NYM_JOFOC_W_and_WW_FY18_(2)_Redacted.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

PUBLIC UTILITY – WATER SERVICE

METROPOLITAN CORRECTIONAL CENTER

NEW YORK, NEW YORK

Contractor: New York Department of Environmental Protection

Period of Coverage: 10/1/2017 through 9/30/2018

Estimated Amount: $700,000.00

UNITED STATES DEPARTMENT OF JUSTICE

FEDERAL BUREAU OF PRISONS

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Water and Wastewater Utility Service MCC NEW YORK

Pursuant to the Federal Acquisition Regulation (FAR) Part 6.302-1(a) and 6.302-1(b)(3), and the Bureau of Prisons Acquisition Policy (BPAP) Part 6.304( ), the Federal Bureau of Prisons (Bureau) has determined that the procurement of water and wastewater utility service for the Metropolitan Correctional Center (MCC) New York located within the city limits of New York, New York, 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 MCC New York 150 Park Row New York, NY 10007

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

This justification for other than full and open competition is for the acquisition the acquisition of water and wastewater utility services provided to the MCC New York located in New York, New York, from the sole provider of such services in the New York area. MCC New York has a present and continuing requirement for water and wastewater utility service for the proper operation of the facility.

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

The New York City Department of Environmental Protection (hereinafter referred to as “the City”) shall provide to the government facility at MCC NY, water and wastewater 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 MCC NY. The City will be responsible to ensure that the pipelines and associated equipment, utilized to provide water and wastewater services will be maintained and operated in compliance with all rules and regulations set by the New York Department of Public Health, in accordance with all Federal, State, County, and local government for a safe and sanitary water and wastewater 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 October 1, 2017, through September 30, 2018, for a 12 month period, subject to funds availability (FAR Clause 52.232-18). Water and wastewater services are billed on a quarterly basis. The total estimated amount for a 12-month period is $700,000.00.

JOFOC MCC NEW YORK

Water and Wastewater Utility Services

Contract Line Item Number Performance Period Estimated Annual Cost ($) CLIN 0001 October 2017 $175,000.00 CLIN 0002 January 2018 $175,000.00 CLIN 0003 April 2018 $175,000.00 CLIN 0004 July 2018 $175,000.00

Total Estimated Cost: $700,000.00

(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).” 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 MCC NY. 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 MCC NY service area. The City is an entity of the State of New York, the only agent authorized by rules and regulations to provide water and wastewater service in the New York area. Having a single supplier of water and wastewater 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, 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 quarterly cost, which was based on invoice history, for the water and wastewater utility service is $175,000.00 with a total estimated usage for a 12 month period of $700,000.00. Utility rates are regulated by the New York City Water Board. The Board, which members are appointed by the Mayor, is charged to establish rates that provide sufficient revenue to operate and maintain the water and sewer system and strive to ensure that rates be equitable and fair. The State of New York, City of New

JOFOC MCC NEW YORK

Water and Wastewater Utility Services

York, and the New York City Water Board websites have provided sufficient data to the Bureau 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 New York is a municipal corporation and operates under the guidelines of the State of New York 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.

(8) A description of the market research conducted:

Title: Water and Wastewater Utility Service – MCC NY Product or Service Code: S- Utilities and Housekeeping Services – 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:

1. 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.

2. The following methods were utilized to conduct Market Research:

X FedBizOpps Sources Sought Synopsis; Found no other interested party capable of providing water and wastewater utility service.

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 Bureau are purchasing water and wastewater service from the City.

X Searched previous purchases of similar/identical acquisitions; Found the City is current provider to MCC NY. 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:

There were no other sources which expressed an interest in this acquisition.

0.9.2342.19200300.100.1.1=15001000663439 Date: 2017.08.25 11:01:57 -05'00'