ML&P__(U-19-020_and_U-19-021)_J&A_CO_signed.pdf

Single Source Justification (Simplified Acquisition)

2 May 2019 Page 1 of 2

Contracting Activity: 772ESS/PKD

Project/Program Name: APPLICATION FILED BY CHUGACH ELECTRIC ASSOCIATION, INC.

REQUESTING NECESSARY APPROVALS FOR ACQUIRING

ANCHORAGEMUNICIPAL LIGHT AND POWER, APPLICATION

REQUESTING TO AMEND ITS CERTIFICATE OF PUBLIC CONVENIENCE

AND NECESSITY NO. 8 TO REFLECT NEW SERVICE TERRITORY,

APPLICATION FILED BY MUNICIPAL LIGHT & POWERTO AMEND ITS

CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY NO. 121

AND FOR LIFTING OF DIVIDEND RESTRICTION BEFORE THE

REGULATORY COMMISSION OF ALASKA

DOCKET NO. U-19-020 AND U-19-021

Purchase Request/Identification Number:

F4ATA69154AW01

Estimated Contract Cost (including Options): $50,000.00

Chugach Electric Association, Inc. (Chugach) is proposing to acquire the Municipal Light and Power (ML&P) system from the City of Anchorage. Under the terms of the proposed acquisition, Chugach, a local cooperative electric utility, will pay a premium to the City of Anchorage of approximately $50 million, will incur costs to complete the transaction of around $94 million, and the integration costs are estimated to be $26 million. These total merger costs of $170 million will be offset by “projected” merger savings of around $450 million, for a net merger savings estimated to be about $280 million. However, the projected savings are expected to be achieved over a 40-year period, where the merger costs will be experienced over the next several years. Hence, the costs associated with the transaction are near-term and certain costs, albeit the costs may be understated based on other transactions, where the projected cost savings are based on 40-year long-term and highly uncertain projections.

An evaluation of all filed pleadings, testimony, and data is necessary to determine if the rates proposed are non-discriminatory, accurately reflect the actual cost of providing the service, and are necessary under the circumstances. In addition, expert assistance in reviewing all filed and to be filed documents, drafting data requests and responses, testimony, cross examination, briefs, and strategy is necessary for proper preparation of this case. The Contractor’s assistance will be needed in all phases of case preparation from this point until the conclusion of the case.

Brubaker & Associates Inc. (BAI) has been identified as the contractor who employs the experts that have been determined with the most extensive background, experience, and track record for having their recommendations followed. Michael P. Gorman has 35 years of experience in this field, has filed testimony in 350 regulatory proceedings, starting June 1991, he started in the utility regulatory field in Sept 1990; a consultant in August 1983; and is a Charted Financial Analyst (CFA).This experience and expertise in dealing with service rate increases and depreciation rates are necessary to assist the Government in the analysis, Section A: General Contract Information

Section B: Description of the Supplies/Services Required

SectionC: Justification for Soliciting from a Single Source or Brand Name

Single Source Justification (Simplified Acquisition)

2 May 2019 Page 2 of 2 presentation, and defense of any claims or requests for adjustment to contract terms and conditions as a result of the anticipated litigation. Based on past market research, AFCEC and PKD have no knowledge of any other law firm with this level of technical expertise, experience, proven results, and working knowledge of government rates experience and has filed testimony on behalf of the federal government multiple times.

Their particular expertise, opinion, reputation are what the ULFSC has chosen for this litigation. " 10 USC 2304 (c)(3) and FAR Part 6.302-3(a)(2)(iii) states that full and open competition need not be provided when it is necessary to acquire the services of an expert for litigation.

The Government has reviewed other contract vehicles but has found BAI as the most suitable in regards to their background, experience, and track record along with their record in regards to litigation and no further research is required by the exception. Additionally, an explicit exception to full & open competition for the purchase of the services of an expert to support the Federal Government in any current or anticipated litigation or dispute is found in FAR Subpart 6.302-3(a)(2)(iii).

An explicit exception to full & open competition for the purchase of the services of an expert to support the Federal Government in any current or anticipated litigation or dispute is found in FAR Subpart 6.302-3(a)(2) (iii).

I have determined, in accordance with FAR13.106-1(b)(1), that the circumstances of this contract action deem only a single source is reasonably available.

Date 20190605

Typed Name and Rank/Grade of Contracting Officer James Gladden

Signature of Contracting Officer

Section D: Efforts to Obtain Competition

Section E: Steps to Preclude Future Single Source or Brand NameAwards

Section F: Contracting Officer's Determination