W9127824D0030-0037_P00001_MATOC Capacity Increase 35M_1_Redacted.pdf

CUI

J&A Control # 26-0015

Justification and Approval (J&A) For

Other Than Full and Open Competition

1. Requiring Activity: Department of the Army, United States Army Corps of Engineers (USACE), Mobile District (CESAM).

2. Contracting Activity: U.S. Army Corps of Engineers (USACE), Directorate of Contracting, Mobile Regional Contracting Center, 100 Canal Street Mobile, AL 36602-1901.

3. Description of Action: Approval of this J&A is requested to increase the ceiling capacity of eight Multiple Award Task Order Contract (MATOC) Indefinite Delivery Indefinite Quantity (IDIQ) contracts numbered W9127824D0030 through 0037, issued from solicitation number W9127818R0004, which was set-aside for small business (SB), for General Repair and Construction within the Mobile District - North Region. The additional capacity will support the T7 Flight Simulator Renovation at Columbus AFB, Mississippi. Task Orders are anticipated to be funded with Army Operation and Maintenance (O&M) and Military Construction (MILCON) funds.

4. Description of Supplies/Services: The services covered under the contracts include comprehensive design, repair, and construction support for real property, facilities and their associated systems and components. These efforts primarily support military construction requirements within the North Region of the Mobile District. The current SB MATOC IDIQ was awarded in July 2024 with an initial ceiling capacity of $200M, which has been depleted faster than anticipated because the costs of projects awarded thus far have been much higher than originally estimated. is fully allocated to pending, planned projects, as the costs of previously awarded projects under this MATOC were much higher than initially anticipated. in capacity is required to accommodate an emergent, mission-critical requirement: the Design-Build (DB), Sustainment, Restoration, and Modernization (SRM) funded T7 Flight Simulator Renovation at Columbus AFB, Mississippi.

This project was delayed by user-driven requirement changes, leaving insufficient time to execute a stand-a-lone two-phase procurement. Therefore, it is necessary to add capacity and execute the project under this MATOC within FY26 to ensure on-time delivery, avoid expiration of funds, and meet forecasted Air Force operational requirements.

The summary for additional capacity needed to fulfill the remaining FY26 SB MATOC requirements is summarized below:

Current Capacity:

Current Capacity Used:

Current Capacity Earmarked for Pending Awards:

Capacity Needed to Execute T-7 Simulator:

Total new adjusted Capacity:

This action seeks to increase the SB MATOC IDIQ ceiling by to account for unforeseen cost escalations encountered since the initial solicitation in 2018, which exhausted the capacity buffer originally intended for emergent work and to specifically accommodate the addition of the T7 Flight Simulator Renovation project. The capacity increase will ensure the Mobile District maintains an efficient contracting mechanism to meet mission requirements and provide a necessary buffer against market volatility and inflation, while minimizing award lead times and preserving competition among eight small businesses with proven performance records until the successor MATOC is awarded.

Table 1 below offers a listing of the eight IDIQ contract holders.

The requested ceiling increase ensures award for the T-7 Simulator Renovation while the Mobile District completes the follow-on competition. The successor requirement is currently in the Phase One proposal review stage, with an anticipated award in the second quarter of FY27.

Approval of this capacity increase is necessary to maintain critical operational capabilities and prevent a service gap during the transition to the new contract vehicle.

5. Authority Cited: The statutory authority permitting acquisition of this requirement by other than full and open competition is 10 United States Code (U.S.C.) 3204(a)(2) as implemented by RFO 6.103-1(c)(2)(ii), allows for other than full and open competition when the services required by the agency are deemed available from only the original source for the continued provision of highly specialized services, the interruption of which would result in unacceptable delays in fulfilling the agency's requirements.

orders executed under this suite of MATOCs will continue to utilize the robust competition available among the eight MATOC holders.

9. Market Research: A notice of intent was posted to SAM.gov on 11 May 2026 indicating the Government’s intention to increase the capacity of the MATOCs. The notice closed on 26 May 2026 with one response received from South Eastern General Contracting, Inc. (SEGC). While the offeror self-certifies as an 8(a) and HUBZone small business, award cannot be made within 90 days; therefore, an increase to the capacity of the existing MATOCs is in the best interest of the Government.

Additionally, the current MATOC holders were queried for interest and bonding capabilities and 6 out of the 8 members responded with positive interest.

10. Interested Sources: To date, one source expressed interest in this requirement as discussed in Section 9 Market Research.

11. Other Facts:

a. Procurement history: This was a new requirement at the time of award. These MATOC contracts were originally awarded in strict accordance with the Federal Acquisition Regulation (FAR), with selection conducted on a "most highly qualified" basis to ensure technical excellence. At the time of award, the contractors' price schedules were verified as fair and reasonable.

b. Other Facts: N/A

11. 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.

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. All task orders will be competed among the eight (8) existing Contract Holders to determine the most highly qualified offer with fair and reasonable pricing determined with comparison to the Government estimate.

Certified Cost and Pricing will be obtained as applicable.

Approval

Based on the foregoing justification, I hereby approve the procurement of Mobile District Small Business MATOC for General Repair and Construction on an other than full and open competition basis pursuant to the authority of RFO 6.103-1(c)(2)(ii) and is 10 United States Code (U.S.C.) 3204(a)(1) in the amount of $35,000,000.00. The approval is subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Approved By:

Date: See Signature

Command Advocate for Competition U.S. Army Corps of Engineers