47PA0418D0075-000.docx

FedBizOpps Justification and Approval Notice

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* = Required Field FedBizOpps Justification and Approval Notice Rev. March 2010 S Natural Gas (PP VAMC) -10/1/2019 to 9/30/2019 512C00012 21201 N 221210 Department of Veterans Affairs

VAMC

10 N Greene St Baltimore MD 21201 Vanessa Jacobs Contract Specialist 410-605-1506

FAR 6.302-1

47PA0418D0075 36C24520F0736

700,000.00 09-30-2019

UGI ENERGY SERVICES, LLC

1 MERIDIAN BLVD STE 2C01

READING

PA

19610 vanessa.jacobs@va.gov vanessa.jacobs@va.gov

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval

For

Other Than Full and Open Competition

Acquisition Plan Action ID:__TBD___________________

1. Contracting Activity:

Department of Veterans Affairs (VA), NCO5. Purchase Request # TBD.

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

The proposed action is for Natural Gas Supply at the VA Medical Center Perry Point for a period of performance of one (1) year. Utility services are highly regulated in nature, and there is generally only one available source to meet an agency’s needs.

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

The VA Medical Center Perry Point requires Natural Gas Supply utility 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 $700,000

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

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

UGI Energy Services, LLC has been determined to be the only responsible source able to provide the VA Medical Center Perry Point with natural gas supply utility, as it is the successful bidder in the GSA natural gas utility procurement. UGI Energy Services, LLC has successfully provided natural gas supply service to VA Medical Center Perry Point 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 contract has been competitively procured by GSA to provide service.

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

This is a competitively procured utility service, and rates are established by competitive procurement. Therefore, since the prices are the result of competitive procurement, 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 natural gas supply utility provider, UGI Energy Services, LLC, does not have a GSA Areawide Public Utility Contract, but is the proper competitively procured source capable of providing VA Medical Center Perry Point with its natural gas supply 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, a 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:

UGI Energy Services, LLC

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 increased competition in this area due to this contract having been competitively procured by GSA.

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.

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.

Title Facility

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.

NCO/PCO XX Duty Title Facility

c. VHA SAO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and recommend approval (if over $68 million), approve ($700K to $68 million) for other than full and open competition.

VHA Head of Contracting Activity (HCA)

d. VHA Senior Procurement Executive Approval (over $68 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for other than full and open competition.

Acting Executive Director, Office of Acquisition and Logistics Senior Procurement Executive (SPE) Department of Veterans Affairs