Anchorage_Water_and_Wastewater_Utility_(U-19-005_and_U-19-006)_JA.pdf

Single Source Justification (Simplified Acquisition)

14 May

Contracting Activity: 772ESS/PKD

Project/Program Name: TARIFF REVISION FILED BY UTILITY FOR ITS WATER AND

WASTEWATER DIVISION FOR AN INTERIM AND PERMANENT RATE

INCREASE – ANCHORAGE WATER AND WASTEWATER UTILITY BEFORE

THE REGULATORY COMMISSION OF ALASKA

DOCKET NO. U-19-005 AND U-19-006

Purchase Request/Identification Number: F4ATA69114AW01

Estimated Contract Cost (including Options): $55,000.00

On December 18, 2018, Anchorage Water and Wastewater Utility (AWWU or Company), on behalf of the

Anchorage Water Utility (AWU) and the Anchorage Wastewater Utility (ASU) filed for rate increases of $4.2 million or 7.0%, and $5.2 million or 9.5%, for AWU and ASU, respectively, relative to the rates resulting from the negotiated settlement on October 31, 2018. Based on usage for calendar year 2018, the proposed wastewater rates for Joint Base Elmendorf–Richardson result in an increase of about $195,000, or 9.7%.

The Company states that the requested increases are lower than the amounts supported by its revenue requirement studies, based on the calendar 2017 test year. AWWU claims it has elected to request rate increases below the level indicated by the revenue requirement studies in recognition of the impact to ratepayers, particularly in light of

AWWU’s intention to request frequent rate increases for the foreseeable future.

An evaluation of all filed pleadings, testimony, and data is necessary to determine if the rates proposed are non-discriminatory, accurately reflect the actual cost of providing the service, and are necessary under the circumstances. In addition, expert assistance in reviewing all filed and to be filed documents, drafting data requests and responses, testimony, cross examination, briefs, and strategy is necessary for proper preparation of this case. The Contractor’s assistance will be needed in all phases of case preparation from this point until the conclusion of the case.

Brubaker & Associates Inc. (BAI) has been identified as the contractor who employs the experts that have been determined with the most extensive background, experience, and track record for having their recommendations followed. Michael P. Gorman has 35 years of experience in this field, has filed testimony in

350 regulatory proceedings, starting June 1991, he started in the utility regulatory field in Sept 1990; a consultant in August 1983; and is a Charted Financial Analyst (CFA).This experience and expertise in dealing with service rate increases and depreciation rates are necessary to assist the Government in the analysis, presentation, and defense of any claims or requests for adjustment to contract terms and conditions as a result of the anticipated litigation. Based on past market research, AFCEC and PKD have no knowledge of any other law firm with this level of technical expertise, experience, proven results, and working knowledge of government rates experience and has filed testimony on behalf of the federal government multiple times.

Their particular expertise, opinion, reputation are what the ULFSC has chosen for this litigation. " 10 USC

2304 (c)(3) and FAR Part 6.302-3(a)(2)(iii) states that full and open competition need not be provided when it

Section A: General Contract Information

Section B: Description of the Supplies/Services Required

SectionC: Justification for Soliciting from a Single Source or Brand Name

Single Source Justification (Simplified Acquisition)

14 May is necessary to acquire the services of an expert for litigation.

The Government has reviewed other contract vehicles but has found BAI as the most suitable in regards to their background, experience, and track record along with their record in regards to litigation and no further research is required by the exception. Additionally, an explicit exception to full & open competition for the purchase of the services of an expert to support the Federal Government in any current or anticipated litigation or dispute is found in FAR Subpart 6.302-3(a)(2)(iii).

An explicit exception to full & open competition for the purchase of the services of an expert to support the Federal Government in any current or anticipated litigation or dispute is found in FAR Subpart 6.302-3(a)(2) (iii).

I have determined, in accordance with FAR13.106-1(b)(1), that the circumstances of this contract action deem only a single source is reasonably available.

Date Typed Name and Rank/Grade of Contracting

Officer GEORGE MASON

Signature of Contracting Officer

Section D: Efforts to Obtain Competition

Section E: Steps to Preclude Future Single Source or Brand NameAwards

Section F: Contracting Officer's Determination