Justification_and_Approval.pdf

JUSTIFICATION AND APPROVAL

UNDER FEDERAL ACQUISITION REGULATION (FAR) PART 6.3

OTHER THAN FULL AND OPEN COMPETITION

Lease of One Cutterhead Hydraulic Pipeline Dredge with attendant plant for dredging of Mississippi Rivers and existing Harbors in the Memphis District.

1. Contracting Activity:

The U.S. Army Corps of Engineers, Memphis District Contracting Office, 167 N.

Main Street, Memphis, Tennessee 38103

2. Description of Action:

This is an action for additional hours of Lease of One Cutterhead Hydraulic

Pipeline Dredge with attendant plant for dredging of Mississippi Rivers and existing Harbors in the Memphis District in response to additional dredging hours required in Caruthersville, Harbor Missouri. Firm Fixed Price Contract W912EQ-

16-D-002 base year was awarded to Great Lakes Dredge & Dock Company, LLC on 28June 2016 in the amount of $7,971,965.00. The option year one was awarded on 01 June 2017 in the amount of $8,362,454.

Caruthersville Harbor, Caruthersville, Missouri funds 107045 (Treasury Account

Number (96 x 3123) in the amount of $389,895 have been reserved for additional dredging activities.

3. Description of Supplies/Services:

The work consists of an additional 187 hours of rental of the dredge and attendant plant when dredging in the State of Missouri.

4. Authority Cited:

10 U.S.C.2304(c) (2) as implemented by FAR 6.302-1 (a) (2) (iii) (A) and (B), “Substantial duplication of cost…or Unacceptable delays.” When full and open competition would result in substantial duplication of cost or unacceptable delays, the Government is permitted to limit the number of sources from which it solicits bids or proposals, full and open competition need not be provided for.

5. Reason for Authority Cited:

The proposed procurement meets the criteria for exclusion from full and open competition under the authority cited due to the substantial duplication of mobilization cost and unacceptable delays during procurement and mobilization that would occur if the Government provides full and open competition.

Historical pricing for mobilization and demobilization are a significant cost on dredging contracts. By increasing the quantity of dredge rental on the subclin without requesting an additional mobilization and demobilization has, a realized cost saving ranging from $368,934 to $946,000 based on the Great Lakes

Dredge and Dock Company, LLC bid submitted and awarded June 2016.

Background

The U.S. Army Corps of Engineers received authorization under the authority of

Section 107 of the River and Harbor Act of 1960 to maintain a navigation channel within the Caruthersville Harbor to the approved dimensions of 9 feet deep by

225 feet wide by 3,500 feet long with a 300 foot radius turning basin.

Justification

Due to the dynamics of the Mississippi River Caruthersville Harbor requires periodic dredging of the mouth and parts of the inner harbor.

Impacts

Without periodic dredging the impacts to this harbor could vary from requiring barges to be light-loaded to complete harbor closure.

6. Efforts to obtain Competition:

UASCE conducted market research before the pre-solicitation and competitive bids were solicited for the base year contract with one option year. Great Lakes

Dredge and Dock Company, LLC. was awarded the contract for the base year

(2016) and option year one (2017).

USACE gave Great Lakes Dredge and Dock Company, LLC preliminary notice of the Government’s intent to exercise the option to extend services on April 6, 2017. An amendment of Solicitation/Modification of contract issued on May 19, 2017 changing all subclins on the contract from Option to Option Exercised. On

May 24, 2017, the Memphis District received notification of the availability of work plan funds. When the work plan funds were applied to the subclins the quantities for option year one were met with the exception of dredging in Missouri. The quantity one the option year one was exceeded by 187 hours or $389,895. Great

Lakes Dredge and Dock, LCC has agreed that this additional work would be charges at the previously contracted hourly rate of $2,085.00 for the State of

Missouri.

Funding was obligated on the June 1, 2017 task order minus the overage for dredging in Missouri.

7. Determination by contracting officer: This action will use the contract unit price which is based on a competitive price received during the solicitation phase. The price was determined fair and reasonable at the time of award.

LEA.1210999732

8. Market Research: This requirement was not synopsized pursuant to the exception in FAR 5.202(a) 2). Due to urgent and compelling reasons, it is crucial that a modification to the task order be issued immediately.

9. Other facts: None

10. 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: Vickie L. Watson, P.E.

Digitally signed by

WATSON.VICKIE.LEA.1210999732

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=WATSON.VICKIE.LEA.1210999732

Title: Operations Project Manager Signature Date: 2017.07.26 09:01:54 -05'00'

11. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable.

Name: Andrea Jackson

JACKSON.ANDRE JACKSON.ANDREA.G.1107918384

A.G.1107918384 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=JACKSON.ANDREA.G.1107918384 Date: 2017.07.27 11:53:56 -05'00'

Title: Contracting Officer Signature_

12. Certification of Legal Sufficiency:

Name:

Ben Townsend

TOWNSEND.BENJAMIN.T.1257256916

DN: c=US, o=U.S. Government, ou=DoD, Title:

Attorney Advisor

Signature_

MIN.T.1257256916

ou=PKI, ou=USA, cn=TOWNSEND.BENJAMIN.T.1257256916 Date: 2017.07.27 12:26:49 -05'00'

WATSON.VICKIE.

TOWNSEND.BENJA

Approval

Pursuant FAR 6.304(a)(1) – for a proposed contract not exceeding $700,000, the contracting officer’s certification required by 6.303-2 (b)(12) will serve as approval unless a higher approving level is established in agency procedures.

Based on the foregoing justification, I hereby approved the additional 187 hours of rental of the dredge and attendant plant when dredging in the State of

Missouri.

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Andrea Jackson

Title: Contracting Officer Signature_