-17485.pdf

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval

For

Other Than Full and Open Competition

Acquisition Plan Action ID: 36C259-19-AP-2454, Xcel Energy, Electricity Utilities for Veterans Affairs Western Colorado Health Care System (WCHCS) (Grand Junction, CO)

1. Contracting Activity:

Department of Veterans Affairs (VA), Network Contracting Office 19 (NCO 19), Rocky Mountain Acquisition Center, 6162 South Willow Drive, Suite 300, Greenwood Village, CO 80111. Assurance of Funds for FY 20 has been received.

2. Nature and/or Description of the Action Being Processed:

The proposed action is the award of a one-year purchase order for electric utility services at the Department of Veterans Affairs, Western Colorado Health Care System (WCHCS) Grand Junction, CO location. Utility services are highly regulated in nature, and there is generally only one available source to meet an agency’s needs. The period of performance will be October 01, 2019 through September 30, 2020.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

The Veterans Affairs Western Colorado Health Care System (WCHCS) in Grand Junction, CO requires electric utility services in order to properly support its mission to serve the Veteran. The period of performance for the proposed action is one (1) year, as the VA does not yet have a delegation of authority from the General Services Administration to contract for these utility services for longer than one year, in accordance with Federal Acquisition Regulation (FAR) 41.103(b) and (c).

The total estimated cost of the proposed action is $453,959.00.

4. Statutory Authority Permitting Other than Full and Open Competition:

(X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302-1 [41 U.S.C. 3304(a)(1)];

( ) (2) Unusual and Compelling Urgency per FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per FAR 6.302-3;

( ) (4) International Agreement per FAR 6.302-4 ( ) (5) Authorized or Required by Statute FAR 6.302-5;

( ) (6) National Security per FAR 6.302-6;

( ) (7) Public Interest per FAR 6.302-7;

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

Xcel Energy has been determined to be the only responsible source able to provide the Veterans Affairs Western Colorado Health Care System (WCHCS) with electric utility services, as it is the only provider authorized by the Public Utilities Commission (PUC) to do so. Xcel Energy company has successfully provided electric utility services to Veterans Affairs Western Colorado Health Care System (WCHCS) and is the current service provider.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

A notice is not required to be publicized in accordance with FAR 5.202(a)(5), Exceptions, since this is a contract action for utility services and only one source is authorized by the Public Service Company of Colorado to provide electric services.

7. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable:

This is a regulated utility service, and tariff rates are established by a regulatory body. Therefore, since the prices are set by law or regulation, no certified cost or pricing data is required, and the prices are determined to be fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

In accordance with FAR 41.103(a), the General Services Administration (GSA) is the procurement authority for the acquisition of utility services. FAR 41.201(b) states that except for acquisitions at or below the simplified acquisition threshold, agencies shall acquire utility services by a bilateral written contract, which must include the clauses required by 41.501, regardless of whether rates or terms and conditions of service are fixed or adjusted by a regulatory body. Additionally, FAR 41.202(b) states that in performing a market survey, the contracting officer shall consider use of the following: GSA areawide contracts, separate contracts, or interagency agreements. Furthermore, FAR 41.204 states that areawide contracts provide a pre-established contractual vehicle for ordering utility services and any Federal agency having a requirement for utility services within an area covered by an areawide contract shall acquire services under that areawide contract unless service is available from more than one supplier or the head of the contracting activity or designee otherwise determines use of the areawide contract is not advantageous to the Government.

Market research indicated that the servicing electric utility provider, Xcel Energy, does not have a GSA Areawide Public Utility Contract, but is the only source capable of providing Veterans Affairs Western Colorado Health Care System (WCHCS) with its electric utility needs. Prior to moving forward with a separate contract, the contracting officer first determined the applicability of Procurement Policy Memorandum (PPM) 2016-05, Implementation of the Veterans First Contracting Program (38 U.S.C. 8127) as a Result of the U.S. Supreme Court Decision. In accordance with Attachment 2 (http://www.va.gov/oal/docs/business/pps/flash16-20att3.pdf) of the aforementioned PPM, 38 U.S.C. 8127 does not apply to mandatory sources, with the exception of some AbilityOne purchases (FAR 8.002, 8.003, VAAR 808.603). Furthermore, FAR 8.003(a) requires that agencies satisfy their requirements for public utility services using FAR 41. Thus, no further action is necessary to satisfy the requirements of PPM 2016-15, as it does not apply to this procurement.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

FAR 41.205 states that in the absence of an areawide contract or interagency agreement agencies shall acquire utility services by separate contract subject to this part, and subject to agency contracting authority. FAR 41.103 states other agencies requiring utility service contracts for periods over one year, but not exceeding ten years, may request a delegation of authority from GSA at the address specified in 41.301(a). The VA is currently in the process of requesting a delegation of authority from GSA, but, in the interim, an one year contract will be awarded. The statutory authority permitting other than full and open competition is 41 U.S.C. 3304(a)(1), as implemented by FAR 6.302-1, and when acquiring utility services, circumstances may dictate that only one supplier can furnish the service; or when the contemplated contract is for the construction of a part of a utility system and the utility company itself is the only source available to work on the system.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

Xcel Energy

11. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to

Competition before Making subsequent acquisitions for the supplies or services required:

There are no actions the VA can take to increase competition nor is there any reasonable likelihood of future competition in this area due to the highly regulated nature of utility services.

12. Requirements Certification: I certify that the requirement outlined in this justification is a Bona

Fide Need of the Department of Veterans Affairs and that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Name: Richard Hayden Date Title: M&O Foreman / Program Manager Facility: Grand Junction VAMC

13. Approvals in accordance with VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer's Certification: (required) I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Name: David J. Medina Date Title: Contracting Officer Facility: Network Contracting Office (NCO) 19 https://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

Name: Albert Williams Date NCO/PCO: Chief, Division 1 Facility: Network Contracting Office (NCO) 19

VHAECHWilliA Typewritten Text 1 Jul 2019