JOFOC Water and Sewer January.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Water and Sewage Utility Service – FCI McDowell, WV

Pursuant to the Federal Acquisition Regulation (FAR) 6.302-1 (a) (1) and 6.302-1 (b) (3), and Bureau of Prisons Acquisition Policy 6.304 (c), the Federal Bureau of Prisons (FBOP) has determined that the procurement of water and sewage service for the Federal Correctional Institution (FCI) McDowell located in Welch, WV, 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:

1. Agency:

U. S. Department of Justice Federal Bureau of Prisons Federal Correctional Institution McDowell 101 Federal Dr.

Welch, WV 24801

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

This justification for other than full and open competition is for the acquisition of water and sewage utility services provided to the FCI located in Welch, WV, from the original and sole provider of such services. FCI McDowell has a present and continuing requirement for water and sewage utility service for the orderly operation of the facility.

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

FCI McDowell requires water and sewage utility services in a manner that is consistent with all applicable laws, rules, codes, industry standards, permits and regulations, promulgated by any and all governmental authorities having jurisdiction in the state of West Virginia.

Services shall be provided on a firm and interruptible daily basis (365) days per year. City of Welch will be responsible to maintain and/or repair all associated water and sewage lines and equipment, including associated costs for such repair, from the delivery point or meter of FCI McDowell. Pursuant to FAR Part 41.202, the contractor is required to provide the “entire water and sewage service” (i.e., standby or backup service, transmission and/or distribution service, quality assurance, system reliability, operation and maintenance, metering, billing, etc.)

Water and sewage utility services are required from January 1, 2020 through January 31, 2020.

The FBOP shall purchase water and sewage utility service defined as adequate supply to accommodate the transmission and/or distribution system designed specifically for receipt and use of water and sewage utility services from the City of Welch in order to maintain daily operations of the FCI. The estimated average daily flow is 174,498 gallons and an annual volume of 63,691,767 gallons. The monthly amount for water and sewage utility service will fluctuate due to seasonal and special conditions.

FEDERAL BUREAU OF PRISONS – FCI McDowell Page 2

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

This justification for other than full and open competition 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 U.S.C. 3304 (a) (1), when the supplies or services required by the agency are available from only one source. The application which permits use of the cited statutory authority are stated at FAR 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).

5. Determination that Proposed Contractor’s Unique Qualifications or the Nature of the

Acquisition Requires Use of the Authority Cited:

The City of Welch is the sole provider of these services to the FCI in Welch, WV. The City of Welch is the sole proprietor of the transportation system that provides water and sewage up to the meter of FCI McDowell. The City of Welch, is a regulated, full service, water and sewage supplier and distribution utility company. The City of Welch is regulated by the Public Service Commission of West Virginia (PSCWV) as to rates, services levels, safety and reliability. They are authorized to do so through the passage of WV. State Code at §24-2-1 Jurisdiction of commission; waiver of jurisdiction. Due to these facts, no other supplier can provide water and sewage service to the institution. The company’s rates that are reflected through these schedules and the schedules are approved by the PSCWV. The applicability of each schedule is available to the various customer classes designated through the rate schedule with their respective rates. The average monthly usage for those customers in each class of user and type of service is designated also. The usage designations are clearly identified which provide the foundation for rate schedule priority classification sequences.

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. However, a Sources Sought notice was posted to Federal Business Opportunities on March 6, 2018, to seek suppliers which may be able to meet the minimum requirements of the FCI by providing water and sewage service.

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

Reasonable:

The current rate schedule offered by the City of Welch has been approved by the PSCWV and is furthered detailed in the attached Tariff No. 15 (water) and Tariff No. 7(sewer). The rate tariffs that are approved by the PSCWV are implemented as applicable law for all users in the City of Welch service area. Pursuant to FAR 15.402, Pricing Policy, market research of the City of Welch website and Public Utilities Code has provided sufficient data to the

FEDERAL BUREAU OF PRISONS – FCI McDowell Page 3 contracting officer to make a preliminary determination that such anticipated costs appear to be fair and reasonable. 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 City of Welch has agreed to enter into a contract with FCI McDowell for a period of ten (10) years. A proposal of pricing will be submitted by City of Welch in response to a Request for Proposal. That proposal will be evaluated by the contracting officer and determined to be fair and reasonable. Once an award is made, contract prices and monthly invoices will be analyzed by the Facilities Manager with the assistance of the Contracting Officer in accordance with F.A.R. 41.401 in order to ensure price reasonableness and accuracy according to the proposal pricing submitted, in addition to, current rate schedules.

8. Description of the Market Survey Conducted:

FCI McDowell has a present and continuing need for water and sewage utility services. FCI McDowell does not have an onsite water well and septic distribution system; therefore, the need for water and sewage utility service has to be found and supplied by a contractor in the market. Market research has revealed the presence of approved tariff schedules which establish City of Welch as the only legal contractor with physical, mechanical, and operational capabilities to process the magnitude of service required by FCI McDowell.

Market Research has also revealed that the North American Industrial Classification System (NAICS) code for water and sewage utility service as 221310 and 221320. The NAICS industry description for code 221310 has detailed that establishments with this code are primarily engaged in operating water treatment plants and/or operating water supply systems. The water supply system may include pumping stations, aqueducts, and/or distribution mains. The water may be used for drinking, irrigation, or other uses. The NAISCS industry description for code 221320 has detailed that establishments with this code are primarily engaged in operating sewer systems or sewage treatment facilities that collect, treat, and dispose of waste. Since City of Welch has demonstrated that they are engaged in the operation of such systems, code 221310 and 221320 is applicable to this acquisition.

Telephone conversations conducted by the contracting officer with the Contracting and Facilities Department personnel at FCI McDowell determined that the City of Welch is the current water and sewage utility service provider for FCI McDowell and has serviced the Facility for the past ten (10) years. The contracting officer also had telephone conversations with Ms. Reba Honaker, Mayor, for the City of Welch confirming that the City of Welch does provide water and sewage utility service to FCI McDowell and possesses the legal authority to do so through approved tariff schedules by PSCWV. Also, a Sources Sought Synopsis was issued to discover any potential sources which may be able to satisfy the requirement of processing FCI McDowell’s water and sewage utility service.

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

None.

FEDERAL BUREAU OF PRISONS – FCI McDowell Page 4

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

The City of Welch is the only source that has expressed a written interest in this utility acquisition.

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

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. Laws which support deregulation of this utility service are not available in the Welch water and sewage utility market. Contracting staff will continue to monitor the market trends and PSCWV rulings in the water and sewage distribution industry to seek competition or sources that may be able to meet the minimum needs of FCI McDowell and its water and sewage utility requirements. Should opportunities arise in the future the FBOP will take appropriate action.

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.

_____________________________ _1/16/2020 __________ Wade O’Quinn, Contracting Officer Date FCI McDowell