FAI_NG_JOFOC__-_Under_$650K_FY19_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

FCI Fairton, NJ – Natural Gas Utility Services

Fiscal Year 2019

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 (b), the Federal Bureau of Prisons (BOP) has determined that the procurement of natural gas for the Federal Correctional Institution located in Fairton, New Jersey, (FCI Fairton) 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:

Department of Justice Federal Bureau of Prisons FCI Fairton 655 Fairton Millville Road Fairton, NJ 08320

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

This action is for the acquisition of natural gas services to FCI Fairton located in Fairton, New Jersey, from the sole provider of such services in the Fairton area.

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

Natural gas services for October 1, 2018, through September 30, 2019, are subject to funds availability (FAR Clause 52.232-18). The services will be procured by way of purchase order.

The estimated average monthly usage for natural gas is 32,983 therms. The estimated average yearly cost for natural gas service is $239,000.00.

Contract Line Item Number Performance Period Estimated Cost ($)

CLIN 0001 10/01/2018 – 10/31/2018 $12,000.00

CLIN 0002 11/01/2018 – 11/30/2018 $26,000.00

CLIN 0003 12/01/2018 – 12/31/2018 $33,000.00

CLIN 0004 01/01/2019 – 01/31/2019 $24,000.00

CLIN 0005 02/01/2019 – 02/28/2019 $22,000.00

CLIN 0006 03/01/2019 – 03/31/2019 $18,000.00

CLIN 0007 04/01/2019 – 04/30/2019 $18,000.00

CLIN 0008 05/01/2019 – 05/31/2019 $13,000.00

CLIN 0009 06/01/2019 – 06/30/2019 $25,000.00

CLIN 0010 07/01/2019 – 07/31/2019 $14,000.00

CLIN 0011 08/01/2019 – 08/31/2019 $12,000.00

CLIN 0012 09/01/2019 – 09/30/2019 $22,000.00

Total Estimated Cost: $239,000.00

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:

South Jersey Gas is the sole provider of natural gas service in the Fairton service area. South Jersey Gas is authorized by city ordinance, as the sole authorized provider for natural gas services in the Fairton 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 (GPE).

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

The expected cost to the Government is fair and reasonable. This determination is based on the prices recently paid, and prices which are currently regulated by the New Jersey Board of Public Utilities through the Natural Gas Utility Tariff for South Jersey Gas. The current rates offered by South Jersey Gas are considered to be applicable to all users classified in various categories identified in the tariff. F.A.R. 15.403-1 (c) (2) states “Prices set by law or regulation.

Pronouncements in the form of periodic rulings, reviews, or similar actions of a governmental body, or embodied in the laws, are sufficient to set a price.” South Jersey Gas has done such by the application and passing of their natural gas utility tariff for the provision of service to FCI Fairton located in Cumberland County. Monthly bill prices will be analyzed by the Facilities Manager, with the assistance of the Contract Specialist in accordance with FAR 41.401, in order to ensure price reasonableness and accuracy. The current rates offered by South Jersey Gas are regulated by the New Jersey Board of Public Utilities. Per the guidance provided by FAR for exceptions to cost and pricing data, in addition to, New Jersey Board of Public Utilities regulation, the Contracting Officer has deemed these prices to be fair and reasonable. To ensure continuity of fair and reasonableness, prices will be analyzed by the Facilities Manager with the assistance of the Contract Specialist in accordance with F.A.R. 41.401.

8. Description of the Market Survey Conducted:

Market research revealed that South Jersey Gas is the only licensed natural gas utility supplier capable of providing this service. FCI Fairton is located within South Jersey Gas’ protected franchise area of Cumberland County. South Jersey Gas’ ability to function as such has been enabled by the passing of their natural gas utility tariff by the New Jersey Board of Public Utilities.

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

A GSA area wide contract does not currently exist for natural gas services in the Cumberland County area; as a result, the services have to be located and provided by a local vendor from the community. FCI Fairton has an ongoing need for this service and would not be able to function if this service was interrupted or not provided.

09/12/2018

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: 2018.09.12 13:32:43 -05'00'

Approved:

Al Rauschuber, Jr., Chief Date Field Acquisition Office

9/13/2018 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: 2018.09.13 08:55:11 -05'00'