A.02 Hartwell JA for 2nd 3 Month Extension (2020).pdf

Control No. SAS 20-15

JUSTIFICATION AND APPROVAL FOR

OTHER THAN FULL AND OPEN COMPETITION

Contract W912HN-15-C-0004

Maintenance, Repair, Facility Renovation/Rehab, and Operation of Hartwell Project, Hartwell, Georgia

1. Contracting Agency: U. S. Army Corps of Engineers, 100 West Oglethorpe Avenue, Savannah GA 31401.

2. Description of Action: The Savannah District intends to award a modification extending Contract No. W912HN-15-C-0004 for Maintenance, Repair, Facility Renovation/Rehab and Operation of Hartwell Project, Hartwell, Georgia. The contract was awarded with a twelve month base period with four one-year options scheduled to end on 30 April 2020. The current cost plus award fee contract (CPAF) was competitively solicited and awarded as a small business set-aside. The contract extension is necessary for the reasons that follow:

A GAO protest was received on 06 April 2020 initiating a stay of performance on the newly awarded contract. An initial three (3) month extension modification to the contract for the period of 1 May 2020 through 31 July 2020 was awarded in order to allow additional time to resolve a protest of the March 2020 award of a new contract.

The current GAO decision deadline is 15 July 2020 which will either result in sustainment or denial of the protest. If sustained, a second extension of the current contract will be necessary to prevent a lapse in services until such time the protest can be resolved and new contract awarded. If denied, the new contractor will have minimal time (15 days) to complete mobilization to begin services on 1 August 2020 which is the current contract expiration date. Either scenario related to the protest results in significant challenges to have contract services in place by 1 August 2020 in a manner to ensure contractor and government success. Subsequent to the beginning of the planning for the impacts from the protest a decision was received on 10 July 2020 which denied the protest issues.

The current COVID-19 pandemic has created challenges with staffing, equipment purchases, and other contingency issues which will have potential impacts to the awardee’s ability to perform contract requirements during the peak recreation season.

Less than full mobilization of the new contract is not recommended during the peak recreation season. In a June 25, 2020 email to Savannah District CT, the awardee voiced similar concerns and stated that due to the various complicating issues, the awardee was in agreement that an adjustment of the new contract start date will allow all parties to properly plan for a full and successful start to the new contract and working relationship.

J&A for Additional 3 Month Extension to Contract Number W912HN-15-C-0004, CPAF at Hartwell Lake, Georgia

A two (2) month extension was considered, however, that would result in a start date of 1 Oct 2020 for the new contract which creates funding issues related to the timely receipt of new FY21 funding. New FY funds are generally not available to the Hartwell Project until after the beginning of a new FY and therefore would not be available in a timely manner to initiate the new contract on 1 October 2020. This same concern would also apply to each option year that follows.

To alleviate the above stated concerns, a three (3) month extension through 31

October 2020 is considered necessary and in the best interest of the government. The estimated value of the proposed modification, dependent on cost incurred under the CPAF contract, will not exceed $650,000 and will be funded with O&M Civil Works funds. The modification will be issued in accordance with FAR 52.217-8 Option to Extend Services.

3. Description of Supplies/Services: Services will be maintained at a minimum level of effort to maintain current conditions at the Hartwell Project and response to emergencies and unanticipated requirements. These services will also constitute the minimum necessary to maintain the safety of the visiting public and the integrity of Project facilities and resources. Depending on the needs of the Project, work to be completed under this three (3) month extension may include services such as janitorial, facility maintenance, landscape maintenance/storm damage response, vehicle/equipment maintenance, sign and road maintenance, repair of earthen dams, dikes and bulkheads, Clemson Pumping Station maintenance, boundary line maintenance, aids to navigation maintenance, shoreline stabilization, courtesy dock maintenance, and emergency spill response. This extension not only provides for normal operations and maintenance requirements, but also provides for unscheduled maintenance requirements that may arise during the extension period on all structures, electrical systems, and water systems. It will also provide for required well and water quality testing, erosion control needs, aquatic plant control, and elevator and security system maintenance. Items of unscheduled work often occur simultaneously due to heavy visitor use of project facilities, special events, inclement weather or storm damage. These requirements are geographically spread out over 6 counties in Georgia and South Carolina. Hartwell Project is one of the largest and most diverse USACE multipurpose projects nationwide with over eight (8) million visitors annually. The Project is historically one of the 3 most visited Corps projects in the country. It includes 23,566 acres of land, and 55,950 acres of water with 962 miles of shoreline and 840 miles of boundary line in Georgia & South Carolina. The Project operates 8 campgrounds, 13 major day-use areas, 24 boat ramps, the Project Manager’s Office and Visitor Center, the Hartwell Dam and Power Plant and the Clemson Pumping Station and diversion dams.

4. Authority Cited: Clause 52.217-8 is included in the subject contract and allows the Government to require continued performance of any services within the limits stated in the contract. Because the price for this option period was not requested as part of the initial solicitation and thus was not competed or included as part of the contract award, the use of a non-competitive procurement to exercise the option must be justified. The cited statutory authority permitting other than full and open competition is 10 U.S.C.

2304 (c) (2) as authorized by FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.” The authority for this exception is 10 U.S.C. 2304(c)(1) or 41 U.S.C. 3304(a)(1). This provision states, “When the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for.”

5. Reason for Authority Cited:

a. The extension of the option period is critical for continuity of services during the peak recreation season until a contract for the current solicitation (W912HN-19- R-5002) for a replacement Hybrid Firm Fixed Price with Cost Plus Fixed Fee Elements contract can be successfully awarded and a start date determined to allow full mobilization for contractor and government success. The most effective and best approach is to extend the current contract for an additional three (3) months. The additional time is necessary to fully resolve a protest of the initial award of the above referenced solicitation for a replacement contract, and allow sufficient time for a successful mobilization of the new contractor once awarded (considering reduced timelines resulting from protest uncertainty and current COVID-19 contingency issues). The continued uncertainty related to resolution of the protest and COVID-19 conditions and resulting mobilization issues for the new contractor will have a significant impact to the public as it relates to the operation and maintenance of recreation facilities during the remainder of the 2020 peak recreation season.

b. The solicitation for a replacement O&M contract was posted on 24 July 2019 with proposals originally due on 9 September 2019. Seven (7) interested companies attended the pre-bid on site visit on 31 July 2019. There were a total of thirty-eight (38) bidder inquiries received and answered in ProjNet from interested offerors during the solicitation posting period. On 6 August 2019, an amendment was posted to the solicitation, as a result of ProjNet technical inquiries, that resulted in no change to the proposal due date. Additional amendments were issued as a result of ProjNet technical inquiries which resulted in eventual extension of the proposal due date to 2 October 2019.

The solicitation resulted in bids being received from four (4) companies. The Source Selection Evaluation Board (SSEB) convened to evaluate proposals 15- 19 October 2019. SSEB reports were subsequently submitted to the Source Selection Authority (SSA), resulting in initial award of a new replacement contract on 18 March 2020. The period of performance for the new contract was scheduled to begin 1 May 2020 upon expiration of the current contract. Due to a protest of the initial award, a three (3) month extension of the current contract was awarded in an effort to allow sufficient time for the protest to be resolved.

A GAO decision regarding the protest is due by 15 July 2020 to either sustain or deny the protest. The timeliness and uncertainty of this decision creates concerns with (1) not having a contract vehicle in place on 1 August 2020 if the protest is sustained or (2) late notification of contract award resulting in insufficient time for the new contractor to appropriately mobilize to successfully provide services by 1 August 2020. Further complicating mobilization is the current conditions related to the COVID-19 pandemic which creates significant challenges in the contractor’s ability to properly staff and purchase necessary equipment to meet contract requirements upon contract commencement. The period of August through October includes continued heavy public use of project recreation facilities and it is essential to the operation of the Project to have a contractor on site that is fully able to quickly and efficiently address emergency requirements, to include weekly unforeseen maintenance needs such as electrical system failures, water line breaks, septic system failures, well maintenance, Clemson Pumping Station operations and facility repairs to ensure customer satisfaction and safety. In addition, the months of August through October fall within peak Hurricane season and the contractor must also be able to quickly address emergencies caused by flooding, severe thunderstorms, tornadoes or hurricanes such as extensive tree damage/blow-downs in one or more parks, structural damage to facilities, and possible injury to project visitors.

The government must have the ability to coordinate with a contractor on site that can respond in a timely manner to these events that are likely to occur.

c. The modification is necessary to prevent a lapse of services at the Project which would result in the inability to properly maintain essential infrastructure such as recreation facilities, dams, saddle dikes, the Clemson Pumping Station, offices and equipment in accordance with operating manuals, preventative maintenance guidance, policies and standard practices. Failure to seamlessly continue these services would adversely affect operation of the facility. Re-Engineered Business Solutions Inc. (RBS) is currently performing this work under the existing initial three (3) month extension of services period of the contract and would continue to do so under this second extension modification while the protest is resolved, Hartwell Project park reduction/closure plan and associated de-scoping of the new contract is approved and negotiated, new contract is prepared, and new contractor can fully mobilize to meet the newly defined requirement. This extension allows for immediate direct response to unforeseen requirements resulting from damage or vandalism to facilities, natural emergencies such as flooding, droughts, severe thunderstorms, tornadoes and hurricanes, emergency repairs to water, sewer and electrical systems, and Homeland Security at hydropower and/or flood control sites. The Hartwell Dam and Power Plant and Clemson Pumping Station are considered critical infrastructure and the contractor must be able to immediately respond to unforeseen requirements as necessitated by an increased Department of Defense threat level or possible terrorist attack. This extension will allow for ongoing efforts by the Government to quickly and efficiently respond to Homeland Security measures. Due to the nature of the services required, fluctuation of and/or constantly changing conditions, and the Government’s inability to accurately forecast or project required quantities of potential tasks, the Government requires a contractor on-site that can provide immediate response to unforeseen changes in the conditions of facilities, priorities, and workloads while simultaneously maintaining the USACE standards for facility operations, customer service and public safety.

d. It is determined that issuance of an extension modification under Contract No.

W912HN-15-C-0004 with RBS Inc. would provide continuity of services without the transition time needed for another contractor to assume the required work.

RBS Inc. is also equipped with the historical knowledge needed by Hartwell staff for whom they are currently performing this work. The time involved to wait for a new contract to be executed or to put into place numerous small dollar procurements to accomplish needed actions would adversely affect continuity of operations and increased or unforeseen costs would be incurred if operations were disrupted. The administrative effort to put a contract in place for a short period of performance would also have a negative impact on the current process to transition to the hybrid contract that has already been solicited and initially awarded (pre-protest). Emergency response is a critical aspect of this contract and the current contractor is on-site and able to respond immediately. For example, in May 2016 during the first week of being open for public use, water supply issues arose at Payne’s Creek campground on a busy Saturday afternoon. Contractor personnel immediately responded to investigate potential problems with the well system; quickly determining that a well company would have to be called in to pull the pump. Contractor kept Corps personnel and campground attendants well informed of status and successfully accommodated park users during this period by maintaining a minimal supply of water to all sites, bringing in port-a-potties and re-opening one restroom by Sunday morning. Final repairs were completed over the next few days and area returned to full service prior to the next busy weekend period. In addition, numerous occurrences of wind damage have occurred during the current contract with negative impacts to project facilities and visitors. For instance, in September 2017, the Project experienced significant tree damage resulting from Hurricane Irma with negative impacts to a majority of recreation areas. The Contractor immediately assessed and prioritized damage, and systematically responded to address the worst and highest use areas first to insure maximum visitor safety and use. While some specific campsites had to be temporarily closed for a couple days, efforts ensured that all parks were in a usable condition the day after the storm and open for public use. In addition, tornados that passed through the Hartwell basin on Easter Sunday 2020 caused significant damage to 16 Corps operated recreation areas. Again the contractor effectively mobilized to assess and prioritize damages to remove fallen trees and repair facility damages in a coordinated and systematic manner. Another example is work that is regularly required of the contractor at the Clemson Pumping Station (CPS) during heavy rain events. In order to maintain efficient operations and functionality of the CPS, which protects over 400 acres and millions of dollars-worth of Clemson University property/infrastructure from flooding, contract personnel are available 24 hours per day and promptly respond when called to keep trash grates free of leaves and debris. These few examples reflect how the current contractor can provide immediate response and also manage workloads to stay within established budgets. It is very likely, if not certain, that events such as this will occur during this three (3) month period. An inexperienced and unfamiliar contractor would adversely affect the operations of the Hartwell Project. The Government needs all of the resources (institutional knowledge and equipment) of the incumbent contractor available to be positioned to respond to these types of occurrences, understanding that only the minimum amount of work will be authorized to meet these unforeseen needs.

e. The contractor must also be able to quickly address common issues such as water leaks, septic system failures and power outages in recreation areas. Rapid response to these routine types of maintenance problems is crucial and the current contractor possesses the ability to handle them.

f. A three (3) month extension is in the best interest of the Hartwell Project, the Government, the new contractor, and the general public that uses Hartwell Lake during the summer recreation season. The period of performance for the new option period extension will be 1 August 2020 through 31 October 2020. The extension provides time to complete all necessary actions to resolve the protest of the current solicitation for a new contract, finalize award of the new contract upon protest resolution, and adequate time for the new and current contractor to properly conduct transition duties during a period of time that is very crucial to public interest. The extension also provides beneficial time to overcome existing COVID-19 challenges.

6. Efforts to Obtain Competition: The original action for a new Hybrid type contract was competed with four (4) proposals received. The delay associated with waiting for a new contract to be executed would result in a substantial increase in the overall costs to the Government. The cost increase would be directly related to the adverse effect on the continuity of operations if disrupted. Since RBS Inc. is already on site performing said work for the customer, there will be no mobilization costs associated with this action. Also, costs associated with acquiring the appropriate insight and technical knowledge required to fulfill client needs in a timely manner will be eliminated. Finally, no other contractor will be able to mobilize in time to meet the needs of the Government which are limited to those needed during the next three (3) months.

7. Actions to Increase Competition: See 5d and 6 above. RBS Inc. can meet the required period of performance as they are currently on site performing the work. RBS Inc. has been performing this work under the current contract for five (5) years. A new contractor would not possess familiarity with the requirements. RBS Inc. is familiar with Army policy and guidance, and with State and Federal laws and their applicable requirements. They can provide continuity of services in the most efficient and cost effective manner until a new contract can be awarded. Time is of the essence in completing this work, and RBS Inc. is currently on site performing the work. The follow-on contract was competed as a 100% small business set aside hybrid firm fixed price contract with cost plus fixed fee elements as outlined in 5b above.

8. Market Research: Initial market research was conducted with the original procurement. The current contractor is a small business. Four (4) offerors submitted bids for this procurement in response to solicitation W912HN-19-R-5002. RBS Inc. has demonstrated their ability to maintain daily operations at the Hartwell Project and extending its contract for a three (3) month period is in the best interest of the Government.

9. Interested Sources: To date, no other sources have written to express an interest in filling the gap between the current contract and new contract acquisition.

10. Other Facts: FAR 52.217-8, Option to Extend Services, was included in the contract and current contractor RBS Inc. has agreed to the current pricing contained in the contract.

a. Procurement History

(1) W912HN-15-C-0004 Awarded on 13 April 2015

W912HN-09-C-0059 Awarded on 9 September 2009 W912HN-04-C-0033 Awarded on 13 August 2004

(2) All but contract W912HN-09-C-0059 were competed and awarded in accordance with FAR 52.219-6, Notice of Total Small Business Set-Aside.

Contract W912HN-09-C-0059 was awarded under the 8a program. Prior to award of the current contract, W912HN-15-C-0004, the Agency fulfilled the requirement to obtain PARC approval of (1) the D&F for Procurement Type, (2) the Acquisition Strategy and (3) Small Business Administration (SBA) approval to release the requirement from the 8(a) program and back to small business.

(3) The reason why this contract extension should not be competed is the timing of existing contract end date, 31 July 2020. The gap in service until a new contract is awarded and the new contractor can effectively and successfully mobilize to overcome COVID-19 challenges and to meet new reduced requirements resulting from park operations reductions/closures would have significant negative impacts to the Hartwell Project and the visiting public during peak recreation season. Competing this period of service would not be reasonable because the time involved with competing a contract would not allow for award of a contract in time for the services to be performed when needed any sooner than the current solicitation can be awarded and new contractor fully mobilized.

(4) Contract W912HN-09-C-0059 was extended without competition under an approved J&A in 2014. There are no unusual patterns, such as consecutive urgent buys, resulting from these contract awards.

(5) There was no justification prepared to support the procurement made before this one, other than what is listed in 10(a)(2) regarding release from 8a program. There has been a protest of the recent initial award of a new contract, as detailed in paragraphs 2 and 5(b), resulting in additional time needed to prepare and award a new contract. Due to existing protest uncertainties and continuing COVID-19 contingency issues, we will not be able to provide seamless service during the busiest part of the year at the Project unless we can extend the current contract until a new contract can be awarded and the new contractor provided additional time to properly plan for full and successful start of the new contract.

b. Acquisition Data Availability: This section is not applicable.

c. Unusual and Compelling Urgency: This section is not applicable.

d. Subcontracting Competition: The existing contract is set aside for Small

Business, and therefore, there are no established subcontracting goals. The contract encourages the use of small business subcontractors to the maximum extent practicable. Additionally, the prime contractor is required to obtain three (3) quotes for all subcontractor work.

11. Technical/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: Kenneth Bedenbaugh

Title: Park Operations Manager Signature:_____________________ Hartwell Project

12. Small Business Review: I have reviewed this justification and have no small business concerns.

Typed Name: Leila Hollis

Title: Small Business Specialist Signature:_____________________ Savannah District

13. Legal Review for Sufficiency: I have reviewed this justification and have no legal objection.

Typed Name: Connie L. Baran

Title: Deputy, District Counsel Signature:_____________________ Savanah District

Approval

Based on the foregoing justification, I hereby approve the procurement of a Contract modification to extend Contract Year 5 services not-to-exceed an additional three (3) months (total cumulative extension of six (6) months) for Operation and Maintenance of Government Owned Facilities and Equipment at Hartwell Project on an other than full and open competition basis pursuant to the authority of FAR 6.302-1(a)(2)(iii)(B), “Only One Responsible Source, and No Other Supplies or Services Will Satisfy Agency Requirement” and 10 U.S.C 2304(c)(2), in the amount of $650,000, and provided that the services and property herein described have otherwise been authorized for acquisition.

Typed Name: Whittni Hiscox

Title: Contracting Officer Signature:_____________________ Savannah District