No.26-022.pdf

CUI

DEPARTMENT OF THE NAVY

COMMANDER

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND PACIFIC

258 MAKALAPA DRIVE SUITE 100

PEARL HARBOR HI 96860-3134

Controlled by: Department of the Navy Controlled by: NAVFAC Pacific, ACQ22 CUI Category: PROCURE Distribution/Dissemination Control: FED ONLY POC: Bernadette Julian, bernadette.m.julian.civ@us.navy.mil

J&A No. 26-022

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

1. Agency and Contracting Activity. This is a Justification for an Exception to Fair Opportunity. The requiring activity is the Naval Closure Task Force Red Hill; contracting activity is the Naval Facilities Engineering System Command (NAVFAC), Pacific

2. Nature and/or Description of Action Being Approved. This is a limited sole source action to modify existing task order awarded to Vectrus System Corporation (V2X) under contract number N62742-16-D-3552, task order N6274223F4034. Placement of a firm-fixed price order is anticipated.

3. Description of Required Supplies/Services

a. Proposed acquisition is to award a sole source Firm-Fixed Price task order modification under the Global Contingency Services Multiple Award Contract (GCSMAC) to V2X to incorporate design changes submitted by NAVFAC Hawaii Planning, Design, and Construction (PDC). Total of five design changes were submitted as Proposed Contract Modifications (PCM)-A, PCM-B, PCM-C, PCM-D, and PCM-E and are described below:

(1) PCM-A. Both interior (inside the Facility) and exterior (outside the Facility) changes to the design of the Temporary Granular Activated Carbon (GAC) Phase 2 System. This included replacing High Density Polyethylene (HDPE) with Ductile Iron (DI) pipe inside the Vent Shaft and reconfiguration of the connection to the existing distribution system.

(2) PCM-B. Both interior (inside the Facility) and exterior (outside the Facility) changes to the design of the Temporary Granular Activated Carbon (GAC) Phase 2 System. This included replacing High Density Polyethylene (HDPE) with Ductile Iron (DI) pipe inside the Vent Shaft and reconfiguration of the connection to the existing distribution system.

(3) PCM-C. Remove pump replacement, variable flow drive and related work in the pump room; adjustments to the grading near the transfer tanks area; removed vegetation clearing of Hawaii Department of Transportation area; and add electrical duct line profiles.

(4) PCM-D. Remove approximately 80 percent of the above-ground water line pipe supports to pipe bedding; change pipe material from DI to HDPE and increase the nominal pipe diameters of the water lines; Realign the waterline and electrical duct lines along Lower Access Road to provide a 24 inches wide clear travel way. On Icarus Way (Army Property): Pipe material changes from DI to HDPE; Concrete Jersey barriers added along the pipeline to address Army Department of Public Works concern about protecting the pipe.

J&A No. 26-022

CUI

(5) PCM-E. Integration of all software used by the currently included Supervisory Control and Data Acquisition (SCADA) and all software used to install and configure the existing SCADA is licensed to and delivered to the installation. All necessary documentation, configuration information, configuration tools, programs, drivers, and other software is licensed to and otherwise remain with the Government such that Government or their agents are able to repair, replace, upgrade, and expand the system without subsequent or future dependence on the Contractor.

b. Modification will also incorporate additional work required to address unforeseen site conditions that were encountered during project performance and are described below:

(1) Temporary Red Hill Pole-1 (TRP-1) Utility Pole Extension. Original location for TRP-1 was unfeasible due to differing site conditions. Placement of the guy wires, required for pole stabilization, would have restricted traffic at Adit 3 facility. Consequently, TRP-1 was relocated and required a Pole Extension attachment to connect to the next utility pole.

(2) Sandbags in Vent Shaft. During an investigation for the water pipeline installation, approximately 200 abandoned sandbags were discovered in the vent shaft. These bags interfere with the pipeline's placement and must be removed. Removal work will now be added to the contractor's scope, as they are already placing scaffolding and working in the shaft.

(3) Surface wipe samples in vent shaft area for polychlorinated biphenyls, lead, and asbestos. PCBs were inadvertently released in an adjacent pump room, causing dust to migrate into the ventilation system and potentially the vent shaft. As a precautionary measure, surface wipe samples will be taken to ensure the work site is safe for contractors.

c. Total value of task order N627423F4034 is currently . Estimated proposed modification value is Period of performance will be extended for 5 months from 31 July 2026 to 31 January 2027.

d. The following is the history of task order N6274223F4034 and awarded modifications:

Contract/Awarded Modifications

Title Period of

Performance Total Value Fund Source

N6274223F4034 Red Hill Phase II

CTO

27 Sept 2023 – 19 Sept 2024

FY23

O&M Navy

P00001 14 month POP

Extension/ Design changes

20 Sept 2024 – 30 Nov 2025

P00002 Change Name

Agreement

P00003 PCB Soil Removal

FY25

O&M Navy

J&A No.26-022

Contract/Awarded Modifications

Title

P00004 Concrete Slab

Disposal

P00005 3 month POP

Extension

P00006 Admin Mod – Update CLIN

P00007 5 month POP

Extension

e. Period of Performance (POP) Extension Request

Proposed Modification Request

Title

P00008 PCM A-E/ 5 month

POP Extension

f. Resultant modification will be funded by Fiscal Year (FY) 2026 O&M funding.

4. Identification of the Exception to Fair Opportunity. Statutory authority which permits exception to fair opportunity to be considered for each order over the micro-purchase threshold issued under a multiple award contract is, implemented by Federal Acquisition Regulation (FAR) 16.507-6(b) (1-6):

The agency’s need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays

Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized

The order-must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order

It is necessary to place the order to satisfy a minimum guarantee

For orders exceeding the SAT, a statute expressly authorizes or requires that the purchase be made from a specified source

For Department of War, National Aeronautics and Space Administration, and the Coast Guard, the order satisfies one of the exceptions permitting the use of other than full and open competition listed in part 6.103 (10 U.S.C. 3406(c)(5)). The public interest exception must not be used unless Congress is notified in accordance with 10 U.S.C. 3204(a)(7)

5. Rationale/Explanation to Support Cited Authority. Contractor’s existing progress on the installation of the temporary GAC Phase II drinking water treatment facility, operation and continued performance provides a logical follow-on for award of contract task order modification.

a. There have been four previous competitive orders that have been given exception.

b. Specific requirement continues due to the ongoing Navy Closure Task Force (NCTF) mission to re-activate the Red Hill Shaft (RHS) in order to support drinking water requirements for Joint Base Pearl Harbor-Hickam (JBPHH) and other surrounding military installations.

Operation of the GAC system will NOT begin until Navy has obtained Department of Health approval to reactivate the RHS.

c. Government benefits from continued use of the specified contractor due to the contractor’s involvement and progress in the Temporary GAC water treatment facility thus far.

Selecting a different contractor would have a significant impact on project cost and completion schedule as the current contractor has the material necessary for the project, as well as ownership of the GAC tanks required for the facility. Should the government elect a different contractor the cost and manufacturing of new GAC tanks would incur significant time to the project.

d. Relationship between the initial task order and this follow-on task order is logical due to the design changes directly impacting the required finished product. Without incorporating PDC design changes into the project scope, product cannot be completed. Thus, it is logical for the same contractor to incorporate these changes in order to meet the intent of the initial task order.

e. Award of this task order to any other source would likely result in substantial duplication of cost to the Government that is not expected to be recovered through competition.

6. Fair and Reasonable Cost Determination

a. To determine fair and reasonableness, Contracting Officer will determine, using the procedures in FAR 15.404-4, that the order represents the beat value to meet the Government’s needs. The Government will utilize historical data from prior GCSMAC Red Hill Task Orders, task order modifications and the independent government estimate. Upon completion of negotiations, V2X will be required to submit certified cost or pricing data in accordance with

FAR 15.403-3.

b. Contractor’s current and ongoing progress with the installation of the temporary GAC Phase II drinking water facility provides the government with the most fair and reasonable cost for completion of the system. Current contractor has an understanding of what is required for installation of the new system; to include all upcoming design changes that would need to be incorporated in the project schedule. By electing to maintain the same contractor through completion of this project, government avoids the added costs of the setup of a new prime contractor and subcontractors (e.g. administrative tasks) and of a required transition and training period of those new subcontractors. Time to demobilize the current contractor and mobilize another could take approximately four months. That delay increases equipment costs (i.e. GAC tank leases) and further pushes out the completion schedule.

c. Additional delays to project schedule and costs could be incurred by the government if a different contractor was chosen due to base access requirements. This would include the time it would take for all new contractors and subcontractors to obtain their Defense Biometric Identification System subsequently, their Red Hill access badges.

d. In addition, the professional relationships developed within the past several years with both military and civilian employees are essential in maintaining efficient day-to-day operations at Red Hill facility.

e. Use of the authority cited above is deemed appropriate due to the agency’s need for the required continued statutory and regulatory compliant services until a permanent solution is put into place. Otherwise, NAVFAC Hawaii will not have in place a viable mechanism to continue this mission essential work to provide a secondary drinking water source to JBPHH and other surrounding military installations.

7. Any Other Fact Supporting Justification

a. These PCM A-E changes included material changes (DI pipe to HDPE pipe), and route changes to the project path not known at the time of the initial task order award. Design changes stemmed partly from insufficient geotechnical data at time of award. Upon reception of the Geo- Technical Investigation Final Report, Engineer of Record (EOR) began incorporating the results of the data into the project design. Once survey data was received it required changes to design that include over excavation, material changes, and realignment of the waterline and electrical duct lines etc. Those changes are considered changes to the original design but mandatory for the project to continue through full implementation. At time of award, PDC and EOR did not have complete data, and estimates were provided to the best of their ability.

b. V2X is capable of assessing work and performing immediate services required for the GAC units. V2X has staff that is trained and embedded with current government operations that is running 24/7. Disruption of this unique operation would be detrimental to the Navy’s requirement to provide remediation of the Red Hill well, including regular sampling, monitoring of the tanks, monitoring and troubleshooting in-line analyzers, and other detailed monitoring.

c. Upon approval of this Justification and Approval, NAVFAC Pacific will issue a request for proposal to V2X.

8. Actions to Increase Competition. P-716 design phase, which is the permanent solution to the temporary GAC treatment at Red Hill Adit 3, is under design. This construction project will be competitively procured.