05-JA-rev 2 Sioux Falls Gas_signed.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING COMMAND

NORTHWEST

1101 TAUTOG CIRCLE

SILVERDALE, WASHINGTON 98315-1101

J&A No. 20-22JA

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Facilities Engineering Command (NAVFAC) Northwest, 1101 Tautog Circle, Silverdale, WA 98315.

2. Description of Action Being Approved.

Approval is requested to award a sole source, ten-year firm-fixed price utility services contract with MidAmerican Energy Company to support natural gas service for the Naval Operations Support Center (NOSC) located in Sioux Falls, SD, in accordance with FAR 41.103(b), Delegated Authority.

3. Description of Supplies/Services.

NAVFAC Northwest plans to acquire natural gas from MidAmerican Energy Company for the facilities noted above. The NOSC currently receives these services from MidAmerican Energy Company, the only provider of these services in the area, on a contract awarded by NAVFAC Midwest in 2010. Contract administration was transferred to NAVFAC NW 2014. That contract is nearing the end of its term and needs to be renewed.

This contract action is authorized by FAR 41.103(b), Delegated Authority. The estimated ten-year total is approximately $38,066 based upon current consumption rates. Payment will be made by Commander, Navy Installation Command (CNIC), and will be funded by O&M, NR Funds.

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

FAR 6.302-1(a)(2) provides for the authority that full and open competition need not be provided for procurements where the service is available from only one source and no other type of supplies or services will satisfy agency requirements. FAR 6.302-1(b)(3) identifies an example situation where this authority may be appropriate specifically for utility services (as defined in FAR 41.101) when circumstances may dictate that only one supplier can furnish the service. At this time, MidAmerican Energy Company is the only responsible source that can provide natural gas services at this location.

Moreover, there were no responses to a Sources Sought published on the beta.sam.gov website regarding this procurement.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

Market research established that utility providers do not compete for service requirements on a retail basis in the Sioux Falls. Since there are no other sources from which to obtain these utility services, no attempts were made to solicit offers from other sources. In accordance with FAR Part 5.202(a)(5) and 5.301(b)(5), the Government need not submit a synopsis notice if the proposed contract action, or contract award, is for utility services and only one source is available. However, the DFARS PGI 206.302-1 requires that a notice be advertised and the results included in the Justification. A notice was published on 15 July 2020 on the beta.sam.gov website with no responses. Also, the Government is required to make the approved Justification publicly available within 14 days after contract award in accordance with FAR Part 6.305(a).

7. Determination of Fair and Reasonable Costs.

The Contracting Officer has determined the anticipated cost to the Government of the services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

Competition is not anticipated for this acquisition and NAVFAC Northwest has no plans at this time to compete future contracts for the utility services covered by this document. If another potential source emerges, NAVFAC Northwest will assess whether competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

TREVOR LUNCEFORD Phone No. Date Senior Utilities Engineer

Requirements Cognizance:

KEVIN STIGILE Phone No. Date Utility and Energy Product Line Coordinator

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Phone No. Date

ALAN MYGATT-TAUBER

Counsel

CONTRACTING OFFICER CERTIFICATION

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

CHARLES D. BENSON Phone No. Date Contracting Officer

(360) 315-3003 8/1/2020