SE JA N69450-24-0430_REDACTEDpdf.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND SOUTHEAST

JACKSONVILLE, FL 32212-0030

J&A # N69450-24-0430

JUSTIFICATION AND APPROVAL FOR

OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

The agency is the Department of the Navy. The contracting activity is Naval Facilities Engineering Systems Command Southeast (NAVFAC SE) Jacksonville, Florida.

2. Description of the Action Being Approved.

Approval is sought to increase the contract maximum Not-To-Exceed (NTE) capacity for the 2021 NAVFAC SE Area of Operation (AO) Multiple Award Construction Contract (MACC), Master MACC N6945021D0055, by $60M, thereby increasing the total NTE from $950M to $1,010,000,000 ($1.01B). This action will not extend the period of performance of 27 September 2026.

3. Description of Supplies/Services.

NAVFAC SE procured a Design-Build and Design-Bid-Build Indefinite Delivery/Indefinite Quantity (IDIQ) Firm-Fixed-Price (FFP) MACC for the NAVFAC SE AOR which includes (but is not limited to) the states of Florida, Georgia, Louisiana, Mississippi, South Carolina, Tennessee, and Texas. Projects to be performed may include Design-Build construction or 100% plans and specifications construction contracts for general construction. Construction will primarily consist of general building type projects (new construction or renovation and any necessary design) including: Administrative Facilities, Training Facilities, Hangars, BEQs, Dormitories, Maintenance Facilities, Commissaries/Retail, and other similar types of facilities for the areas managed by NAVFAC SE.

Seven MACCs were awarded 28 September 2021 and an additional three MACCs awarded 29 November 2021. The current AO MACC is comprised of the following ten IDIQ contracts:

N69450-21-D-0056 Gilbane Federal N69450-21-D-0057 Hensel Phelps Construction Co.

N69450-21-D-0058 The Korte Construction Company N69450-21-D-0059 M.A. Mortenson Company N69450-21-D-0060 RQ Construction, LLC.

N69450-21-D-0061 Sauer Construction, LLC.

N69450-21-D-0062 Walsh Federal, LLC.

N69450-22-D-0011 B.L. Harbert International, LLC.

N69450-22-D-0012 Balfour Beatty Construction, LLC.

N69450-22-D-0013 The Whiting-Turner Construction Company

J&A N69450-24-0430

Each contract has a minimum guarantee of $1,000 with a five-year period of performance. The task order range is $20M-$100M; subject to an aggregate MACC maximum contract value or the current NTE capacity of $950M. All contracts expire 27 September 2026.

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. 3204(a)(2) as implemented by FAR 6.302-2 – Unusual and compelling urgency.

5. Rationale Justifying Use of Cited Authority.

The 2021 NAVFAC SE AO MACC, henceforth referred to as the 2021 AO MACC, was awarded with the assumption that the estimated aggregate NTE capacity would be sufficient based upon the workload projections and historical data at the time of contract award. However, due to unforeseen critical work associated with two (2) Chief of Naval Operations (CNO) directives, a renovation project at Naval Station (NS) Mayport, FL and demolition of numerous facilities at Naval Air Station (NAS) Pensacola, FL, an increase in capacity is required for the immediate repair/restoration/renovation of facilities and infrastructure at those locations. These mission critical projects must be awarded in FY24. There is currently $645M obligated under the 2021 AO MACC, with $256M in planned awards for FY24, leaving only $49M in remaining capacity. The remaining capacity is insufficient to support emerging NAVFAC SE requirements, estimated at $109M.

If the additional capacity is not granted then the remaining awards will have to be procured on a standalone basis. Competing these awards on such a basis was contemplated; however, it would not be in the best interest of the Government in accordance with FAR 6.302-2(b)(2), where delay in award would result in serious injury, financial or other, to the Government. The projects identified within this J&A include Design-Build (DB) and Design-Bid-Build (DBB) construction. A DB project procured as a MACC Task Order will take approximately 60% less time than a two-phase standalone contract. A DBB project procured as a MACC Task Order will take approximately 72% less time than a one-phase standalone contract. Therefore, the administrative effort required to award multiple stand-alone construction contracts is not cost effective and cannot be completed timely, which impacts the Government’s ability to meet mission essential requirements.

Projects procured under the 2021 AO MACC are competed amongst the ten MACC holders, opening the requirements up to full and open competition as standalone procurements is not likely to garner any significant savings beyond MACC competition. A substantial duplication of costs to the Government would be incurred if required to find a new pool of contractors to perform the work. The MACC contractors have been determined to be capable of performing this work, and are familiar with the type and location of work to be performed thereby allowing for great efficiencies in pricing and work performance. There are no other contracting vehicles to complete this increased work, as all other NAVFAC SE MACCs that cover the geographic area for the two mission critical projects are approaching exhaustion of sufficient remaining capacity.

Additionally, the estimated dollar value for these projects exceed the task order limitations of the other MACCs currently in place; thus, the capability of those MACC holders, with regard to project performance is unknown, and therefore considered high risk.

The following list of projects are identified for award on the 2021 AO MACC, for which additional capacity is required. Increasing the capacity on the MACC will provide sufficient capacity for any future unknown modifications on existing task orders.

Project Title Installation Estimated Cost Renovation of NS Mayport, FL

Demolition of 47 facilities NAS Pensacola, FL

TOTAL ESTIMATE FOR ADDITIONAL PROJECTS

Below is additional information for each of the projects in the table above.

Renovation of : Relocation of Operations at NS Mayport, FL

The CNO directed that the renovation of at NS Mayport, FL be included in the FY24 Centrally Managed Program (CMP). U.S.

The project is Design Build (DB) and The project includes renovation of office space and

The Final DB RFP package is anticipated to be completed by January 31, 2024. Award is currently planned for Quarter three (Q3) FY24 to meet critical mission requirements. The procurement has an estimated cost and will be procured utilizing the trade-off process due to the complexity of the requirement.

Commander Navy Installation Command (CNIC) provided the Authority to Advertise (ATA) for this project on October 30, 2023 utilizing FY24 Operation and Maintenance, Navy (O&M, N). As the project must be awarded no later than June 30, 2024 to avoid serious injury to the Government resulting from failure to meet critical mission requirements, there is no other contract vehicle that can meet the procurement timeline other than the 2021 AO MACC.

Demolition of 47 facilities, NAS Pensacola, FL

The CNO directed a project for the demolition of 47 facilities at NAS Pensacola to be awarded in FY24. All Navy commands holding the maintenance unit identification code for Navy real property are required to reduce infrastructure by 10 percent. Delaying the demolition of these facilities would result in serious financial injury to the Government through the wasteful expenditure of taxpayer dollars to repair and maintain facilities that no longer contribute to any government mission and are scheduled for demolition. The divestment of these buildings will provide significant Government savings as costly maintenance/repair will no longer be required for 47 facilities. NAS Pensacola’s facility sustainment budget is heavily constrained, with the installation receiving only 45% of its Facility Sustainment Model. Dedicating any portion of these limited funds to unneeded facilities would be extremely detrimental to the base’s operational and training missions.

Demolition of excess facilities will allow the base to devote more attention to sustaining facilities supporting these missions. With an average facility age of well over 50 years, NAS Pensacola must focus all available funding on maintenance and repair of its active buildings. FY24 O&M, N funds have been reserved for this requirement. Award is currently planned for Quarter three (Q3) FY24 to meet critical mission requirements. If this project is not awarded within the required timeline, the Navy will continue to expend taxpayer dollars unnecessarily on the maintenance and repair of these facilities and will not be in compliance with the CNO’s directive. The final design for this DBB project is planned to be completed by February 29, 2024. As the projects expected award date is no later than June 30, 2024, there is no other vehicle that can meet the procurement timeline other than the 2021 AO MACC.

The procurement for a new competitive contract vehicle that covers the NAVFAC SE AO is already in the acquisition planning phase. A new $2B AO MACC is anticipated to be awarded in November 2025. The projects identified above are candidates for 2021 AO MACC procurement based upon project requirements, location, and estimated dollar value. The funding source and execution schedules require them to be solicited and awarded by June 2024. The new AO MACC will not be awarded in time to accommodate this requirement.

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

The 2021 AO MACC was procured on an unrestricted basis inviting full and open competition.

In accordance with FAR 6.305, the approved J&A will be posted on sam.gov within 30 days after award of the contract modification in accordance with FAR 6.305(b).

7. Determination of Fair and Reasonable Cost

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 MACC.

8. Actions to Remove Barriers to Future Competition.

A new $2B AO MACC is being procured by NAVFAC SE and award is anticipated in November 2025. New projects not discussed in this document that meet requirements based on scope, location, and dollar value will be competed on a standalone basis until the new MACC has been awarded.

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.

Supervisory Project Manager

NAVFAC SE

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Office of Counsel

CONTRACTING OFFICER CERTIFICATION

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

Construction Contracting Division Director

SSISTANT COMMANDER FOR CONTRACTING APPROVAL

Assistant Commander for Contracting Naval Facilities Engineering Command