International Group, Inc., N62473-19-D-4430.

On July 15, 2021, task order N6247321F5072 was awarded to King & George, LLC, in the amount of $1,645,048 (recurring and non-recurring) with a total duration of 36 months, to consist of one (1) 12-month base period and two (2) 12-month option periods. The total task order value, inclusive of all options, is $4,700,940. The ordering period for this task order ends on July 14, 2024.

Task order N6247321F5072 provides all labor, management, supervision, tools, supplies, transportation, services, project management, permits, contract/procurement administration, material and equipment, and other appurtenances, required to perform necessary inspection, calibration/testing, and certification of leak monitoring systems and integrity of secondary containment systems of ASTs and USTs, in accordance with technical Annex 1502000 – Facility Investment. Work is performed at various locations within the footprint of NAVFAC SW, to include, but not limited to: Naval Base Coronado, Naval Air Weapons China Lake, Naval Air Station Lemoore, Naval Base Point Loma, Naval Weapons Station Seal Beach, Detachment Fallbrook, Naval Base San Diego, Marine Corps Air Station Miramar, Naval Base Ventura County – Point Mugu and Port Hueneme, Naval Support Activity Monterey, and Naval Air Station Fallon, Nevada. The North American Industry Classification System (NAICS) Code on this task order is 561210, Facilities Support Services.

This bridge action will modify the current task order to extend the completion date for the recurring work and the ordering period for the non-recurring work for six (6) months, from July 14, 2024 to January 14, 2025. There is no increase in the maximum task order value since only $684,167 of the total task order value of $4,700,940 has been obligated. This contract modification will extend the term of the contract only and no additional contract ceiling (dollars) are requested. This extension will meet anticipated needs by providing continuity of services while allowing adequate time to procure and award a follow-on contract.

The recurring services work will be funded utilizing FY24 OM&N funding in the amount of $131,300.

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 3204(a)(2), as implemented by Federal Acquisition Regulation (FAR) 6.302-2, unusual and compelling urgency. 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. Rational Justifying Use of Cited Statutory Authority.

On March 11, 2024, the NAVFAC SW Facility Support Contracts (FSC) team inquired with management regarding potential issues with the Electronic Contract Request (ECR) received for the follow-on contract action for this project. The ECR documents revealed that this project would be procured as a follow-on task order on a Multiple Award Service Contract. However, this project is not the best fit for a task order since the work includes non-recurring services and the complexities exceed the general capabilities of an 8(a) small business service provider. In addition, the services involved in this project are primarily considered engineering and/or environmental services which have historically been awarded and administered elsewhere by NAVFAC Environmental teams. Due to performance risks, the project was temporarily put on hold as management determined the appropriate acquisition and risk mitigation strategies.

On April 4, 2024, management informed the FSC team of the new acquisition strategy for this project. The plan is to award an unrestricted single-award Indefinite Delivery Indefinite Quantity (IDIQ) for recurring and non-recurring services in accordance with FAR 13.5 Simplified Procedures for commercial services not to exceed $7.5 million, with a contract term that will include a 12-month base period, two (2) 12-month option periods, and a 6-month extension of services option. The FSC team will solicit and award the base IDIQ contract as a regional ordering vehicle, and NAVFAC SW field offices will receive Administrative Contracting Officer authority to support their installations with the issuance of task orders for both recurring and non-recurring services.

The change in the acquisition strategy from a planned task order to a new single-award IDIQ, significantly increased the procurement lead time and effort. As such, it is expected that the follow-on contract will not be awarded before the current task order completion date of July 14, 2024. The current contract task order did not account for the need of a 6-month extension of services. Consequently, the extension permitted under FAR 52.217-8 was not included, nor evaluated at the time of task order award. If award of the follow-on IDIQ is not made on or before July 14, 2024, the task order will be subject to a gap in services that will drastically affect installations with the need for inspection, maintenance, and repair services necessary under this requirement.

NAVFAC SW recommends utilizing a bridge contract to extend the current contractors’ task order for a period of six (6) months. This extension is necessary to prevent a gap in services and to ensure continuity through the follow-on procurement, allowing sufficient time to resolve any potential protests or unforeseen issues that may arise during the pre-award phase. The proposed extension will provide the necessary contract coverage through January of 2025, at which time the follow-on IDIQ contract is expected to be in place.

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

As noted herein, time is of the essence to ensure continuity of services with no impact to mission. Since the incumbent contractor is the only source capable of providing the required services, within the timeframes required without a break or delay in services, no efforts have been made to solicit offers from additional offerors. In accordance with FAR 6.305, the approved Justification and Approval (J&A) will be posted on SAM.gov within thirty (30) days after award of the contract modification.

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.

There are no barriers to future competition. The follow-on contract will be competed.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIRMENTS CERTIFICATIONS

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.

FSC Product Line Team Lead

NAVFAC SW

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Associate Counsel

CONTRACTING OFFICER CERTIFICATION

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

Contracting Officer

SENIOR PROCURMENT EXECUTIVE

Upon the basis of the above justification, I hereby approve the solicitation of the proposed procurement described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. Section 3204(a)(2), as implemented by FAR 6.302-2.

Contracting Officer