JOFOC18-38_COX_Electric_Utility_Services_(Dec_2017_-_Jan_2018)_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PUBLIC UTILITY – ELECTRIC UTILITY SERVICE

FEDERAL CORRECTIONAL COMPLEX COLEMAN

COLEMAN, FLORIDA

Contractor: Sumter County Electric Cooperative, Inc.

Period of Coverage: December 1, 2017 through January 31, 2018

Amount: $571,737.59

UNITED STATE DEPARTMENT OF JUSITICE FEDERAL BUREAU OF PRISONS

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Electric Utility Service FCC Coleman

Pursuant to the Federal Acquisition Regulation (FAR) Subpart 6.302-1(a)(1) and 6.302-1(b)(3), and the Bureau of Prisons Acquisition Policy 4100.06 Part 6.304( ), the Federal Bureau of Prisons (the Bureau) has determined that the procurement of electric utility services for the Federal Correctional Complex (FCC) Coleman located in Coleman, Florida, 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:

U.S. Department of Justice Federal Bureau of Prisons FCC Coleman 846 NE 54th Terrace Coleman, Florida 33521

(2) Nature and/or description of action being approved:

This procurement action is for the acquisition of Electric services for the FCC Coleman located in Coleman, Florida, from the sole provider of such services in the FCC Coleman area. FCC Coleman has a present and continuing requirement for Electric services for the proper operation of the facility. This procurement is for December and January of FY18 until a long-term contract is awarded.

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

Pursuant to FAR Part 41.202, Sumter County Electric Cooperative, Inc. (SCEC) continues to provide the “entire electric service” for FCC Coleman. SCEC shall provide to the government facility at FCC Coleman, electric 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. SCEC shall provide services on an uninterruptible daily basis 365 days per year, for two months. SCEC will be responsible to operate and maintain all facilities required to furnish electric utility services to specified delivery points at FCC Coleman.

This Justification is in support of a short-term purchase order until the long-term contract is awarded.

SCEC shall provide electric utility service from December 1, 2017 through January 31, 2018, subject to funds availability (FAR Clause 52.232-18). The total estimated amount for electric service for two months is $571,737.59.

CLIN 0003 December 2017 $290,680.23 CLIN 0004 January 2018 $281,057.36

Total Estimated Cost: $571,737.59

JOFOC FCC Coleman Page 3 of

Electric Utility Service

(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 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 SCEC has proprietary rights to provide electric utility service at FCC Coleman. 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.

(5) A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:

SCEC is the publicly-owned regulated sole provider of electric utility services in the FCC Coleman service area. SCEC is the only agent authorized by rules and regulations to provide electric utility services in the FCC Coleman area. Having a single provider of electric utility services for this area is the most efficient method of providing electricity because the investment in the infrastructure required to produce and deliver a product such as electricity is very expensive to build and maintain.

(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.”

(7) A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

The estimated average annual cost, which was based on invoice history, for electric services is $3,606,202.19 with a total estimated usage for the months of December and January is $571,737.59. The Public Service Commission (PSC) of Florida has rate structure jurisdiction over municipal and rural cooperative electric utilities. The PSC provides a regulatory process that results in fair and reasonable rates while offering rate base regulated utilities an opportunity to earn a fair return on their investment.

SCEC conducts periodic cost of service studies to determine rates and once set, are submitted to SCEC’s board for approval. Electric rates are then forwarded to the PSC of Florida for oversight/approval.

SCEC is charged under Florida law to ensure that rates be just and reasonable. SCEC is an electric supply/distribution cooperative and operates under the guidelines of the Florida law. 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 are fair and reasonable.

Page 4 of

Electric Utility Service

(8) A description of the market research conducted:

Product or Service Code for Electric: S- Utilities and Housekeeping Services – S112 Utilities Electric;

North American Industry Classification System (NAICS): 221122 Electric Power distribution Standard Industrial Classification (SIC) Code: 4911 Electric Services.

Potential Sources: SCEC is the sole provider of electric utility services in the FCC Coleman service area.

The FAR provides that 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 and the purchasing of supplies and services are determined fair and reasonable from a responsible source. I applied personal knowledge, interaction with knowledgeable individuals in local and Federal Government regarding market capabilities to meet the requirements, and research of generally accessible literature available on-line were the techniques used in researching this procurement for a supply/services of this type. During construction of the institution, one contract was awarded for the installation and operation of electric services.

Deliver / Performance time: Pursuant to FAR Part 41.202, SCEC continues to provide the “entire electric utility service” (i.e., distribution, generation, system operation and maintenance, metering, billing, etc.).

SCEC shall provide to the government facility at FCC Coleman, electric utility 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. SCEC shall provide services on an uninterruptible daily basis 365 days per year, for two months. SCEC will be responsible to maintain and/or repair all associated above and underground cable lines and equipment, including associated costs for such repair, from the delivery point or meter of FCC Coleman.

The market research conducted by the contracting office and the Facilities Department staff determined that a GSA area-wide nor a single point contract with the SCEC is available in accordance with Title 31 USC § 1535. GSA is specifically authorized by law and regulation to purchase utility services on behalf of other agencies by providing an Assisted Acquisition. In August 2010, GSA issued the Bureau a Delegation of Authority granting nationwide authority to negotiate and execute utility service contracts at Federal facilities in accordance with Title 40 USC § 121(d), and in accordance with Title 40 USC § 501(b)(1)(B). Search of previous purchases of similar/identical acquisitions shows SCEC is the current electric utility services provider for FCC Coleman and has serviced the facility since dedication.

Also, SCEC is the only service supplier capable at this time of providing FCC Coleman with electric utility services. No other company or municipality has presented itself with the capabilities or the infrastructure to run underground electric lines to the current connection site. The amount compensated for the construction of the electric infrastructure systems currently being used at FCC Coleman is not available. No other sources have been located that are currently capable or that could acquire the capability of meeting the Bureau’s requirement.

It is this Contracting Officers determination there is a source available that is capable of providing the required services. The procurement will be conducted in accordance with the procedures as outlined in 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.

The provision of electric utility services is essential for the orderly operation of FCC Coleman. The utility is regulated by state government to assure fair rates for safe and adequate service. The ratemaking process ensures the lowest reasonable rate for consumers while maintaining the financial stability of the utility. Under the law, the utility is entitled to recovery of its reasonable incurred expenses.

Page 5 of

Electric Utility Service

(9) Any other facts supporting the use of other than full and open competition:

None

(10) A listing of the sources, if any, that expressed, in writing, an interest in the acquisition:

There were no other sources which expressed an interest in this acquisition or that would be able to provide the service to meet the minimum requirements of the government.

(11) A statement of the actions, if any, the agency may take to remove or overcome barriers to competition before any subsequent acquisition for the supplies or services required:

Contracting and requirement staff should continue to conduct appropriate market research to determine if sources capable of satisfying the agency’s requirement exist and to overcome competition barriers.

Deregulation laws are presently nonexistent and no alternative source of service is currently available. A review of government procurement database shows only the Bureau is currently issuing orders to SCEC for electric utility requirements. FCC Coleman is a consumer of services from the public utility. If another potential source emerges, the agency will assess whether competition for future requirements is feasible. FCC Coleman will continue to monitor the trends in the utility industry to see 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 FCC Coleman 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, and that I would not be making this request if it were feasible to fully compete this requirement. I further certify that this request is not the result of lack of advance planning or a desire to expend funds while those funds are still available.

Michael Wilson Date Supervisory Contract Specialist FCC Coleman

Bonnie Bueter Date Contract Specialist Field Acquisition Office

I hereby certify that the supporting data, provided by the technical and requirements personnel, which form the basis for this justification is complete and accurate to the best of my knowledge and belief.

Gerald J. Salter Date Facilities Manager FCC Coleman

Justice, ou=BOP, cn=MICHAEL WILSON, 0.9.2342.19200300.100.1.1=15001002949531 Date: 2017.11.15 14:45:37 -05'00'

Bueter, o, ou, email=bbueter@bop.gov, c=US Date: 2017.11.29 11:16:00 -06'00' ou=Dept of Justice, ou=BOP, cn=GERALD SALTER, 0.9.2342.19200300.100.1.1=15001003045501 Date: 2017.11.09 09:28:57 -05'00'

Page 6 of

Electric Utility Service Concurrence of:

In accordance with BPAP 4100.06 Subpart 6.304( ), I certify that I have reviewed this justification and find it adequate to support other than full and open competition.

R. C. Cheatham Date Complex Warden FCC Coleman

Approved by:

Al Rauschuber, Jr., Chief Date Field Acquisition Office

Date: 2017.11.21 15:05:36 -05'00'

Digitally signed by ALFRED RAUSCHUBER

1=15001000663620 Date: 2017.12.11 09:31:08 -06'00'