PIM 2023-01 Atch 1 Tetra Tech Type C Services JA ( Bld 154)_DMP_smk.pdf

JUSTIFICATION REVIEW DOCUMENT

Program/Equipment: Architect-Engineer (A-E) Type C Services in Support of VGLZ162323

ADAL FUEL CELL & CORROSION CONTROL – BLDG 154

Authority:

10 U.S.C. 2304c(b)(3) as implemented by FAR Part 16.505(b)(2)(i)(B) – (B) Only one awardee can provide the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

Amount: $284,797.21

Prepared by: Steven Stocking DSN: 273-4881 Contracting Specialist Date:

Email: steven.stocking2@us.af.mil

Contracting Officer: Jeremy Starrett DSN:273-4731 Contracting Officer Date:

Email: jeremy.starett.1@us.af.mil

Technical: Derek Probstfeld DSN: 273-4136 COR Date:

Email: derek.probstfeld@us.af.mil

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

mailto:steven.stocking2@us.af.mil mailto:jeremy.starett.1@us.af.mil mailto:derek.probstfeld@us.af.mil

Justification for an Exception to Fair Opportunity Under FAR 16.505(b)(2)

1. Contracting Activity: 127 MSC, 43200 Maple Street, Bldg. 105, Selfridge ANGB MI

2. Description of Action: 127th CE requests a sole source award to Tetra Tech. The Government projects award for 2023 and Fiscal Year 2023 Air National Guard SRM funds will be used. An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

3. Description of Services: This is an Architect-Engineer (A-E) requirement to perform Type C services in support of the construction of VGLZ162323 ADAL FUEL CELL & CORROSION CONTROL – BLDG 154 at Selfridge Air National Guard Base. The construction contract is scheduled to be awarded in September 2023. The period of performance of this A-E action will mirror the construction contract award period of performance which is 540 calendar days after issuance of the notice to proceed. There are no options required for this acquisition.

The independent government estimate for this Type C contract action is $284,797.21.

Type C services include documenting and providing answers to Contractor’s requests for information (post award), review of submittals, attendance and records at job progress meetings, review of lab results, preparation of as-built drawings, multiple site visits to inspect the progress and quality of construction to ensure the construction contractor is following the approved design.

The Type C requirement was previously negotiated and awarded, along with Type A and B services to Tetra Tech Inc as an option via task order W912JB19F5012, which was awarded under the terms and conditions of now expired Lansing MI United States Fiscal Property Office (USFPO) IDIQ contract W912JB14D2001. The Type C option on W912JB19F5022 could not be exercised since the Type C option level of effort was negotiated based on a projected 365 calendar day period of performance (POP) level of effort in support of the construction of their design. The POP evolved, over the course of the design to 540 calendar days based on current material lead times the updating of the fire suppression system and the overall complexity of the construction. The change in project length, resulted in a significant cost increase for Type C Services, thus making the option un-awardable.

4. Authority Cited: 10 U.S.C. 2304(c)(1), as implemented by FAR 16.505(b)(2)(i)(B) – Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: This requirement is a follow-on contract action for follow on work to a previous contract. There is only one responsible source for this follow-on work‐‐Tetra Tech Inc. The Type C requirement was previously negotiated and awarded as an option via task order W912JB19F5012 which was awarded under the terms and conditions of now expired MI USFPO Indefinite Delivery Indefinite Quantity (IDIQ) contract W912JB14D20001 on which Tetra Tech was the primary subconsultant. The task order included Type A and B services for the design of the Bldg. 154 project. Type A services included the basis of design (specifically the design intent), the development of the project concept, and associated site investigations. The Type B services included the design narrative and the development of the construction documents, An award to a new A-E firm other than Tetra Tech would increase the risk associated with these issues and potentially affect the Government’s rights under FAR 52.236- 23, Responsibility of the Architect-Engineer Contractor, if another A-E were to represent or attempt to revise the current drawings and/or specifications. This clause states that the “Contractor shall be responsible for the professional quality, technical accuracy, and the coordination of all designs, drawings, specifications, and other services furnished by the Contractor”. However, if a new A-E firm were to make recommendations during the Type C services to revise or deviate from the original drawings or specifications, any liability resulting from those changes could not be attributed to the original A-E. This could potentially create a dangerous and complicated scenario if the Government needed to hold the responsible A-E party liable for any errors or deficiencies in the designs, drawings, and/or specifications. Both Tetra Tech and Mead and Hunt share the liability for the Bldg. 154 Design jointly in accordance with paragraph d of FAR 52.236-23. Because Tetra Tech co-designed and certified the drawings and specifications and is liable for the quality of their design, it is economical and efficient to award the Type C services to them as a sole source follow-on contract. There is tremendous performance and liability risk associated with another A-E firm taking over the Type C services for a project that was designed by a different firm. Having an original designer, Tetra Tech on contract to perform the construction phase services is necessary for the Government to ensure responsibility for their design, including ensuring the design is constructible, maintainable, and operable, that the project documentation is clear, sufficiently detailed, accurate and coordinated, and contains minimal errors.

Unfortunately, a replacement contract vehicle for the Type C Services is needed since W912JB14D2001 is expired and a follow-on task order for the current scope of Type C Services cannot be awarded to Tetra Tech Mead or Hunt in accordance with FAR 16.505(b)(2)(i)(C). This section of the FAR allows for a sole source follow on for the sake of efficiency and economy provided that all awardees were given a fair opportunity to be considered for the original order.

Market research was undertaken (see paragraph 8 below) and it has been ascertained that the Air Force AE NEXT IDIQ contracts are the most suitable replacement contract vehicles for the type C Services. Therefore, the 127 MSC formally engaged both Mead and Hunt and Tetra Tech on 17 November 2022 as to who could be the prime contractor for Type C Services. This as both Mead and Hunt and Tetra Tech are separate awardees on the AF NEXT AE IDIQ contracts.

After internal discussions between these two venturers Tetra Tech requested to be the prime contractor for Type C Services on 21 November 2022. Mead and Hunt will serve as a subconsultant on this task order. This scenario is very agreeable to the Contracting Officer as it substantially mitigates risk of an unsuccessful contract performance. Therefore, the AF NEXT AE IDIQ contract FA890321D0013 will be utilized for this requirement because NGB has been granted capacity off the AF Next IDIQ contract vehicles.

6. Efforts to Obtain Competition: No efforts were made to obtain competition for this one-time requirement due to the rationale described in paragraph 5. This Justification Document need not made public after award through the Government Point of Entry in accordance with FAR 6.305.

7. Actions to Increase Competition: No actions were taken to increase competition since this is a one-time requirement following on to a previously competed project.

8. Market Research: Professional Services equivalent to Type C Services are a core competency of many architect and engineering firms regardless of a firm’s business size and, as applicable, small business socioeconomic category. These services abet and streamline the construction of an AE firm’s design work product while providing the design firm with an additional revenue stream and substantially reducing risks to the project owner. Ultimately awarding a contract for the Bldg. 154 Type C Services to any AE firm other than Tetra Tech (and Mead and Hunt) would carry significantly more cost and performance risk of facilitating the renovation and addition to Bldg. 154. Tetra Tech is a designer of record for the project. Tetra Tech previously completed the Hangar Bldg. 154 Type A services which included the basis of design (specifically the design intent), and the development of the project concept, and associated site investigations as well as the Type B services which included the design narrative and the development of the construction documents for Bldg. 154.

These Type C services are to be performed under as sole source follow on to design services previously performed design by a Tetra Tech/Mead & Hunt Joint Venture written to Tetra Tech under the terms of AF NEXT AE IDIQ contract# FA890321D0013 IAW FAR 16.505 as this is the best available contract vehicle available for this acquisition. The AF NEXT AE IDIQ contracts are for professional A-E services and are considered as a noncommercial service in accordance with Federal Acquisition Regulation (FAR) subpart 36.6, Architect Engineer Services. The FAR prohibits the use of commercial services for A-E services. The Market Research for the basic contracts was addressed in the formal acquisition plan for the master contract. The AF NEXT A-E contracts have a shared program ceiling of $2 Billion. The minimum amount per order is $3,000; the maximum amount per task order $100 Million. The AF NEXT A-E IDIQ contracts were synopsized in accordance with FAR subpart 5.2, Synopses of Proposed Contract Actions; and competed in accordance with FAR subpart 36.6, Architect- Engineer Services. Additionally, the AF IDIQ contract feature pre negotiated hourly rates that are fully burdened save for gross profit percentage which must be negotiated on a task order by task order basis per the terms of the IDIQ. NGB has been granted open capacity against the $2 Billion ceiling as a replacement for their expired AE IDIQs. The use of the AF Next IDIQ will save several months of acquisition lead time as much of the planning, market research, publicizing, negotiating, and contract writing required for procuring these Type C services has already been accomplished. As previously noted, Tetra Tech is willing to be contracted for the Bldg. 154 Type C services under the overarching terms and conditions of the AF NEXT AE contracts.

9. Interested Sources: A listing of interested sources was not solicited or received for this acquisition.

10. Other Facts: Procurement History: Tetra Tech previously profoundly contributed to the below related task orders that are fundamentally related to the Hangar 4 Type C Services:

(1): Task Order W912JB19F5022 for Type A and B (and optional Type C) Services in support of VGLZ 1790510 Construct HGR4. On 8 August 2018 a notice was be issued by the task order contracting officer, to all 8 NGB National A&E IDIQ vendors via Declaration of Interest form. All contractors, unless the contractor has notified the Contracting Officer of non-interest, or does not have available capacity, was provided a fair opportunity to compete for this project The Government utilized the procedures in FAR 36.602 when selecting firms for this requirement. The evaluation criteria specified in FAR 36.602-1 (a) was be utilized and supplemented as appropriate and will be specified in the notice. The Government then entered into priced level of effort negotiations with the most qualified A/E firm as per FAR 36.606. This task order was written the Tetra Tech Mead and Hunt JV; The type C level of effort was priced and codified as an option CLIN on the task order. This task order is referenced because the mission critical water-based fire suppression system for Hgr 4 is to be anchored by the Bldg. 154 design.

(2) Task Order W912JB19F5012 for Type A and B (and optional Type C) Design Services in support of VGLZ162323 ADAL FUEL CELL & CORROSION CONTROL – BLDG 154: A notice was issued by the task order contracting officer, to all 5 Lansing, MI USFPO A&E IDIQ vendors via Declaration of Interest form on 27 June 2018. All contractors, unless the contractor has notified the Contracting Officer of non-interest, was provided a fair opportunity to compete for this project as no FAR 16.505(b) (2) exceptions applied. The Government utilized the procedures in FAR 36.602 when it selected Mead and Hunt for this requirement.

The evaluation criteria specified in FAR 36.602-1 (a) was utilized and supplemented as appropriate and will be specified in the notice. The Government subsequently completed priced level of effort negotiations with Mead and Hunt A/E firm as per FAR36.606. One of the key components of this design is the water-based fire suppression system. A new 54 ft tall/300,000-gallon prefabricated steel water storage tank and a pumping station will be built to supply water for fire suppression to future renovated and constructed Hangars 3, 4, and 5 and Building 154. The new pumping station will provide a new 10-inch water distribution loop to the new water-based fire suppression systems and fire sprinkler systems in B154, H3, H4 and H5. The Fire Protection Engineering, electrical engineering, and civil engineering for the Bldg. 154 fire suppression design was largely accomplished by Tetra Tech. The renovation of H3 and H5 was also designed by the TT MH JV as part of task order W9121JB19F5022. Type Cs were negotiated as an option. The type C level of effort was priced and codified as an option CLIN on the task order.

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: Derek Probstfeld Date:

Title: Contracting Officer Representative Signature:

12. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: Stephen M. Klenke Date:

Title: Interim BCE Signature:

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable.

Price Fair and Reasonable will be determined IAW FAR 15.404-1 (b)(ii), (v) and (vii) in comparison of proposed prices to historical prices paid for similar items, the Independent Government Estimate, and Certified cost and pricing data or other than certified cost and pricing data provided by the offer. It is noted that the AF Next contract hourly rates incorporated into the contract are not fully burdened as profit is to be negotiated at the task order level. Therefore, an alternate structured approach will be used to negotiate a fair and reasonable profit percentage for this task order level of effort.

This determination will be made using the following: ☐ cost analysis ☒ price analysis ☐ should cost ☒ IGCE: ☐ audit: ☒ other: Previously negotiated level of effort for Type C services were contracted as an option on W912JB19F5012. This Type C level of effort was analyzed and found to be fair and reasonable in the Price Negotiation Memorandum (PNM) that was approved by NGB AQ on 9 August 2019. However, the Type C option cannot be exercised as scope and hourly fee rates need to be updated to reflect the current Type C requirement. It is noted that the Type C level of effort for the follow-on task order will be reduced to the one that was previously accepted by the Government due to available funding. The reduced scope is tied to the negotiation of full-time onsite construction inspection services. However, additional construction inspection related job site visits by AE contractor personnel during the 24-month period of performance will be negotiated. A revised cost estimate has been generated for the Type C level of effort to reflect the updated scope. Outside of the full-time inspection hours and the additional site visits, the quantity of hours for each discipline as well as travel and reproduction costs on the IGCE has not otherwise changed from the previously accepted Type C proposal. The hourly rates on the IGCE match the current IDIQ rates for the AF NEXT Tetra Tech AE IDIQ Contract #FA8903-21-D-0008. Any variations on the previous accepted level of effort will be subject to proposal analysis on a (POM/) PNM to be approved by NGB AQ. The revised IGE also includes an estimate of the Contractor’s profit rate, and the subsequent proposal analysis will also feature an analysis of the accepted profit rate. The revised IGE was promulgated with a gross profit rate of 10%. This figure was assumed based on procedures outlined in DFAR 215.404-4, as referenced in UDG 5115.404-73 update 1, dated10 April 2020, assigning a value of 0.04 for Technical Difficulty, 0.04 for Length Factor, and 0.02 for Support of Socioeconomic Program Factor.

As a part of this basis, certified cost, or pricing data:

☐ will be required.

☒ will not be required and the following exception applies (FAR 15.403):

☒ The estimated cost of the contract action is less than the threshold for certified cost or pricing data.

Typed Name: Jeremy L. Starrett Date:

Title: Contracting Officer Signature:

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: Jeremy L. Starrett Date:

Title: Contracting Officer Signature:

JUSTIFICATION REVIEW DOCUMENT