Liberty_Utilities_JOFOC_FY_19_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Natural Gas Supply & Delivery

Pursuant to Federal Acquisition Regulations (FAR) Part 6.302-1(b)(3), FCI Berlin has determined that the procurement of natural gas supply and delivery services for Fiscal Year 2019 (10/01/18 to 09/30/19) 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. IDENTIFICATION OF THE AGENCY AND CONTRACTING ACTIVITY:

Department of Justice Federal Bureau of Prisons FCI Berlin 1 Success Loop Rd

Berlin, NH 03570

2. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED:

This action is for the acquisition of natural gas supply and delivery to FCI Berlin.

3. DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY NEEDS:

The vendor will provide natural gas supply and distribution to FCI Berlin during Fiscal Year 2019 (10/01/18 – 09/30/2019).

4. AN IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING

OTHER THAN FULL AND OPEN COMPETITION:

The statutory authority for these services is found at 41 U.S.C. 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 is 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 services (see 41.202). Only one responsible source & no other supplies or services will satisfy agency requirement.”

5. A DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES

USE OF THE AUTHORITY CITED:

The vendor, Energy North Natural Gas, Inc., dba: Liberty Utilities (Liberty) is the only responsible provider of natural gas in the Berlin, NH service area; furthermore, they are the only supplier that can provide both supply and delivery of natural gas.

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.

FCI Berlin participated in a GSA/World Energy Reverse Auction for Natural Gas Services during the month of June 2014. The results of this auction indicated that no other vendor is able to provide natural gas and delivery at a lower price than Liberty.

GSA confirmed in 2015, 2016, and again in 2017 that market conditions have not changed significantly. They reasoned that it would not be in the BOP’s best interest to conduct a reverse auction as no other competitor can supply and deliver gas at a lower price than Liberty. They further indicated that Liberty is the only provider who can provide both the supply and delivery of natural gas. An additional consideration is Berlin’s metering. In order to switch suppliers, Berlin would have to upgrade its metering. Berlin currently has a telemeter in place, but would need to hook up a phone line in order for it to receive third-party supply. This would result in additional costs.

The market rates currently provided by Liberty reflect the best rate to the government. In addition, this contracting officer made contact with Liberty Utilities in order to ascertain their interest in doing a multi-year contract with FCI Berlin. Liberty does not want to pursue a multi-year contract at this time. FCI Berlin intends to follow up with the GSA and participate in a reverse auction should the market change significantly.

7. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE:

The Contracting Officer has determined that the estimated price of $510,000 is fair and reasonable based on historical data.

8. DESCRIPTION OF THE MARKET RESEARCH:

Market research indicates that Liberty is the only utility company that provides both supply and delivery of natural gas in the Berlin area.

9. OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION:

NA

10. A LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN

WRITING, AN INTEREST IN THE ACQUISITION:

Sprague expressed interest in this requirement, but, according to the GSA, is not able to provide natural gas at a lower price than Liberty.

11. A STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR

OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT

ACQUISITION FOR THE SERVICES REQUIRED:

FCI Berlin intends to participate in the next available GSA reverse auction for natural gas

07/06/2018

7/10/2018 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: 2018.07.10 08:51:38 -05'00'

Bonnie Bueter

Digitally signed by Bonnie Bueter DN: cn=Bonnie Bueter, o, ou, email=bbueter@bop.gov, c=US Date: 2018.07.06 12:59:31 -05'00'