N6247818D5027_JA_redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND, HAWAII

400 MARSHALL ROAD

PEARL HARBOR, HAWAII 96860-3139

J&A No. 21-06

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Facilities Engineering Systems Command, Hawaii (NAVFAC HI), Joint Base Pearl Harbor-Hickam, Hawaii

2. Description of the Action Being Approved.

Request approval to increase the not-to-exceed value for Contract N62478-18-D-5027, Indefinite Delivery Indefinite Quantity (IDIQ) Architect-Engineer (A-E) Contract Services for Multi-Discipline Projects at Various Locations, NAVFAC Hawaii Areas by $25,000,000 from $30,000,000 to $55,000,000. The contract is in its third option year and contract expiration date of 8 November 2022 remains unchanged.

3. Description of Supplies/Services.

This IDIQ contract for the A-E services was awarded to HDR Engineering, Inc. (HDR) on 9 November 2017, with a base year and four option years with a maximum not-to-exceed of $30,000,000.00. The contact scope is A-E services to include design and engineering services for multi-discipline projects at various locations under the cognizance of NAVFAC Hawaii; however, on special occasions, work may also be required in other areas outside of Hawaii. Specified design and engineering services for multi-discipline projects include, but are not limited to, execution and delivery of Military Construction (MILCON) project documentation (DD Form 1391); Functional Analysis and Concept Development (FACD)/Design Charrettes; Design-Build (DB) Request for Proposal (RFP) solicitation documents; Design-Bid-Build (DBB)/Final plans and specifications contract documents; technical surveys and reports including concept studies, site engineering investigation, topographical survey, geotechnical investigation, hazardous material survey, munitions of explosive concern (MEC) survey, hydrographic survey, anti-terrorism/force protection, landscape design and others; construction cost estimates (including Bill of Material Quantity estimates); cost certification; operation and maintenance manuals; Collateral Equipment (CEQ) Buy Packages;

Comprehensive Interior Design (CID) including Structural Interior Design (SID) and Furniture, Fixtures, and Equipment (FF&E); as-built drawings; and Post Construction Award Services (PCAS).

The following services to be acquired are:

Contract # Description Amount N6247820F4193

P00001 & P00002 Overhaul Primary and Secondary Clarifiers, JBPHH

HDR prepared the DBB RFP, consisting of plans specifications, cost estimate and other services. A modification is required for design changes (P00001) and PCAS (P00002).

N6247818F4160 P00005

Replace Underground Salt Water Distribution Lines and 12-inch Water Line Along Lake Erie Street, Various Locations, PHNSY & Waterfront, JBPHH

HDR prepared the DBB RFP, consisting of plans specifications, cost estimate and other services. A modification is required for PCAS.

N6247819F4233 P00002

FY20 P168, Install Fuel Multi-Additive Injector at Valve Station 1C, JBPHH

HDR prepared the DBB RFP, consisting of plans specifications, cost estimate and other services. Modifications are required for PCAS.

N6247819F4241 P00003

FY22 MILCON Project

HDR prepared the DBB RFP, consisting of plans specifications, cost estimate and other services. A modification is required for PCAS.

N6247820F4029 P00004 & P00005

FY23 MCON Project

HDR conducted field investigations, conducted a FACD, prepared the Region FEC DD1391 and re-validated the DD1391.

Modifications are required for preparation of a DBB RFP construction documents (P00004) and PCAS (P00005).

N6247821F4055 P00001 & P00002

FY23 MCON Project conducted a FACD, and prepared the Region FEC DD1391. Modifications are required for revalidating the DD1391 (P00001) and assisting NAVFAC Hawaii with preparation of a DBB RFP construction package (P00002).

N6247820F4138 P00001 & P00002

Replace Underground Salt Water Distribution Lines, Phase 2, JBPHH

HDR prepared the DBB RFP, consisting of plans specifications, cost estimate and other services. Modifications are required for design changes (P00001) and PCAS (P00002).

N6247820F4029 P00006, P00007, and P00008

FY24 MILCON

conducted a FACD, prepared the Region FEC DD1391 in conjunction with P-034. When PDA is received, modifications are required to conduct field investigations based on the revised scope, conduct a FACD, and revalidate the DD1391 (P00006), prepare the DBB RFP construction documents (P00007) and

PCAS (P00008)

TOTAL $32,000,000

The current total contract award value is approximately $23,000,000.00 out of the existing $30,000,000.00 capacity. The current remaining capacity is approximately $7,000,000.00. The above contract actions totaling approximately $32,000,000.00 will require an increase in the contract capacity by $25,000,000.00, from $30,000,000.00 to a new contract capacity of $55,000,000.00.

Funding values of the contract actions are:

Estimated Dollar Value

FY21 FY22 Total

MILCON $10,200,000.00 $17,750,000.00 $27,950,000.00

O&M, N $750,000.00 $3,300,000.00 $4,050,000.00 Total $10,950,000.00 $21,050,000.00 $32,000,000.00

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

This request is submitted pursuant to the authority of Title 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy the Agency Requirements, as implemented by Federal Acquisition Regulations (FAR) 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority.

The original contract awarded to HDR was competed using competitive procedures pursuant to 40 U.S.C. 1101, Selection of Architects and Engineers, as implemented by FAR 36.6. The statutory authority of 10 U.S.C. 2304(c)(1) applies as an award to any other source would result in substantial duplication of cost to the Government that are not expected to be recovered through competition and unacceptable delays in fulfilling the agency’s requirements as provided by 10 U.S.C.

2304(d)(1)(B) and implemented at FAR 6.302-1(a)(2)(iii) for the following reasons:

MCON Existing Projects:

o FY23 MCON Project P-034. A portion of the design effort for this MCON was planned to be performed in-house. An unexpected increase in in-house workload and loss in Design and Construction (DC) staffing due to attrition during FY20/21 resulted in the need to have HDR complete the entire design effort. The amount of capacity needed to award the entire design to HDR is $12M which exceeds the remaining capacity on the IDIQ contract.

o FY23 MCON Project P-8004. It is anticipated that Final Design Authority (FDA) will not be provided in FY21 and that a Project Design Authority (PDA) will be authorized for a second Region FEC DD1391 validation in FY22. DC plans to do a portion of the design in-house with HDR providing the balance of the design services required which includes specifications and cost-estimating.

o FY24 MCON P-042. Initially, the charrette for this project was conducted with P-034 since it was anticipated that the two projects would be procured together. Since then, the projects were separated and currently, P-042 is waiting for PDA authority to continue towards design.

HDR has conducted FACDs and validated Region FEC DD1391 cost estimates for MILCON Project P-034, P-8004, and P-042. Therefore, utilizing a different AE firm to complete the designs would incur unnecessary, additional delays and costs, and potential quality inconsistencies. Failure to award these requirements will represent unacceptable delays to the mission for various Commands/Activities.

Conducting competition for this work and transitioning to a new contractor would not be practical or reasonable given the programmatic timeframe to develop a new solicitation. The start-up costs for another source to familiarize themselves with the project and customer requirements are prohibitive and cannot be recouped through competition. The start-up costs include meetings with end-users and other government entities; site field investigations;

environmental assessments; reviews of studies; and a complete revalidation of the of the drawings, calculations and basis of design. The associated administrative cost for Government personnel (acquisition and technical) to re-procure and re-administer this effort would also result in a substantial duplication of costs.

Non-MCON Existing Projects:

o Overhaul Primary and Secondary Clarifiers, JBPHH. HDR prepared the DBB RFP. Unforeseen site conditions makes design changes necessary to meet criteria.

o Replace Underground Salt Water Distribution Lines and 12-inch Water Line Along Lake Erie Street, Various Locations, PHNSY & Waterfront, JBPHH. HDR prepared the DBB RFP. The probability of unforeseen site conditions within the Shipyard during construction is high. A higher budget for PCAS than originally planned is necessary to address issues during construction.

o Replace Underground Salt Water Distribution Lines, Phase 2, JBPHH. HDR prepared the DBB RFP. Because the construction award for Replace Underground Salt Water Distribution Lines (Phase 1) has been delayed until FY22, the Phase 2 project construction award has been delayed until at least FY24. A design mod will be needed to update the DBB RFP for Phase 2 to current design criteria and site conditions.

HDR has prepared DBB RFPs for the projects listed above. Therefore, utilizing a different AE firm to complete the designs would incur unnecessary, additional delays and costs, and potential quality inconsistencies. Failure to award these requirements will represent unacceptable delays to the mission for various Commands/Activities.

Conducting competition for this work and transitioning to a new contractor would not be practical or reasonable given the programmatic timeframe to develop a new solicitation. The start-up costs for another source to familiarize themselves with the project and customer requirements are prohibitive and cannot be recouped through competition. The start-up costs include meetings with end-users and other government entities; site field investigations;

environmental assessments; reviews of studies; and a complete revalidation of the of the drawings, calculations and basis of design. The associated administrative cost for Government personnel (acquisition and technical) to re-procure and re-administer this effort would also result in a substantial duplication of costs.

In-House Staff and Workload. As addressed above, within the last two years, NAVFAC Hawaii awarded an unusually high amount of unplanned AE design projects. Concurrently, DC experienced a high percentage of staff reduction which drastically impacted the capability of in-house work. Based on influx of unanticipated/unscheduled work and the impact it has to in-house workload, DC will find it unreasonably challenging to meet design completion goals. There would be a negative impact to NAVFAC Hawaii’s mission in executing design and construction projects without the utilization of this design contract tool.

This action will not extend the contract ordering period and will not be used to “bridge” the time between the end of this contract and the start of another Multi-Discipline IDIQ contract. The increase being requested under this J&A does not constitute to be a “bridge contract action” under NFAS 6.303-1-100 or 6.304-101.

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

A synopsis of the proposed contract modification was not published in Contract Opportunities (formerly FedBizOps), pursuant to the exception FAR 5.202(a)(11), where this proposed contract action is made under the terms of an existing contract that was previously synopsized in sufficient detail to comply with the requirements of FAR 5.207. A market survey has not been conducted as it is not practicable for the reasons discussed in paragraph 5 above, for any firm other than HDR to provide the required follow-on work for PCAS services due to the highly specialized nature of A-E services. It is also believed that no other firm will have expressed a serious interest if that firm was required to assume responsibility and liability for a design that was prepared by another firm.

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. Task orders and task order modifications will be negotiated using the appropriate 3rd and 4th Option Year rates established in the basic contract.

8. Action to Remove Barriers to Future Competition.

NAVFAC Hawaii intends to procure a new civil IDIQ contract for future requirements for the types of A-E services covered by this document.

The replacement contract will be procured on an unrestricted basis, with a projected m mum $50,000,000 value to ensure that all known requirements would fit within the dollar limits established. The procurement will be synopsized in the Contract Opportunities website in January 2022 with a projected contract award in October 2022.