N6945015D1603_JA_NSGB.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEEERING COMMAND SOUTHEAST

JACKSONVILLE, FL 32212-0030

J&A No. N69450-18-0271

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Department of the Navy, Naval Facilities Engineering Command Southeast (NAVFAC SE), Jacksonville, FL.

2. Description of Action Being Approved.

Approval is sought to increase the contract maximum not-to-exceed (NTE) amount for the

NSGB, Guantanamo Bay, Cuba Multiple Award Construction (MACC) by $75,000,000 from

$95,000,000 to $170,000,000.

3. Description of Supplies/Services.

NAVFAC SE procured a full and open competition Design-build, Indefinite Delivery Indefinite

Quantity (IDIQ), Firm-Fixed Price MACC for NSGB area providing design and construction services to include labor, supervision, tools, materials and equipment, new construction, renovation, alteration and repair of facilities and infrastructure, roofing, demolition and routine renovations within the specified area.

The MACC comprises the following six IDIQ contracts:

Islands Mechanical Contractors, Inc. (N69450-15-D-1620)

Centerra-SJC II, LLC (N69450-15-D-1621)

Munilla Construction Management (N69450-15-D-1622)

Ratcliff Construction, Inc. (N69450-15-D-1623)

RQ-URS JV (N69450-15-D-1624)

Sauer, Inc. (N69450-15-D-1625)

The MACC has a base period and four one-year option periods and is currently in the fourth option period. The contract expires September 30, 2018.

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

The statutory authority for this acquisition permitting other than full and open competition is 10

U.S.C. 2304(c)(2) as implemented by FAR 6.302-2, Unusual and Compelling Urgency.

5. Rationale Justifying use of Cited Statutory Authority.

Unexpected hurricanes and large storms for the past three years have impacted the construction market in the Southeastern United States and Caribbean, causing increased pricing for labor and materials. This has increased the cost of projects performed on the MACC, and used up more capacity than was anticipated. In addition, unexpected contingency requirements from the JTF ground forces have unexpectedly increased as well. The contingency mission does not follow a five-year cycle for upcoming sustainment projects, and future expectations can only be extrapolated from historical data. The number of mission-critical facility repairs and OMC requirements have exceeded expectations and used up MACC capacity faster than projected. An existing five-year $95,000,000 IDIQ MACC awarded in 2015 has been almost depleted, with only $7,621,371 of capacity remaining. A new solicitation for a replacement MACC was issued in 2017, but will not be awarded until 30 September 2018.

U.S. Naval Station Guantanamo Bay is a unique overseas facility extending over 28,821 acres of land near the southeastern tip of the sovereign island nation of Cuba. The mission of the station includes: (a) maintaining U.S. treaty obligations while projecting a military forward presence in the Caribbean; (b) maintaining port, airfield and staging areas to support U.S. contingency operations in the Caribbean; (c) supporting the Global War on Terrorism and Operation

Enduring Freedom; and (f) supporting the facility infrastructure requirements of the Joint Task

Force (JTF) Guantanamo.

There is no off-base support available at NS Guantanamo Bay. The station operates on a 24/7, 365-day cycle as a self-sustaining facility, producing its own potable water and generating its own electricity. Facility sustainment requirements can be steep and unpredictable on island due to the harsh tropical weather and the unpredictable political environment affecting base operations. The base relies on construction contractors to maintain and repair the base facilities.

Operating conditions are unique and challenging for contractors. For instance, strict security requirements require that contractors obtain clearances well in advance (minimum 30-day wait period). All construction crews must be housed on base on a space available basis or in contractor camps. All construction materials and equipment must be barged onto the island.

Contractors amortize these initial mobilization costs and starting costs over the life of their contracts. A substantial premium and duplications of costs to the Government would be incurred if required to find new contractors to perform the work.

Various mission-critical requirements valued at approximately $75M are currently required to be awarded in FY-18, but only $7,621,371 of capacity remains. Individually these projects cannot bear the fixed costs for a contractor to mobilize on the island, but are appropriately sized for

MACC awards. The projects include approximately $50M in urgent and compelling repairs, which include:

Kittery Beach Housing windows

Sherman Avenue Utility repairs

AV620

Electrical laterals, electrical mains, water treatment plant exterior repairs, and various roof repairs to replace storm-damage

Wildlife Crematorium for environmental compliance

Life-safety issues fire alarms and sprinkler system repairs for the Bowling Alley, Bldg

1650 and AV600

Projects also include approximately $20M for JTF urgent and compelling support projects. The

JTF projects include:

Plumbing repairs and upgrades to accommodate a ramp-up in personnel

HVAC repairs to the Kittery Café and JTF Badging office to repair storm damage

Camp 5 and Camp 6 body scanners, Security Fence Repair and erosion control measures

Water Main repairs for drinking water quality

Camp 7 electrical upgrades for safety

Camp 7 water and plumbing repairs; Camp 7 roof replacement

Camp 7 fire protection repairs and replacement for urgent life and safety protection requirements

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

All new projects identified herein will be competed among the six NSGB MACC contractors. In accordance with FAR 6.305, the approved J&A will be posted on FEDBIZOPS within 30 days after award of the contract modifications.

7. Determination of Fair and Reasonable Costs.

The contracting Officer has determined that the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable based on the competitive nature of the action. All IDIQ task orders will be individually competed amongst the responsible sources available on island. An independent government will be prepared for every project and negotiations or discussions will be conducted if necessary to ensure a fair and reasonable price.

8. Actions to Remove Barriers to Future Competition.

A large MACC (IDIQ) with a NTE amount of $240,000,000 is currently under source selection board review and expected to be awarded by 30 September 2018. Solicitation was issued using full and open competition. New projects that meet the requirements based on scope, location, and dollar value will be competed among the new MACC contractors.

JUSTIFICATION AND APPROVAL N69450-18-0271

CONTRACT #N69450-15-D-1620 TO N69450-15-D1625

CERTIFICATIONS AND APPROVALS

TECHNICAL/REQUIREMENTS/FUNCTIONAL LEAD 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:

_____________________________ _(904) 542-6304___ ___________

William M. Bankhead Phone No. Date

Project Management Branch Head

Naval Facilities Engineering Command Southeast

LEGAL SUFFICIENCY REVIEW:

I have reviewed this justification and found it legally sufficient.

____________________________ __(904 542-6653____ ___________

Javier Gonzalez Phone No. Date

Associate Counsel

CONTRACTING OFFICER CERTIFICATION:

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

____________________________ __(904) 542-6912___ ___________

Garry Murphy Phone No. Date

Contracting Officer

ECHELON IV CHIEF OF THE CONTRACTING OFFICE CERTIFICATION

____________________________ __(904) 542-6911____ ___________

Sandra White Phone No. Date

Chief of Contracting Office

ECHELON IV COMMANDING OFFICER CERTIFICATION

___________________________ __(904) 542-6633____ ___________

Mike Monreal, P.E. Phone No. Date

CAPT, CEC, USN

Commanding Officer

ECHELON III CHIEF OF CONTRACTING OFFICE CERTIFICATION

___________________________ __(757) 322-4060____ ____________

Patricia S. Kellihan Phone No. Date

Chief of the Contracting Office

Naval Facilities Engineering Command, Atlantic

ECHELON III COMMANDING OFFICER CERTIFICATION

________________________ __(757) 322-8000____ ____________

RDML D. Banaji Phone No. Date

Commander

Naval Facilities Engineering Command, Atlantic

ECHELON II DIVISIION DIRECTOR CERTIFICATION

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

_________________________ (202) 685-9140___ _____________

Edward Charette Phone No. Date

Division Director, Client OPS II

Naval Facilities Engineering Command

ASSISTANT COMMANDER FOR ACQUISITION APPROVAL (NFAS 6.304)

Upon the basis of the above justification, I hereby approve, as the Assistant Commander for

Acquisition, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(2), Unusual and

Compelling Urgency.

____________________________ __(202) 685-9157___ _____________

Cindy Readal Phone No. Date

Assistant Commander for Acquisition

Naval Facilities Engineering Command