N6247820D5034_JA25-29_REDACTED.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND, HAWAII

400 MARSHALL ROAD

JBPHH, HAWAII 96860-3139

IN REPLY REFER TO:

J&A No. 25-29

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Department of the Navy, Naval Facilities Engineering Systems Command (NAVFAC), Hawaii, Architect-Engineer (A-E) Contracts Branch (Code CON33), Joint Base Pearl Harbor-Hickam (JBPHH), Hawaii.

2. Description of the Action Being Approved.

NAVFAC Hawaii intends to increase the contract maximum not-to-exceed value of its A-E Services Small Business (SB) Indefinite Delivery Indefinite Quantity (IDIQ) Contract No. N62478-20-D-5034 for Various Mechanical Projects and Other Projects Primarily Under the Cognizance of NAVFAC, Hawaii, Various Locations, by $4,000,000 from $15,000,000 to $19,000,000.

The current amount obligated under this A-E Services IDIQ is $11,861,194. There is an estimate of in pending task order awards, leaving a remaining capacity of .

The contract is currently in the fourth and last option year expiring 26 August 2025 or a not-to-exceed amount of $15,000,000, whichever occurs first. However, a six-month period of performance extension will be exercised in accordance with the 52.217-8 Option to Extend Services clause in the contract, for a new expiration date of 26 February 2026.

3. Description of Supplies/Services.

This A-E services IDIQ for Mechanical engineering projects was awarded to Mechanical Engineers of Hawaii Corp. (MEH) on 27 August 2020, with a base year and four one-year options with a maximum not-to-exceed value of $15,000,000.

The work under this A-E services IDIQ includes design and engineering services for various mechanical projects and other 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 mechanical engineering projects and related projects include Request for Proposal (RFP) documentation for Design-Bid-Build (DBB) mechanical engineering projects with associated multi-discipline A-E support services for new construction, alteration, repair, and installation of mechanical systems and associated facilities. Other design and engineering services may include, but are not limited to, Design-Build (DB) RFP documentation, engineering investigations/ concept studies, Functional Analysis Concept Development/charrettes, and Post Construction Award Services (PCAS).

MEH is currently performing work under existing task orders issued under this A-E services IDIQ to support

It is anticipated this work will require mission-critical modifications with expected award amounts totaling as follows.

Table 1

Task Order Number

Description Amount

Mechanical Engineers of Hawaii Corp. (MEH) is the Designer of Record (DOR) for the Scoping Study and DBB RFP consisting of plans, specifications, cost estimate and other services. A modification is required for PCAS .

MEH is the DOR for the DBB RFP consisting of plans, specifications, cost estimate and other services. Another modification is required for PCAS .

other services. Another modification is required for PCAS .

other services. Construction procurement was delayed due to other mission requirements at the project site. Due to the significant time lapse, modifications are needed to refresh the DBB RFP to address code or requirement changes and for PCAS .

Currently in negotiations to award a task order contract to MEH to provide engineering assessment study. Modifications are required to complete the DBB RFP consisting of plans, specifications, cost estimate and other services and order contract to MEH to provide DBB RFP consisting of plans, specifications, cost estimate and other services. A modification is required for PCAS .

consisting of plans, specifications, cost other services. Currently in negotiations to award a modification to provide additional scope design services. Another modification is required for PCAS .

consisting of plans, specifications, cost consisting of plans, specifications, cost

TOTAL $3,875,000

The pending actions shown in Table 1 above will require an increase in the contract not-to-exceed amount by (rounded to $4,000,000) as follows:

Table 2

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

The statutory authority permitting other than full and open competition is Title 10 USC § 3204(a)(1), as implemented by Federal Acquisition Regulations (FAR) 6.302-1 – Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

The original contract awarded to MEH was set aside for small business 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. § 3204(a)(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 would create unacceptable delays in fulfilling the agency’s requirements as implemented at FAR 6.302-1(a)(2)(iii) for the following reasons.

Through task orders awarded by NAVFAC Hawaii under this IDIQ contract, MEH performs design and engineering services for the

MEH has the requisite knowledge and experience to provide design and engineering services to complete the above projects.

MEH has provided similar specialized designs for these types of facilities in other locations and has extensive experience at JBPHH, Navy Region Hawaii and MCBH. Continuing to use MEH would result in only one interpretation of the designs, thereby ensuring continuity and integrity of the design intent towards the final designs. Using a different A-E will incur unnecessary, additional delays and costs, and potential quality inconsistencies, which may lead to the need for further normalizations. Failure to award these requirements timely will ultimately result in detriment to the mission to support our warfighters, as there are no other contracting tools available within NAVFAC Hawaii that will satisfy these time-sensitive and critical requirements. In addition, the start-up costs for other A-E firms to familiarize themselves with the projects and customer requirements are prohibitive and cannot be recouped through the qualifications-based A- E Selection process. 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 concept design.

Award of task orders under this IDIQ contract can be accomplished in three to six months, whereas a stand-alone competitive contract action is anticipated to take from ten to 13 months, depending on the estimated value. 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 estimated at a minimum of $1,500,000 per project. Duplicative time required to verify the original assessment and design are estimated to be approximately six to eight months and would create unacceptable delays in fulfilling the Navy’s mission need dates.

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 (at SAM.gov), 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 formal market survey was not conducted as it is not practicable for the reasons discussed in paragraph 5 above, for any firm other than MEH to provide the required follow-on work for additional design and PCAS services, due to the highly specialized nature of A-E services.

The Government conducted market research by considering other A-E firms under existing current IDIQ contracts and A-E firms that have SF330 A-E Qualifications on file with NAVFAC Hawaii as available sources to potentially solicit these design and PCAS requirements.

After a technical evaluation of three firms’ qualifications, no firms were identified or determined to be more highly qualified than MEH for the requirements for these projects. It is also believed that no other firm will express a serious interest in the work if that firm is 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.

8. Action to Remove Barriers to Future Competition.

NAVFAC Hawaii anticipates removing barriers to future competition through award of a new IDIQ for Mechanical engineering projects, which will be solicited on a small business set-aside basis with projected award in the second quarter of Fiscal Year (FY) 2026.

CERTIFICATIONS AND APPROVAL

APPROVAL