JOFOC_EP-S9-08-04_FinalRedact.pdf

UNlTEDSTAThS.ENViRONMENTAL PROTECTION AGENCY

REGION IX

44 75 Hawthorne Street

IL PR( San Franclsco CA 94105

J FOR OmERTHAN FUU AND OPEN cQMP11TION

PART I-BACKGROUND

Date: March 28, 2011

Prociram Office: Superfund DMsion, Region 9

ProlectOfficer: JfrikyCailado RAG Project Offlet’ 41 5-9723229

SFD-2

CalladoJinky@eøa.aov

Project Identification: ReñiedialActión Cçritract2(R C2), Contract Number

EPS9-. &O4.

Description of suppesbecéauir5l:

This Remedial Action Contract2Fiill Selcepvide professional arobitacf/ engineer, hnicaI, and management services tøThe Env1ronmentl Protection Agency (EPA) to Si4ort remedial responses enforcement oversight and non-time critical removal activities eComprehensiveEnvirnnmefltal, Response Compensation and,LjabIlIty Act àf 1980 (ERCLA), as amended by the Suparfund Amendments and Reauthonzation Act of 1986 (SARA), and the RobertT Stafford Disaster Relief and Emergency Assistance Act pursuant to the Federal Response Plan (FRP) and other laws to help address and/or mitigate eildangerrnent to the..pubflc health, welfare or environment, and to support States and communities in preparing for responses to releases of hazardous substances, as.well as counter-terrorism.

Period of Performance (Bas.e veer and ot1ans):

Base year: 9/24/08-9/23/11 Award Terms: (#1) 9/24/11-9/23/13

(#2)9/24/13-9/23/16 (#3)9/24/16-9/23/18

Estimated Contract Amount: The Current Contract Ceiling is $110 million

This JOFOC request is for an additional $6.25 million for a total of $116.25 million in total contract capacity

Prorosed Contractor: CH2M Hill 155 Gr nd Avenue, Suite 1000 Oakland, CA 94612

PART It - JUSTIFICATION

Region 9 Superfund program Is requesting a justification for other than full and open competition (JOFOC) for our FIAC2 contractor, CH2MHIII, in the amoUnt of $6.25M. We currently have approximately $4.4M remaining in existing capacity and have the need for $6.25M (rounded up to the nearest hundred thousand). Attached for your review is a summary of the requests as well as the individual justifications for each of the 20 task orders.

Specifically, Region 9 cites FAR 6.3021 - Only One Responsible Source and No Other

Supplies or Services Will Satisfy Agency Requirements as the authority under which this request is being submitted Included below is the rationale and information supporting The authority cited.

PROGRAM BACKGROUND

In 2008, after 10 years of the RAC1 contract with only one contractor, CH2MHIII, Region

9 awarded a new RAC2 contract totwo contractOrs, CH2MH1II (a large business) and

ITSI (a small business) each receiving $1 1OM of capacity for up to 10 years. Workload was distributed based on criteria that was established by the Superfund Branch Chiefs

• In February, 2009, the American Recovery and Reinvestment Act (ARRA) bill was enacted and the Office of Superfund Remediation and Technology and Innovation

(OSRTI) asked each region for a hst of sites that were “shovel ready” and could accept and obligate an influx of ARRA funding in an expedited fashion Region 9 had 3 such sites, Iron Mountain Mine (lMM) Sulphur Bank Mine and Frontier Fertilizer. Region 9 received $24 SM in ARRA funding for these 3 Superfund remedial sites with $21 M going to 1MM, $1 M going to SBMM and $2.5M going to Frontier Fertilizer. In order to meet the stringent “shovel-ready” criteria that ARRA mandated, 1MM and Frontier

Fertilizer had no other option than to use the existing contractor on the site, CH2MHiII.

It should be noted, however, that although CH2MH1II, a large business, received $21 M worth of work for the 1MM site, $1 7M of it was subcontracted to small businesses. So although Region 9 does not get the small business credit for this subcontracting, the reality of how the work was accomplished in the field tells another story. It was actually

9 different small businesses that performed the bulk of the field work and realized the benefit and profits associated with the ARRA funding.

REQU EST

Region 9 has used approximately $106M of the $1 1OM CH2MHIII capacity and approximately $40M out of $1 1OM ITSI capacity. The remaining $70M in unused ITSI capacity will be used over the course of the next 18-24 months which is the timeframe expected to award a new RAC3 contract. Region 9 is requesting this JOFOC for

$6.25M in capacity for CH2MHIII for either transition of current work from CH2MHiII to

ITSI or for completion of a final stage of a phase of work. Region 9 believes that

CH2MHiII is the one capable source to handle the transition of work due to the fact that they have been the only contractor on the site (and the only option available under the

RACI contract) for many years WithoUt adequate transItion, years of site data would be rendered useless and hundreds of thousands of dollars would be wasted In trying to recapture site historical information and data For sites that are In their final stages of cornpletion of a phase of work, CH2MHIII is also the one capable source to adequately .and.cost effectively bring the site to completion. Additionally, there will be unnecessary delays. to Our fundamental mission of protecting human health and the environment.

For exaiTiplé, at The Anaconda YerIngih site, the local commUnity is currehtly unable to drink their well watere to the levels of contamInants and ae.b1ng. sçrved bottled water as an Interim measure while wasting for the conclusion of our site Investigation For the Lava Cap site, surtaca Water is curreuitlc behig impactedby mine’ adltdlsoharge which In turn Is causing harm to fish and other Invertebrates. Without this JOFOC, this harm to the en4qnr,twould continue until a new contractor could be brought up to speed. . ..,,, Lastly, Ws important to note That out of the 20 SIlOS that are requesting additional capacity under this JOFOC, there are 12 crL1c at program commitments that have been made vith QSRTI for Records of DeciSion: (RODS), remedial Investigation (RI) completions remedial design (RO) completions, 1D stBrtSand remedial acflion (RA) starts coming due In FV2O1 1 or FY2O1. If these commitments ate not met RegIon 9 Will be faced with a substantial reduction in pIpellne.fundlng as a penaityfor missing our program commitments.

In summary, RegIon 9 reSpectfully reqUests. that you approve this appHcatlon for a JOFOC in the amount of $6.25M while we wait tar our new RAC3 contracts to be.

awarded.

RAC3 CONTRACT

PART Ill- PROGRAM OFFICE DIVISION DIRECTORS CERTIFICAflON

The undeisigned Region 9 Supeifund Program. Office Division Director certifies that all supporting data whk*i forms the basis fbr this JOFOG request is complete and accurate.

eDia’ Region 9 Superfund Division Director

Date

Attachments:

1. Task Order Summary Sheet 2, IndIvidual Task Order JOFOC Information Sheets (20)

N

Information reaardino elements set foth”tIcFAR 6.3032()(8). (7), (8) and (10):

Since this JOFOC request is for aØdiflØ?jal capacity on an existing cogitract vehicle rather than a new procurement, offers were riot sofloited from any additional sources for these services. The base IDIQ contract Was awarded competitively in FY 2008. Based on the authority cited and the information supplied by the program offices no other source would be capable of performing the required tasks. Because of the specialized nature of the tasks included and substantiated by the program office in this JOFOC, additional market research was not conducted. A notice of Intent was not published due to the exemption provided in FAR .202(1 1) since the Contract was oiiginally synopsized in accordance with

5.207 and this request Is only for inorased capacity without new scope being added. A public notice for this contract action Will be posted orrthe GPE in accordance with FAR 5.2 should this JOFOC be approvecj, .After the public potflce, any party that expresses an interest in writing regarding this contract action wlt documented in the contract fjle.for future reference.

Each of the attachments Included with this request Specifies the Region’s best estimate of the additional costs associated with the cited task orders. For each of these changes, the contractor will be expected to provide a work plan or a work plan amendment detailing the exact costs of the necessary changes. Those work plan documents will be reviewed by the program office as well as the contracting office using the standard cost/price analysis methods. All of the amounts approved under the contract will be deemed fair and reasonable at the individual task order action level.

Certification

The undersigned Region 9 Contiacling Officer certifies that justification for this JOFOC request is complete and accurate to the best of his knowledge arid belief.

Atexançldr Kramer t Date Contracting Officer

,V%VVV• PART V APPROVAL

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EPA Susan Moroni Approval V V

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Advocate V

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