11-06-2025 - Attachment - SRS Utilities JOFOC - For Competition Advocate Approval.pdf

CUI/SP-PROCURE/SP-SSEL/SOURCE

SELECTION SENSTITIVE

UNITED STATES (U.S.) DEPARTMENT OF ENERGY (DOE)

Savannah River Site (SRS) Aiken, SC

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION FOR AN UP

TO FIVE-MONTH CONTRACT EXTENSION FOR ACQUISITION UTILITY

OPERATIONS AND MAINTENANCE SERVICES

Pursuant to the requirements of the Competition in Contracting Act as implemented by Federal Acquisition Regulation (FAR) 6.3 and in accordance with FAR 6.303-1, Requirements, the use of the statutory authority under 41 United States Code (U.S.C) §3304(a)(1) is justified by the following facts and rationale required under FAR 6.303-2, Content, as follows:

1. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY. The U.S.

Department of Energy, Environmental Management (EM), Office of Contract Management Division (CMD), Savannah River Site (SRS), Aiken, SC.

2. NATURE AND/OR DESCRIPTION OF THE ACQUISITION.

This Justification for Other Than Full and Open Competition (JOFOC) is in accordance with Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, and 41 United States Code (U.S.C.) 3304(a)(1). This procurement action is for an up to five - month extension (approximately $17M) of Task Order Authorization No. DE-DT0005213 under General Service Administration (GSA) Areawide Contract No. GS-00P-06-BSD-0379 with Dominion Energy South Carolina (DESC), (formally South Carolina Electric and Gas) for continued Utility Operations and Maintenance Services for the Department of Energy (DOE), Savannah River Site (SRS), Aiken, South Carolina. EM was on target to award a follow-on contract between the DOE-SR and DESC by November 30, 2025, however, due to the furlough of National Nuclear Security Administration(NNSA) staff and the possibility of the EM staff along with the necessary reviews, funding uncertainties, clearances, and notifications there is not sufficient time to place the new award prior to potential staff furloughs.

This additional extension approval would allow for the new follow-on Contract to be executed no later than April 30, 2026 to ensure no interruptions of services currently provided by DESC.

3. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS.

The additional five-month extension shall allow DESC to continue to provide sufficient electricity to meet the full requirements of the Department of Energy, Savannah River Site (DOE-SRS), Aiken, South Carolina in accordance with the terms and conditions of Contract No. DT0005213 through April 30, 2026, pending award of the follow-on Contract. The current utility contract expires November 30, 2025. The up to five-month extension estimated price is approximately $17 million based on the existing requirements. The utility services include operations and maintenance services for the Site and upgrade of Station 14, and a spare transformer. The follow-on Contract shall include the Operations and Maintenance (O&M) Services for Transmission Facilities and Substations, in addition to upgrades of the 1950 vintage transformers. Specifically, transformers and associated equipment installed in 1952, seven (7) of the seventeen (17) in-services transformers are 1950s vintage.

4. IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING OTHER THAN

FULL AND OPEN COMPETITION.

The statutory authority permitting other than full and open competition is 41 U.S.C. 3304(a)(1), as implemented by FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements. DESC is the designated source for SRS, reference 2023 South Carolina Code of Laws Title 58 Public Utilities, Services and Carriers Chapter 27 – Electric Utilities and Electric Cooperatives, Section 58-27-640. Assignment of service areas.

5. CONTRACTOR’S UNIQUE QUALIFICATIONS OR THE NATURE OF THE

ACQUISITION REQUIRES USE OF THE AUTHORITY CITED.

The DESC is the only designated Utility Services provider for SRS, Aiken, SC., in accordance with South Carolina Public Service Commission (SCPSC), territorial rights/restriction, as stated in paragraph 4, above.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED

FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE.

The proposed contract is for continuation of utility services and only one source is available. Under FAR 5.201 when FAR Part 5.202 Exceptions, (a)(5) exist, the Contracting Officer need not issue a synopsis. The DESC is the territorial provider for utility services under the SCPSC, territorial rights/restriction, and authority granted by the General Assembly under Article IX, Section 1, and Article VIII, Section 14, of the Constitution of the State (Section 58-27-640), maintain the assignment of electric services territories (updated 2023).

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED

COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE.

The approximately $17 million estimated price for the extension is based on services currently provided for utilities, operations, and maintenance, inclusive of the estimated cost for upgrade of Station 14, and the price for spare transformers. This five-month estimate is based on historical data and the actual costs incurred under the current contract to date, which was verified by DOE-SR on November 14, 2024. The Contracting Officer determined that the cost to the Government is fair and reasonable based on available data to support the $17 million: (1) Utility services are governed by SCPSC, prices set by law, subject to periodic ruling, and reviewed by a governmental body; (2) the 40-year Lease for Transmission Facilities and Substations was negotiated by DOE-SR and the Utility Contractor in 1995 established an escalation factor of 3.50% applicable for the life of the lease; (3) O&M negotiated escalation factor of 3.25% annually for current and previous contract remain unchanged, and (4) DESC costs for the transformers and associated equipment is based on actual costs to DESC, purchase orders provided. The DESC procures transformers from two vendors, using slots dedicated to the Utility Company for long lead procurement and uses competitive procurement processes for other required equipment and services to be procured open market using multiple sources.

8. DESCRIPTION OF THE MARKET RESEARCH.

Market research indicated that DESC is the only designated source for Utility Services for SRS, governed by the South Carolina Public Commission, State of South Carolina. The contractor will provide utility services in accordance with Rate 23, Large General Service, Pursuant to Public Service Commission of South Carolina Order Nos. 2023-291, 2023-259, and 2023-298, dated May 2023 (or as revised/approved on A p r i l 3 0 , 2026, anticipated date of award) based on approved u p t o f i v e -month extension to the current Contract.

9. OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION.

No other facts supporting the use of other than full and open competition, with the exception that DESC is the territorial provider by CPSC, State of South Carolina. Territorial data is available at website: https://www.dominionenergy.com/south-carolina/rates-and-tariffs

10. LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN

THE ACQUISITION.

As stated in paragraph 5 above, DESC is the only designated source for Utility Services for SRS, governed by SCPSC.

11. STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR

OVERCOME ANY BARRIERS TO COMPETITION.

As stated in paragraph 5 above, DESC is the only designated source for Utility Services for SRS, governed by SCPSC.

https://www.dominionenergy.com/south-carolina/rates-and-tariffs

CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief in accordance with FAR 6.302-1 my signature certifies that award of the contractual action contemplated herein is in the Government’s best interest.

Marie Garvin Contracting Officer, Team Lead Contract Management Division

Legal Review: ____________________________

Bernice Jenkins Chief Counsel Office of General Counsel

Concur: ____________________________ Aaron Deckard Assistant Director, EMCBC Office of Contracting

Approval: ____________________________ Jack Zimmerman EMCBC Director

EMCBC Competition Advocate