NAVFAC NW_HUBVET MACC JA Capacity_Final_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND NORTHWEST

1101 TAUTOG CIRCLE

SILVERDALE WASHINGTON 98315-1101

CON31/24-0525

24-02JA

JUSTIFICATION AND APPROVAL FOR USE OF

OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

The Agency is the Department of Navy. The contracting activity is the Naval Facilities Engineering Systems Command Northwest (NAVFAC) Northwest, Silverdale, Washington.

2. Description of the Action Being Approved.

Request approval to increase the total not-to-exceed contract capacity of the following Service-Disabled Veteran Owned Small Business and Historically Underutilized Business Zone Businesses (HUBVET) Multiple Award Construction Contract (MACC), by $35,000,000 from $240,000,000 to $275,000,000 for the following base contracts:

N44255-21-D-2000 N44255-21-D-2001 Advanced Technology Construction Corp. Environet, Inc.

3828 E Portland Ave 64-705 Waikelehua Place Tacoma, Washington 98404 Kamuela, Hawaii 96743

N44255-21-D-2002 N44255-21-D-2003 I.E. Pacific, Inc. Sea Pac Engineering, Inc.

150 W Crest St 625 S New Hampshire Ave FL 2 Escondido, California 92025 Los Angeles, CA 90005

N44255-21-D-2004 N44255-21-D-2005 Shape Construction, Inc. Veterans Northwest Construction, LLC 16330 State Highway 305 NE STE 100 2926 6th Ave S Poulsbo, Washington 98370 Seattle, Washington 98134

3. Description of Supplies/Services.

The HUBVET MACC provides new construction, renovation, alteration, demolition, and repair work by design-build or design-bid-build for facilities. The work is limited to the NAVFAC Northwest Area of Responsibility including Washington, Oregon, Idaho, Montana, Alaska, Iowa, Minnesota, North Dakota, South Dakota, Nebraska, and Wyoming.

The final option of the period of performance is set to expire on June 16, 2026, however, the HUBVET MACC has already reaching its original capacity of $240,000,000 in Option Period Two (June 17, 2023 – June 16, 2024).

OTHER THAN FULL AND OPEN COMPETITION

Summary Chart of estimated value and appropriation for the remaining options and modification capacity for awarded task orders:

Fiscal Year (FY) Project Appropriation Estimate

FY25

FY24-26 Modification Reserve for awarded projects

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

The statutory provision enabling exceptions to full and open competition is delineated in 10 U.S.C.

3204(a)(1), and it is further elaborated upon in Federal Acquisition Regulation (FAR) 6.302-1. This regulation allows for contracting procedures that do not necessitate full and open competition, particularly in instances involving follow-on contracts for the ongoing delivery of highly specialized services. Such exceptions are permissible when it is anticipated that awarding to any alternative source could lead to unacceptable delays and economic inefficiencies, especially in the context of sourcing new contractors to fulfill the agency's needs.

5. Rationale Justifying Use of Cited Statutory Authority.

The HUBVET MACC was competitively solicited as a combined HUBZone Service-Disabled Veteran- Owned small business set-aside with six MACC awardees.

The HUBVET MACC’s total awarded value is nearing it awarded capacity of $240,000,000. There are 25 active task orders currently in administration with completion dates through 2026. These active construction projects will have unplanned modifications requiring additional capacity reserve.

No other contract will satisfy the requirement. No future task orders will be executed under this MACC and only modifications to existing task orders are contemplated.

When conducting acquisition planning for the HUBVET MACC IDIQ, the acquisition team conducted extensive market research and analyzed past contract vehicles to determine an appropriate capacity of $240M. Several planned projects resulted in obligated values higher than expected combined with some emergent projects, exhausted capacity much earlier than planned.

The HUBVET MACC’s summary is below:

OTHER THAN FULL AND OPEN COMPETITION

The summary for additional capacity needed to fulfill remaining HUBVET MACC requirements is summarized below:

Current MACC NTE: $240,000,000 Additional MACC Capacity: $ 35,000,000 Total new adjusted NTE: $275,000,000

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

No other sources have expressed interest. Utilization of fair opportunity under the HUBVET MACC simplifies and promotes competition in the contracting process.

In accordance with FAR 6.305 (a), the approved Justification and Approval (J&A) will be made publicly available and posted on the Government’s Point of Entry within 14 days after award of the contract modifications.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined that the anticipated cost to the Government for the services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

This J&A is necessary to ensure sufficient capacity for execution of options and unplanned modifications in support of projects awarded under the HUBVET MACC. Future contracts will have higher capacity.

OTHER THAN FULL AND OPEN COMPETITION

CERTIFICATIONS AND APPROVAL

OTHER THAN FULL AND OPEN COMPETITION