NB196000-18-02407_Justification.pdf

NB194000-18-02407 B1 Wing 1 & 2 Utlity Upgrade Project JOFOC

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Construction Administrative Services (Title III) for the construction of the B1

Wing 1 & 2 Utility Upgrade Project

The Facilities Maintenance Group (FMG) and Design and Construction Division (DCD-B) at National Institute of Standards and Technology (NIST) in Boulder are responsible for providing the scientific staff with buildings that meet their temperature, humidity, compressed air, electrical and process cooling needs. The Wing 1 & 2 Utility Upgrade project is responsible for replacing piping, heating/cooling equipment, and building controls that have passed their useful life and are starting to fail in Building 1, Wing 1 & 2 catastrophically. Anticipating the need to replace the systems DCD started working with Shaffer Baucom Engineers & Consultants (SBEC) from the Architect-Engineer (A-E) Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract, SB1341-11-CQ-0013, in fiscal year (FY) 11 to design the system replacement.

Between FY11 and FY14 they completed the design to supply Wing 1 & 2 and about 1/3 of the B1 Spine with chilled water, compressed air, and heat from the NIST Central Utility Plant (CUP). Additionally, SBEC designed the Wing 1 laboratory remodel and the B1 Lobby/Auditorium AHU-1 & 2 Replacement projects. The project was awarded in FY14 to Olgoonik Specialty Contractors (Olgoonik) for construction using the NIST Boulder construction IDIQ contract, SB1341-12-CQ-0031 task order (TO) 14-423, with a period of performance (POP) of 1,010 days, and total value of $16, 333,179. SBEC, the Engineer of Record, was awarded Title III services under contract number SB1341-11-CQ-0013 TO# 14-442, POP of 1,073 days, and total value of $448,390.00. There were significant government delays to the construction due to the delayed schedule of the Wing 3 and Wing 6 construction projects. As part of the construction task order POP of July 28, 2017, Olgoonik had completed a significant portion of the project, including the lab decommissioning, the construction of the main mechanical entry to B1 from the CUP, and AHU – 1 & AHU – 2 install on the original task order. With the delay of Wings 3 and Wing 6, NIST was not able to move occupants for Wings 1 and 2, as agreed to contractually with Olgoonik. Upon SB1341-12-CQ-0031 TO# 14-423 POP expiration date, Olgoonik had not been able to complete the installation of the utilities into Wing 1 & Wing 2. Overall, the NIST multiple construction IDIQ contracts (SB1341-12-CQ-0022, SB1341-12-CQ-0030, SB1341-12-CQ-0031, and SB1341-12-CQ-0033) collective task orders has surpass the aggregate dollar amout and the option to extend those services were no longer viable. During the POP under SB1341-12-CQ-0031 TO# 14-423 Olgoonik completed all work not impacted by the occupied spaces while working well with NIST research staff. It was critical to the timeliness, continuity, and quality of the project that the remainder of the original scope be completed by Olgoonik, so a follow-on contract, SB1341-17-CN-0025 for $5,325,345.22 was awarded in July 2017 with a completion date of May 2019. SBEC’s Title III services under SB1341-11-CQ-0013 TO# 14-442 POP expired August 30, 2017, and NIST had exhausted all means to exercise the option to extend services to allow SBEC to monitor the construction activities through completion. NIST faced another challenge when the construction project, SB1341-17-CN-0025, was awarded for more than anticipated. As a result, DCD-B lack sufficient funds in the FY17 budget to pursue Title III services. Currently, DCD-B’s in-house engineers are supporting the construction project, which is causing significant risk to the project.

Funding was allocated in FY18 for this critical award to be made to SBEC to continue Title III services from 2017.

Both the construction and A-E task orders expired on January 31 and August 30, 2017, respectively. Due to the continuous government delays, Olgoonik was not complete with the project at this time. The task order could not be extended due to issues with the IDIQ contract.

Due to the significant risk to the Government and the past performance by Olgoonik, a follow-on contract was awarded. It is equally important that SBEC, the Engineer of Record, of all of the project design and with over 3 years of construction administration on the construction project, complete the project. The risk of not completing the construction was significant portions of Wing 1, Wing 2, and the Spine would be without permanent heating or cooling. To-date, failing to regulating temperature controls have been a challenge for the researchers to meet their obligations, additional delays would risk continued funding support for many of the labs in Wing 1 & Wing 2. Olgoonik and their subcontractors had been diligently working on the project since September 18, 2014, and their familiarity with the scope and current project challenges is unparalleled.

Similarly, SBEC has more time invested in this project than Olgoonik, and their history and professional engineering experience is a major benefit to the government on a construction project given the size and complexity. The Engineer of Record has a responsibility to ensure their design is built as designed and will function safely. It imperative that SBEC perform Title III services for NIST continue to provide full and timely support to NIST during construction giving NIST the best possible product. The B1 project is in an older facility that is being occupied during construction with laboratories and offices. Because of these complexities, there is a need for frequent site inspections and rapid turnaround of Request For Information (RFI’s) and submittals. SBEC has the project history and professional qualifications to meet those needs.

Both the construction and Title III service were competed amoung the NIST construction and A- E IDIQ contract holders. Market research efforts were conducted with previous Title III service TOs, and NIST is certain that a fair and reasonable price will reached with SBEC. Morevoer, SBEC staff will have minor waiting time, if any, to be cleared for badging purposes.

Currently, DCD-B in-house engineers are performing the Title III services, without the history or staffing support, DCD-B cannot respond as quickly as SBEC, causing more potential delays.

There is also significant risk by having DCD-B answer questions about technical RFIs and submittals on the SBEC design because DCD-B did not perform the original design calculations;

DCD -B is assuming risk that should be left with the Engineer of Record, SBEC. If another engineering firm were to be contracted to perform the construction administration services, it would take an estimate between 6 months to a year for any new engineering firm to become accumulated with the costruction project which is not a benefit to the government. The inbound A-E firm would not have the project history starting at the project inception to current construction. All inspections, RFIs, and submittals would still require significant oversight from NIST DCD-B staff while the other firm studied the design and became familiar with the challenges of construction in occupied laboratories at NIST. Additionally, contracting these Title III services with a new A-E firm would continue to transfer a substantial amount of risk onto NIST DCD-B because of the significant amount of support and oversight they would need to provide the new firm for the first year.

The original contract scope was the connection of Wing 1 & 2 to the CUP utilities, the decommissioning of the Wing 1 Clean Room and replacing AHU – 1 & AHU – 2. The Wing 1 &

2. Utilities were installed over 50 years ago. There are significant sections of piping that have eroded and leaked into critical laboratory spaces damaging one-of-a-kind research equipment.

The existing valves frequently don’t work due to age, requiring a full building shut-down to perform repairs. This is incredibly disruptive as many experiments run for days/weeks/months at a time. Most experiments must stop when there is a utility outage in the building, even if the outage is planned. There have been more unplanned outages due to heating and cooling system failure than are acceptable and they are increasing in frequency. Planned outages cost NIST millions of dollars. Additionally, unplanned outages also result in lost research data and time.

The Wing 1 & 2 heating and cooling equipment is anywhere between 50 – 65 years old. The Operations staff have done a great job of keeping it in the best operating condition possible, but it is long past it’s rated useful life. The laboratories are very temperature sensitive, and the original system and equipment cannot perform to meet their research needs and support the NIST mission. The Time and Frequency Division occupies a substantial portion of B1 where the utility work is taking place. They are responsible for running the atomic clock and ensuring continued transmission of the signal all over the United States to support commercial industry, other research institutions, and the military. The clock is a highly sensitive piece of equipment and any variation in temperature and humidity, especially beyond +/- 1 degree F and +/- 5% humidity, has a significant impact on the clock’s accuracy. If the B1 Wing 1 & 2 heating and cooling system failed, NIST would lose millions of dollars due to the lost opportunity cost of the deliverables the scientific community provides, plus the millions of dollars required to restart the labs in B1. The age and condition of the piping and equipment is putting the NIST Research Mission in jeopardy and costing NIST a significant amount of money due to an old, underperforming system.

The existing B1 heating system is a steam system with failing steam traps. This system has cause damage in labs and in its current condition is a life safety risk. In October 2015, a steam trap failed in the B1 main mechanical room filling the space with 350o F steam. No one was in the space at the time, but it took several hours of venting the space before people could safely enter and repair the steam trap. If anyone had been near when it failed, it would have caused a significant injury or death. There are steam traps all over occupied sections of Wing 1 & 2. The steam system needs to be removed and replaced with the new hot water heating expeditiously to prevent a major accident from happening.

It is in the best interest of NIST, the Department of Commerce, and the Government for the Wing 1 & 2 Utility Upgrade Project Title III service to be completed by SBEC due to their project history, knowledge, professional capability, and maintaining their responsibility as the Engineer of Record. Having another engineer complete the work SBEC has started would have a significant negative impact on the reputation of NIST and the Department of Commerce and would put an unacceptable amount of risk back on NIST for the successful installation and operation of the new heating and cooling system. There would also be an unacceptable amount of time, 6 months to a year, for the new firm to fully understand the complex project and the challenges of construction in occupied laboratories at NIST. This period would require significant oversight by NIST DCD-B staff to support the firm, which would continue to put risk on NIST to make decisions about the technical design to prevent delays to the construction schedule. NIST requires a construction administration (Title III) service contract put in place for SBEC to complete the Wing 1 & 2 Utility Upgrade Project construction services scope. With the delay of Wings 3 and Wing 6, NIST was not able to move occupants for Wings 1 and 2, as agreed to contractually with Olgoonik for construction, delaying the installation of the utilities into Wing 1 & Wing 2. SBEC has completed a very efficient design that will improve the reliability and performance of the laboratory spaces. SBEC’s staff considered and designed with the challenges of construction in an active laboratory facility and have been highly responsive during the original Title III task order. It is critical to the timeliness, continuity, and quality of the project that the remainder of the original scope be completed by the Engineer of Record, SBEC.

While NIST cannot antipate the next years’ budget, DCD-B is conducting more advanced planning while the Acquisition Management Division is procuring Request for Qualifications to establish a A-E IDIQ to overcome future competion barriers for professional A-E services potentially.

MEELONDRELL T. LUMPIN

Contracting Officer