MODIFICATION
S -- Waste Water Treatement Services / J&A
- Notice Date
- 1/9/2012
- Notice Type
- Modification/Amendment
- NAICS
- 221320
— Sewage Treatment Facilities
- Contracting Office
- Department of the Air Force, Air Force Materiel Command, AAC/PKO (Eglin AFB), 308 W D Avenue, Bldg 260, Suite 130, Eglin AFB, Florida, 32542-5418, United States
- ZIP Code
- 32542-5418
- Solicitation Number
- FA282311R2011
- Archive Date
- 1/25/2012
- Point of Contact
- Joshua, Phone: 850-882-0206, Karen D. Wagner, Phone: 850-882-3144
- E-Mail Address
-
joshua.jordan@eglin.af.mil, karen.wagner@eglin.af.mil
(joshua.jordan@eglin.af.mil, karen.wagner@eglin.af.mil)
- Small Business Set-Aside
- N/A
- Description
- COORDINATION AND APPROVAL DOCUMENT (also known as Justification Review Document) Contracting Activity: Air Armament Center, Contracting Directorate, Operational Contracting Division, Base Operational Support Branch (AAC/PKOB) Purchase Request/Local Identification Number: TBD Project/Program Name (and Program Element, if applicable): Waste Water Treatment Reconfiguration and Services Estimated Services Contract Cost: $40.834M Type Program: Other Contracting-Utilities/Services Authority: 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(3)(iii) JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION I. CONTRACTING ACTIVITY: The Air Armament Center, Contracting Directorate, Operational Contracting Division, Base Operational Support Branch, 308 West D Ave Suite 130, Bldg 260, Eglin AFB, FL 32542 is the contracting activity supporting this class Justification for Other than Full and Open Competition. II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED: This is a class justification and approval (J&A) that authorizes a three phased approach for award of treatment of wastewater collection. The phased approach will result in establishment of a utility service (FAR Part 41) contract with an Okaloosa County Water and Sewer (OCWS) 1804 Lewis Turner Blvd., Suite 300, Fort Walton Beach, Florida, for treatment of wastewater collected from (1) Duke Field, (2) Eglin Main Base, and (3) Camp Rudder. The utility services contract will include connection charges (see FAR Part 41.101), capacity expansion charges, and recurring wastewater treatment charges. The connection charges are to cover the connecting facilities to be installed, owned, operated, and maintained by OCWS. The capacity expansion charges are to cover the OCWS costs for the plant treatment capacity needed for the new wastewater treatment requirement. Recurring wastewater treatment charges include customer service charges, readiness-to-serve charges, wastewater treatment usage charges, and other appropriate charges. The multi-phased project includes taking offline four (4) Eglin wastewater plants, and a force main extended to the 17-mile sewer pipeline from the 7SFG complex to Arbennie Pritchett Water Reclamation Facility APWRF. III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY'S NEEDS: The Government requires OCWS to collect and treat wastewater from Duke Field, Eglin Main Base, and Camp Rudder. This involves transporting the wastewater from points of demarcation at Duke Field, Eglin Main Base, and Camp Rudder to the APWRF) owned by OCWS. The government also requires OCWS to treat the wastewater at the APWRF. OCWS shall ensure adequate and dependable utility services to all facilities and equipment served. OCWS shall provide utility services in accordance with industry-standard construction, operations, maintenance, management, environmental, safety, and other relevant standards, that apply to similarly situated utility services providers serving customers whose service characteristics are comparable to the service characteristics of the installation. OCWS shall comply with all applicable Federal, state, and local laws/regulations. The Government anticipates awarding a 10-year utility service contract as described in FAR Part 41.205(d)(1). The total estimated value of the acquisition over the 10-year contract period is $40.834M. Each phase will consist of OCWS surveying, designing, obtaining permits, construction, and ownership/maintenance of the infrastructure. The construction work will be performed by OCWS in-house construction crews. OCWS will obtain proper easements from Eglin Real Estate. The following provides a description of each phase: Phase I (Duke Field): Phase I will be executed in two phases: Phase IA will consist of providing a new lift station west of the existing runway and a 6.9-mles force main. The contract type will be firm fixed price and the period of performance is anticipated to be from 01 October 2011 through 30 April 2012. Award is anticipated to be in the last quarter of FY11. This phase will be executed upon initial award of the contract. Phase 1B will consist of providing the one-time capacity expansion charges and the recurring wastewater treatment charges. The contract type will be firm fixed price and the period of performance is anticipated to be from 1 April 2012 through 30 September 2021. Award is anticipated to be in the first quarter of FY12. Phase IB will be executed as a modification to the contract. The total anticipated price for Phase I is approximately $4.196M which includes: connection charge (one-time): $1.5M; capacity expansion charge (one-time): $1.1M; and wastewater treatment charges (recurring): $14K per month X 114 months = $1.596M. Phase II (Main Base): Phase II will consist of providing a new lift station in the vicinity of each existing plant on the main base and a 3.0 mile force main, preliminary size is a 20-inch diameter line. Eglin's existing effluent main from the Plew Housing plant to the existing spray field will be utilized as a raw sewer transmission line from the new lift station at Plew to the new lift station at Eglin Main. The preferred 3.0 mile route goes through the JSF Runway Alternate II, therefore an alternate 3.9 mile route is also provided, west of the proposed runway location. This phase will be executed as a modification to the existing contract awarded under Phase I. The contract type will be firm fixed price and the period of performance is anticipated to be from 31 Dec 2012 through 30 September 2021. Award is anticipated to be in the first quarter of FY12. The anticipated price is approximately $31.502M which includes: connection charge (one-time): $5M; capacity expansion charge (one-time): $11.85M; and wastewater treatment charges (recurring): $132K per month X 111 months = $14.652M. Phase III (Camp Rudder): Phase III will consist of providing a new lift station in the vicinity of the existing plant and an 8.5 mile force main, preliminary size is a 6 inch diameter line. This will be executed as a modification to the existing contract awarded under phase I. The contract type will be firm fixed price and the period of performance is anticipated to be from 31 December 2012 through 30 September 2021. Award is anticipated to be in the first quarter of FY12. The anticipated price is approximately $5.136M which includes: connection charge (one-time): $3M; capacity expansion charge (one-time): $915K; and wastewater treatment charges (recurring): $11K per month X 111 = $1.221M IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION: All actions shall be awarded under the same authority of this Justification and Approval is 10 USC 2304(c)(1), as implemented by FAR 6.302(a)(3). Only one responsible source and no other supplies or services will satisfy agency requirements. These actions are for acquiring utility services and construction and OCWS is the only source available to provide the service and construct the utility system. V. DEMONSTRATION THAT THE CONTRACTOR'S UNIQUE QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED ABOVE (APPLICABILITY OF AUTHORITY): The Board of County Commissioners of Okaloosa County, Florida is charged with the responsibility of collecting and disposing of domestic wastewater from OCWS customers in order to abate the pollution of Choctawhatchee Bay, Garniers Bayou, Cinco Bayou, Dons Bayou, Chula Vista Bayou, and other streams, and this abatement of pollution is necessary and essential to protect the health of the citizens of Okaloosa County, Florida. The board officially finds that OCWS will serve areas within the present county district limits. To adequately serve its customers, OCWS completed construction of the state-of-the-art APWRF in November 2009. The APWRF provides new and improved technology, has the capacity to serve a larger service area, provides enhanced operational performance, and will remove the former Garnier's wastewater treatment plant from the ever increasing residential congestion at its former location. The APWRF was constructed at the existing Garniers spray field property located on Eglin Air Force Base (AFB) property that is leased from the Air Force for this use. Currently, the 7th Special Forces Group (7 SFG) is moving from Ft. Bragg, NC to Eglin AFB. The Government has spent over $400M to construct facilities and infrastructure to enable beddown of the 7 SFG on the Eglin reservation. Instead of constructing an on-site wastewater treatment plant or contracting with another wastewater treatment entity, the AF found the only feasible alternative was to send its wastewater to the APWRF. OCWS installed a wastewater collection line from the 7th SFG compound to the APWRF, with construction substantially completed in February 2011. A modification to the 7 SFG WW connections was funded by the AF to upsize the line from the 7 SFG to APWRF to accept the additional flow planned from Duke Field, Camp Rudder, and Eglin Main. The 7th SFG wastewater collection line runs from the 7th SFG complex in a generally southern direction to the APWRF. Duke Field, Eglin Main Base, and Camp Rudder are within relatively close proximity to the 7th SFG wastewater collection line. OCWS will use the 7th SFG wastewater collection line as a trunk line. The Duke Field, Eglin Main Base, and Camp Rudder wastewater can be piped to the existing trunk line and then flow to the APWRF. Except for the APWRF, there are no other known wastewater treatment plants within the region that can accommodate the Duke Field, Eglin Main Base, and Camp Rudder wastewater flows. In fact, OCWS specifically planned the treatment capacity of the APWRF to accommodate Eglin AFB wastewater flow-rates. The existing plant at Duke field has several issues: 1) the plant is in dire need of major repairs already programmed at over $850K, 2) the plant is located between the operational runway and the new simulated carrier deck used for F-35 training; this location will be in an extremely loud area and between two very active runways creating a potentially unsafe working environment, 3) Duke Field is expected to gain additional new missions which will further strain the capacity of the system. The Main Base plant is the ONLY plant which services the East side of Eglin. It was originally built in the 1960's, is approaching the end of its useful life, and has had serious issues with corrosion. Loss of this plant for any period of time will dramatically affect the mission as people will need to be sent home. The AFMC/A7 Installation evaluation team report from 2008 identified numerous concerns with plant (corrosion, capacity, lack of back-up). One of the Plew plants is in bad shape from corrosion and on either plant safety actions have to be taken to work at them due to corrosion on the walkways. The plants date from the early 1970's and have reached the end of their useful life. There has been a $10M MILCON project to replace the plants since the early 1990's as well as a minimum of $730K in repairs which are currently unfunded. Eglin AFB currently holds multiple wastewater treatment plant permits from the Florida Department of Environmental Protection. The services described in Section II above need to be completed as soon as possible so the Air Force can avoid potential non-compliance with the wastewater treatment plant permits. With the age of the plants and their deteriorating condition, the possibilities of a Notice of Violation (NOV) from the State increases annually. The Government has determined, through knowledge of regional wastewater plants, that there are no other reasonable potential sources for this requirement. OCWS does not have a GSA Areawide contract as described in FAR Part 41.204 GSA Areawide Contracts. The Government intends to award a new separate contract as described in FAR Part 41.205 Separate Contracts. Accordingly, OCWS is the only firm capable of providing the services described in Section II above without the U.S. Air Force experiencing unacceptable delays and cost in fulfilling its requirements. VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE: A special notice, Number FA2823-11-2011, was published on Federal Business Opportunities (FEDBIZOPS) 2 August 2011 announcing the intention of the activity to solicit and award a sole source firm fixed price utility contract to OCWS under the authority of FAR 6.302-1(b)(3). The synopsis included a statement that the government would consider all responses. No responses have been received and no other interested parties have been identified to date. VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE The price will be determined to be fair and reasonable by use of cost and price analysis, the OCWS fees which are codified in the Okaloosa County Code of Ordinances, Chapter 24, Appendix A User Charge Tables for Okaloosa County Water and Sewer User Charge Ordinance, and the appropriate Government personnel will also perform a technical evaluation on the effort. VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT CONDUCTED: Market research was conducted by contacting knowledgeable individuals in Government and industry regarding market capabilities to meet requirements. The Government also reviewed the results of the similar requirement for a source of wastewater treatment for the 7th SFG where OCWS was found to be the only reasonable source. Based on this market research, the Government has determined its wastewater collection and treatment needs in this requirement can only be provided by OCWS. IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN COMPETITION: The APWRF is physically located on Eglin AFB property owned by the Government. The land is leased by the Air Force to OCWS through Land Lease L07-0277-WS30-13 (AFMC-EG-1-06-001). There are no other wastewater treatment plants located on Eglin AFB property with which the Government could award a contract for wastewater collection and treatment services. A modification to the 7 SFG WW connections was funded by the AF to upsize the line from the 7 SFG to APWRF to accept the additional flow planned from Duke Field, Camp Rudder, and Eglin Main. X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE ACQUISITION: See Section VI above. XI. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE MAKING SUBSEQUENT ACQUISITIONS FOR THE SUPPLIES OR SERVICES REQUIRED: Utility collection/treatment and distribution services are inherently more efficient when provided by one source. For example, it makes more sense to only have one electrical distribution system delivering power to the customers in an area -- a second set of electrical conductors, power poles, and transformers would be a duplicative effort for the same result. The same parallel thinking can be applied to wastewater collection and treatment. Sending the 7th SFG wastewater to the OCWS plant but sending wastewater from the nearby Duke Field, Eglin Main Base, and Camp Rudder systems to another wastewater treatment plant would not be a feasible option. The inherent nature of a utility collection/treatment and distribution systems does not foster competition. The Government is not aware of any reasonable actions that could be taken to foster competition or remove the inherent barriers to competition that are found in the wastewater collection and treatment industry. XII. CONTRACTING OFFICER'S CERTIFICATION: The contracting officer's signature on the Coordination and Approval Document evidences that she has determined this document to be both accurate and complete to the best of his/her knowledge and belief. XIII. TECHNICAL/REQUIREMENTS PERSONNEL'S CERTIFICATION: As evidenced by their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.
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