LEX_JOFOC_W_FY19_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Pursuant to the Federal Acquisition Regulation (FAR) 6.302-1 (a) (1) and 6.302-1 (b) (3), and the Bureau of Prisons Acquisition Policy (BPAP) 4100.06 Subpart 6.304(b) has determined that the procurement of water supply for the Federal Medical Center located in Lexington, 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:

1. Agency:

Department of Justice Federal Bureau of Prisons Federal Medical Center 3301 Leestown Road Lexington, KY 40511

2. Nature and/or Description of Action being Approved:

This action is for the acquisition of supply and transportation of domestic water to the Federal Medical Center located in Lexington, KY, from the sole provider of such services in the Lexington area.

3. Description of Supplies or Services Required to Meet the Agency Needs:

Water supply service from October 1, 2018 to September 30, 2019 is subject to funds availability (FAR Clause 52.232-18). The services will be procured by way of purchase order. The estimated average annual cost for water supply service is $611,546.22.

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

41 U.S.C. 3304 (a) (1) and FAR 6.302-1 (b) (3) When acquiring utility services, circumstances may dictate that only one supplier can furnish the service or when the contemplated contract is for construction of a part of a utility system and the utility company itself is the only source available to work on the system.

5. Determination that Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Requires Use of the Authority Cited:

Kentucky American Water is the sole provider of water supply usage service in the Lexington service area. Kentucky American Water is authorized by city ordinance, as the sole authorized provider of water supply usage in the Lexington area. All rates are regulated by city ordinance.

6. Efforts Made to Solicit from as Many Sources as Practicable Including Whether or Not a Notice Was or Will be Publicized as Required by FAR Part 5.2:

As stated in FAR 5.202 (a) (5), “the proposed contract action is for utility services other than telecommunications services and only one source is available.” Therefore, a notice is not required in the Government wide point of entry.

7. Contracting Officer’s Determination that the Cost to the Government Will be Fair and Reasonable:

The estimated usage for a twelve-month period is $611,546.22. Utility rates are approved by the Public Service Commission (PSC). Kentucky American Water, which is charged under State of Kentucky law to ensure that rates be just and reasonable. The State of Kentucky, City of Lexington, and Kentucky American Water websites have provided sufficient data to the contracting officer, pursuant to FAR 15.402, Pricing Policy, allowing the ability to make a preliminary determination that such anticipated costs appear to be fair and reasonable. All rates, rules and regulations of Kentucky American Water are subject to the approval of the PSC of the State of Kentucky. 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 determined the anticipated cost to the Government will be fair and reasonable.

8. Description of the Market Survey Conducted:

Market research conducted by the contracting office showed that a General Services Administration area-wide contract does not exist. Kentucky American Water is the only supplier capable of providing FMC Lexington with water supply services. Kentucky American Water is the current supply provider for FMC Lexington and has serviced the facility for the past 11 years.

9. Other Facts Supporting the Use of Other Than Full and Open Competition:

No additional facts are known at this time.

10. List of Sources, Expressing in Writing, Interest in the Acquisition:

A sources sought notice was published on August 18, 2017 to www.fbo.gov. There are no sources that expressed an interest in this acquisition.

11. Actions Taken by the Agency to Remove or Overcome Barriers to Competitions:

The Bureau will continue to monitor the market trends in the utility industry to seek competition or sources that may be able to meet the minimum needs of the government and its utility requirements. Should opportunities arise in the future the Bureau will take

9/24/2018

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: 2018.09.24 13:14:21 -05'00'