A13_FINAL_Columbia_LD_After_Fact_JA.pdf

JUSTIFICATION REVIEW DOCUMENT OTHER THAN FULL AND OPEN COMPETITION

CONTROL NO. MVK-2018-00

PROJECT/EQUIPMNET:

AUTHORITY: Authority Permitting other than full and Open competition for procurement of these services Is 10 USC 2304(c)(2) and FAR 6.302(a)(2), Unusual and Compelling Urgency.

AMOUNT: $ .00

PREPARED BY

DUSTIN CANNADA

CONTRACT SCPECIALIST

TELEPHONE NO. 601-631-7546

DATE:

CONTRACTING

OFFICER

R. ELLIS SCREWS

CONTRACTING OFFICER

TELEPHONE NO. 601-631-7527

DATE:

TECHINCAL

TELEPHONE NO.601-631-5

DATE:

REQUIREMENTS

DATE:

SIGNATURES ARE REQUIRED BELOW:

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

DISTRICT SMALL

BUSINESS

SPECIALIST

NAME: DEMTRIC ERWIN DATE:

SIGNATURE: TELEPH0NE NO.

601-631-5951

PROJECT

MANAGER

NAME: DATE:

SIGNATURE: TELEPH0NE NO.

601-631-5

OFFICE OF

COUNSEL

NAME: DATE:

SIGNATURE: TELEPH0NE NO.

601-631- 0

DISTRICT

CONTRACTING

CHIEF

NAME: LYNNIESSE COSEY MAYFIELD DATE:

SIGNATURE: TELEPH0NE NO.

601-631-5837

FIELD

COMPETITON

ADVOCATE

NAME: DATE:

SIGNATURE: TELEPH0NE NO.

601-631-5016

ERWIN.DEMETRIC.T

HOMPSON.1230772

Digitally signed by

ERWIN.DEMETRIC.THOMPSON.1230772092

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=ERWIN.DEMETRIC.THOMPSON.1230772092 Date: 2018.09.18 15:57:13 -05'00'

BARFIELD.LANN

Y.B.1230785062

Digitally signed by

BARFIELD.LANNY.B.1230785062

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=BARFIELD.LANNY.B.1230785062 Date: 2018.09.19 07:25:44 -05'00'

FINCH.STEVEN.HA

NDLEY.1270607035

Digitally signed by

FINCH.STEVEN.HANDLEY.1270607035

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=FINCH.STEVEN.HANDLEY.1270607035 Date: 2018.09.18 13:36:53 -05'00'

COSEY

MAYFIELD.SARAH.LY

NNIESE.1256607286

Digitally signed by COSEY

MAYFIELD.SARAH.LYNNIESE.1256607286

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=COSEY

MAYFIELD.SARAH.LYNNIESE.1256607286

Date: 2018.09.19 09:19:58 -05'00'

BROOKS.STEPHEN.

VINCENT.12773728

Digitally signed by

BROOKS.STEPHEN.VINCENT.1277372807

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=BROOKS.STEPHEN.VINCENT.1277372807 Date: 2018.09.19 09:34:46 -05'00'

18 SEP 2018

18 SEP 2018

18 SEP 2018

18 SEP 2018

18 SEP 2018

19 SEP 2018

18 SEP 2018

18 SEP 2018

18SEP18

FOR PARC-ATL CONCURRENCE

PARC COUNSEL

NAME: DATE:

SIGNATURE: TELEPH0NE NO.

PARC ATLANTA

NAME: DATE:

SIGNATURE: TELEPH0NE NO.

Control #: MVK-2018-0051

For Official Use Only

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity:

The U.S. Army Corps of Engineers, Vicksburg District Contracting Office, 4155 Clay Street, Vicksburg, MS 39183-3435.

2. Description of Action:

On 10 July 2018, approval was received from the USACE Command Competition Advocate to negotiate and award the subject contract pursuant to the authority at FAR 6.302-2 - Unusual and Compelling Urgency, with further approval to complete an after-the-fact J&A with an estimated value of $10,000,000. This was in response to severe foundational undermining at the Columbia Lock and Dam #4 located on the Ouachita River. The emergency specifically involved voids being discovered beneath the landside wall of the lock chamber and a large sand boil that was moving foundation material from the lock chamber out into the downstream approach channel. The boil, in conjunction with the voids beneath the lock wall, potentially endangered the integrity of the lock structure’s ability to maintain the upper pool level. Due to the dual concerns of structural failure and the potential inability to maintain upper pool, a dam safety emergency was declared by Vicksburg command elements and navigation was suspended to all marine traffic through the lock. Accordingly, firm fixed price construction contract no. W912EE18C0012 was awarded to Massman Construction Co. on 16 August 2018 for Ouachita and Black Rivers, Caldwell Parish, LA, Columbia Lock and Dam Seepage Repair, Ouachita River.

Project funds appropriation: 96 x 3123 in the amount of $9,854,000.00 were reserved for this work.

3. Description of Supplies/Services:

The contract was awarded for the base amount of $9,854,000.00 with three options totaling $1,105,475.00, to be exercised as funding becomes available, for a total contract value of $10,959,475.00. The contractor is required to complete the entire work ready for use not later than 120 calendar days after the date the contractor received the notice to proceed.

The work consists of furnishing all plant, labor, materials and equipment, and construction related to the emergency seepage repairs at the Columbia Lock and Dam, located on the Ouachita River in Caldwell Parish, Louisiana. Principal features of work include mobilization and demobilization; excavating and backfilling of stone protection; installing new sheet piling; sub-aqueous grouting of scour holes and sheet piling; placement of stone protection within scour holes; installation and dewatering of new relief wells; foundation drilling/coring and grouting beneath concrete approach aprons and lock walls; removal of existing concrete blocks, construction of new concrete lock chamber blocks, and placement of new and existing concrete lock chamber blocks; exploratory drilling and sampling; site monitoring including surveying and reading of piezometer and relief well data; web camera system; storm water pollution prevention, and environmental protection.

4. Authority Cited:

10 U.S.C.2304(c)(2), as implemented by the Federal Acquisition Regulation (FAR) - 6.302-2 Unusual and Compelling Urgency. When the Agency’s need for the supplies or services is of such an unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals, full and open competition need not be provided for. This authority has also been found to be applicable to situations where delay in award of a contract would result in serious injury, financial loss or other harm to the general public.

5. Reason for Authority Cited:

The US Army Corps of Engineers has statutorily assigned missions, which include maintaining civil works projects such as the Columbia Lock and Dam, for the benefit of the public. Letting the lock and dam fail by allowing the sand boil to go uncorrected would affect life, health, and safety of the citizens the lock and dams were created to protect.

Additionally, the government would be harmed as the assigned mission would fail and negative public opinion would result. The proposed procurement meets the criteria for exclusion from full and open competition under the authority cited due to the urgent and compelling reasons, in that a delay in award would result in serious injury, financial, or other to the Government.

Background

On 24 January 2018, annual underwater surveys of the channel around Columbia Lock and Dam were received that showed a loss of foundation material. This indicates that a sand boil was undermining the lock chamber itself. The issue was temporarily controlled by maintaining upper pool level within the lock chamber. A seepage model and design repair was started in March 2018, with the intention of being completed in the first quarter of FY19.

On 05 June 2018, a new sand boil was discovered downstream of the lock chamber, eliminating the capability of controlling the situation by manipulation of the pool level in the lock chamber.

On 26 June 2018, during exploratory drilling to install relief wells in the landside lock wall, voids were discovered beneath the lock wall. On 30 June 2018, drilling fluid was observed exiting from the sand boil located downstream of the lock chamber, which indicated that the voids beneath the lock wall were directly connected to the sand boil. As a result there was an exponentially increasing risk of failure of the lock structure and a high likelihood of not being able to maintain the pool level upstream of the structure.

On 03 July 2018, an Official Dam Safety Emergency was declared by the Vicksburg District and navigation through the Columbia Lock and Dam was suspended. On 5 July 2018, the upper pool at Columbia Lock and Dam began to be drawn down from an elevation of 52 ft to an elevation of 49 ft at a rate of 0.5 ft per day, in order to reduce pressure on the lock walls.

Justification

The U.S. Army Corps of Engineers’ (USACE) Dam Safety Program uses risk to inform how it manages the approximately 700 dams it operates and maintains, with life safety the highest priority. This approach is a best practice adopted to evaluate, prioritize and justify dam safety decisions. Using risk information allows USACE to repair its dams in the most effective manner within a constrained budget. Columbia Lock and Dam has a Dam Safety Action Classification (DSAC) rating of 4, meaning the dam is inadequate with low risk such that the combination of life, economic or environmental consequences with a probability of failure is low, and the dam may not meet all essential USACE engineering guidelines. If a breach occurs at this structure, the upper pool could not be maintained at its intended elevation and would drop down equal to the lower pool elevation of 34 ft. Navigation would be suspended indefinitely, water supply intakes upstream of Columbia Lock and Dam would be left with insufficient elevation to provide water to its customers, and house-boats, upstream of Columbia Lock and Dam could be beached due to low river conditions. In addition, extensive bank caving of the river channel banks would occur upstream of the project due to a lower river level, potentially damaging adjacent lands and structures.

If the sand boil and voids beneath the lock walls were left unaddressed, a failure of the lock structure and loss of upper pool was inevitable. The sand boil would continue to pipe foundation material from underneath the lock walls until the lock walls became unstable and failed, falling into the lock chamber. Failure of the lock walls would progress from downstream to upstream until the upper miter gates either failed or until the upper pool was routed around the lock chamber. As a result, a loss of damming surface would be realized, and ultimately a loss of upper pool level would be experienced. A loss of upper pool level would result in a complete loss of navigable water depths upstream of Columbia Lock and Dam. Losing damming surface means that the river can no longer be dammed to provide sufficient navigable depths within the river. Either a complete rebuild or repairs to the structure in a fully failed condition would cost exponentially more money than the interim repairs to be performed, and the time duration to restore the river system and its associated benefits (navigation, water supply, etc.) would take several years rather than the 120 days that are required to complete the current repairs. The District declared the Official Dam Safety Emergency on 3 July 2018. For the reasons detailed above, it was essential that the District take immediate action in order to prevent further damage and possibly a complete failure of the lock walls, and to circumvent additional impacts and restore navigation through the Columbia Lock and Dam. Once the requirement became known, it was necessary for repairs to commence as soon as possible and there was not time to permit full and open competition.

As further explained in the "Impacts" below, any delay in addressing the lock failure would have significant negative impacts to the water supply and property of citizens, and would create severe detrimental economic impacts. In accordance with FAR 6.302-2(c)(2), the Contracting Officer considered as many sources as practicable and provided a Request for Proposal to six potential offerors.

Alternatives

Due to the condition of the lock chamber floor and voids beneath the landside wall as well as the risks associated with failure of the lock structure, it was determined that this situation constituted a true Emergency to current commercial shipping, local property owners, and Congressional purpose from the initial building of the lock. Discussions began between senior district personnel, the Dam and Levee Safety Center of Expertise, and the Inland Navigation Design Center to determine an appropriate repair and the best way forward to award a contract and have the contractor mobilized immediately. The possibility of advertising an Invitation for Bids with a shortened duration was determined unacceptable due to the complexity of this project and the risk associated with awarding solely based on price.

Also, the possibility of advertising a Request for Proposal (RFP) using full and open competition with an abbreviated advertisement duration was discussed, however, it was determined that this route contained unacceptable risks. With timeliness being the most critical factor of this procurement, the potential time delays associated with pursuing a full and open RFP route—including potential for unacceptable mobilization delays and unacceptable pool of contractors—were of the upmost concern. Consequently, MVK’s Construction Division conducted research of the market to identify contractors that were technically capable of completing the work. Through its research, MVK identified and conducted interviews with eight potential contractors to better determine their capabilities and ability to mobilize immediately. Through its research and interviews, MVK determined that six of the eight contractors were technically capable and interested in submitting a proposal for this emergency work. The Vicksburg District determined that its best path forward was to issue a request for proposal to the above identified pool of technically capable contractors in which MVK had chosen.

A request for an After-the-Fact Justification and Approval (J&A) based on Federal Acquisition Regulation (FAR) 6.302-2(c) for a Contract Award with an estimated value of $10,000,000.00 was submitted to the Special Competition Advocate and approved 10 July 2018.

Impacts

Cost

Costs associated with lost navigation benefits due to closure of the lock structure are estimated to be $2.2M for 120-day closure for the current repair versus $12.4M for 2-year closure if the structure were to fail and have to be completely rebuilt. These benefits foregone represent the total estimated value of the benefits not being produced over the period during which the facility was considered out of service. The lost benefits represent only the annual value of the benefits not provided by the facility after the closure of the lock structure or breach of the structure and do not include indirect impacts such as business interruption and lost market share. The loss in navigation to the Port in Monroe would require businesses to rely on semi-truck and rail transportation drastically affecting cost as one barge carries the equivalent of 17 railcars or 75 semi-trucks.

If Columbia Lock and Dam were to fail, navigation would likely cease for the majority of the system. The majority of navigation along the Ouachita River is to and from Monroe, Louisiana through utilization of Columbia and Jonesville’s Lock and Dam. Failure of the Columbia Lock and Dam would eliminate the ability to access both the Red River and Mississippi River and shut down access to the port in Monroe. Navigation upstream of Monroe is minimal compared to downstream usage which is what would be the biggest impact. The Ouachita River dead ends in Arkansas and so, blocking navigation through Columbia Lock and Dam due to a failed lock structure would cripple the Ouachita River system.

Water Supply

Impacts to municipalities and industries that rely on the upper pool at Columbia Lock and Dam would be severe if the repair were not to be installed. The city of Monroe, Louisiana uses the upper pool to provide water to its citizens, and several industries and electric companies depend on the upper pool for their business and to provide electricity to their customers. All would be severely impacted by a failure of the Columbia Lock and Dam and a loss of the upper pool.

Private Citizen Impact

In addition, several boat houses would be completely beached and extensive bank caving could be expected due to loss of the upper pool at Columbia in which lands and structures adjacent to the banks of the Ouachita River would be impacted including several stretches of the nearby levees and the Monroe, Louisiana flood wall.

6. Efforts to Obtain Competition:

Upon the determination that this situation would require an emergency procurement, the MVK contracting officer began market research to identify technically capable contractors, who were interested and capable of immediate response and mobilization. The above noted research conducted by the Vicksburg district identified six potential contractors that were technically capable of completing the work and available for immediate mobilization.

7. Actions to Increase Competition:

This requirement is a one-time requirement. The Vicksburg District continues to solicit similar non-emergency requirement using full and open competition from various sources.

8. Market Research:

MVK considered all potential avenues to satisfy this emergency procurement. As noted above, consideration was given to advertising this requirement on the open market with a shortened response time. It was ultimately determined that due to the urgent and compelling nature of this emergency situation, it was in the best interest of the government to seek an award under the authority of FAR - 6.302-2. Through market research, MVK discovered that the pool of contractors capable of successfully completing this type of work was limited and it was crucial to immediately select a pool of contractors and notify them of this procurement. Also, as noted above, MVK completed phone interviews with each selected contractor to evaluate their technical capabilities for this type of construction. Out of the eight interviews, it was determined that six were technically capable of completing the work and interested in receiving a request for proposal. No further market research was conducted.

9. Interested Sources:

Per FAR 5.202 (a)(2), (2), “The proposed contract action is made under the conditions described in 6.302-2 (or, for purchases conducted using simplified acquisition procedures, if unusual and compelling urgency precludes competition to the maximum extent practicable) and the Government would be seriously injured if the agency complies with the time periods specified in 5.203”. Based on the above-referenced regulation, a synopsis of the proposed contract action was not posted.

10. Other Facts:

Manipulation of the lock chamber pool level was not sufficient to completely stop the sand boil and progressive loss of foundation material beneath the lock walls. Maintaining lower pool levels within the lock chamber did slow the sand boil to some degree but could not be counted on to stop progression altogether. In addition to the above, consideration was also given to allowing USACE hired labor crews to perform portions of the work but this was determined to contain too many unacceptable risks.sc It was ultimately determined that installing an emergency repair as indicated in the paragraphs above, through a construction contract, under the Urgent and Compelling authority at 6.302-2 was in the best interest of the Government.

11. Technical Certification: I certify that the supporting data under my cognizance, which are included in the justification, are complete and accurate to the best of my knowledge and belief:

Name: Lanny B. Barfield

Title: Chief, Geotechnical Branch Signature:

12. Requirements Certification: I certify that the supporting data under my cognizance, which are included in the justification, are complete and accurate to the best of my knowledge and belief:

Name: Lanny B. Barfield

Title: Chief, Geotechnical Branch Signature:

BARFIELD.LANN

Y.B.1230785062

Digitally signed by

BARFIELD.LANNY.B.1230785062

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=BARFIELD.LANNY.B.1230785062 Date: 2018.09.27 13:31:43 -05'00'

BARFIELD.LANN

Y.B.1230785062

Digitally signed by

BARFIELD.LANNY.B.1230785062

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=BARFIELD.LANNY.B.1230785062 Date: 2018.09.27 13:32:13 -05'00'

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action was fair and reasonable. Price reasonability was negotiated based on the independent government estimate by the negotiations team and also price analysis conducted. In accordance with FAR 15.403-1 (b)(3), certified cost and pricing data was obtained.

Name: R. Ellis Screws

Title: Contracting Officer Signature:

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: R. Ellis Screws

Title: Contracting Officer Signature:

SCREWS.ROBERT.1384

614503

2018.09.27 13:36:19 -05'00'

SCREWS.ROBERT.138461

2018.09.27 13:36:35 -05'00'

Approval

Based on the foregoing justification, I hereby approve the Emergency procurement for the Ouachita and Black Rivers, Caldwell Parish, LA, Columbia Lock and Dam Seepage Repair, Ouachita River contract on an other than full and open competition basis pursuant to the authority of 10 USC 2304 (c)(2) and Federal Acquisition Regulation (FAR) 6.302-2(a)(2) in the amount of $10,959,475.00 subject to the availability of funds, and provided the services herein described has otherwise been authorized for acquisition.

Signature:

Laura J. Eichhorn Alternate Advocate for Competition