TDGJOFOC_Wate-Sewer_2nd_to_4th_QTR_FY20_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Water and Sewer Service FCI Talladega

Pursuant to the Federal Acquisition Regulation (FAR) Part 6.302-1(a)(1) and 6.302-1(b)(3), and the Bureau of Prisons Acquisition Policy (BPAP) 4100.06 Subpart 6.304(c), the Federal Bureau of Prisons (FBOP) has determined that the procurement of water and wastewater utility service for the Federal Correctional Institution (FCI) Talladega located within the city limits of Talladega, Alabama 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 FCI Talladega 565 East Renfroe Road Talladega, Alabama 35160

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

This justification for other that full and open competition is for acquisition of water and wastewater utility services provided the Federal Correctional Institution (FCI), Federal Prison Camp (FCP), located in Talladega, AL, from the sole provider of such services in the Talladega area. FCI Talladega has a present and continuing requirement for water and wastewater utility service for proper operation of the facility.

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

The City of Talladega (hereinafter referred to as “the City”) shall provide to the government facility at FCI Talladega, water and wastewater 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. The City shall provide services on an un-interruptible daily basis 365 days per year. The City 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 FCI Talladega. The City will be responsible to ensure that the pipelines and associated equipment, utilized to provide water and wastewater utility services will be maintained and operated in compliance with all rules and regulations set by the Alabama Department of Public Health, in accordance with all Federal, State, County, and local government for a safe and sanitary water and wastewater utility service. Pursuant to FAR Part 41.202, the City continues to provide the “entire water and wastewater utility service” (i.e., production, distribution, system operation and maintenance, collection, treatment, metering, billing, etc.).

The City shall provide water and wastewater utility services for the period from January 1, 2020 through September 30, 2020, for a nine month period, subject to funds availability (FAR Clause 52.232-18). The total estimated amount for a nine month period is $636,884.10.

(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 § 253

JOFOC FCI TALLDEGA

Water and Sewer Services

(c)(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). When a public utility supplier refuses to execute a tendered contract the agency may proceed with the acquisition and pay for the utility service under the provisions of 31 USC § 1501(a)(8).

Analysis of the market indicates that the City has proprietary rights up to the meter at FCI Talladega. 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. In accordance with FAR 9.102(b), a contracting officer is not required to make a responsibility determination when awarding to a Foreign, State, or local government.

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

The City is the government-owned sole provider of water and wastewater utility service in the FCI Talladega, Alabama service area. The City is an entity of the State of Alabama, the only agent authorized by rules and regulations to provide water and wastewater utility service in the Talladega area. Having a single supplier of water and wastewater utility service for this area is the most efficient method of providing potable water and collecting and treating sewage.

(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(GPE), 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 monthly cost, which was based on invoice history, for the water and sewage service is $70,764.90 with a total estimated usage for a nine month period of $636,884.10. Utility rates are enacted by resolutions by the City Council. The City, which is charged under State of Alabama law to ensure that rates be just and reasonable. The State of Alabama, City of Talladega, and the Department of Water and Sewer websites have provided sufficient data to the FBOP contracting officer, pursuant to FAR 15.402, Pricing Policy, allowing the ability to make a preliminary determination that such anticipated costs appear to be fair and reasonable. The City of Talladega is a municipal corporation and operates under the guidelines of the State of Alabama Charter. 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 will be fair and reasonable.

JOFOC FCI TALLDEGA

Water and Sewer Services

(8) A description of the market research conducted:

Title: Water and Sewer Service – FCI Talladega Product or Service Code: S114 Water Service and S119 Other Utilities.

North American Industry Classification System (NAICS): 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; and 221320 Sewage Treatment Facilities = this industry comprises establishments primarily engaged in operating water systems or sewage treatment facilities that collect, treat, and dispose of waste.

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

MARKET ANALYSIS:

The results of market research have determined that the Government’s needs can be met by an item that is of a type customarily available in the commercial marketplace and is used by the general public.

The following methods were utilized to conduct Market Research:

X Reviewed historical acquisition information.

X Personal knowledge in procuring supplies/services of this type.

X Review of Government and/or commercial databases for relevant information.

X Searched database and contacted GSA Energy Center of Expertise; Found no area wide or single point contract is available.

X Searched FPDS-NG; Found GSA, National Archives and Records Administration, Department of Homeland Security, and the FBOP are purchasing water and wastewater service from the City.

X Searched previous purchases of similar/identical acquisitions; Found the City is current provider to FCI Talladega. This is a continuation of 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:

A sources sought notice was posted to www.fbo.gov on June 5, 2019. There were no sources, which expressed an interest in this acquisition.

(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 continues 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 databases shows only the FBOP, GSA, and National Archives and Records Administration are issuing orders to the City for water and sewer requirements. FCI Talladega 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.

10/24/2019 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: 2019.10.24 13:48:09 -05'00'