PLA announcement ANSol Tank Farm at HSAAP .pdf

PROJECT LABOR AGREEMENT

W9123623X4001

Construction of Ammonium Nitrate Solution Thermal Destruction Facility at Holston Army Ammunition Plant, Kingsport, TN

The Corps of Engineers Norfolk District is soliciting comments from the construction community addressing the potential use of a Project Labor Agreement (PLA) for the following large scale (exceeding $25 Million) construction project: Construction of an Ammonium Nitrate Solution (ANSol) Tank Farm at Holston Army Ammunition Plant, Kingsport, TN.

Project Description: This project consists of the facility described below. Holston Army Ammunition Plant (HSAAP) is a Government-Owned, Contractor-Operated (GOCO) explosives production facility located in Kingsport, TN. The facility generates an Ammonium Nitrate Solution (ANSol) by product stream from its explosives production operations. The ANSol byproduct must be stored on-site until it is destroyed or shipped off-site for use in the mining industry or for deep well injection. With the expansion of HSAAP’s explosives production over the next three years and the associated increase in the amount of ANSol, the plant’s existing storage tanks for ANSol are not large enough to accommodate the expected ANSol volume. Therefore, a new tank farm must be constructed. In addition, HSAAP must filter ANSol prior to off-site shipment. The new tank farm facility will include filtration equipment necessary for off-site shipment.

USACE is seeking Design-Build Construction contractors with current and relevant experience, personnel, and capability to perform the Design and Construction of a permanent on-site facility capable of storing the ANSol byproduct stream produced at HSAAP. The project will be constructed at Holston Army Ammunition Plant in Kingsport, TN. The estimated contract duration will be 840 calendar days which includes design, permitting, and construction. The Design-Build contractor shall develop a full design, obtain required permits, and construct a complete and usable facility.

a) Magnitude of construction cost: Between $100,000,000 and $250,000,000. The Estimated Award Date for this project is 21 March 2024. PLA is defined as a pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment for a specific construction project and is an agreement described in 29 U.S.C. 158(f).

b) An agency may, if appropriate, require that every contractor and subcontractor engaged in construction on the project agree, for that project, to negotiate or become a party to a project labor agreement with one or more labor organization if the agency decides that the use of project labor agreements will:

c) Advance the Federal Government’s interest in achieving economy and efficiency in Federal procurement, producing labor-management stability, and ensuring compliance with laws and regulations governing safety and health, equal employment opportunity, labor and employment standards, and other matters, and

d) Be consistent with law.

Reference: Provision 52.222-33 Notice of Requirement for Project Labor Agreement Clause 52.222-34 Project Labor Agreement

In consideration of the above factors, and any others which may be deemed appropriate, the construction community is invited to comment on the use of PLAs. OF PARTICULAR INTEREST

TO THE GOVERNMENT ARE RESPONSE TO THE FOLLOWING QUESTIONS:

1. Do you have knowledge that a PLA has been used in the local area on projects of this kind? If so, please provide supporting documentation.

2. Are you aware of skilled labor shortages in the area for those crafts that will be needed to complete the referenced project? Are these large scale construction projects in the area (over $25M, within 50 miles of Holston Army Ammunition Plant, Kingsport, TN) which could impact availability of skilled labor for this project? What is the anticipated volatility in the labor market for the trades required for execution of the project? Please provide supporting documentation where possible.

3. Are you aware of time sensitive issues/scheduling requirements that would impact the rate at which the referenced project should be completed? If so, please elaborate and provide supporting documentation where possible.

4. Is the proposed schedule/completion time one which would benefit for a PLA – if so, how? Will a PLA impact the completion time? Would a PLA benefit a project which contains a unique and compelling mission-critical schedule?

5. Are there any concerns regarding labor-management stability related to this project? Will the use of a PLA produce labor-management stability on this project? Have labor disputes or other labor issues contributed to project delays in the local area? Are you aware of examples of labor-management conflicts in the area which could impact the efficiency of this project, which a PLA could positively impact/resolve?

6. Identify specific reasons why or how you believe a PLA would advance the Federal Governments interest in achieving economy and efficiency in federal procurement.

7. Identify any additional information you believe should be considered on the non-use of a PLA on the referenced project.

8. Please identify and additional information you believe should be considered on the use of a PLA on the referenced project.

9. Identify any additional information you believe should be considered on the non-use of a PLA for on the referenced project.

The information gathered in this exercise should include the following information on projects completed in the last 2-5 years:

1) Project Name and Location

2) Detailed Project Description

3) Initial Cost Estimate vs. Actual Final Cost

4) Was the project completed on time?

5) Number of craft trades present on the project

6) Was a PLA used?

7) Were there any challenges experienced during the project?

Please provide your comments via e-mail to Mr. Phil Mathews at email:

philip.d.mathews@usace.army.mil and a copy to Mr. Brady Hales, Contracting Officer at brady.l.hales@usace.army.mil no later than 12:00 PM EDT on 1 November 2022.

This is NOT a Request for Proposal and does not constitute any commitment by the Government.

Responses to this labor market survey will be used by the Government to make appropriate acquisition decisions. All interested sources must respond to future solicitation announcements separately from responses to this market survey.