SSJ_Port_Isabel_Water_Supply_.pdf

OFFICE OF ACQUISITION MANAGEMENT

Sole Source Justification (SSJ)

Simplified Procedures for Certain Commercial Items Exceeding the Simplified Acquisition Threshold (SAT)

FAR Subpart 13.5, including Brand Name

J&A-19-0033

Page 1 of 4 December 2018

Pursuant to the requirements under the authority of simplified procedures for commercial items at 41 U.S.C. 1901 as implemented by Federal Acquisition Regulation (FAR) Subpart 13.501 and consistent with the content requirements of FAR 6.303-2.

1. Agency and Contracting Activity.

The Department of Homeland Security, U.S. Immigration and Customs Enforcement, Office of Acquisition Management, proposes to enter into a purchase order on behalf of the Office of Facilities Administration on a basis of other than full and open competition.

2. Nature and/or description of the action being approved.

(a) Type of action: Time and Materials (T&M) Purchase Order

(b) Amount the current J&A is justifying: $2,205,000.00

(c) Brief Description: OAQ intends to procure, on a sole source basis, wholesale water supply using simplified acquisition procedures. This action is being taken pursuant to the authority of FAR 13.501. The vendor listed below is the only company that can provide the required services as it is a mandatory source for these utility services.

East Rio Hondo Water Supply Corporation 206 Industrial Parkway Rio Hondo, TX 78583

3. Description of Supplies/Services. Describe the supplies or services to be acquired.

Provide the estimated total value (including options, if any).

This requirement is to provide Wholesale Water for the Port Isabel Detention Center for a period of a Base Year and Nine Option Years at an estimated total cost of $2,205,000.00 (to include a six month extension utilizing the 52.217-8 Clause). These services are required to provide Potable Water to Port Isabel Detention Center under the Office of Facilities Admininstration (OFA).

Period Months Monthly Price Total Base Year

12 $17,500.00 $210,000.00

Option Year 1

12 $17,500.00 $210,000.00

Option Year 2

12 $17,500.00 $210,000.00

Option Year 3

12 $17,500.00 $210,000.00 http://uscode.house.gov/

Simplified Procedures for Certain Commercial Items

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Option Year 4

12 $17,500.00 $210,000.00

Option Year 5

12 $17,500.00 $210,000.00

Option Year 6

12 $17,500.00 $210,000.00

Option Year 7

12 $17,500.00 $210,000.00

Option Year 8

12 $17,500.00 $210,000.00

Option Year 9

12 $17,500.00 $210,000.00

52.217-8 6 $17,500.00 $105,000.00 Total $2,205,000.00

4. Identification of the authority.

This action is being taken under the authority of Simplified Procedures for Commercial Items, 41 U.S.C. 1901.

5. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

a. Background information about the requirement; This requirement is to provide

Potable Water to the Port Isabel Detention Center for an estimated detainee population of 1200 and approximately 655 Staff members. The 10 year Average water usage is 43,301,591 Gallons (2008 – 2018). 2012 was the highest year of water usage with a total of 51,003,600 Gallons which equated to an actual billing of $204,567.80. This was utilized to determine the ceiling of $210,000.00 per year

b. The East Rio Hondo Water Supply Corporation is the only authorized source

(Utility company) in the geographic area as outlined in FAR Part 41 – Acquisition of Utility Services.

c. The East Rio Hondo Water Supply Corporation is the only authorized source for

Water Supply in the Port Isabel area. The Texas Commission on Environmental Quality (TCEQ) through Certificate of Convenience and Necessity (CCN) No.

11552, oversees this service. Market Research revelaed there are no other Federal Suppliers, no GSA areawide contracts or other state approved utility suppliers.

http://uscode.house.gov/

Simplified Procedures for Certain Commercial Items

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d. The Authority which applies to this project is FAR 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

e. If the J&A is not approved the Detention Center would have to be closed as the detainee population could not be housed at this site without potable water.

6. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

☒ OAQ intends to make this justification publically available pursuant to FAR 6.305 on FedBizOpps on 4/10/2019.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The contracting officer determines that the anticipated price will be fair and reasonable based on the commercial price list for Service Fees and Rates. The Commerical Price List is available through http://erhwsc.com/index.php/rates-service-fees.

The contract type is Time and Materials because the exact water usage is unknown, the applicable Service Fees and Rates are based upon actual consumption.

8. Description of market research.

Market research was conducted to confirm that East Rio Hondo Water Corporation is the mandatory utility provider for water in the area.

In performing market research, the contracting officer considered:

(1) GSA areawide contracts (see 41.204).

(2) Separate contracts (see 41.205).

(3) Interagency agreements (see 41.206).

As neither option 1 or 3 above were suitable a separate contract is being awarded. Following the guidance of FAR 41.103, General Services Administration was contacted to provide a Delegation of Authority to the Contracting Officer to award a separate contract.

9. Any other facts supporting the justification.

http://erhwsc.com/index.php/rates-service-fees http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/41.htm#P78_14884 http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/41.htm#P92_18466 http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/41.htm#P107_20108

Simplified Procedures for Certain Commercial Items

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Not applicable.

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

None

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for supplies or services required.

Due to the nature of the requirement and the regulated utility services in the Port Isabel area there are no steps that can be taken to remove or overcome barriers to competition.

12. DHS intends to post the requirement pursuant to FAR 13.501(a)(1)(iii) and 6.305(a).

13. Contracting Officer’s Certification.

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Date Contracting Officer

14. Technical/Requirements Personnel Certification.

I certify this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for this justification, is complete and accurate.

Technical Representative

15. Approval.

Advocate for Competition