SMDC EN EFOJ FAR Subpart 16.5 Ceiling Increase_05.24.202_Redacted.pdf

CUI

Control No: Control No: CAA-C-J&A21-0790

Version – June 2019

FAR Part 16 Exception to Fair Opportunity Justification Under Multiple Award Indefinite Delivery Contracts

1. Contracting Activity: Department of the Army, Army Contracting Command – Redstone, CCAM-CAA-C, Redstone Arsenal, AL 35898-5000.

2. Description of Action:

a. Due to unforeseen requirement changes and an accelerated master milestone schedule, respectively, the Deputy Chief of Staff, Engineer, U.S. Army Space and Missile Defense Command (USASMDC), requests approval to execute a bilateral modification to Task Order W9113M18F0011 (a cost-plus-fixed fee arrangement competed under the General Services Administration One Acquisition Solution for Integrated Services Small Business Program, Contract GS00Q140ADS135) to increase the original ceiling amount by (from to ) with QuantiTech, LLC, 360A Quality Circle, Suite 100 Huntsville, AL 35806 (CAGE Code 0S9B5). Currently, there is only (91% expended) remaining ceiling.1

b. Task Order W9113M18F0011 encompasses a total period of performance of five years (two-year base period of performance, plus three, one year optional periods of performance for a total task order period of performance from 01 June 2018 – 31 May 2023). Note that this request does not include a period of performance extension.

c. Appropriate fiscal year U.S. Air Force Research, Development, Test and Evaluation funding and Operations and Maintenance funding, respectively, will be used to fund the requested ceiling increase.

d. This action must be approved by 31 May 2021 in order to avoid an adverse impact to the overall U.S. Air Force Nuclear Weapons Center Ground Based Strategic Deterrent Program master milestone schedule and to exercise the next task order option period of performance, which begins 01 June 2021.

3. Description of Supplies/Services:

a. Task Order W9113M18F0011, which is cost-plus-fixed fee arrangement under Contract GS00Q140ADS135, provides environmental, facilities engineering, facilities management, planning and compliance services for USASMDC and other U.S.

1 Note that per suggestion of the then cognizant ACC-RSA SMD/SP CCAM-CAA-C contracting officer, except for a small percentage of ceiling value, under applicable task order modifications the out-year ceiling under Option 2 and Option 3, respectively, was restructured and pulled into the current period of performance (Option 1) to support on-going efforts; note that if the requested ceiling increase is approved, then that dollar amount will be distributed along the out-year contract line item numbers (please further note that USASMDC and ACC-RSA SMD/SP CCAM-CAA-C are contemplating restructuring the out-year option periods into a single period of performance or early option exercise).

Government organizations (to include the Department of Defense and Sister Services).

The task order was issued with a ceiling amount of with a total period of performance of five years (two-year base period of performance, plus three, one year optional periods of performance for a total task order period of performance from 01 June 2018 – 31 May 2023).

b. Using a separate technical directive for each customer, Task Order W9113M18F0011 supports USASMDC and other U.S. Government organizations (to include the Department of Defense and Sister Services), which in turn supports U.S.

national security interests and Department of Defense and Sister Service priorities, to include environmental initiatives in support of the Joint Tactical Ground Station (JTAGS)2 and Army Navy/Transportable Radar Surveillance (AN/TPY-2),3 as well as the U.S. Army Kwajalein Garrison (USAKA) and Kwajalein Reagan Test Site.4

c. Of importance to this ceiling increase request, pursuant to Technical Directive 25 under Task Order W9113M18F0011, this task order also supports a mandated environmental impact statement5 for the U.S. Air Force, which is the key component of completing the U.S. Air Force Nuclear Weapons Center Ground Based Strategic Deterrent Program.6 The Center Ground Based Strategic Deterrent Program is a vital U.S. national security interest because it will replace the nation’s aging Intercontinental Ballistic Missile weapon system in defense of our nation (the U.S. Intercontinental Ballistic Missile weapon system is the backbone of America’s national security and provides 24/7 deterrence to prevent catastrophic actions from U.S. adversaries and

2 JTAGS is the Army's primary radar warning system that provides space based integrated, in-theater missile warnings.

3 AN/TPY-2 is the primary radar for the Terminal High Altitude Area Defense missile system, which can detect, classify, track and intercept ballistic missiles.

4. The USASMDC Commanding General is the Senior Mission Commander for USAKA and the Reagan Test Site on Kwajalein Atoll in the Republic of the Marshall Islands; USAKA is the Department of Defense’s premier testing and operations facility for missile testing, research and development and a vital U.S. national security interest in the Pacific Rim.

5 Environmental impact statements are mandated by the National Environmental Policy Act as codified in the Code of Federal Regulations; binding and mandatory requirements are captured in the Task Order W9113M18F0011 performance work statement and require strict mandatory submissions, staffing, and coordination with multiple government entities across six Western states and multiple Department of Defense commands.

6 The U.S. Air Force Nuclear Weapons Center awarded a $13.3 billion contract to Northrop Grumman Systems Corporation for the engineering, manufacturing and development of the Ground Based Strategic Deterrent to replace the Minuteman III Intercontinental Ballistic Missile weapon system, which includes replacing more than 400 missiles and updating the U.S. nuclear offensive capability across six affected states, which will be the first complete upgrade since the early 1970s. See https://www.northropgrumman.com/gbsd/about-gbsd/#:~:text=The%20U.S.%20Air%20Force%E2%80%99s%20Ground%20Based%20Strategic%20Dete rrent,III%20first%20became%20operational%20in%20the%20early%201970s.

stand ready to deliver a decisive response7). A timely completed environmental impact statement is required in order for the Ground Based Strategic Deterrent Program to remain on schedule.

d. The requested ceiling increase request is due to unforeseen requirement changes and an accelerated master milestone schedule, respectively, under the U.S. Air Force Nuclear Weapons Center Ground Based Strategic Deterrent Program, which in turn is adversely impacting the mandated environmental impact statement under Task Order W9113M18F0011; the requested task order ceiling increase is needed in order to timely complete the mandated environmental impact statement.

4. Authority Cited: 10 U.S.C. 2304c(b)(1) as implemented by FAR Part 16.505(b)(2)(i)(A) - The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

5. Reason for Authority Cited:

a. Background.

(1) Task Order W9113M18F0011, which is a cost-plus-fixed fee arrangement, was competed under the General Services Administration One Acquisition Solution for Integrated Services Small Business Program and a best value task order was issued to QuantiTech, LLC, 360A Quality Circle, Suite 100 Huntsville, AL 35806 (CAGE Code 0S9B5), for The task order encompasses a total period of performance of five years (two-year base period of performance, plus three, one year optional periods of performance for a total task order period of performance from 01 June 2018 – 31 May 2023).

(2) Task Order W9113M18F0011 supports USASMDC and other U.S. Government organizations (to include the Department of Defense and Sister Services), which in turn support multiple U.S. national security interests and Department of Defense and Sister Service priorities such as environmental initiatives for JTAGS, AN/TPY-2, USAKA and Kwajalein Reagan Test Site, as well as the U.S. Air Force Nuclear Weapons Center Ground Based Strategic Deterrent Program. Figure 1 below depicts the original task order spend plan (note that pursuant to Technical Directive 25, the Ground Based Strategic Deterrent Program became a new customer in-scope requirement after task order issuance and was projected to be within the task order ceiling amount based upon the then known requirements [estimated by USASMDC and the U.S. Air Force Nuclear Weapons Center to cost ; please note too that Other Environmental Requirements [OER] and Other Facilities/Construction Service Requirements [OFCR] are not germane to this ceiling increase request).

7 See https://www.afnwc.af.mil/Weapon-Systems/ and https://www.defense.gov/Experience/Americas- Nuclear-Triad/.

mandated an acceleration in the master milestone schedule, which also impacts the environmental assessment statement.10

(a) Of importance, the Northrup Grumman System Corporation preliminary design review impacts 18 discrete tasks required to accomplish the environmental impact statement under Task Order W9113M18F0011 (for example, the final record of decision, which is part of the environmental impact statement, was accelerated by three months impacting labor costs). As a result of the Northrup Grumman System Corporation preliminary design review, the Ground Based Strategic Deterrent Program now requires a three-year continuous, integrated environmental assessment process that cannot be segregated or delayed without affecting the overarching Ground Based Strategic Deterrent Program master milestone schedule and the milestones under the Northrup Grumman System Corporation contract.

(b) Although separate contracts, the Northrup Grumman System Corporation contract and its milestone schedule cannot succeed unless the Task Order W9113M18F0011 environmental impact statement is completed in a timely manner. As further discussed in the market research section below, in consultation with the U.S. Air Force Nuclear Weapons Center, Task Order W9113M18F0011 is viewed as the only viable contract vehicle to successfully complete the Ground Based Strategic Deterrent Program environmental impact statement in a timely manner without impacting the overall program master milestone schedule.

(3) As discussed in paragraph 5b(2) above, before the Northrup Grumman System Corporation preliminary design review, it was estimated that the Ground Based Strategic Deterrent Program environmental impact statement would cost .

However, the preliminary design review changes and associated accelerated master milestone schedule have resulted in a revised cost of . Figure 2 below graphically depicts the cost impact of these changes and underscores the immediate need for a ceiling increase to support the Ground Based Strategic Deterrent Program environmental impact statement effort.

10 Note that the Northrop Grumman Systems Corporation preliminary design review and corresponding Ground Based Strategic Deterrent Program changes and accelerated milestones schedule are classified under a special access program; however, while contractor personnel under Task Order W9113M18F0011 require a specific security clearance, currently the task order environmental assessment statement effort does not fall under the U.S. Air Force special access program.

Environmental Baseline Surveys (EBS) task. Scheduled for the summer of 2021, the Government review and approval of the required EBS will be delayed several months until the fair opportunity procedures resulted in a selected contractor.

Cultural Surveys/Programmatic Agreement task. Complex cultural consultation meetings with Native American tribes scheduled for late 2021 will be interrupted for several months until a new task order is issued; it is likely that the multi-tribe event will be canceled and rescheduled at a later date in early 2022.

Draft Environmental Impact Statement (DEIS) task. A DEIS is scheduled to begin in early November 2021 and will be delayed several months until after the fair opportunity process is concluded.

Environmental Public Hearings task. Scheduled for late 2021, environmental public hearing would be delayed until a new contractor assumed responsibility. Additionally, the current Task Order W9113M18F0011 prime contractor intends to employ Tribal monitors from Native American tribes affected by the environmental impact statement activities, and it is presumed that the new contractor would have to re-negotiate for use of Tribal monitors or the Government would assume responsibility for contracting the use of Tribal monitors.

An expected break in the continuity of effort will occur for several months until after the fair opportunity process is concluded, which will result in rescheduled hearings and addressing any new concerns raised by the affected Native American tribes.

Administrative Record (AR) task. The AR is a continuous document of all pertinent actions throughout the environmental impact statement process; the Government will incur a schedule delay as the AR will have to be delayed until after the fair opportunity process is concluded.

(c) The unacceptable schedule impacts described above support the finding that urgent and compelling circumstances exist to warrant using an exception to fair opportunity procedures. Finally, note that the schedule impacts described above are not the result of a lack of planning by the Government, but rather unforeseen requirement changes and an accelerated master milestone schedule, respectively, under the U.S.

Air Force Nuclear Weapons Center Ground Based Strategic Deterrent Program.

d. Alternatives. Possible alternatives that were available to the Government were deemed not acceptable. One alternative was to use Government in-house personnel/expertise to complete the environmental impact statement; however, the recent retirement of senior environmental experts inside the USASMDC Deputy Chief of Staff, Engineer, made this alternative not feasible. Rebalancing of Government workloads also proved unacceptable. Finally, the alternative of suspending operations

b. Additionally, in consultation with the U.S. Air Force Nuclear Weapons Center, Task Order W9113M18F0011 is viewed as the only viable contract vehicle to successfully complete the Ground Based Strategic Deterrent Program environmental impact statement in a timely manner without impacting the overall program master milestone schedule.

c. As a result, pertinent market research demonstrates that no other vendor can assume the responsibility of the ceiling increase environmental impact statement requirements no later than the end of May 2021 when the next option period under Task Order W9113M18F0011 begins (as noted above, ceiling increase approval is requested no later than 31 May 2021 in order to execute a task order modification and exercise the next option period).13

9. Interested Sources: To date, no other sources have written to express an interest. A FAR Subpart 16.505(b)(2)(i)(A) exception to fair opportunity justification, a request for information or source sought was not issued to other General Services Administration One Acquisition Solution for Integrated Services Small Business Program vendors (see FN 13 above and the cited GAO Technica Corporation protest opinion).

10. Other Facts:

a. Procurement history. Pursuant to the competitive acquisition under the General Services Administration One Acquisition Solution for Integrated Services Small Business Program, Task Order W9113M-18-F-0011 was awarded on 01 June 2018 to QuantiTech, LLC, a small, women-owned business concern, for and has had no ceiling increases. Task Order W9113M18F0011 encompasses a total period of performance of five years (two-year base period of performance, plus three, one year optional periods of performance for a total task order period of performance from 01 June 2018 – 31 May 2023).

b. Other facts. None.

13 Note that pursuant to FAR Part 16.505(b)(2)(i)(A) and applicable General Accountability Office (GAO) protest opinions, vendors under the General Services Administration One Acquisition Solution for Integrated Services Small Business Program were not informed of the ceiling increase requirement. Of note, the GAO held in Technica Corporation, B-416542; B-416542.2, 5 Oct 2018, p. 4, that “[a]gencies may issue orders without providing a fair opportunity under certain circumstances, including those where ‘the agency’s need for the services or property ordered is of such unusual urgency that providing such opportunity to all such contractors would result in unacceptable delays in fulfilling that need.’ 10 U.S.C. § 2304c(b)(1); see also FAR § 16.505(b)(2)(i)(A) (exception applies where ‘[t]he agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.’)” GAO also held in Technica Corporation that “IDIQ ordering procedures and the exceptions to the requirement for a fair opportunity in 10 U.S.C. § 2304c(b) and FAR § 16.505(b)(2) do not contain the same “lack of advance planning” prohibition set forth in 10 U.S.C. § 2304(f)(4) …. [T]he FAR expressly states that the full and open competition provisions of FAR part 6, which include the “lack of advance planning” prohibition in FAR § 6.301(c)(1), do not apply to the issuance of orders under FAR subpart

16.5. FAR § 16.505(b)(1)(ii).” Id. p. 5.