W9127823R0062_DF Consolidation_Redacted.pdf

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Special Notice - Two Phase DB and Construction IDIQ - MRDC
Solicitation number
W9127823R0062
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This document is a justification memo for a two-phase design-build and construction indefinite-delivery, indefinite-quantity (IDIQ) multiple award task order contract (MATOC) solicitation to be issued by the Mobile District of the U.S. Army Corps of Engineers. The MATOC will provide design and construction services at various military and Department of Veterans Affairs medical facilities. Task orders under $5 million will be set aside for small businesses, while larger, more complex projects involving direct patient care or specialized laboratories are expected to be unrestricted due to limited small business experience. The justification memo analyzes the applicability of principles regarding bundling under the Competition in Contracting Act, concluding the consolidation of requirements is necessary to achieve economies of scale and streamline acquisition given the customer's needs. The related solicitation will be issued under number W9127823R0062 for the two-phase DB and construction IDIQ MATOC.

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Technical Representative, and Small Business Representative will thoroughly assess all projects prior to release of the RFP to determine if the projects are appropriate to send to the reserve or the entire pool. The decision whether to use the small business reserve will be based on FAR Clause 52.219-32, FAR 19.504(c), and/or the rule of two. To determine if the rule of two is met, the type of work, location, complexity, and dollar value of the projects will be reviewed to determine if two or more small businesses in the MATOC pool demonstrated past experience on similar type projects. For example, projects that involve Direct Patient Care or Complex Laboratories (BSL and AAALAC) are complex projects and will likely be determined to be solicited unrestricted as market research revealed there was only one small business who demonstrated experience with Direct Patient Care and Complex Laboratories. Similar to how the SF330s are reviewed in selecting on an A-E task order, contractors’ proposal submissions to this solicitation will be taken into consideration when determining if the rule of two is met to set-aside a task order for the reserve.

c. Definition of the Competition in Contracting Act (CICA) Bundling Principle. This principle, as developed by the Government Accountability Office (GAO) case law, focuses on whether the combined requirement (new, old, or otherwise) restricts competition, and whether the agency is consolidating or bundling a new requirement unnecessarily. In order to justify CICA Bundling the agency must show "a reasonable basis for why the bundling is necessary to meet the agency need." (Vantex Serv., Inc., B-29041 5, Aug. 8, 2002 and Outdoor Venture Corp., B-299675; B-299676, Jul. 19, 2007).

CICA requires solicitations to provide for full and open competition except where restrictions on competition are necessary to satisfy the procuring agency’s needs. In such a case, restrictions on competition are allowed. Bundled procurements combining separate requirements into one contract have the potential to restrict competition by excluding firms that can provide only a portion of the bundled requirement. However, combining like and related efforts to achieve economies of scale and eliminate duplication of effort, consistent with industry practice and market research is a reasonable basis for bundling requirements, though it may have the effect of restricting competition. All the acquisition approaches discussed above implicate CICA bundling, though in varying degrees.

d. Applicability of CICA Bundling Principle. Although this action constitutes CICA bundling by combining like and related construction and MILCON support with design capabilities, it is consistent with industry practice and necessary to satisfy the customers’ needs.

This procurement will allow the Mobile District to leverage economies of scale, streamline acquisition cycles, and eliminate duplication of efforts by establishing a MATOC with responsive and responsible contractors to perform individual task orders as the need arises. This is critical given the mission of the DHA in providing patient care. See above paragraphs 5.a.(3)(a) and 5.a.(3)(b). Additionally, the government has independent statutory authority to proceed as proposed - to fulfil these requirements via an unrestricted MATOC business concern with a Small Business reserve.

7. Considerations, facts, and reasoning supporting the determination: All facts, considerations, and rationale have been covered previously in the findings. All concur that consolidation of this requirement is both necessary and justified.

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