Redacted_Approved_LSJ_-_BPA_68HERC19A0001_1.pdf

LIMITED-SOURCES JUSTIFICATION FOR FEDERAL SUPPLY SCHEDULE PROGRAM

Upon the basis of the following justification, prepared in accordance with Federal Acquisition Regulation (FAR) 8.405-6(c), I, as Agency Competition Advocate, hereby approve the use of sources limited to fewer than those required by FAR 8.405-3 in accordance with FAR 8.405-6 (a)(1)(i)(C). This acquisition is conducted under the authority of the Multiple-Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501).

1. Identification of the agency and the contracting activity.

U.S. Environmental Protection Agency (EPA), Office of Acquisition Solutions (OAS), Cincinnati Acquisition Division (CAD).

2. Nature and/or description of the action being approved.

The purpose of this justification is to complete the performance of Blanket Purchase Agreement (BPA) 68HERC19A0001 with the incumbent contractor, Horsley Witten Group (Horsley Witten), which was solicited and awarded under a competitive small business set-aside within the Federal Supply Schedule (FSS) program on March 14, 2019. The BPA was awarded with a potential five (5)-year performance period, including one (1) base year of performance and four (4) option years of performance. Due to an administrative oversight, the BPA’s “Option Period 2,” which was scheduled to begin on October 1, 2020, was not formally exercised. Because this oversight was only recently discovered, however, both EPA and Horsley Witten have been operating under the premise that the BPA was active, including the issuance and performance of approximately sixteen (16) call orders.

This justification is being issued to complete performance of the BPA with Horsley Witten, as a result of the administrative oversight.

3. A complete description of the supplies and/or services required to meet the agency’s needs.

Under Title IV of the Public Health Security and Bioterrorism Response Act of 2002 (Bioterrorism Act) which amends the Safe Drinking Water Act (SDWA), America’s Water Infrastructure Act, and Bipartisan Infrastructure Law, EPA is authorized to undertake several activities to increase the security and readiness of the Nation's drinking water supplies against terrorist attacks.

Homeland Security Presidential Directive 7 has also designated EPA as the sector-specific agency for the drinking water and wastewater sectors – a critical national infrastructure. As part of increasing security and readiness, EPA is responsible for providing training to water utilities, and organizations that support them, with the latest information to prepare for and respond to disasters, contamination incidents, loss of water, etc.

The National Defense Authorization Act of 2021 (NDAA) also designates the Environmental Protection Agency (EPA) as the sector risk management agency (SRMA) for the nation’s Water and Wastewater Systems Sector. Further, Presidential Policy Directives – 8, 21, and 41, as well as Executive Orders 13800 and 13686, assign responsibilities to the EPA to strengthen both the physical and cyber security and resiliency of the Water and Wastewater Systems sector.

It is critical that this BPA continue to provide training, tool and capability development, and outreach in the areas of emergency preparedness, response, and recovery programs related to the nation’s water sector. Examples of specific services and tasks being performed by Horsley Witten in this BPA that support the above authorities are:

• Emergency Response Coordination Training – includes training related to coordination among water sector emergency responders, such as using the National Incident Management System (NIMS) and the Incident Command System (ICS).

• Mutual Aid and Assistance – includes support for intrastate mutual aid and assistance networks in the water sector, commonly referred to as Water/Wastewater Agency Response Networks (WARNs). Such support consists of the development of tools for mutual aid to support training, and exercises for utilities and their partners in the WARN community, and coordination with states and water associations. It also includes support and strengthening of the interstate mutual aid and assistance through the Emergency Management Assistance Compact.

• Water Sector Emergency Response/Recovery Exercises and Training – includes exercises and training related to water sector preparedness and response, including use of web-based exercises and training. This addresses exercises and training for water utilities, and the organizations that support them, with the latest information to prepare for and respond to all hazards, including terrorist threats and natural disasters.

• Resilience – addresses the need to provide drinking water and wastewater utilities with easy-to-use resources to assess the risk associated with extreme weather events (e.g., flood, drought) and to identify potential mitigation and adaptation strategies. Support could assist development and updates to various tools and programs including EPA’s Creating Resilient Water Utilities (CRWU) initiative and Flood Resilience Guide for Water and Wastewater utilities.

• Community-Based Water Resiliency and Interdependencies Efforts – includes support for community-based efforts to increase awareness of interdependencies among the water sector and other critical infrastructure sectors as well as to increase community preparedness for water services interruptions. Support may include close coordination with interdependent sectors including power, healthcare, emergency services, etc. Such support consists of the development and improvement of tools and conducting of workshops to strengthen partnerships. Additionally, this area includes working with other federal agencies (e.g., DHS) on the regional resiliency assessment program.

• Mitigation, Reimbursement, and Recovery – includes support for tools and training that enhance hazard mitigation as well as reimbursement from Federal agencies for emergency response and recovery costs incurred by drinking water and wastewater utilities.

• Water Laboratory Alliance (WLA) - addresses EPA’s requirements under HSPD-9 to enhance the security of the water sector by developing a laboratory network that is able to provide analytical capability and the capacity necessary to process an influx of samples during an emergency (referred to as the Water Laboratory Alliance [WLA]). In addition, HSPD-10 requirements for developing strategies and guidelines for decontamination of water utility systems following a contamination incident is addressed by WLA. Support will include activities related to the WLA Training Center, laboratory recruitment and conducting multiple regional laboratory response exercises and development of technical documents to support drinking and wastewater decontamination efforts.

• Partnership for Critical Infrastructure Protection – includes activities related to the ongoing coordination between EPA and DHS on critical infrastructure/key resource (CI/KR) activities to ensure a consistent approach to security across the water sector. Various workshops, outreach, or analyses may be required in support of these requirements.

• Risk Assessment Methodologies - includes computer-based tools to help drinking water and wastewater utilities to conduct or clarify the methodology for the risk assessments, as well as to prepare or revise Emergency Response Plans (ERPs). Support areas include conducting outreach, facilitation, updating, and training on this effort.

• Consequence Analysis – includes previously developed tool to examine the potential health and economic consequences of various contamination and damage scenarios to drinking water and wastewater utilities. Support areas include outreach, training and updating EPA’s Water Health and Economic Analysis Tool (WHEAT) and/or providing techniques on consequence management.

• Water Security (WS) Initiative - addresses a previously developed initiative to design and demonstrate an effective system for timely detection of and appropriate response to drinking water contamination threats and incidents that will have broad application to the nation’s drinking water utilities. Support areas include conducting outreach, facilitation, and training about this initiative.

• Cyber Risk Management – includes actions to implement procedures to support full manual operation at a utility, promoting cybersecurity guides and tools, deploying cybersecurity resources to small and medium utilities, and developing a more robust cybersecurity culture at utilities of all sizes. Support areas include developing guidance/tools and conducting training, workshops and exercises.

• Contamination Events and Emergency Drinking Water – includes actions to improve detection, response, and recovery to contamination incidents that affect water and wastewater utilities. Support may include development of exercises, producing quick guides to clarify communication and incident response decision structures, and facilitating access to information on potential sources of contamination, and decontamination procedures. Also, addresses guidance, procedures, and practice for obtaining emergency drinking water supplies in case of disruption of water service.

• Infrastructure Degradation – addresses the impacts of aging and failing infrastructure on water quality and operational reliability, as well as the effects that economic pressures within a community (e.g., loss of economic base, and an aging population) can have on operational capacity of utilities.

4. An identification of the LSJ rationale, and if applicable, a demonstration of the contractor’s unique qualifications to provide the required supply or service.

The authority permitting completion of this BPA with Horsley Witten is FAR 8.405-6(a)(1)(i)(C) – In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order.

As previously detailed, Horsley Witten has been the BPA awardee and sole vendor providing within scope services under this BPA since award in 2019. During this time, Horsley Witten has developed and implemented the training materials, user tools, and outreach content for multiple in-process projects that will be utilized throughout the lifetime of this BPA.

Because it was only recently discovered that Option Period 2 was not formally exercised, Horsley Witten also currently remains engaged in numerous in-process efforts related to the scope of work identified above in Section 3. Much of that work is time-sensitive training necessary to be prepared to respond to emergencies (terrorist attacks, cybersecurity, natural disasters, etc.) which directly impacts the security, functionality, and viability of the nation’s water sector. It is hard to predict when an emergency or response will be required, and if there are lapses in performance or delays in service associated with re-competing this BPA, there will be an increased risk to human health and the environment with respect to emergency preparedness. Examples of critically important Call Orders currently in progress or pending award with Horsley Witten under this BPA include:

• Training of state and municipality water managers in emergency preparedness in the event of terrorist attacks (68HERC21F0223)

• Water treatment chemical supply chain resilience for drinking and wastewater treatment

(68HERC21F0161)

• Training and capacity development assistance for Tribal drinking water systems as facilitator of the Infrastructure Task Force (EPA, HIS, USDA, HUD, BIA) (68HERC21F0383)

• Cybersecurity support for public drinking water and sewer systems (68HERC21F0355)

• Natural disaster risk assessment and mitigation/response training for local utilities

(68HERC22F0098)

• Emergency response training for states (68HERC22F0187)

• Improvement of response to and recovery of water service for healthcare facilities

(68HERC22F0188)

These examples underscore the fact that not completing BPA performance would unnecessarily limit the Agency’s ability to fulfill its water sector emergency preparedness, response, and recovery requirements with State, municipalities, Tribal drinking water systems, local utilities and healthcare facilities. Non-completion of this BPA by Horsley Witten could potentially endanger public health and safety. For example, non-completion would require delaying a planned emergency exercise in North Carolina to prepare for this year’s hurricane season which starts in June 2022 and lasts until November 2022. It is proven that exercises improve the ability of state and local officials to restore drinking water and wastewater services more quickly and reliably and prevent public health catastrophes on top of the hurricane damage. Delays could imperil other exercises to practice mutual aid drills of utilities helping utilities during hurricanes. Also, non-completion will potentially disrupt BPA projects to train utilities to address cyber attacks at water and wastewater utilities by Russia associated with the current Russia/Ukraine crisis. In addition, non-compliance could potentially require the contractor to abandon in-process projects that it has only partially completed to-date, which would be a waste of effort, time and financial resources already incurred by Horsley Witten.

For example, Horsley Witten could potentially have to abandon the ongoing collection of information on chemical supply chain disruptions to utilities during disasters. Because the information’s usefulness is tied to the timeliness of the information, the use to utilities would be diminished and after the delays, the contractor would need to spend funding to collect old information on past disruptions whose usefulness is of less value.

As a result, not completing the current BPA performance and therefore re-competing this requirement could duplicate effort and costs for the government in re-procuring this effort prior to the realization of the entire BPA period of performance. Whether re-competing these requirements or attempting to locate another Agency vehicle with appropriate scope, the Agency is likely to absorb significant delay in order to get the effort in place, as well as increased costs coming from duplication of effort with those orders that are already in progress or pending award, and the time and resources required to get a new contractor “up to speed” in a very short amount of time to fulfill urgent requirements.

5. A determination by the ordering activity Contracting Officer that the order represents the best value consistent with FAR 8.404(d) and FAR 8.405-2(d).

The Government’s Independent Cost Estimate (IGE) for the remaining performance period beginning May 1, 2022 and a final BPA expiration date of September 30, 2023 in accordance with the BPA’s previously established schedule, is approximately [REDACTED]. This IGE total was developed using the prorated portion from the BPA’s original pre-award IGE that corresponds to the remaining months of performance beginning on May 1, 2022. The IGE labor rate estimates were tailored by the program office to accommodate specific skill sets required by the PWS and took into account historical cost data from prior BPA iterations.

Actual costs incurred will be determined by the issuance of future BPA call orders, which can be ordered on a Firm-Fixed-Price (FFP) basis only. In accordance with FAR 8.404(d), GSA has already determined Horsley Witten’s rates for services to be fair and reasonable. However, all call order technical and price proposals received from Horsley Witten will continue to be evaluated by the technical Subject Matter Expert (SME) as well as the Contracting Officer (CO) for technical quality and price fairness and reasonableness in accordance with FAR 8.405-2(d).

6. A description of the market research conducted among schedule holders, and the results of the research, or a statement why market research was not conducted. A statement must be made that the supplies and services are available from the FSS.

As detailed above, the purpose of this LSJ is to complete performance of a BPA that still has a potential performance period continuing through September 30, 2023. Initial market research and coordination with the Agency’s Office of Small and Disadvantaged Business Utilization (OSDBU) led to a competitive GSA procurement, resulting in a best value award to the incumbent contractor, Horsley Witten.

Both EPA and Horsley Witten seek to partner through the BPA’s originally prescribed expiration date, which is consistent with the original acquisition plan and resulting BPA award. The services provided by Horsley Witten continue to be available from the Federal Supply Schedule (FSS), and while there could potentially be other capable vendors, the Agency’s urgent requirements to mitigate performance interruptions necessitate BPA completion by the incumbent contractor.

7. Any other facts supporting the limited source justification.

Re-competing the remaining time left on BPA 68HERC19A0001 at this stage would not leave sufficient time to achieve the objectives of this BPA, and instead would have the Agency left without support for critical time sensitive emergency responsive initiatives for the nation’s water sector and would thus fail to fully support the Agency’s mission. Based on the previous solicitation of this BPA, opening it up for re-competition would take approximately twelve (12) to thirteen (13) months from start to finish to complete. That would leave approximately five (5) months until BPA expiration (September 30, 2023) and much of that remaining time would be taken up with transitioning the work to the awardee and getting them “up to speed.” If any time remained on the life of the current BPA, it would be so minimal that it would be of little value to EPA.

8. A statement of the actions, if any, the agency will take to remove or overcome any barriers that led to restricted consideration before any subsequent acquisition for supplies and services is made.

Should the program office desire to continue contractor support services beyond the BPA’s prescribed expiration date of September 30, 2023, the Agency’s plan would be to re-compete these requirements under a competitive small business set-aside procurement. The re-compete process would be targeted to start around August 2022 with submission of a follow-on package, would likely be complete by no later than October 1, 2023, and a new BPA would be awarded to start after this current BPA expires.

As a result, any barriers to competition presented by this unique and uncommon situation where administrative oversight resulted in a BPA option period not being formally exercised, will be temporary, as a competitive re-procurement (subject to a potential small business set-aside) is anticipated.

9. The ordering activity Contracting Officer’s certification that the justification is accurate and complete to the best of the Contracting Officer’s knowledge and belief and evidence that the supporting data that form a basis for the justification have been certified as complete and accurate by technical/program personnel.

CERTIFICATION

Contracting Officer Representative:

I certify that the facts and representations under my cognizance, which are included in this justification, and which form a basis for this justification, are complete and accurate.

__/s/ David Goldbloom-Helzner May 2, 2022 David Goldbloom-Helzner Date

COR

OW/OGWDW/WSD

Contracting Officer:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

___/s/ Keith Pfeffer____________________________ _May 2, 2022_ Keith Pfeffer Date Contracting Officer OAS/CAD/OW Branch

REVIEW

Branch Chief:

I certify that the facts and representations under my cognizance, which are included in this LSJ and which form a basis for it, are complete and accurate.

Angela Lower Date Chief, OAS/CAD/OW Branch

APPROVAL

Activity Competition Advocate (if > $700K and < $13.5M):

I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Since this LSJ does not exceed $13.5M, this review serves as approval.

Tommie Madison Date Agency Advocate for Competition

5/2/2022

5-4-2022