Redacted_FINAL_JA_PacificJunctionIA_Clean_08Apr2019.pdf

FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

OTHER THAN FULL AND OPEN COMPETITION

PROJECT/EQUIPMENT: CONTROL NO: CECT-NWO-19-14

After-the-Fact J&A for Pacific Junction/Glenwood Water Treatment Facility in Pacific Junction, Iowa AUTHORITY: 10 U.S.C. 2304(c)(2) as implemented by FAR 6.302-2, Unusual and Compelling Urgency.

AMOUNT: $990,402

Control No.: CECT-NWO-19-14

AFTER-THE-FACT JUSTIFICATION AND APPROVAL (J&A)

FOR OTHER THAN FULL AND OPEN COMPETITION

PACIFIC JUNCTION/GLENWOOD WATER TREATMENT FACILITY - PACIFIC JUNCTION,

IOWA

1. CONTRACTING AGENCY: United States Army Corps of Engineers, Northwestern Division, Omaha District (NWO), Contracting Division, Civil Works Branch (CECT-NWO-C), 1616 Capitol Avenue, Omaha, NE 68102.

2. DESCRIPTION OF ACTION: A firm fixed-price contract was executed for the construction of initial flood protection structures and all ancillary work and features around the water treatment facility east of Pacific Junction, IA. The contract was funded with Flood Control and Coastal Emergency (FCCE) Class 210 funds.

a verbal approval request was sent to the Office of Senior Contacting Official (SCO) on April 1, 2019 with approval received the same day.

The award was in the amount of $990,402.

3. DESCRIPTION OF SUPPLIES/SERVICES OR NATURE OF CONSTRUCTION: The project generally consisted of construction of initial flood protection structures and all ancillary work and features to include sand berms and rock access roads in order to access the water treatment facility and well to perform repairs and restore drinking water to Pacific Junction and Glenwood, IA. This treatment plant is located 1.3 miles east of Pacific Junction. The current flood which breached the Missouri river levees had inundated the water treatment plant by 8-9'. Due to the "bowl"-like nature of the topography in this area, it is difficult to get water out of the area so that employees can get into the treatment plant and begin trying to get it back online. The purpose of this action was to provide initial flood protection at the water treatment facility and well to allow for dewatering and repairs of the water production system in order to restore the drinking water.

The solicitation for this requirement had no options and neither did the contract award. The period of performance was advertised as 96 hours (4 calendar days) and was revised under Amendment 0001 to 5 calendar days after the notice to proceed.

4. AUTHORITY CITED: 10 U.S.C. 2304(c)(2), as implemented by FAR 6.302-2, DFARS 206.302-2(b) and PGI 206.302-2(b)(i) – Unusual and compelling urgency.

5. REASON FOR AUTHORITY CITED: Expedited contracting procedures using limited competition were necessary to advertise, award, and perform a time-critical initial flood protection structures in order to dewater and access the water treatment facility and well.

a. Background.

A bomb cyclone storm dumped one (1) to three (3) inches (with localized higher amounts) of warm rainfall on a heavy wet snowpack across the region between Tuesday, March 12 and Thursday, March 14. The rain fell on a plains snowpack that held 3 or more inches of snow water equivalent in Nebraska and Iowa with event higher amounts in southeastern South Dakota. In north central South Dakota and North Dakota that snowmelt is forecast to occur in the coming weeks. A frost depth of up to 2 feet across the region resulted in significant runoff from the snowmelt and rainfall. Waters from this flood event came from tributaries that enter the Missouri River below the large main stem storage reservoirs. Mountain snowpack is at or slightly above normal (99% in the Garrison reach and 102% in the Fort Peck reach), Plains soils are very saturated and frost depths of up to 5 feet remains across the northern plains. Plains snowpack in South Dakota and North Dakota has a snow water equivalent 3-8 inches with some places reporting higher levels. More flooding is forecasted on the James, Vermillion and Big Sioux River basins from snowmelt. These three rivers flow unregulated in South Dakota to the Missouri River. This flooding will cause the Missouri River stages from Sioux City to Rulo, Nebraska to remain high with slight increases possible. These second peaks are not forecasted to be higher than the recent peak stages we have witnessed.

The issue at hand is widespread unregulated flows across western Iowa, eastern Nebraska and southeastern South Dakota which have caused devastating flooding on multiple tributary streams and extensive overtopping and breaching of the Missouri River levees south of Omaha.

The Missouri River levee system has been severely compromised. Emergency management teams continue to support local, state, and county flood fight actions and the district is establishing a 2019 Omaha System Restoration Team to expedite advanced interim measures as well as overall restoration of the federal levee system along the Missouri River.

A significant portion of the more than 500 miles of levees on the Missouri, Platte, and Elkhorn rivers have experienced flood damaged. USACE Omaha is currently tracking more than fifty

(50) breaches to address. The Platte, Niobrara and Elkhorn Rivers along with other unregulated tributaries overwhelmed the Missouri River levee systems. The record river levels exceeded the levee systems’ design capacity from Omaha to Rulo, Nebraska and into the Kansas City District AOR. The enormous river flows severely compromised Federal and Non-Federal levee systems downstream of Omaha on the Missouri River as well as south of Fremont, NE on the Platte River.

The States of Iowa and Nebraska recently declared a local state of emergency, allowing the states to seek assistance from the federal government. Impact of further flooding would be catastrophic. USACE must provide expeditious contracting solutions to ensure prompt and comprehensive emergency operations to fulfill this critical levee protection mission. Damaged communities will face additional serious health and safety hazards, both personal and ecological, and devastating economic loss if repair efforts are delayed.

b. Justification.

The current 2019 spring flood breached the Missouri river levees and inundated the Pacific Junction/Glenwood Water Treatment Facility by 8-9'. Plans and specifications for these initial dewatering and repairs were completed on March 28, 2019 allowing just several days to advertise, award and construct the initial operations. The towns were bringing in 40 truckloads of water a day and pumping it into one of their low pressure water towers in order for their communities to have a minimal supply of water. Facilities such as the local school were closed due to the unavailability of water. Consequently, expedited contracting procedures were utilized. Solicitation was issued via email to all interested vendors on 1 April. A site visit was held on 2 April with bid opening occurring on 3 April. Amendment 0001 was issued on 2 April to update the material and to extend the period of performance to five (5) days after Notice to Proceed. Award was made on 3 April to a Service-Disabled Veteran-Owned Small Business (SDVOSB), Advanced Trenching and Utilities, LLC of Omaha, NE in the amount of $990,402.00.

c. Impact.

Based upon the breach of the Missouri River and the subsequent flooding which inundated the Pacific Junction/Glenwood Water Treatment Facility, a no action alternative could have continued to pose a significant threat to human life, infrastructure, property, and damage to surrounding environment near Pacific Junction and Glenwood, Iowa. If no action was taken, the towns of Pacific Junction and Glenwood, Iowa would still be without an adequate water supply.

The water treatment plant serves about 5,700 people between the two towns. This flood event also affected the local businesses and schools as they cannot operate without a sufficient water supply. The flood waters also contaminated the water treatment plant which polluted the drinking water. Flood waters can also cause the growth and spread of disease and mold. If the initial flood protection structures and all ancillary work and features around the water treatment facility had not been repaired immediately, the threat and damages as stated above could have increased significantly.

d. Alternatives.

Competitive sealed bidding procedures were utilized as there was a defined scope of work, quantities, and time to contact interested parties. The only alternatives were issuing a task order under the Rapid Disaster Infrastructure (RDI) or use of a letter contract. RDI is a MATOC requiring a source selection process. The prime contractors under RDI are not local to western Iowa and would have taken longer to mobilize and establish local contacts. A letter contract could have been awarded to a local contractor, but it would be undefinitized and also put the contracting officer in weak negotiating position, possibly resulting in an unreasonable price. A competitively bid contract that allows maximum participation of local contractors is the most expeditious acquisition strategy and it realizes the benefit of competition as envisioned by the Competition in Contracting Act.

6. EFFORTS TO OBTAIN COMPETITION: Competition was sought to the maximum extent possible given the circumstances. Contracting personnel contacted approximately seventy-five

(75) firms in the Nebraska area by email to advise them of the site visit and bid opening time on April 1, 2019. Approximately ten (10) companies attended the site visit on April 2, 2019. Four

(4) bids were ultimately received.

7. ACTIONS TO INCREASE COMPETITION: Approximately seventy-five (75) companies received e-mail notifications of the contracting opportunity. See Paragraphs 6 and 8 for additional explanation.

8. MARKET RESEARCH: Market research consisted of a contract specialist conducting market research to identify interesting sources using FBO, internet searches, and recommendations from the local levee sponsor. At the time market research was conducted, there were seventy-five (75) firms identified as being interested parties. To date, over ninety (90) interested parties are included in the Omaha District’s 2019 Interested Vendor listing and the list continues to grow daily. All parties capable of performing specific requirements continue to receive e-mail notifications of contracting opportunities.

9. INTERESTED SOURCES: This action was not synopsized due to the time critical nature of the requirement and is covered by an exception under FAR 5.202(a)(2). Efforts were made to ensure that bids were solicited from as many potential sources as practicable. Ten (10) companies attended the pre-bid conference and site visit. It is possible that other interested sources existed, but were not able to respond on the short notice provided.

10. OTHER FACTORS: Due to the unusual and compelling urgency of threatening life, health, and safety, the contracting officer waived the following: synopsis; small business coordination;

legal review; bid guarantee; performance and payment bonds; small business subcontracting plan; and several clauses that are not practical or enforceable under the emergency circumstances. These activities or contract features were not feasible to accomplish in the short duration available for this acquisition, especially considering a deployed contracting officer utilizing paper copies. The typical sealed bid procurement takes approximately 90 days to complete once a requirement is received, including 45 days for pre-award activities and 30 days for advertisement. By using these expedited contracting processes, the contracting officer went from requirement to award in less than 3 days. If this expedited process was not used, approximately 5,700 people in the towns of Pacific Junction and Glenwood, Iowa would still be without a sufficient, clean water supply.