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This document is a justification for a sole source contract modification. The U.S. Army Corps of Engineers Sacramento District seeks to modify an existing contract with Hensel Phelps Construction to install security systems and an uninterruptible power supply at the Ground Based Strategic Deterrent Mission Integration Facility at Hill Air Force Base in Utah. The additional work, which was originally included as optional contract line items in the initial award, is necessary to provide enhanced security capabilities and backup power for server rooms before facility occupancy. No other contractors responded to the notice of intent to award this modification on a sole source basis posted on June 23, 2022.

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CONTROL NUMBER: SPK-FY22-66

Deputy District Counsel:

Signature: Date:

District Chief of Contracting:

Signature Date:

Justification for Other than Full and Open Competition US Army Corps of Engineers (USACE), Sacramento District (SPK)

Only One Responsible Source and No Other Supplies or Services Will Satisfy The Agency Requirements 41 U.S.C. § 3304(a)(1); FAR 6.302-1; DFARS 206.302-1, (PGI) 206.302-1 & AFARS 5106.302-1

W9123820C0012

1. CONTRACTING ACTIVITY:

U.S. Army Corps of Engineers (USACE), Sacramento District (SPK) Contracting Division, Construction Branch (CESPK-CTA-B) 1325 J Street, Room 878 Sacramento, CA 95814-2928

2. DESCRIPTION OF ACTION:

The Sacramento District, Utah Resident Office requests a firm-fixed-price (FFP) contract modification to the existing Ground Based Strategic Deterrent (GBSD) Mission Integration Facility (MIF) Contract W9123820C0012 with Hensel Phelps. The description of the Statement of Work (SOW) is listed below. This work was originally contained in Optional CLINs 1005 and 1008. These options expired due to the inability of the User to receive the necessary funding for award of these options. Notwithstanding, construction of the features identified in the option CLINS is necessary to deliver mission enhanced capabilities of the facility to protect features constructed under the base contract. The type of funds to be utilized for this action will be Fiscal Year (FY) 22 and 23 consisting of Research Development Test & Evaluation (RDT&E), Operations & Maintenance (O&M), and Other Procurement funds.

3. DESCRIPTION OF SUPPLIES/SERVICES:

CLIN 1005 - MIF Security System Electronic Security System Provide Electronic Security System (ESS) for locations indicated on the drawings and technical engineering criteria specifications. All active electronics equipment and field devices such as access keypads, balanced magnetic switches, request to exit motion sensors and push buttons, data gathering panels, and entry control system software/equipment shall comply with memorandum "Air Force Non-Nuclear Intrusion Detection System Equipment Approval" dated 30 January 2019. All active equipment and system acceptance testing shall be part of the scope. Design and installation shall comply with Unified Facilities Criteria UFC 4-021-02, Electronic Security Systems and Intelligence Community Directive / Intelligence Community Standard ICD/ICS-705-1, Physical and Technical Security Standard for Sensitive Compartmented Information Facilities.

Access Control The facility shall be equipped with an access control system (ACS). The existing Base standard ACS hardware is Honeywell Vindicator and shall be part of this scope of work.

The head end ACS equipment will be located in the security office. All compartmented spaces with the secure area require Access Control as indicated on the drawings. In addition to AC devices as indicated on the drawings, the Contractor shall provide Access Control for all Access Control Gates on the sites.

Intrusion Detection System The facility shall be equipped with an intrusion detection system(s) (IDS). The existing Base standard IDS hardware is Honeywell Vindicator and shall be part of this scope of work. The head end IDS equipment shall be located in the security office. All interior spaces with openings into the secure area and all exterior perimeter openings of the building will require IDS. Multiple IDS systems are anticipated and will be dependent on the compartmentalization of the Secure Area. Installers shall be Honeywell Vindicator trained and certified installers and programmers.

The Contractor shall install, test, and program the new system(s) into Hill Air Force Base (AFB) existing Vindicator suite for monitoring. The 75th Security Forces Squadron will conduct site surveys with the User and facilitate the final programming of the new system with the Contractor.

Closed-Circuit Television (CCTV) The facility shall be equipped with a Closed-Circuit Television (CCTV) system consisting of a monitoring station at both the security desk and security office. CCTV includes all active equipment (head end, monitor station, cameras) and associated cabling. Active equipment shall include 24-hour Network Video Recorder (NVR) recording capacity for the combined cameras (at highest camera resolution setting), two 32" commercial displays, playback and camera control console, and H.264 5 Mega Pixel (MP)/1080 interlaced scan (1080i) cameras.

Cameras shall be adjustable to allow for 5MP/12 In-Plane Switching (IPS), 1080i/30IPS resolution and frame rate and shall have MicroSD edge recording. System shall be capable of User defined "regions of interest" settings. Contractor shall provide 8 hours of training for User designated personnel on the operation and maintenance of the system.

CLIN 1008 - MIF Uninterruptible Power Supply (UPS) Server Room(S) The facility includes a group of 5 server rooms, each containing twenty rack/cabinets each of which shall comply with Engineering Technical Letter (ETL) 01-18 and applicable UFC requirements. Each rack/cabinet is anticipated to contain approximately 10kW of active equipment. Each server room may serve different levels of classification and thus have physical separation. Each space shall be provided with provisions to connect UPS system for each server room which will be contained within the common server electrical space. The server rack rows shall be provided with overhead plug-in busway for power distribution to each rack from the UPS output distribution switchboard. Contractor shall provide one busway plug-in for each rack. The busway shall be fed from a UPS output switchboard within the server electrical room.

An additional 100A208Y/120V panelboard with minimum 12 spare 20A/3P breakers shall be provided for each server room fed from the UPS output switchboard for future loads to be connected by the User. An emergency shut-down mushroom pushbutton (with protective cover) shall be provided in each server room to shut down power into the space in accordance with National Electrical Code Article 645. The UPS systems shall be furnished by Contractor. The UPS system shall be one system consisting of multiple modules serving all five server spaces.

Modules shall be sized and configured with an "N+1" configuration, and all modules shall have the capability of being taken offline for maintenance while the other modules carry the load with no interruption to the server load. The overall UPS system "N" capacity shall be loaded no greater than 80 percent of nameplate rating. Battery strings shall be sized to provide a backup time of a minimum of 8 minutes. Batteries shall be Valve regulated lead–acid (VRLA) type within enclosed cabinets.

4. BACKGROUND INFORMATION: Contract W9123820C0012 was awarded to Hensel Phelps (12121 Grant Street Suite 410, Thornton, CO 80241) (hereinafter Contractor) to complete the GBSD MIF project located at Hill AFB, Utah, on 16 July 2020.

This project is a design-build contract, therefore the Contractor is required to perform design work prior to construction. The GBSD MIF will allow the consolidation of both government and contractor personnel into one secured government-owned and managed facility. The Complex includes a three story 160,000 SF mixed use Sensitive Compartmented Information Facility (SCIF) building with high bay labs, auditorium, and office space. This facility is generally comprised of private and open office areas, auditorium, conference rooms, laboratories, secure access programs (SAPs), storage areas, receiving/dock area, restrooms, communications rooms, mechanical/electrical support spaces and a separate parking garage containing 700 vehicle spaces. It will provide the necessary facilities and the required security measures for personnel to perform work in a controlled, classified environment, in accordance with the GBSD Security Classification Guide. Site modifications include a paved drop-off drive on the west (main entrance) side of the building, fenced loading area, trash/recycling receptacle storage area and the demolition of an existing RV lot, to be reconstructed at a location off-site.

Contract W9123820C0012 award included base CLIN 0001 with exercised option CLINs 1002 and 1003 to complete:

Base 0001 - Design-Build Mission Integration Facility (160,000 square foot mixed use facility)

Option 1002 - Construction of 315,000 square foot Parking Garage Area Addition Option 1003 - Construction of Auditorium Addition

Seven (7) CLINs for optional work were also included in the contract, as follows:

Option 1001 – 236,250 square foot Parking Garage Area Addition Option 1004 - Auditorium – Audio / Visual Option 1005 - MIF - Electronic Security System Option 1006 - MIF - Furniture, Fixtures, and Equipment Option 1007 - MIF - Audio / Visual Option 1008 - MIF - UPS Option 1009 - MIF - Server Room Cabinet

In accordance with FAR Clause 52.217-7, Option(s) for Increased Quantity-Separately Priced Line Item, CLINS 1004 through 1009 were required to be exercised within 365 calendar days after the Notice to Proceed date of 17 August 2020. USACE included this work as optional CLINs since the funding was not available at time of contract award. However, the required funding was not received within 365 calendar days.

The total cost of the work associated with expired CLINs 1005 and 1008 is presently estimated to be . Contractor included all optional CLINS in its proposal as part of the original GBSD MIF solicitation with a total cost for CLIN 1005 and 1008 of . USACE cost estimators attribute the new estimated cost of to current economic conditions due to inflation. Material costs have also increased significantly from the pandemic and subsequent supply chain shortages as seen on recent change order modifications. It is anticipated that once the J&A is approved, the contract period of performance for the work on the expired options will extend the period of performance for an additional 30 calendar days.

5. AUTHORITY CITED:

The statutory authority permitting other than full and open competition for the proposed modification is Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements 41 U.S.C. § 3304(a)(1); FAR 6.302-1(a)(2)(iii)(A) & (B); DFARS 206.302- 1, (PGI) 206.302-1 & AFARS 5106.302-1. FAR 6.302-1(a)(2) provides: “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.”

6. REASON FOR AUTHORITY CITED:

FAR 6.302-1(a)(2)(iii)(A) & (B) identifies circumstances under which use of this authority may be appropriate, and include, but are not limited to, “Substantial duplication of cost to the Government that is not expected to be recovered through competition; or (B) Unacceptable delays in fulfilling the agency’s requirements.”

A. Original Source. Hensel Phelps is the original source of the work and awardee of contract

W9123820C0012. The requirement was solicited on a full and open competitive basis and was awarded using the procedures of FAR 15, Contracting by Negotiations, Source Selection Procedures. Market Research was conducted with seven (7) contractors being interested, and nine (9) contractor proposals were received in response to the solicitation.

Hensel Phelps was determined to represent the best value offeror for the requirements in the Design-Build RFP. Hensel Phelps has successfully constructed over 46% of the GBSD MIF project under Contract W9123820C0012 and is highly familiar with this project. The completed scope under the awarded contract includes construction of the MIF facility, three story parking garage, and the supporting underground infrastructure.

B. In-Scope Modification. Adding the work described in paragraph 3 as a follow-on contract action (i.e., modification to contract W9123820C0012) is the most expedient and cost-effective means to meet the project requirements. The SPK office examined several alternatives for fulfilling this requirement: 1) use of full and open competitive procedures, 2) proceeding with an in-scope modification to Contract W9123820C0012. The first alternative would not allow for performance to begin immediately. Which would delay the User from obtaining the enhanced facilities capabilities supporting mission requirements before contract completion and result in a substantial duplication of costs to the government. The only reasonable alternative is to select a single responsible contractor near the work required. The responsible contractor Hensel Phelps has already successfully constructed a significant portion of the GBSD MIF project. The completed scope is described in paragraph above.

C. Highly Specialized Services. (FAR 6.302-1(a)(2)(iii)) The construction services provided for this project are highly specialized as evidenced by both the special standards of responsibility included in the original procurement. Additionally, Hansel Phelps has valuable knowledge and extensive experience designing and constructing building foundations, slabs, and steel structures with multiple communication rooms including UPS for temporary backup power and components for secure areas. Hansel Phelps has a comprehensive knowledge and familiarity with the project site and is currently onsite and ready to start additional work. Hansel Phelps has also developed crucial relationships with local entities to include the installation security officers.

D. Substantial Duplication of Costs: (FAR 6.302-1(a)(2)(iii)(A)) Duplication of costs are not expected to be recovered through competition. Competition and award to a new Contractor would cause unacceptable delays and result in excessive general conditions/fixed costs. General conditions include costs incurred at the jobsite for supervision and administration of the overall contract. Fixed costs are costs that are set over a specific period; these costs remain the same for the duration of the project. If awarded to another contractor, it is estimated that USACE would be forced to pay general condition and fixed costs on the project for up to an additional year. Potential duplicative costs include mobilization, retaining an existing field office staff, retaining security staff, and avoiding bringing on new subcontractors that aren’t familiar with the project area.

If the current contract is modified to add the work, the Contractor can perform immediately and address the critical circumstances of obtaining the long lead equipment items. For example, if the expired optional CLIN for the ESS (CLIN 1005) were included into the contract, Hensel Phelps could begin the process of procuring the long lead items. For a new contractor to complete the ESS, it would take up to three months to obtain approval of pre-construction submittals including, safety plans, and schedule reviews, in addition to the time and costs to the project to re-procure through the process of competition.

The following table identifies costs USACE paid under the existing contract, which would be duplicated if a new contract were pursued:

Table 1- Cost Benefit Analysis

Feature of Work Anticipated Duplicative Costs Mobilization $125,000.00 Permits and Approvals $10,000.00 Accident Prevention Plan $9,500.00 Project Schedules $12,250.00 Activity Hazard Analysis $9,500.00 Contractor Quality Control Plan $9,500.00

Total $175,750.00

It is estimated that USACE would incur duplicative contract costs in the amount of approximately $175,750.00 if the required action were competed using full and open competition, in addition to the potential for cost escalation due to completing the work of another contractor. USACE considers the duplication of costs to be substantial and pricing for this would more than likely increase significantly if this is not awarded in a timely manner. In addition, the administrative costs for completing a new request for proposals (RFP) procurement, including the time, and cost it takes for USACE personnel to compete a new RFP would take an additional 691 hours and $94,375.00 for labor.

E. Unacceptable Delays. (FAR 6.3021(a)(2(iii)(B)) The work in CLINs 1005 and 1008 must be completed by the current Contractor to ensure the facility includes the mission enhanced capabilities prior to the Using agency occupying the facility. CLIN 1005 and 1008 are critical to provide mission enhanced capabilities for the Using agency. In the absence of an active contractor on site, there is an immediate risk that existing work would be unprotected during the period of re-procurement, submittal approval, and mobilization by a new contractor. Delays could affect the User’s ability to perform classified workload and critical tests within the facility until the enhanced capabilities are installed under a separate contract as mentioned in above paragraph D.

7. EFFORTS TO OBTAIN COMPETITION:

a. Notice of Intent to Sole Source: With the purpose to obtain competition for this acquisition the Contracting Officer posted a Notice of Intent (NOI) to Sole Source on the Government Point of Entry (GPE) at SAM.gov.

b. The intent was to allow all responsible sources to submit a capability statement which shall be considered by the agency. The NOI was posted on 23 June 2022 with a due date of 8 July 2022. No responses were received in response to the NOI.

c. Effective Competition: Based upon the information in paragraph 6, competition for this action is not feasible. Hensel Phelps is the only source with the technical expertise and readiness to assure completion and meet the agency’s need to further enhance the mission requirements for the facility.

d. Subcontracting Competition: Subcontracting competition will be achieved via incorporation of the work into the existing contract via modification, and accordingly is covered by its current Subcontracting Plan.

8. ACTIONS TO INCREASE COMPETITION:

As stated below in the Market Research section and above in the Efforts to Obtain Competition section, an NOI was posted to see if industry was interested in this work, and no responses were received. This work was already part of the larger contract, which was solicited with nine contractors responding. With no responses to the NOI, all reasonable efforts to increase competition for this work have been taken; it was never intended to be a separate standalone contract, but rather options.

9. MARKET RESEARCH:

An NOI was posted to the GPE at SAM.gov on 23 June 2022 for a period of 15 days. The Government did not receive any responses to the NOI. This will be a modification for the ESS and UPS to meet the requirements for the increased security and backup power support for servers in multiple rooms.

10. INTERESTED SOURCES:

Based on the NOI that was posted to SAM.gov, to date no other sources have written to express an interest.

11. OTHER FACTS:

The additional funding will come from the User as indicated by the Funding Assurance Letter dated 10 November 2021.

12. TECHNICAL 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.

, Resident Engineer Signature

13. REQUIREMENT 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.

, Project Manager

14. FAIR AND REASONABLE COST DETERMINATION:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. This will be determined by conducting a detailed cost/price analysis of the offeror’s proposal, taking into consideration all pertinent information including field pricing assistance, audit reports and technical analysis, fact-finding results, independent Government cost estimates and price histories. The Contractor will be required to submit their price/cost proposal IAW FAR Part 15, and Certified Cost or Pricing Data will be required IAW FAR 15.403- 4.

, Contracting Officer

15. CONTRACTING OFFICER CERTIFICATION:

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

Contracting Officer

Reviewed:

Date: _

Senior Contracting Official- Dallas Regional Counsel U.S. Army Corps of Engineers

Approval

Based on the foregoing justification, I hereby approve the modification of the GBSD MIF facility Option 1005: MIF Security Servers and Option 1008: MIF UPS for the estimated amount of on an other than full an open competition basis pursuant to the authority of FAR 6.302-1(a)(2)(iii)(A) and FAR 6.302-1(a)(2)(iii)(B), subject to availability of funds, and provided that the services or property herein described have otherwise been authorized for acquisition.

Date:

USACE Alternate Advocate for Competition

File details come from the government source that posted it. Updated .