JOFOC_for_FBO.pdf

Source Selection Information – See FAR 2.101 & 3.104

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

FCC BUTNER WATER AND SEWER UTILITY SERVICE

(a) Pursuant to the Federal Acquisition Regulation (FAR) Part6.302-1(b)(3), and the Bureau of Prisons Acquisition Policy (BPAP) Part 6.304(b), the Federal Bureau of Prisons (FBOP) has determined that the procurement of Water and Sewer utility service from South Granville Water and Sewer Authority (SGWASA) for the Federal Correctional Complex (FCC) located within the city limits of Butner, North Carolina, meets the criteria established for other than full and open competition. It is further determined that only one responsible source and no other supplies and/or services will satisfy agency requirements. This limitation on competition is justified as supported by the following information in accordance with FAR Part 6.303-2:

(b)(1) Identification of the Agency:

U.S. Department of Justice Federal Bureau of Prisons Federal Correctional Complex Old NC Hyw 75 Butner, NC 27565

(b)(2) Nature and/or description of action being approved:

This procurement action is for the acquisition of Water and Sewer utility services usage to the FCC Butner, NC, from the sole provider (SGWASA) of such services in the Butner area.

SGWASA was created by the North Carolina General Statue Chapter 162A.

(b)(3) Description of supplies or services required to meet the agency needs:

Pursuant to FAR Part 41.202, the SGWASA continues to provide the “entire water and sewer utility service” (i.e., production, distribution, system operation and maintenance, treatment, metering, billing, etc.). SGWASA shall provide to the government facility at FCC Butner, water and sewer services in a manner and form that is consistent with all applicable laws, rules, codes, industry standards, permits, and regulations, promulgated by any and all governmental authorities having jurisdiction. SGWASA shall provide services on an un-interruptible daily basis 365 days per year and will be responsible to maintain and/or repair all associated pipelines and equipment, including associated costs for such repair, up to the delivery point or meter of FCC Butner. SGWASA will be responsible to ensure that the pipelines and associated equipment, utilized to provide water and wastewater services will be maintained and operated in compliance with all rules and regulations set by the North Carolina Department of Environment and Natural Resources, in accordance with all Federal, State, County, and local government for a safe and sanitary water and wastewater service.

SGWASA shall provide Water and Sewer utility services for the period of August 1st through September 30, 2018, subject to funds availability (FAR Clause 52.232-18). The total estimated monthly amount for Water and Sewer utility service is estimated to be $334,346.76.

The total estimated amount for a 2 month period is $668,693.52.

(b)(4) An identification of the statutory authority permitting other than full and open

JOFOC FCC Butner

FCC Butner Water and Sewer Utility Services

Source Selection Information – See FAR 2.101 & 3.104 competition:

This justification to award as a sole source is prepared pursuant to the exception to full and open competition requirements in accordance with the statutory authority for these services that is found at 41 USC § 3304 (a)(1), when the supplies or services required by the agency are available from only one responsible source. The application which permits use of the cited statutory authority are stated at FAR Part 6.302-1(b)(3), “When acquiring utility services (see 41.101), circumstances may dictate that only one supplier can furnish the service (see 41.202). Analysis of the market indicates that SGWASA has proprietary rights up to the meter at FCC Butner. In order for another provider to be capable of providing the service, significant capital improvements would be needed. The Bureau would be required to pay for the capital improvements, but it would not recover the costs of duplication of services, connection fees and infrastructure installation costs through competition. The current requirement is for follow-on services and does not include funding for capital improvements.

(b)(5) A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:

SGWASA was created by the NC General Statutes - Chapter 162A and is a government-owned sole provider of water and sewer utility service in the Butner service area. SGWASA is an entity of the State of NC and is the only agent authorized by rules and regulations to provide water and sewer service. Having a single supplier of water and sewer service for this area is the most efficient method of providing potable water and collecting and treating sewage.

(b)(6) A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable including whether or not a notice was or will be publicized as required by FAR Subpart. 5.2:

As stated in FAR Part 5.202(a)(5), Exceptions to transmitting a notice to the Government Point of Entry, the contracting officer need not submit a notice when “the proposed contract action is for utility services other than telecommunications services and only one source is available.”

(b)(7) A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

The estimated average monthly cost, which was based on invoice history, for the water and sewer utility service is $334,346.76 with a total estimated usage for a two-month period of $668,693.52. Utility rates are enacted by resolutions by the SGWASA Board and bound by the State general Statues and the State Budgetary Act. SGWASA, which is charged under State of NC law to ensure that rates be just and reasonable. SGWASA is a Government – owned political entity of the State of NC and operates under the guidelines of the State of NC Charter 162A. A formal decision in the form of periodic rulings, reviews, or similar actions of a governmental body, or embodied in the laws, are sufficient to set pricing (see FAR 15.403-1[c][2]). The establishment of the current supply and delivery of services began when the original service connections were installed. As such, this Contracting Officer has

FCC Butner Water and Sewer Utility Services

Source Selection Information – See FAR 2.101 & 3.104 determined the anticipated cost to the Government will be fair and reasonable.

(b)(8) A description of the market research conducted:

Product or Service Code: S- Utilities and Housekeeping Services – S114 Water Service and S119 Other Utilities.

North American Industry Classification System (NAICS): 221310 Water Supply and Irrigation Systems = this industry comprises establishments primarily engaged in operating water treatment plants and/or operating water supply systems; and 221320 Sewage Treatment Facilities = this industry comprises establishments primarily engaged in operating water and sewer systems or sewage treatment facilities that collect, treat, and dispose of waste.

Standard Industrial Classification (SIC) Code: 4941 Water Supply - 4952 Sewerage Systems

Potential Sources: SGWASA is the sole provider of water and sewer utility service in the FCC Butner service area. The SGWASA Board is the governing body that approves all rates with the responsibility of water and sewer services for the locale in which FCC Butner resides. I applied personal knowledge, interaction with knowledgeable individuals in local and Federal Government regarding market capabilities to meet the requirements, and research of generally accessible literature available on-line were the techniques used in researching this procurement for a supply/services of this type.

Market Analysis: The results of market research have determined that the government’s needs can be met by an item customarily available in the commercial marketplace.

The market research conducted by the contracting office and the Facilities Department staff determined that a GSA area-wide is not available at this time. However, SGWASA has agreed to enter into a single point contract with FCC Butner. GSA is specifically authorized by law and regulation to purchase utility services on behalf of other agencies by providing an Assisted Acquisition. In August 2010, in accordance with Title 40 USC § 121(d), GSA issued the FBOP a Delegation of Authority for nationwide authority to negotiate and execute utility service contracts at Federal facilities under the control and direction of the FBOP in accordance with Title 40 USC § 501(b)(1)(B).

Results: Based on the information provided by the sources detailed above, the following information outlines the conclusions and provides the basis for this procurement. It is this Contracting Officers determination there is only one source available that is capable of providing the required services. The procurement will be conducted in accordance with the procedures as outlined in FAR Part 12, 13, and 41.

This requirement will not be posted to Fedbizopps as a combined synopsis solicitation to promote competition, broaden industry participation, and assist small business concerns in obtaining contracts for FCC Butner, NC. This requirement meets the exemption at FAR 5.202(a)(5) the proposed contract action is for utility services other than telecommunications

FCC Butner Water and Sewer Utility Services

Source Selection Information – See FAR 2.101 & 3.104 services and only one source is available. SGWASA is the government-owned sole provider of water and sewer utility service in the FCC Butner service area. The North Carolina Department of Environment and Natural Resources oversees SGWASA, they are the only permitted agent authorized by rules and regulations to provide water and sewer service in the Butner area. Having a single supplier of water and sewer service for this area is the most efficient method of providing potable water service and collecting and treating sewage.

The Bureau does not have the state and local approval or the resources to provide the funding for another company to install a treatment plant at the institution, another pipeline is not available, and no other contractor is allowed to provide water and sewer service through the City pipelines.

(b)(9) Any other facts supporting the use of other than full and open competition:

None.

(b)(10) A listing of the sources, if any, that expressed, in writing, an interest in the acquisition:

A Sources Sought notice was published to www.fbo.gov in August 2017. No response was received. No other company has presented itself with the capabilities nor the infrastructure to run water and sewer lines to the current connection site. No other sources have been located that are currently capable or that could acquire the capability of meeting the Bureau’s requirement.

(b)(11) A statement of the actions, if any, the agency may take to remove or overcome barriers to competition before any subsequent acquisition for the supplies or services required:

Contracting and requirement staff will continue to conduct appropriate market research to determine if sources capable of satisfying the agency’s requirement exist and to overcome competition barriers. If another potential source emerges, the agency will assess whether competition for future requirements is feasible.

(b)(12) Contracting Officer’s Certification:

I hereby certify that this request for Justification and Approval of Other Than Full and Open Competition is made in good faith, that the supporting data and information are accurate and complete to the best of my knowledge and belief, and that I would not be making this request if it were feasible to fully compete this requirement. I further certify that this request is not the result of lack of advance planning or a desire to expend funds while those funds are still available.

07/23/2018

07/23/2018

CHARLES

DOGGETT

Digitally signed by CHARLES DOGGETT DN: c=US, o=U.S. Government, ou=Dept of Justice, ou=BOP, cn=CHARLES DOGGETT, 0.9.2342.19200300.100.1.1=15001000663439 Date: 2018.07.23 14:12:41 -05'00'

BONNIE

BUETER

Digitally signed by BONNIE BUETER DN: c=US, o=U.S. Government, ou=Dept of Justice, ou=BOP, cn=BONNIE BUETER, 0.9.2342.19200300.100.1.1=15001000821828 Date: 2018.07.23 11:57:50 -05'00'