SP_REQ-DASOBO-00026042_Abandoned Derelict Vessel Beach Clean-up Svcs_Approved.pdf

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REQUEST FOR SPECIAL PROCUREMENT No. REQ-DASOBO- 00026042

PART A. Requesting Agency must complete Items 1 through 13.

1. Requesting Agency Name: Oregon Department of State Lands

2. Date of Request: June 27, 2022 3. Agency Number: 14100

4. Agency Contact Name: Michelle Johnson 5. Phone: 503-798-7975

6. Type of Request: X Class Special Procurement Contract-specific Special Procurement

7. Time Period Requested: From: 8/1/2022 To: 7/31/2029

8. Total Estimated Cost: $10,000,000.00

Note: The Maximum not-to-exceed (“NTE”) Compensation for each PA is currently $150,000;

$1,350,000 cumulatively. With approval of this Special Procurement (“SP”) Request, the Maximum NTE Compensation for the PAs cumulatively will be $11,350,000.

9. Title: Supplies and/or Services to be Acquired:

Abandoned and Derelict Vessel Removal services and Beach/Land sites clean up services (collectively “Services”)

10. Request, Background, Current Need, and Proposed Contracting Procedure:

a. Request:

Oregon Department of State Lands (“DSL” or “Agency”) requests approval of this Special Procurement (“SP”) Request #REQ-DASOBO-00026042 to amend the nine (9) Price Agreements (“PAs”) set out in Table 10.A below to:

extend the PA Terms up to three (3) additional years through July 31, 2029.

increase the Maximum not-to-exceed (“NTE”) Compensation available cumulatively for all Work Order Contracts (“WOCs”) issued under each of the nine (9) PAs. DSL will apportion the requested $10 million among the PAs to address current and future WOCs.

TABLE 10.A

Price Agreement Number Price Agreement Holder (“PA Holder”)

21-269 Pleasant Hill Development Company, LLC 21-268 Newalen, LLC 21-270 Rocky Point Marina Portland, LLC 21-264 Dike Marine Service & Storage, LLC 21-271 NRC Enviromental 21-266 Global Diving & Salvage, Inc.

21-263 Ballard Marine Construction, LLC

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21-267 JT Marine, Inc.

21-265 FDS Marine International, LLC

b. Background:

Agency:

The State of Oregon is the owner of submerged and submersible lands.

DSL’s mission is to ensure a legacy for Oregonians and their public schools through sound stewardship of lands, wetlands, waterways, and the Common School Fund (“CSF”).

DSL is the administrative agency of the State Land Board, handling the day-to-day work of the board in managing the land and other resources dedicated to the CSF.

DSL is organized into three programs: Aquatic Resource Management, Business Operations and Support Services, and Common School Fund Property. Deputy Directors manage these programs. In addition, DSL oversees the South Slough National Estuarine Research Reserve in Charleston, Oregon in partnership with the National Oceanic and Atmospheric Administration (“NOAA”).

Services:

Abandoned and Derelict Vessels (“ADVs”) harm sensitive marine ecosystems through the release of hazardous and toxic chemicals into the environment. This degrades public trust values, threatens native fish populations, including Salmon and other endangered species, and can contaminate drinking water.

These vessels can also impair navigation, hindering commercial and recreational use of state-owned waterways.

Preventing, removing, and disposing of ADVs requires coordination between a diverse set of state, local, and federal agencies. Coordinating entities include: the Oregon State Marine Board (“OSMB”), Oregon Department of Environmental Quality (“DEQ”), DSL, and at times the US Coast Guard, the US Environmental Protection Agency, the US Army Corps of Engineers, Tribes, local, and regional governments.

Coordination is required for each individual site due to differences in scope of work, authority of agencies, and jurisdiction of each involved party.

ADV issues are currently addressed in a reactive way. Removal efforts are driven and prioritized based on complaints. This has led to the majority of resource being spent in the Portland Metro Area mitigating recreational vessels. While the need there is great, there is also need throughout the state, especially in coastal areas.

There is also no current state or federal funding available to remove and dispose of commercial vessels. Commercial vessels are much larger and more costly to remove and dispose of than recreational vessels.

Commercial vessels have a higher likelihood of containing hazardous chemical and materials, polluting Oregon waters, and impairing navigation.

Commercial vessels are also considerably more expensive because of the lack of appropriate shipwrecking facilities within the state. Shipwrecking and the responsible disposal of vessels, both large and small, are critical to resolving the current ADV issues and controlling costs to make removal and disposal accessible to vessel owners.

Oregon insurance requirements for vessel owners contribute to ADV cost recovery issues for the state.

Individuals are not required to have insurance to purchase a vessel or to cover the cost of wreck

SP_REQ-DASOBO-00026042_ADV Removal & Beach/Land Sites Clean Up Page 3 of 9 removal. If that vessel is in an accident, sinks or runs aground, there may simply be no coverage or recourse available for the state to seek reimbursement. There are no requirements in the state for vessel surveys at time of vessels sale to ensure its seaworthiness. This may leave the new vessel’s owner unknowingly liable for costs they could never afford, shifting financial liability to the state.

The lack of regulations around the sale and insurance of vessels directly contributes to the increase of vessels and other floating structures being used for unauthorized camping on public waterways.

These ADVs and floating structures are occupied by individuals who would otherwise be without shelter. This presents an increasing and dynamic range of issues and challenges, including the health and safety of those living on the water in unauthorized vessels. Making a connection between an individual and social services is more difficult given:

1. the vessel is that individual’s chosen shelter; and

2. the risk of that individual not having alternative housing.

Increased environmental concerns are also associated with occupied derelict vessels making them even more critical to mitigate. On top of the fuel, oil, and hazardous material concerns of all ADVs, occupied unauthorized or derelict vessels generally do not have access to utility-type services such as water, sewer, or garbage hauling. This often leads to garbage and other materials being disposed of in the water.

Health and public safety risks are high for individuals occupying ADV vessels. Vessels in disrepair could be at risk of sinking with individual(s) on board. Additionally, availability of emergency medical response services could be delayed or inaccessible to individuals on the water, depending on the location of the vessel.

There are many barriers and legal issues when removing a vessel that is being occupied. Due process requires the state to notice occupants before the seizure and removal of personal property even if the vessel is unauthorized. When noticed, vessels on public waterways may simply relocate a specified distance to stop the seizure process and reset the clock for the removal process . This can include unauthorized vessels moving onto private property where DSL does not have jurisdiction to enforce its regulations.

Separate legal issues exist when an ADV or occupied vessel is located on private property, usually within an authorized lease. Law enforcement has unique issues around criminal trespass, seizure of private property, holding and storage requirements for vessels, and political pressure to not criminalize homelessness.

Adding to the magnitude and complexity of the ADV issue is the historic lack of resources and funding, which has created an unknown backlog of commercial and recreational ADVs throughout the state. These vessels are degrading public lands and impairing both navigation and recreation. These ADVs are in various states of disrepair and only become more expensive to remove as their condition degrades.

Price Agreements History:

On May 11, 2021, DSL issued Intermediate Request for Proposal (“RFP”) #141-1190-21 on the Oregon Procurement Information Network (“ORPIN”), the state’s eProcurement system of record at that time, seeking on-call, statewide ADV removal and beach debris clean up Services providers.

The RFP anticipated multiple awards of Price Agreements with initial 2-year Terms and options to extended for up to three (3) additional years; 5-years total.

The RFP closed June 14, 2021.

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All timely submitted Proposals were evaluated in accordance with the Evaluation Criteria and Process set out in the RFP.

Nine (9) Services providers, set out in Table 10.A above (PA Holders), prevailed with awards in one or more of the following Services Categories:

Service Category Description

A – Vessel Removal Removal of vessels and transport to storage/disposal site over land or water.

B – Salvage Disposal of vessels which may have additional issues including but not limited to asbestos. Must be stored for 30 days; then haul to landfill or deconstruct (removal of engine and fuel tanks) and dispose of.

C - Storage Vessel storage for a minimum of 30 days.

Transportation to/from storage location over land or water. Disposal may be required.

D – Low Risk Removals Remove marine debris, floating docks, or buoys where the object is floating, soft grounded, or sunk in the intertidal area but needs only minor patching to raise and float. Haul to landfill or deconstruct (removal of engine and fuel tanks) and dispose.

E – Higher Risk Removals Removal of soft grounded, patch and float, or sunken vessels with associated disposal. Vessel removals may require, but not be limited to, hazardous-material removal, diving, marine towing, land towing or specialized equipment, more complicated marine debris removal, removal of deteriorated floating structures, docks, etc.

F – Large Vessel Deconstruction & Removal

Remove and dispose of vessels larger than 75’ in length which may include but not be limited to, former military vessels, large fishing vessels, or other large vessels.

Hazardous material removal could include, but not be limited to, PCBs, lead, asbestos, etc. Specialized equipment may be required for removal and transportation over land or water.

The PAs were issued with Effective Dates of August 1, 2021.

Work Order Contracts (“WOCs”) are issued under PAs when DSL requests and authorizes Services.

o DSL can direct award WOCs for Services not exceeding $10,000.

o For Services exceeding $10,000, DSL requests quotes from the PA , evaluates the quotes using a Best Value Analysis process, and issues a WOC to the PA Holder providing the best value to the state.

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c. Current Need:

Given the backlog of commercial and recreational ADVs throughout the state, DSL foresees the need for Services beyond the 5-year Term originally anticipated in the RFP. With approval of this SP Request, DSL will have the option to extend the PA Terms up to 8-years, through July 31, 2029.

Because the RFP was conducted as an Intermediate Procurement, all WOCs issued under each of the

(9) PAs cannot exceed $150,000.00 cumulatively. With approval of this SP Request, the Maximum NTE Compensation available for all WOCs issued under the nine (9) PAs cumulatively will be $11,350,000.00, transitioning the PAs from ‘intermediate’ to ‘formal’ awards.

Estimating the cost of Services through the period of performance requested in this SP request is difficult due to environmental factors and inaccuracies in the amount of salvage material before vessel removal. Table 10.C below is based on estimates received from the PA Holders.

The estimates received for Fishing Vessel (“F/V”) ‘Tiffany’ are from August 2021.

The estimates for the Cutter ‘Alert’ and Tug ‘Sakarissa’ do not include the increased costs expected for presence of environmental hazards on both vessels. Total cost for salvage and disposal of these two (2) vessels is expected to be significantly higher than the estimates obtained to date and, as such, this SP Request seeks a Total Estimated Cost of $10 million.

TABLE 10.C

d. Proposed Contracting Procedure:

1. As required by Oregon Administrative Rule (“OAR”) 125-247-0287, DSL will issue a public notice regarding approval of this SP Request on the OregonBuys eProcurement system for a period of seven (7) calendar days.

2. The public notice will include provisions that any affected party may protest the approval of the SP Request.

3. DAS PS, working with DSL, will respond to and resolve all protests, if any.

4. If no protests to the approved SP Request are received and sustained, DSL will proceed with amending the PAs and related-WOCs as set out in Section 10.a above.

5. Pursuant to OAR 137-045-0015, DSL will work with Oregon Department of Justice (“DOJ”) and obtain legal sufficiency approval prior to executing the PA and WOC amendments, if required.

Vessel Cost of Salvage

Cost of Deconstruction &

Disposal Total

Cutter Alert $1,050,000.00 $1,160,000.00 $2,210,000.00

Tug Sakarissa $1,050,000.00 $1,160,000.00 $2,210,000.00

F/V Tiffany $50,000.00 $1,250,000.00 $1,300,000.00

Est. Project Total $2,150,000.00 $3,570,000.00 $5,720,000.00

Contingency (25%) $537,500.00 $892,500.00 $1,430,000.00

TOTAL $7,150,000.00

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11. Justification for use of Special Procurement: Describe the circumstances that justify the use of a Special Procurement. Attach relevant documentation.

Given the limited funding available in 2021, DSL conducted RFP #141-1190-21 as an Intermediate Procurement. The State Land Board has since authorized DSL to make ADV removal and clean up Services a priority and significantly increased the related funding. The only way to address the procurement process that established the nine (9) PAs, effectively moving them from an ‘Intermediate’ award to a ‘Formal’ award, is through a Special Procurement process. An SP process is also required to:

increase the Maximum NTE Compensation for each PA and the WOCs issued there under; and extend the Term of each PA an additional 3-years, not to exceed a total of 8-years.

12. Findings to Satisfy the Required Standards: This proposed special procurement:

___X___ (a) will be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts because:

1. The PAs were established through a competitive procurement (RFP) process in accordance with Oregon statutes and rules.

2. The RFP anticipated multiple PA awards with Terms up to 5-years, which would have generated sufficient interest in the opportunity.

3. The RFP was advertised on ORPIN, which held a roster of 40,000+ registered Suppliers.

4. DSL anticipates increasing the current pool of Services providers through an additional procurement process, which will be conducted in accordance with applicable procurement laws and rules and will encourage competition to the extent possible.

and

______ (b)(i) will result in substantial cost savings to the contracting agency or to the public because:

or

__X____ (b)(ii) will otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with the requirements of ORS 279B.055, 279B.060, 279B.065, or 279B.070, or any rules adopted thereunder because:

The Oregon Legislature has authorized enforcement agencies to investigate and seize vessels that are abandoned or derelict, as codified in Oregon Revised Statutes (“ORS”) 830.908 to 830.948.

Per ORS 830.908(4), DSL is an enforcement agency authorized to enforce the Abandoned and Derelict Vessel law.

ADVs introduce numerous, serious problems including:

o destroying habitat o leaking pollutants into the surrounding environment o creating hazards for other boaters o damaging public and private property

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The RFP, which established the nine (9) PAs, was conducted in a fair and competitive manner in accordance with the Procurement Code (i.e., procurement laws and rules).

o The current PA Holders participated in the procurement process in good faith, investing time and resources to compete for potential 5-year contracts with the State.

o Four (4) additional years are still available under the PAs.

o DSL anticipates increasing the pool of PA Holders through an additional procurement process, which will be conducted in accordance with applicable procurement laws and rules and will encourage maximum competition.

Health and public safety are at risk not only for individuals occupying ADV vessels but potentially for all individuals (Oregonians and visitors) using state-owned waterways for commercial and recreational purposes. Approval of this SP Request, which supports DSL’s ability to prevent, remove, and dispose of ADVs in Oregon, is in the public’s interest.

13. Signature: The actual signature of the Agency Head or designee (e.g., Designated Procurement Officer) is not required on the Request if it is submitted through OregonBuys. Agency may elect to attach a signed Request.

Signature: ______________________________ _June 27, 2022________________ Type Name: Jean Straight Date:

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PART B. The Department of Administrative Services completes Part B.

STATUTORY AND RULE AUTHORITY:

ORS 279B.085(2) states the Director of the Department of Administrative Services may approve a special procurement if the Director finds that a written request submitted under ORS 279B.085(4) demonstrates that the use of a special procurement as described in the request, or an alternative procedure prescribed by the Director will:

(a) Be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts; and

(b)(A) Result in substantial cost savings to the contracting agency or to the public; or

(B) Otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with requirements that are applicable under ORS 279B.055, 279B.060, 279B.065 or 279B.070 or under any rules adopted thereunder.

OAR 125-246-0170 delegates the authority of the Director of the Department of Administrative Services to approve special procurements to the State Chief Procurement Officer. OAR 125-247-0285 through 125- 247-0288 implement ORS 279B.085.

OAR 125-247-0700(2) Protests and Judicial Review of Special Procurements designates the State Chief Procurement Officer as the Contract Review Authority.

FINDINGS: The findings are accepted, adopted, and incorporated by reference herein.

CONDITIONS OF APPROVAL:

1. Notice Period. The Authorized Agency shall post the Public Notice on ORPIN. The Special

Procurement may not be used until after the completion of the seven (7) day notice period required pursuant to OAR 125-247-0287(4), and either:

a. No Written protests are received by the Contract Review Authority, State Chief Procurement Officer, from an Affected Person in response to the notice, or

b. If any protest is received during the notice period, then not until:

i. the State Chief Procurement Officer or delegate issues a written disposition of the protest in accordance with ORS 279B.400 and OAR 125-247-0700 and OAR 137-047-0700, and

ii. confirms in writing the first possible date of use of the Special Procurement.

2. ORS 279A.165 Requirements. Agency shall comply with the requirements of ORS 279A.165 and OAR 125-247-0287(12) regarding a report about this Special Procurement. Agency shall use a form and follow the instructions provided by the State Chief Procurement Officer or delegate.

3. While this SP is in effect, DSL shall report annually (every January) to DAS PS the following information for the previous year:

a. Price Agreements: List of all Price Agreements (“PAs”) in effect during the subject year including:

PA Number (as recorded in OregonBuys)

PA Holder Name (i.e., Contractor name)

PA Term (i.e., Effective (Start) Date and Expiration Date)

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b. Work Order Contracts or Services Order Contracts: List of all Work Order Contracts (“WOCs”) or Services Order Contracts (“SOCs”) issued during the subject year including:

WOC or SOC Number (as recorded in OregonBuys)

PA Holder Name (i.e., Contractor name)

WOC or SOC Term (i.e., Effective (Start) Date and Expiration Date)

WOC or SOC Value (i.e., compensation amount)

APPROVED:

Kelly Mix, State Chief Procurement Officer Date Department of Administrative Services