W9124J-26-C-A012_P00001_J_A_Redacted.pdf

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W9124J-26-C-A012 P00001 - Leavenworth Sewage Services
Solicitation number
2027-3
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Justification Review Document – FAR Part 12 Sole Source Justification and Approval

This is a Justification Review Document for a sole source acquisition under FAR Part 12 (Simplified Acquisition Procedures for Commercial Products and Commercial Services). The U.S. Army Garrison–Fort Leavenworth (USAG-FL) is requesting an $870,767.76 noncompetitive, eight-month Firm-Fixed-Price (FFP) bridge extension contract modification to the City of Leavenworth, Kansas, for continued wastewater treatment and disposal services. The bridge extension runs from November 1, 2026, through June 30, 2027, and is funded through Operations and Maintenance, Army (OMA) appropriations. The contracting activity is the U.S. Army Mission and Installation Contracting Command (MICC) at Fort Sam Houston, Texas. The authority cited is Title 41 U.S.C. 1901 as implemented by FAR 12.201-1, with "Unusual and compelling urgency" selected as the justification basis.

The justification establishes that competition is not feasible because USAG-FL is connected exclusively via an 18-inch underground pipe to the City of Leavenworth's wastewater treatment facility, which is the only treatment plant capable of receiving and processing wastewater in the local vicinity. USAG-FL lacks internal wastewater treatment capability and cannot redirect sewage to alternative providers. The incumbent contractor has successfully performed services for over ten years without performance issues. The bridge extension is necessary to prevent service interruption while the government and the City negotiate a fair and reasonable long-term rate structure for a proposed ten-year follow-on contract. Suspension of service would create immediate health and environmental hazards through raw sewage accumulation, violate EPA regulations, and pose disease transmission risks to the installation population. The procurement history shows a prior FFP sole source contract (W9124J-16-C-0020) valued at $7,432,750.00 from July 1, 2016, through June 30, 2026.

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CUI//SP-PROCURE//FEDCON

Control No.: Sam Houston 2027-3

CUI//SP-PROCURE//FEDCON

Compelling. This was necessary to ensure service continuity while the government and the sole-source provider, the City of Leavenworth, negotiated a significant proposed rate increase for a new ten (10) year follow-on contract. Recent discussions have confirmed that finalizing a fair and reasonable long-term rate structure requires more time and data analysis than the original bridge contract allows. Both parties have agreed in principle to extend the current contractual arrangement to facilitate this process.

The intent of this proposed modification is to add 8 months to the existing contract to continue essential wastewater services. This bridge extension is critical to prevent a lapse in service and to allow sufficient time for a thorough review of the City's proposed long-term rate structure and capital improvement plans.

USAG-FL does not have the capability to treat wastewater at the installation, so the wastewater is transported via underground pipe to an offsite location for treatment.

USAG-FL is connected by means of an 18” pipe to the City of Leavenworth wastewater treatment facility. There are no connections to any other external treatment facility and no other treatment facility in the local area is known to exist. The City of Leavenworth, KS, is a municipal Government within the State of Kansas. FAR 41.201 states it is the policy of the Federal Government that agencies obtain required utility services from sources of supply which are most advantageous to the Government in terms of economy, efficiency, reliability, or service. The incumbent contractor has been performing these services successfully for over 10 years with no performance issues.

b. Alternatives. Suspension of contract support is not a viable alternative. Any lapse in service would cause an immediate accumulation of raw sewage, creating a significant health and environmental hazard and violating Environmental Protection Agency (EPA) regulations.

c. Impact if justification is not approved: Without the continued service of sewage treatment, the installation is at significant health risk associated with the accumulation of raw sewage as it contains a variety of disease-causing parasites and germs leading to illnesses within the population. The Government must abide by the Environmental Protection Agency Raw Sewage discharge requirements for public sewage.

7. Efforts to Obtain Competition: The Contracting Officer shall publish the notices required by FAR 5.101.

a. Effective competition: Competition is limited to the utility provider, which is the City of Leavenworth. The City of Leavenworth is required to meter and treat sewage from Fort Leavenworth as well as other customers in and around the City of Leavenworth. They are not required or contracted to do any work on the installation.

The City of Leavenworth's plant acts as a regional hub, treating all wastewater from Fort Leavenworth, the VA Medical Center campus, and the federal prison, in addition to city residences and businesses. The installation is linked to the plant via a network of

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