JOFOC_FY_19_(Jan_to_Sept)_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Natural Gas Distribution Utility Service FCI FT DIX

Pursuant to the Federal Acquisition Regulation (FAR) Subpart 6.302-1(a) and 6.302-1(b) (3), and the Bureau of Prisons Acquisition Policy (BPAP) Part 6.304(b), the Federal Bureau of Prisons (Bureau) has determined that the procurement of natural gas distribution utility services for the Federal Correctional Institution (FCI) Fort Dix 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. Agency:

Department of Justice Federal Bureau of Prisons FCI Fort Dix PO Box 38 Joint Base MDL, New Jersey 08640

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

This action is for the acquisition of natural gas distribution utility services supplied to FCI Fort Dix from the sole provider of such services. FCI Fort Dix has a present and continuing requirement for natural gas distribution utility services for the proper operation of the facility.

Public Service Electric and Gas Company (PSE&G) has been providing services to FCI Ft. Dix for FY2019; however, PSE&G refuses to change their registration in the System for Award Management (SAM) from Federal Assistance Awards Only. This type of registration does not allow the Contracting Officer to complete the purchase order in UFMS or FPDS-NG.

In FY2016 when PSE&G first changed their registration, they were contacted and asked to update it. PSE&G refused to update SAM. PSE&G's legal office was put in contact with the Bureau's CLB to discuss the situation. After several months of discussions PSE&G still refuses to register in SAM correctly. FAR 41.202(c) provides that when a utility provider refuses to execute a tendered contract. ... the agency may proceed with acquisition and pay for the utility service ... by ordering the necessary utility service ... provided that a determination is approved by the head of the contracting activity that a written contract cannot be obtained and that the issuance of a purchase order is not feasible. The Bureau paid the FY2016, FY2017 and FY2018 invoices in accordance with FAR 4 l.202(c) and pursuant to the attached Waiver signed by Thomas Kane, the Acting Director for the Bureau on August 22, 2016.

During the first quarter of FY2019, the Bureau consistently requested PSE&G update their SAM registration. After several attempts and multiple exchanges, PSE&G has again refused to update their registration. The Northeast Financing Center has raised the concern that funds will not be paid promptly; therefore, the Bureau will pay pursuant to FAR 41.020(c) and the attached waiver.

3. Description of supplies or services required to meet the agency's needs:

Pursuant to FAR Part 41.202, PSE&G continues to provide the "entire natural gas distribution utility service"(i.e. distribution, system operation and maintenance, metering, billing, etc.).

PSE&G shall continue to provide to the government facility at FCI Fort Dix, natural gas distribution 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. PSE&G shall provide services on an un-interruptible daily basis.

PSE&G will be responsible to maintain and/or repair all associated natural gas lines and equipment, including associated costs for such repair, to the delivery point or meter of FCI Fort Dix.

The service required is distribution, and related services for natural gas services from January 1, 2019 through September 30, 2019, subject to funds availability (FAR Clause 52.232-18). FCI Ft. Dix has been receiving services from PSE&G since its dedication. The services will be procured by way of purchase order. The estimated cost for natural gas distribution service for the above time period is $319,650.00.

4. 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 U.S.C. 3304 (a)(l ) and FAR 6.302-l(b)(3), when the supplies or services required by the agency are available from only one responsible source. When acquiring utility services (see 41.101), Circumstance(s) may dictate that only one supplier can furnish the service (see 41.202).

Analysis of the market indicates that PSE&G has proprietary rights up to the meter at FCI Fort Dix and has been providing natural gas transportation services since its dedication. 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. Determination that the proposed contractor's unique qualifications or the nature of the acquisition requires use of the authority cited:

The PSE&G is the sole provider of natural gas LDC utility service for the FCI Fort Dix. The Natural Gas industry is governed by the State of New Jersey Board of Public Utilities (BPU) and the Federal Energy Regulatory Commission. The BPU is the governing body that sets all rates and tariffs with the responsibility of natural gas LDC utility service for the state of New Jersey.

PSE&G currently owns and operates the natural gas pipeline connected to the FCI Fort Dix meter. If it were possible to make an award to another natural gas utility provider, this new utility provider would have to install and maintain the infrastructure necessary to provide natural gas service for the proper operation of the facility. Having a single provider of natural gas for this area is the most cost efficient method of distributing natural gas.

The current tariff for gas service can be located at:

http://www.pseg.com/family/pseandg/tariffs/gas/pdf/gas_tariff.pdf.

6. Efforts made to solicit from as many potential sources as practicable, including whether a notice was or will be publicized as required by FAR Part 5.2:

As stated in FAR Part 5.202 (a)(5), "the contract action is for utility services other than telecommunications services and only one source is reasonably available. Therefore, a notice is not required in the Government wide point of entry (GPE)." GSA, Energy Management Center of Expertise, has previously determined that there are no area wide contracts for natural gas distribution services and that no opportunity exists in the local area to compete the requirement.

7. Contracting Officer Determination that the cost to the Government will be fair and reasonable:

The estimated usage for nine months is $319,650.00. The Contracting Officer and Facility Manager find this price to be fair and reasonable. Prices will be continuously be analyzed in order to determine price reasonableness.

8. A description of the market research conducted:

Product or Service Code: S- Utilities and Housekeeping Services - S111 Utilities - Gas.

North American Industry Classification System (NAICS): 221210 Natural Gas Distribution = This industry comprises: (1) establishments primarily engaged in operating gas distribution systems (e.g., mains, meters); (2) establishments known as gas marketers that buy gas from the well and sell it to a distribution system; (3) establishments known as gas brokers or agents that arrange the sale of gas over gas distribution systems operated by others; and (4) establishments primarily engaged in transmitting and distributing gas to final consumers.

Standard Industrial Classification (SIC) Code: 4924 Natural Gas Distribution, Recommendation: The Government contemplates the single award of a firm-fixed price requirements type natural gas LDC utility service purchase order resulting from this requirement.

9. Other facts supporting the use of other than full and open competition:

None

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

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: 2018.11.30 13:44:39 -06'00' 11/30/2018

5/8/2019 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: 2019.05.08 15:05:03 -05'00'