JOFOC.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Water & Sewer Utility Service FCC Coleman

(a) Pursuant to the Federal Acquisition Regulation (FAR) Part 6.302-1(b)(3), and the Bureau of Prisons Acquisition Policy (BPAP) Part 6, the Federal Bureau of Prisons (FBOP) has determined that the procurement of Water and Sewer 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:

(b)(1) Identification of the Agency:

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

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

This procurement action is for the acquisition of Water and Sewer utility 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 water and sewer utility services for the proper operation of the facility. A solicitation for a long-term contract was posted on December 14, 2017. The City of Wildwood was the only offeror in response to the solicitation.

The contract was awarded April 13th with an effective date of award of May 1, 2018. This Justification is for temporary services until the long-term contract is effective.

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

Pursuant to FAR Part 41.202, the City of Wildwood continues to provide the “entire water and sewer utility service” (i.e., collection, conveyance, system operation and maintenance, storage, treatment, metering, billing, etc.). The City of Wildwood shall provide to the government facility at FCC Coleman, water and sewer 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. The City of Wildwood shall provide services on an un-interruptible daily basis 365 days per year. The City of Wildwood will be responsible to maintain and/or repair all associated pipelines and equipment, including associated costs for such repair, up to the delivery point or meter of FCC Coleman. The City of Wildwood will be responsible to ensure that the pipelines and associated equipment, utilized to provide wastewater services will be maintained and operated in compliance with all rules and regulations set by the Southwest Florida Water Management District, in accordance with all Federal, State, County, and local government for a safe and sanitary wastewater service.

The City of Wildwood shall provide Water and Sewer utility services from April 1, 2018, through April 30,2018, subject to funds availability (FAR Clause 52.232-18). The total estimated amount for Water & Sewer utility service is $163,029.53.

Contract Line Item Number

Performance Period Estimated Annual Cost

CLIN 0001 April 2018 $163,029.53

Total Estimated Cost: $163,029.53

(b)(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 the City of Wildwood has proprietary rights up to the meter at FCC Coleman. In order for another provider to be capable of providing the service, significant capital improvements would be needed. The FBOP 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. In accordance with FAR 9.102(b)(1), a contracting officer is not required to make a responsibility determination when awarding to a Foreign, State, or local government.

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

The City of Wildwood is the government-owned sole provider of water and sewer utility service in the FCC Coleman service area. The City of Wildwood is the only agent authorized by rules and regulations to provide water and sewer service in the FCC Coleman area. Having a single provider of water and sewer service for this area is the most efficient method of providing water and collecting and treating sewage. In accordance with the Florida Department of Environmental Protection, the City of Wildwood may exercise the following powers and provide the following services - (6) Storm water and sewage collection and disposal systems, and (7) Development, storage, treatment, purification, and distribution of water.

(b)(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.”

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

The estimated average cost, based on invoice history, for water and sewer utility service for the month of April 2018 is $163,029.53 as detailed above. Utility rates are enacted by resolutions by the City of Wildwood City Council. The City, which is charged under Florida law to ensure that rates be just and reasonable. Based on the cost for services on the most-recent purchase order and the City of Wildwood website, there is sufficient data for the FBOP contracting officer, pursuant to FAR 15.402, Pricing Policy, to allow the ability to make a preliminary determination that such anticipated costs appear to be fair and reasonable. The City of Wildwood is a municipal corporation and operates under the guidelines of the Florida Department of Environmental Protection. 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.

(b)(8) A description of the market research conducted:

This documentation is in accordance with FAR Part 10, which describes the policies and procedures for conducting market research in a process of finding viable sources of goods and services to meet government requirements and to find the most suitable approach to acquiring, distributing, and supporting supplies and services. This report is submitted in support of an acquisition with an estimated value in excess of the simplified acquisition threshold. Below are the findings of the market research for the above referenced requirement.

Product or Service Code for Sewage: S- Utilities and Housekeeping Services – S119 Other Utilities. Product or Service Code for Water: S- Utilities and Housekeeping Services – S114 Utilities-Water

North American Industry Classification System (NAICS): 221320 Sewage Treatment Facilities -this industry comprises establishments primarily engaged in operating water and sewer systems or sewage treatment facilities that collect, treat, and dispose of waste. 221310 Water Supply and Irrigation Systems - This industry comprises establishments 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.

Standard Industrial Classification (SIC) Code: 4952 Sewerage Systems and 4941 Water Supply

Potential Sources: The City of Wildwood is the sole provider of water and sewer utility service in the FCC Coleman service area. The City Commission of the City of Wildwood is the governing body that approves all rates with the responsibility of water and sewer services for the locale in which FCC Coleman resides. 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 one water and sewer pipeline leading from the institution. In the case of utilities owned and operated by municipalities, the City Commission of the City of Wildwood does not have jurisdiction.

The market research conducted by the contracting office and the Facilities Department staff determined that a General Services Administration (GSA) area-wide nor a single point contract with the City of Wildwood 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. On August 2010, in accordance with Title 40 USC §121(d), GSA issued the FBOP a Delegation of Authority for nationwide authority to negotiate and execute utility service contracts at Federal facilities under the control and direction of the FBOP in accordance with Title 40 USC §501(b)(1)(B). Search of previous purchases of similar/identical acquisitions shows the City of Wildwood is the current water and sewer service provider for FCC Coleman and has serviced the facility since dedication. Also, the City of Wildwood is the only service supplier capable at this time of providing FCC Coleman with water and sewer services. No other company or municipality has presented itself with the capabilities or the infrastructure to run water and sewer lines to the current connection site.

The provision of water and sewer utility service is essential for the orderly operation of FCC Coleman. The specifications/description requirements documents shall specify needs using market research in a manner designed to promote full and open competition and only include provisions or conditions to the extent necessary to satisfy the needs of the FBOP or as authorized by law.

History shows and economics dictate that the construction of infrastructure facilities by multiple utilities in the same location would be extremely costly and disruptive to communities. The utility is regulated by local 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.

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

None

(b)(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.

(b)(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 FBOP is currently issuing orders to the City of Wildwood for water and sewer utility requirements.

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.

(b)(12) Contracting Officer’s Certification:

I hereby certify that this request for Justification for 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 L. 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.

MICHAEL

Date: 2018.04.13 08:12:44 -04'00' ou, email=bbueter@bop.gov, c=US Date: 2018.04.13 08:34:10 -05'00' 04/13/2018

Gerald J. Salter Date Facilities Manager FCC Coleman

Concurrence of:

In accordance with BPAP 4100.06 Subpart 6, 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:

Al Rauschuber, Jr. Date Chief Field Acquisition Office nment, ou=Dept of Justice, ou=BOP, cn=GERALD SALTER, 0.9.2342.19200300.100.1.1=15001003045501 Date: 2018.04.12 15:37:06 -04'00'

ROY

CHEATHAM,

0.9.2342.19200300.100.1.1=15001003045468 Date: 2018.04.13 08:18:39 -04'00'

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: 2018.04.17 12:58:50 -05'00'