N6274220D0004 - JA Capacity Increase (Redacted).pdf

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

J&A No. 21-0021

1. CONTRACTING ACTIVITY. Department of the Navy, Naval Facilities Engineering Systems Command (NAVFAC), Pacific, Architect-Engineer (A-E) Contracts Branch, Joint Base Pearl Harbor Hickam, Hawaii.

2. DESCRIPTION OF ACTION BEING APPROVED. Request approval to modify contract N62742-20-D-0004 to increase the not-to-exceed amount by $88,000,000, from $99,000,000 to $187,000,000. This contract is for Indefinite Delivery Indefinite Quantity (IDIQ) A-E Services for various structural and waterfront projects and other projects under the cognizance of NAVFAC, Pacific. The contract was awarded on 8 July 2020 to MNDPI Pacific JV for a base year plus four (4) one-year periods with a not-to-exceed amount of $99,000,000. The contract is currently in the base year performance period.

The contract amount obligated to date is $ . This action is necessary because the remaining contract balance of $ is insufficient to obtain an estimated $ in additional A-E Design Services and Post Construction Award Services (PCAS) to support one

(1) existing and six (6) follow-on task orders, including task order modifications, and still maintain the original intent to provide IDIQ A-E Services for structural and waterfront projects and other projects at locations under the cognizance of the NAVFAC, Pacific.

3. DESCRIPTION OF SUPPLIES/SERVICES. The contract scope is for A-E services for structural and waterfront projects and other projects including, but are not limited to, the execution and delivery of Military Construction (MCON) project documentation (DD Form 1391), Functional Analysis and Concept Development (FACD) workshops, 1391/Design Charrettes; Design-Build Request for Proposal (RFP), Design- Bid-Build (DBB) Design contract documents, technical surveys and reports including concept and engineering studies, site engineering investigation, topographical survey, geotechnical investigation, hazardous material survey, munitions of explosive concern (MEC) survey, hydrographic survey and others;

construction cost estimates; Collateral Equipment (CEQ) Buy Packages; Comprehensive Interior Design (CID) including Structural Interior Design (SID) and Furniture, Fixtures, and Equipment (FF&E); and PCAS. The additional funding is needed for the following contract actions:

TO Mod Description Amount

N6274221F0302 P00006 and P00007

FY23 P-209 Dry Dock #3 Replacement (DD5) JBPHH, HI – Design Phase 3

MNDPI Pacific JV is currently under contract as the Designer of Record for the preparation of the modified Design-Build (DB) construction package consisting of project full plans, specifications, detailed cost estimate, and other services required.

Design Phase 1 is from 0% to Concept Design (35%) and was awarded in November 2020. Design Phase 2 is from Concept Design (35%) to Design Development (60%) was awarded in June 2021.

The Design Phase 3 portion is from Design Development (60%) to Final Design (100%) and planned for award in . PCAS services will also be required as a follow-on modification to this task order once the project is awarded for construction.

Funds: Military Construction Navy (MILCON) Planning and Design (P&D) Funds and MILCON Navy PCAS Funds

TBD

P00001 and P00002

FY23 P-324: Combat Logistics Regiment HQ MCB, Guam

MNDPI Pacific JV provided engineering services to prepare the Region/FEC DD1391 in Task Order N6274221F0304.

Follow on to Task Order N6274221F0304. MNDPI Pacific JV to provide support and engineering services for preparation of the DBB construction package by NAVFAC Pacific Design and Construction (DC) in-house designers. MNDPI Pacific JV services will consist of peer reviews, topographic survey, geotechnical investigation, interior design, landscaping, and general technical consultation services. PCAS to supplement in-house capabilities will be required as a follow-on task order.

Funds: MILCON Navy P&D Funds (DBB package preparation) and FY23 MILCON Navy PCAS Funds

TBD

P00001 and P00002

FY23 P-325: General Support Combat Logistics Maintenance Facility MCB, Guam

MNDPI Pacific JV provided engineering services to prepare the Region/FEC DD1391 in Task Order N6274221F0300.

Follow on to Task Order N6274221F0300. MNDPI Pacific JV to provide design and engineering services for preparation of a DBB package consisting of project full plans, specifications, detailed cost estimate, and other services required.

PCAS will be required as a follow-on task order.

Funds: MILCON Navy P&D Funds (DBB package preparation) and FY23 MILCON Navy PCAS Funds

TBD

P00001 and P00002

FY23 P-870: Engineering and Bridging Complex MCB, Guam -

FDA

MNDPI Pacific JV provided engineering services to prepare the Region/FEC DD1391 in Task Order N6274221F0301.

Follow on to Task Order N6274221F0301. MNDPI Pacific JV to provide design and engineering services for preparation of a DBB package consisting of project full plans, specifications, detailed cost estimate, and other services required.

PCAS will be required as a follow-on task order.

Funds: MILCON Navy P&D Funds (DBB package preparation) and FY23 MILCON Navy PCAS Funds

TBD

P00001, P00002 and P00003

FY24 P-406 Recreation Center, MCB, Guam

MNDPI Pacific JV served as the lead designer for the development of the Activity/PWD DD1391 for the project in Task Order N6274220F0350.

Follow on to Task Order N6274220F0350 for MNDPI Pacific JV continue the DD1391 updates and provide engineering services to prepare the Region/FEC DD1391.

Also, MNDPI Pacific JV will provide support to the NAVFAC Pacific DC in-house designers for the preparation of a DB construction package consisting of project full plans, specifications, detailed cost estimate, and other services required. PCAS will be required as a follow-on task order.

Funds: MILCON Navy P&D Funds (DB package preparation) and FY24 MILCON Navy PCAS

TBD

P00001, P00002 and P00003

FY24 P-760 Training Center, MCB, Guam

MNDPI Pacific JV served as the lead designer for the development of the Activity/PWD DD1391 for the project in Task Order N6274220F0336.

Follow on to Task Order N6274220F0336 for MNDPI Pacific JV continue the DD1391 updates and provide engineering services to prepare the Region/FEC DD1391.

Also, MNDPI Pacific JV will perform design and engineering services for preparation of a DBB package consisting of project full plans, specifications, detailed cost estimate, and other services required. PCAS will be required as a follow-on task order.

Funds: MILCON Navy P&D Funds (DBB package preparation) and FY24 MILCON Navy PCAS Funds

TBD FY18 P-652-01: Hardening of POL Tiyan Junctions – PCAS

MNDPI Pacific JV is currently under contract as the Designer of Record for the preparation of the DBB construction package consisting of project full plans, specifications, detailed cost estimates, and other services provided as part of TO N6274219F0303 on Contract N62742- 18-D-0001.

This follow-on task order is for PCAS.

Funds: FY21 MILCON Navy Funds

The pending actions will require an increase in the contract not-to-exceed amount by $88,000,000.

$ 99,000,000

Contract Not o Exceed mount:

o ate:

Upcoming Task Orders & Mods Remaining Capacity ($ )

4. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION. 10 U.S.C. 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, as implemented by Federal Acquisitions Regulation (FAR) 6.302-1.

5. RATIONALE JUSITIFYING USE OF CITED STATUTORY AUTHORITY.

The selection of MNDPI Pacific JV for the subject A-E contract was made through the A-E competitive process (see FAR 36.601-2 and 6.102(d)(1)). The statutory authority of 10 U.S.C.

2304(c)(1), permitting other than full and open competition, applies to this action because it involves the continued provision of highly specialized services and it is likely that award to another source would result in substantial duplication of cost to the Government that are not expected to be recovered through competition and unacceptable delay in fulfilling the agency’s requirements as provided by 10 U.S.C. 2304(d)(1)(B) as implemented by FAR 6.302-1 for the following reasons:

P-209: This project is currently in design. Design Phase 1 (0% to 35%), as part of TO N6274221F0302 on this Contract, is near complete. Design Phase 2 (35%-60%), also as part of TO N6274221F0302 on this Contract, was awarded in June 2021. MNDPI Pacific JV is the Designer of Record for the project and is developing the modified DB construction package for construction contract award consisting of project full plans, specifications, detailed cost estimate, and other services required. Due to funding availability, the design was broken up into 3 phases: Design Phase 1 (0% to 35%) was awarded in November 2020, Design Phase 2 (35% to 60%) was awarded in June 2021, and Design Phase 3 (60% to Final) is planned for award November 2021, as described in paragraph 3. PCAS services will also be required as a follow-on modification to this task order when the project is awarded for construction. MNDPI Pacific JV also performed the Geotechnical investigation, Topographic survey, Hazardous Material survey, Bathymetric survey, and engineering support as part of TO N6274220F0339 on this Contract in support of this project. If another A-E were to assume these duties for completion of the modified DB construction package, there would be a substantial duplication of costs to the Government and unacceptable delays to the Government due to the award time, learning curve associated with allowing the A-E to familiarize itself with the project design, site conditions, requirements, acquisition strategy, and stakeholders of the projects. Professional standards of care for Architects and Engineers would require the new A-E to assume responsibility of the already completed design work, resulting in extensive redesign time and effort to verify the original work prior to making any design modifications. For professional liability purposes, the new A-E would need to conduct additional stakeholder meetings to verify requirements, coordinate and perform extensive field effort, and perform calculations to verify the original design before conducting any new design work. Acquiring A-E services from another A-E would increase the estimated design costs of $ by approximately % and would increase the estimated design time of 20 months by approximately %. In addition to the increase in design time for the new A-E to revalidate the design, time will also be required to secure the use of a new A-E under an available IDIQ, or to solicit a new IDIQ. To date, there is no known available IDIQ with enough excess capacity to support all of the required design effort for this project in addition to work already planned for existing IDIQs. At least 12 to 18 months are estimated to solicit for a new IDIQ to support this project, familiarize them with the project scope, solicit a proposal, negotiate, and award the task order. Duplicative costs to solicit a new IDIQ are in the amount of approximately $ (500 hours for a Contract Specialist at a burdened rate of $ /hour, and 100 hours for Management at a burdened rate of $ /hour). This project is the highest priority project at NAVFAC, Pacific and it is highly visible across all of NAVFAC. The design and construction timeline is extremely tight and there is no allowance for delays or extension to the current timelines. The project cannot fail in meeting the MND of .

P-324, P-325, and P-780: MNDPI Pacific JV has been working under this contract for NAVFAC Pacific to perform PDA services for P-324 Combat Logistics Regiment

Headquarters, P-325 General Support Combat Logistics Maintenance Facility, and P-870 ENG and BRDG Complex which are all located MCB Camp Blaz, Finegayan, Guam under Task Orders N6274221F0304, N6274221F0300, and N6274221F0301, respectively. MNDPI Pacific JV prepared budget ready concept design plans and provide multi-discipline engineering to a 15% design level. As part of the budget ready concept design, MNDPI Pacific JV conducted charrettes and meetings with stakeholders to develop the project requirements and validate the facility concept. In order to meet the stakeholders’ requisites, MNDPI Pacific JV developed multiple iterations of floor plans and designs as part of these collaborations. If another A-E were to assume the design responsibilities for this project, there will be a substantial learning curve for the new A-E to become familiar with the project requirements, site conditions, and stakeholders. The new A-E would be required to host similar charrettes and meetings, resulting in duplicative costs and unacceptable delays to the Government. Duplicative costs include facilitation of meetings and charrettes, gathering of information about the site, and preparation of concept design deliverables. Duplicative costs are estimated to be approximately $ for each of the projects for a total of approximately $ for the three projects. These duplicative costs are not expected to be recovered through competition.

P-760 and P-406: MNDPI Pacific JV has been working under this contract for NAVAC Pacific to support the preparation of the Installation/Public Works Department (PWD) DD1391 for P-760 Training Center and P-406 Recreation Center at MCB Camp Blaz, Finegayan, Guam under Task Orders N6274220F0336 and N6274220F0350, respectively. The development of the Installation/PWD DD1391 required MNDPI Pacific JV to attend and participate in the programming workshops and DD1391 charrettes with stakeholders in Okinawa to develop the project requirements and validate the facility concepts. MNDPI Pacific JV involvement in the preparation of the Installation/PWD DD1391 resulted in a very comprehensive Installation/PWD DD1391 deliverable, and allowed MNDPI Pacific JV to develop multi-discipline concept designs to approximately a 15% design level with drawings consisting of Civil site plans, Architectural floor plans and elevations, Electrical site plans and one-line diagrams, and Telecommunications site plans. Corresponding cost estimates, based on these concept design drawings, were developed for each project. The intent of having MNDPI Pacific JV perform a comprehensive Installation/PWD DD1391 effort was to validate the project requirements for MNDPI Pacific JV in order for better development of the preliminary design during the PDA Phase for the Region/FEC DD1391. With MNDPI Pacific JV’s knowledge of the projects’ missions and the considerable efforts expended upfront during the Installation/PWD DD1391 phase, the follow-on PDA phase to produce the Region/FEC DD1391 will be efficient and completion of deliverables would be timely.

This would be impossible to achieve with the use of another A-E without revisiting the discussions with the stakeholders and holding additional charrettes to validate the project requirements and concept designs for the new A-E. Retaining MNDPI Pacific JV to continue as the A-E for the budget ready concept design will preclude duplicative efforts, minimize delays, and would save the government duplicative costs estimated to be approximately $ . These estimates are based on the average price of approximately $ per project to facilitate a charrette, prepare deliverables, and travel to programming workshops. These duplicative costs are not expected to be recovered through competition.

P-652-01: Moffatt and Nichol, the prime JV partner of MNDPI Pacific JV, is the Designer of Record for P-652-01 Hardening of POL Tiyan Junction, as described in Paragraph 3, and has completed design for the project as part of TO N6274219F0303 on Contract N62742-18-D-0001. The project has been solicited for construction award and the prospective Offeror has been identified for selection, however funds are not available to award the construction contract. Funds are anticipated to be available in September.

Funds for Contract N62742-18-D-0001 are nearly all obligated, therefore design and engineering services to support PCAS for this project will be on this Contract N62742- 20-D-0004 as a follow-on Task Order. As the Designer of Record for P-652-01, Moffatt and Nichol, and thus MNDPI Pacific JV, possess the requisite knowledge and experience to continue providing design and engineering services and PCAS for this project. If another A-E were to assume these duties, there would be a substantial duplication of costs to the Government and unacceptable delays to the Government due to the learning curve associated with familiarizing themselves with the project designs, site conditions, requirements, and stakeholders of the projects. Professional standards of care for Architects and Engineers would require the new A-E to assume responsibility of the already completed design work, resulting in extensive redesign time and effort to verify the original work prior to making any design modifications. For professional liability purposes, the new A-E would need to conduct additional stakeholder meetings to verify requirements, coordinate and perform field effort, and perform calculations to verify the original design before conducting any new design work. Duplicative costs required to verify the original design are estimated to be approximately 30% of the original design costs of $ . Duplicative time required to verify the original design are estimated to be approximately 4-6 months. The aforementioned duplicative costs and time are not expected to be recovered through competition. This project design is complete and construction contract award is imminent as soon as funds are available. Not having an A-E on-board for PCAS when the construction contracts are awarded could put the project at high risk for construction delays and contractor claims against the government.

Conducting a limited competition would not be a viable option given that the award would be for a very short duration (approximately 3 to 5 months), coupled with the fact that conducting such a competition would undermine NAVFAC Pacific’s ability to timely award the A-E IDIQ contract, and would introduce multiple transitions during a period of high stress for United States forces within the cognizance of NAVFAC Pacific.

There is a solicitation for a competitive follow-on contract with an anticipated award date in , as described in Paragraph 8 of this Justification And Approval (J&A).

However, there will be an unacceptable delay in A-E services should the subject contract’s capacity not be increased.

6. DESCRIPTION OF EFFORTS MADE TO SOLICIT OFFERS FROM AS MANY

OFFERORS AS POSSIBLE. NAVFAC, Pacific has not published, and does not intend to publish, a Notice of Intent to Sole Source in accordance with FAR 5.203(a). This proposed contract action is made pursuant to the terms of an existing contract that was previously synopsized in sufficient detail to comply with the requirements in FAR 5.207 with respect to the current proposed contract action. Accordingly, the requirements for an exception under FAR 5.202(a)(11) have been met and no synopsis is currently required. A market survey was not conducted and an increase of the subject contract capacity is considered the only reasonable means to accomplish the work in a timely manner.

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 since the rates were established with the basic contract award.

8. ACTIONS TO REMOVE BARRIERS TO FUTURE COMPETITION. Efforts are in place to re-procure a new Structural and Waterfront IDIQ contract. The new contract is planned for award in . The replacement contract is being procured using full and open competition methods at a value intended to ensure that all known requirements will fit within the dollar limits established at the time of award.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

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.

TECHNICAL COGNIZANCE:

Phone Date

REQUIREMENTS COGNIZANCE:

LEGAL SUFFICIENCY REVIEW:

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

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

02 August 2021

05 August 2021

10 August 2021

10 August 2021

ECHELON III CHIEF OF THE CONTRACTING OFFICE CERTIFICATION

Upon the basis of the information contained in this justification, I hereby endorse, as the Echelon III Chief of the Contracting Office, that this justification is accurate and complete to the best of my knowledge and belief.

11 August 2021

ASSISTANT COMMANDER FOR ACQUISITION APPROVAL

Upon the basis of the above justification, I hereby approve the proposed contract modification described herein using other than full and open competition, pursuant to the authority of U.S.C.

2304(c)(2).