JA-RDI_$90M_Capacity_Increase-_final-redacted___Redacted.pdf

JUSTIFICATION REVIEW DOCUMENT

OTHER THAN. FULL AND OPEN COMPETITION J

PROJECT/EQUIPMENT: CONTROL NO: CECT-NWO-19-01

Modification to increase contract capacity of the Rapid, Disaster, Infrastructure Multiple Award Task Order Contracts W9128F-14-D-0023/0024/0034 - Unrestricted [Northwestern Division

(NWD)]

AUTHORITY: 10 U.S.C. 2304(c)(2) as implemented by FAR 6.302-2, Unusual and Compelling

Urgency.

AMOUNT: $90,000,000

PREPARED BY:

NAME:

PHONE:

DATE: 24 OCT 2018

CONTRACTING OFFICER

TECHNICAL

REQUIREMENTS

SIGNATURES ARE REQUIRED BELOW

I have reviewed this J&A and find the justification adequate to support other than full and open compef1fton.

SMALL BUSINESS

SPECIALIST

SIGNATURE:

DATE: 24 OCT 2018 ·

r

BRANCH MANAGER

DISTRICT COUNSEL

DISTRICT CONTRACTING

CHIEF

FIELD COMPETITION

ADVOCATE

Control No. CECT-NWO-19-01

FOR OFFICIAL USE ONLY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. CONTRACTING AGENCY: U.S. Army Corps of Engineers, Northwestern Division, Omaha District (NWO), Contracting Division, Environmental Branch (CECT-NWO-E), 1616 Capitol Avenue, Omaha, NE 68102.

2. DESCRIPTION OF ACTION:

a. Request approval to process a modification to the Rapid, Disaster, Infrastructure (RDI) Response Multiple Award Task Order Contract (MATOC) to increase the overall capacity by $90,000,000 to provide time-sensitive disaster response and recovery and infrastructure repairs. The unrestricted contracts under this MATOC are held by AMEC-CAPE W9128F-14-D-0023, Weston Solutions Inc. W9128F- 14-D-0024, and Aptim Federal Services LLC W9128F-14-D-0034.

b. This increase in contract capacity is required for the U.S. Army Corps of

Engineers (USACE) to continue to execute its rapid response mission to address natural and manmade disasters along with other time-sensitive requirements involving infrastructure repairs. The request is necessitated by requirements created by catastrophic Hurricanes Michael, Florence and Maria while maintaining capabilities to meet other time-sensitive requirements covered in the

RDI scope of work. There have been task order awards of approximately

$ M to provide disaster support for Hurricanes Florence and Maria. Current estimates show approximately $ in task orders to address damages at

. To date, approximately $ M of the $345M unrestricted

RDI MATOC has been used with remaining contract capacity of approximately

$ M. The unrestricted RDI MATOCs expire in July 2019.

c. There is a newly identified requirement to extend generator power in Puerto

Rico, in support of Task Force (TF) Power, until which entails an additional cost of approximately $ M. The current task order expires on

. Unfortunately, a local contractor cannot replace the current RDI contractor since the RDI subcontractor is providing the high power generators and local contractors do not have access to those generators.

Removal of the generators before replacement generators were available would destabilize the Puerto Rico power grid affecting a residences, businesses, hospitals, and government facilities.

d. There are also three new Hurricane Lane related infrastructure repair recovery projects in Hawaii connected with localized flooding that are projected to cost approximately $ . The RDI MATOC will be used to make emergency repairs the federal levee system due to extensive flooding. Without the repairs, additional degradation of levees will take place which will put major metropolitan areas in danger of additional flooding if a major rain event takes place.

Tyndall Air Force Base (AFB) is located 12 miles east of Panama City, FL.

. In addition, the U.S. Army Corps of Engineers will not be able to support recovery efforts in Hawaii, at Tyndall AFB, and other locations, as needed, if this J&A is not approved.

Anticipated Needs

Known Work Requirements:

Amount

TF Power Modification – Puerto Rico )

Hawaii Infrastructure Repair

Projected Work Requirements:

AFB, FL Infrastructure Repairs

Contract Reserve for Modifications New Projects

Contract Reserve for Modifications On-going Projects and for Cost Reimbursement Rate Adjustments

Total Project Needs

Current Available Contract Capacity

J&A Capacity Increase $ 90,000,000

e. The RDI MATOC supports numerous other time-sensitive projects throughout the country, to include Flood Recovery and Restoration support to several impacted Dams and Levee systems and mission-critical fuel system repairs for organizations within the Department of Defense. For example, an RDI contractor is currently executing $ infrastructure repairs in the Military Ocean Terminal Sunny Point (MOTSU), which was damaged during Hurricane Florence which is a key Army ammunition shipping point on the Atlantic coast.

f. NWO may be requested to provide additional disaster response activities as they are identified. At least in contract capacity should be held in reserve to address potential modifications on these contingency operations under the RDI contracts which is the approximate amount of contract capacity remaining after these project task orders are executed. An additional $90M is needed to support the requirements identified above while additional contract vehicles are developed/awarded.

3. DESCRIPTION OF SERVICES:

a. Work being performed under the RDI MATOC consists of time-sensitive disaster response and/or recovery and infrastructure repairs including, but not limited to, flood control and water diversion projects, embankments, channel alignments and flood control structures in support of civil works missions, facilities, infrastructure, water and sanitation systems, electrical systems, natural gas and other energy systems, fences, lighting, and roads to support troop movements and other related military missions. “Time-sensitive requirements” are defined in this acquisition as requirements or projects that may require the contractor to mobilize and initiate construction actions that require immediate action for situations to minimize operational/mission impacts to the Government. Support to all federal agencies includes restoration, repair, and demolition of facilities, utilities, real property systems, and other infrastructure requirements.

b. This J&A is valued at $90M, which would increase the total contract capacity from $345M to $435M. The modification to the existing MATOC under this J&A will not change the nature of the services set forth in the scope of work, but will increase contract capacity, allowing the contractor to perform disaster response for Hurricanes Michael, Florence, Lane and Maria, as well as the other current mission requirements.

4. AUTHORITY CITED: 10 U.S.C. 2304(c)(2) as implemented by FAR 6.302-2, Unusual and Compelling Urgency.

5. REASON FOR AUTHORITY CITED:

a. Background. On 10 October 2018, Hurricane Michael made landfall on the Florida Coast as a CAT 4 Hurricane with wings up to 155 mph. As Hurricane Michael made landfall it took a northeasterly trajectory, impacting Georgia and Alabama as well.

Finally, USACE has been notified that the RDI MATOC will be used to repair levees in the federal system.

b. Justification. Due to the significant recovery and construction requirements resulting from Hurricanes Florence and Michael, there is insufficient RDI contract capacity to cover the extended Power requirements in Puerto Rico necessitated by Hurricane Maria. The Task Force power mission provides critical support to Puerto Rico residences, businesses and public facilities. Failing to continue to provide these services will severely impact public health and safety. In addition, we would not be able to support recovery efforts in Hawaii, at

AFB, and other locations, as needed.

This MATOC provides the support necessary to aid in the recovery of critical public facilities and infrastructure to return devastated areas to fully operational.

The current MATOC contractors already have a unique understanding of the requirements and necessary logistical expertise to provide such services, as well as the highly specialized technical expertise needed to respond immediately to such natural disasters.

c. Alternatives.

In addition to the Unrestricted RDI MATOC, the Government recently awarded a $95M RDI MATOC to Service Disabled Veteran Owned Small Businesses (SDVOSBs). Both contracts will be evaluated to determine for suitability for pending mission assignments. However, the more complex and extensive task orders will most likely be awarded to the unrestricted MATOC due to the larger range of resources and capabilities provided by its contractors.

Two additional RDI MATOCs are being pursued by NWO: a $95M Small Business MATOC and a MATOC. The pre-solicitation notice for the Small Business MATOC has been posted and award is expected by March of 2019. Award of the is projected to occur in July of 2019. These contracts will provide more competition, capacity and diversity in the RDI program. However, they will not be available in time to meet the ongoing mission in Puerto Rico or new requirements related to the damage caused by Hurricanes Florence, Michael and Olivia.

A new contract is not a feasible alternative since the RDI MATOC contractor has direct access to the high power generators in Puerto Rico which another contractor would not have for several months while the generators were shipped from the mainland. In addition, delays in awarding a new contract to fix the federal levees in Hawaii would put major metropolitan areas at risk if additional flooding occurs. Lastly, delays in awarding a new contract to repair the infrastructure at AFB directly affects national security.

d. Impact. Without the additional capacity requested, USACE will not have the resources needed to support the numerous and extensive recovery efforts described above.

6. EFFORTS TO OBTAIN COMPETITION:

NWO has recently awarded a $95M SDVOSB RDI MATOC and is pursuing both Small Business and an MATOCs, as described in 5.c.

These acquisitions will provide a diversity of contract vehicles that can be used to meet the Rapid Response mission while facilitating competition.

7. ACTIONS TO INCREASE COMPETITION:

Any future requirements will be competed amongst the RDI MATOC pools. As mentioned above, the upcoming SB and MATOCs will be awarded in coming months

Collectively, these contracts will significantly increase competition for RDI projects.

8. MARKET RESEARCH:

In May 2015, market research was conducted for the recently awarded SDVOSB RDI MATOC. The sources sought that was posted on FBO received eleven (11) responses by potential offerors. Six (6) of the eleven (11) were SDVOSB contractors that met the bonding capacity and criteria necessary to proceed.

Additional market research was conducted in March of 2018 to determine the capabilities of small businesses to support to our Rapid Disaster and Infrastructure mission. Twenty-four (24) responses were received from small business firms. Analysis of the information provided determined that there were eight (8) firms that met all of the criteria proposed, including capabilities to manage cost reimbursement task orders, and bonding requirements, reaffirming that a small business set-aside was feasible.

However, the market research also indicates that the small business community may not be able to handle the largest and most complex projects, such as rehabilitation of Tyndall AFB facilities since the small business firms are limited to annual revenue of $36.5M per year for North American Industry Classification System (NAICS) 236220.

So, there is a need to have Other Than Small Business firms available to perform the largest and most complex RDI projects.

9. INTERESTED SOURCES: N/A FAR 5.202(a)(2)

10. OTHER FACTS:

a. The Omaha District will post the justification within 30 days of approval of the J&A in accordance with FAR 6.305.

b. Private industry does not maintain the large quantities of equipment, supplies, and human resources necessary to respond to a disaster. When a disaster strikes, the contractors must assemble a team capable of executing the mission at hand. The Government usually requires award of a task order within ten (10) days of issuance of the Request for Proposal. This provides the contractor approximately one (1) week to develop a proposal. The contractors under the unrestricted RDI MATOC have extensive experience working on requirements that require these time frames. In addition to the limited amount of time given them to develop a proposal, the contractor must organize a team within days of the Notice to Proceed. The specific technical and performance risks and responsibilities associated with power restoration tasks during disaster response include the management and training of personnel, liability for any damage caused during operations, financial ability to mobilize enough resources in advance of payment, and interacting with other Government organizations and other contractors at the same locations. The effective management of subcontractors is critical in maintaining safety and executing the mission.

c. The challenges that drive this acquisition approach include supply and resource constraints during disasters and flexibility to accomplish unknown mission requirements. During a disaster response, all commodities are in short supply.

Utilities are not fully functional and lodging is limited. If the Government needs to restore power in a location that has suffered a catastrophic event, life support and maintenance equipment may not be available in the affected geographic area.

Contractors must transport these resources into the area and may be required to build temporary lodging for their personnel. Each disaster response is different and it is impossible to anticipate the conditions in which the contractors will be required to perform work in the immediate aftermath of any disaster.

d. Severe weather events such as Hurricane Katrina, which caused devastation throughout the Gulf Region in 2005, precipitated and solidified the need for readily available contracts that could be expeditiously executed to respond to disasters. As a result, RDI and its predecessor, the Security, Disaster, Infrastructure, Construction (SDIC) MATOC, were developed by USACE-NWO for this purpose. The parameters of the current unrestricted RDI MATOC is detailed in the table below:

Contract

Awardees

Awarded Current Period of Performance

Capacity (Shared)

Remaining Capacity

Rapid, Disaster, Infrastructure (RDI) Multiple Award Task Order Contract

(MATOC)

$345,000,000

W9128F-14-D-0023 AMEC-CAPE 16-Jul-14 1 See Above See Above

W9128F-14-D-0024

Weston Solutions

16-Jul-14

See Above

W9128F-14-D-0034

APTIM Federal Services

18-Sep-14

e. The RDI MATOC holders have DCAA-approved accounting systems to allow for both firm-fixed-priced and cost-reimbursable task orders. These contractors are regularly audited to ensure compliance with these systems. NWO supplements the DCAA audits by conducting price and cost analysis on all actions in accordance with FAR Part 15.404. NWO has operating procedures in place to review daily work plans and identify any issues prior to performance of tasks.

These daily work plans are also used as source documentation for the invoicing process to ensure only allowable, allocable, and reasonable costs are paid by the

Government. Finally, NWO has personnel that are trained in administering cost reimbursement task orders and on-site personnel that interact directly with the RDI MATOC contractors after task order award.

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.

PM-S Branch Manager

12. REQUIREMENTS 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.

PM-S Branch Manager

13.FAIR AND REASONABLE PRICE DETERMINATION: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. The original rates established in the contract were found to be reasonable using proposal analysis techniques in accordance with FAR 15.404. Additionally, the

MATOC holders will be provided fair opportunity to propose on new task orders, unless an exception to fair opportunity is properly justified and approved in accordance with

FAR 16.505. The Government anticipates competition between the firms on these actions. In addition to each firm having an approved accounting system as discussed in paragraph 10d. above, cost and/or price analysis will be conducted on each action to determine the proposed amounts are fair and reasonable and, if applicable, are realistic for the work to be performed.

Douglas E. Hadley

Contracting Officer

14. CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Douglas E. Hadley

Contracting Officer

Digitally signed by HADLEY.DOUGLAS.E.1231345414

15. APPROVAL

Based on the foregoing justification, I hereby approve modification of the Rapid, Disaster, Infrastructure Multiple Award Task Order Contracts W9128F-14-D- 0023/0024/0034 – Unrestricted NWD, in order to increase contract capacity by $90M for disaster response, including potential power system repairs in Puerto Rico, Support to Hawaii Infrastructure Repair Projects, and Support to Tyndall AFB in infrastructure repair projects as result of Hurricane Michael. This approval is made on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(2) as implemented by FAR 6.302-2, Unusual and Compelling Urgency, subject to the availability of funds and provided the services herein described have been authorized for acquisition.