BUX_JOFOC_Natural_Gas_FY20_1_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Natural Gas Utility Transportation Service FCC Butner

(a) Pursuant to the Federal Acquisition Regulation (FAR) Part 6.302-1(b)(3), and the Bureau of Prisons Acquisition Policy (BPAP) 4100.06 Subpart 6.304(b), the Federal Bureau of Prisons (FBOP) has determined that the procurement of natural gas utility transportation service for the Federal Correctional Complex (FCC) Butner, 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:

(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 justification for other than full and open competition is for the acquisition transportation services for natural gas large account gas requirements provided to FCC Butner, from the original and sole provider of such services. FCC has a present and continuing requirement for natural gas utility (un-interruptible) transportation service for the two powerhouses located at FCC Butner. This justification is for the period October 1, 2019, through September 30, 2020.

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

Public Service Company of North Carolina (PSNC Energy (DBA Dominion Energy)), shall provide to the government natural gas utility transportation 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.

Services shall be provided on an un-interruptible daily basis 365 days per year. PSNC Energy (DBA Dominion Energy) will be responsible to maintain and/or repair all associated natural gas lines and equipment, including associated costs for such repair, to the delivery point or meter of FCC Butner. Pursuant to FAR Part 41.202, the transportation services for natural gas from October 1, 2019, through September 30, 2020, subject to funds availability (FAR Clause 52.232-18). The services will be procured by way of a purchase order. Based on past usage, the estimated average monthly cost for FY20 natural gas large account gas requirements is $22,902.80. The total estimated amount for a twelve- month period is $274,833.60.

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

JOFOC FCC Butner

Natural Gas Utility Transportation Services 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 PSNC Energy (DBA Dominion Energy) has proprietary rights up to the pipeline to 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:

Natural Gas transportation service is currently only available from PSNC Energy (DBA Dominion Energy) for the geographic location of the facility. PSNC Energy (DBA Dominion Energy) is the owner of the pipeline and purchases natural gas at market prices and is regulated by the North Carolina Utility Commission as a local distribution company providing the service.

(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 is based on invoice history, for the natural gas transportation service is $22,902.80 with a total estimated usage for a twelve-month period of $274,833.60. The current rates offered by PSNC Energy (DBA Dominion Energy) are comparable to the market price levied other commercial and industrial users in the FCC Butner area.

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

This documentation is in accordance with FAR Part 10, which describes the policies and procedures for conducting market research in a process of finding viable sources of goods and services to meet government requirements and to find the most suitable approach to acquiring, distributing, and supporting supplies and services. Below are the findings of the market research for the above referenced requirement.

I. BACKGROUND: FCC Butner has a current and continuing requirement for the purchase of natural gas utility transportation service for the continuation of normal operations of the institution in order to provide a safe, secure environment to confine offenders and protect the public. FCC Butner has purchased natural gas transportation service from this same vendor

JOFOC FCC Butner

Natural Gas Utility Transportation Services since 1976.

1. Product or Service Code: S- Utilities and Housekeeping Services – S111 Gas Services

2. North American Industry Classification System (NAICS): 221210 Natural Gas

Distribution = this industry comprises (1) establishments primarily engaged in operating gas distribution systems (e.g., mains, meters); (2) establishments known as gas marketers that buy gas from the well and sell it to a distribution system; (3) establishments know as gas brokers or agents that arrange the sale of gas over gas distribution systems operated by others; and (4) establishments primarily engaged in transmitting and distributing gas to final consumers

3. Standard Industrial Classification (SIC) Code: 4924 Natural Gas Distribution

II. DELIVERY / PERFORMANCE: Purchase order to provide natural gas transportation utility services October 1, 2019, through September 30, 2020.

III. MARKET ANALYSIS:

1. The results of market research have determined that the Government’s needs can be met by an item that is of a type customarily available in the commercial marketplace and is used by the general public and by non-governmental entities for purposes other than governmental purposes.

2. The following methods were utilized to conduct Market Research:

X Searched GSA database; Found no area-wide or single point contract is available.

X Searched FPDS-NG; Found only the BOP is purchasing natural gas service from PSNC Energy (DBA Dominion Energy) Searched previous purchases of similar/identical acquisitions; Found the PSNC

X Energy is the current provider to FCC Butner and has provided service since 1976. This is a continuation of service.

3. Results: Only one source could be found.

IV. RECOMMENDATION:

1. It is this Contracting Officers determination there is a source available that is capable of providing the required services. The requirement will be awarded to PSNC Energy (DBA Dominion Energy) as a single award of a firm-fixed price requirements type natural gas utility transportation purchase order utilizing FAR Part 6, 12, 13, and 41. A Performance-Based Acquisition (PBA) method will not be used for this procurement as it is determined not applicable. A PBA relies on the use of measurable performance standards and financial incentives in a competitive environment to encourage competitors to develop and institute innovative and cost-effective methods of performing the work.

2. The BOP does not currently have the resources to provide the funding for another company to install alternative gas transmission system, another distribution system is not available at the meter, and no other contractor can provide natural gas service through PSNC Energy (DBA Dominion Energy) network.

3. The U.S. General Services Administration has issued a Delegation of Contracting Authority to the U.S. Department of Justice, Federal Bureau of Prisons to negotiate and execute utility service contracts. This includes the provision of natural gas service for FCC Butner

4. I also make the determination that this procurement action “NOT” be set-aside for small

07/03/2019BONNIE 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: 2019.07.03 11:15:24 -05'00'

7/05/2019 Digitally signed by ALFRED RAUSCHUBER DN: c=US, o=U.S. Government, ou=Dept of Justice, ou=BOP, cn=ALFRED RAUSCHUBER, 0.9.2342.19200300.100.1.1=15001000663620 Date: 2019.07.05 09:19:25 -05'00'