09. JA Implementation Support March 2024_Redacted.pdf

Justification for Other than Full and Open Competition Western Area Power Administration

FAR 6.302-1 Sole Source

1. Identification of the agency and the contracting activity.

Western Area Power Administration (WAPA), 615 S. 43rd Ave, Phoenix, AZ 85005. Desert Southwest Region’s Procurement Office.

2. The nature and/or description of the action being approved.

Western Area Power Administration of the Department of Energy plans to contract by means other than full and open competition.

This document sets forth the justification and approval for the use of one of the exceptions to full and open competition allowed under Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii). This Sole Source procurement action is for Market Implementation Integration Services for the California Independent System Operator Western Energy Imbalance Market.

3. A description of the supplies or services required to meet the agency’s needs.

WAPA b e g a n p a r t i c i p a t i o n i n a n energy imbalance market April 5, 2024. Market implementation services were an integral part of the success of that implementation. The implementation continues to be in progress for processes around market settlement verification and allocation distributions. WAPA requires continued implementation service to complete settlement requirements associated with market participation.

4. The statutory authority permitting other than full and open competition.

In accordance with FAR 6.302-1, U.S. Code Citation 41 U.S.C 3304(a)(1) which allows for other than full and open competition for only one responsible source and no other supplies or services will satisfy agency requirements.

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority.

FAR 6.302-1(a)(2)(ii); Supplies and services may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in (A) substantial duplication of cost to the Government that is not expected to be recovered through competition; or (B) unacceptable delays in fulfilling the agency’s requirements.

Utilicast is intimately familiar with WAPA’s current state and requirements to complete implementation requirements for market settlements. Utilicast was initially awarded a services contract to perform a gap assessment on 01/20/2020, contract 89503120PWA000267. This assessment was needed to assist WAPA in determining what was required to join a market to provide energy imbalance services.

Contract 89503121PWA000460, dated 06/29/2021 was awarded to Utilicast for a period of performance of 07/12/2021 to 05/31/2023 to Implement Energy Imbalance Services. These services were performed in two different phases. Modification P00005 and P00006 were issued to extend the period of performance for these services through 31 May 2024.

Utilicast has been the sole provider of contracted energy imbalance market implementation services throughout the region for WAPA. Their track record of performance is flawless. All utilities within the region have relied upon Utilicast to meet deadlines and refine processes as market participation has progressed.

The final implementation phase requires train the trainer, end user training and readiness criteria.

Utilizing a new contractor for this final phase of implementation would cause delay, additional cost, and continuity loss for a critical project. Awarding to Utilicast is a logical follow-on to allow completion of the final phase.

6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable.

Market Research was conducted by Desert Southwest Region’s Energy Management and Marketing Office Manager. Discussions with multiple utilities and their interaction with Utilicast were done as well as discussions with market operators. Utilicast has extensive experience in performing energy imbalance market implementation requirements. All utilities and market operators contacted by WAPA, concluded that Utilicast is the primary reason implementation occurred on time for previous projects.

GSA and Federal Business Opportunities (FBO) were researched along with Request for Information (RFI’s) to industry during the GAP Analysis. No other companies responded other than Utilicast. The previous procurement was posted on FBO and no other parties responded with a bid.

7. Cite the anticipated dollar value of the proposed acquisition including options if applicable and a determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

This requirement is to complete the final phase of the implementation. The estimated cost is $500,000 for 6 months of service. FAR 52.217-8 option to extend services up to 6 months will be included if delays are incurred due to extenuating circumstances. Based on Market Research, it was determined that if another vendor is used for this project additional costs will most likely be incurred and deadlines will be missed. A missed deadline would force WAPA to continue an already delayed timeline for processing market settlements. Previous implementation plans at