generators-single_source_justification.docx

U.S. ENVIRONMENTAL PROTECTION AGENCY

SINGLE SOURCE JUSTIFICATION AND APPROVAL FOR ACQUISITIONS UNDER

THE SIMPLIFIED ACQUISITION THRESHOLD FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FEDERAL ACQUISITION REGULATION (FAR)

13.5

1) Identification of the Agency and the Contracting activity Contracting Officer: Lei Yang Address: US Environmental Protection Agency (EPA) Region 2 290 Broadway New York NY 10007-1866 Telephone No.: (212) 637-3390 Email: Yang.Lei@epa.gov Program Office: EPA Emergency and Remedial Response Division (ERRD) Project Officer: Mark Pane Project Identification: Generators for Puerto Rico water systems in support of Hurricane Maria Response

2) The nature and/or description of the action being approved, i.e., sole source under procedures for certain commercial items in accordance with FAR 13.5.

This new action is to procure currently leased generators which are in place to ensure the drinking water systems in Puerto Rico continue to be able to provide potable water to the residents of the island, and to continue EPA’s ongoing Hurricane Maria recovery efforts in Puerto Rico (P.R.). It is anticipated that the leased generators will be procured directly from the leasing company Blueline Rental.

Puerto Rico was severely impacted by Hurricane Maria on September 20, 2017. The Federal Emergency Management Agency (FEMA) has called it the “largest federal response to a disaster” in American history. Power was lost during the storm and still has not been reliably restored to the water supply systems throughout the island. Puerto Rico residents in over 200 communities across the island rely on drinking water sources from pumps and wells and surface water not supplied by the Puerto Rico Aqueduct and Sewer Authority (PRASA). Approximately 237 of these small systems, commonly known as non-PRASA drinking water systems, provide drinking water to approximately three percent of the population of Puerto Rico. Without a reliable power source, drinking water cannot be provided by these Non-PRASA water system.

EPA is currently providing disaster assistance to FEMA as part of the overall federal disaster response efforts. One of the FEMA Mission Assignments (MAs) MA 4339DR-PR-EPA-04, referred to as X17 issued to EPA was to assess the PRASA and non PRASA water systems.

These facilities provide drinking water to tens of thousands of people throughout Puerto Rico.

Under a subsequent Hurricane Maria Mission Assignment from FEMA, MA 4339DR-PR-EPA- 10, referred to as X28, EPA was tasked to provide temporary power and make repairs to a number of the non-PRASA systems to bring them back into operation. As part of MA X28, EPA installed the 21 generators to provide power to these water systems. These generators are currently installed and leased through the EPA Emergency and Rapid Response (ERRs) contractor via a monthly rental from Blueline Rental. The generators are responsible for providing water to approximately 13,500 people throughout the island. Without the generators these people will have no potable water. The FEMA Mission Assignment to EPA expires on May 18, 2018, and to ensure continued operation of the 21 non PRASA systems beyond that date, FEMA has authorized EPA to purchase the 21 generators. These generators are in place to ensure these residents will continue to have potable water as the electrical system is still very unstable and not fully functional in some of the more remote areas. There is insufficient time to competitively procure new generators and have them in place by the time the Mission Assignment expires on May 18, 2018. The purchase of the leased generators will ensure that these impacted communities have a consistent supply of potable water until the Puerto Rico Electric Power Authority (PREPA) power is restored and stable. The generators can then serve as a backup power supply while the unstable PREPA grid is provided additional sustainability and resiliency during the Hurricane Maria Recovery Period.

In order to get the drinking water systems operational as quickly as possible the 21 generators were leased under the EPA ERRS contracts by the contractors from Blueline Rental.

At the time leasing was the only option of getting the necessary size and capacity of generators in place. The option of purchasing new generators was considered, however there was a very limited supply immediately available. All new generators would have to come from off-island locations which would greatly extend the arrival and installation time and thus prolong the period of time that residents were without a potable water supply.

A determination has been made that with the continuing power issues in Puerto Rico the generators currently being leased must be purchased. Permanent power, especially in the more remote areas of Puerto Rico where these non PRASA systems operate, may not be restored for quite some time. Continuing operation of the temporary power provided by the generators, is the only effective way to ensure a potable water supply beyond the MA end date, until permanent power is restored.

This action is the direct result of natural disasters caused by Hurricane Maria that devastated the region. Any delay or disruption to the potable water systems will increase the risk of danger to public health and impose additional hardship for people affected by Hurricane Maria. Furthermore, substantial and significant duplication of cost would be incurred to deinstall and reinstall other generators, as well as additional shipping charges to mobilize other generators.

3) A description of the supplies and/or services required, and the estimated dollar value of the acquisition.

Award will be a firm fixed price purchase order to Blueline Rental, LLC for a total estimated amount of $694,998.00.

The list of types and manufacturers of generators is as follows:

4) The statutory authority permitting sole source.

Pursuant to the authority of 41 U.S.C. 3304(a(2), “ the executive agency’s need for the property or services is of such an unusual and compelling urgency that the Federal Government would be seriously injured unless the executive agency is permitted to limit the number of sources from which it solicits bids or proposals” and as implemented by

FAR 13.5

5) A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring use of the authority.

This new action is to procure leased generators which are currently installed and being leased to ensure the drinking water systems in Puerto Rico continue to be able to provide potable drink water to the residents of the island, and to continue EPA’s ongoing Hurricane Maria recovery efforts in P.R. The FEMA mission assignment discussed in #2 above expires May 18, 2018. It was intended that the island power would be back up and fully running by this date however power failures continue and not all power has been restored completely throughout the island. FEMA has authorized EPA to procure the generators to leave in place. As stated in #2 above these generators are currently installed and functioning under a leasing agreement.

Blueline Rental is uniquely qualified as the current owner of these generators and is the only vendor capable of meeting the Government’s minimum needs at this time without disruption to the drinking water systems and substantial duplication of cost. EPA would not be able to meet Mission Assignment completion deadlines currently authorized by FEMA, and FEMA has no other agency capable of performing this task in the available time frame. Therefore, as stated in 41 U.S.C. 3304(a(2), “ the executive agency’s need for the property or services is of such an unusual and compelling urgency that the Federal Government would be seriously injured” unless the executive agency is permitted to limit the number of sources from which it solicits bids or proposals as removal of the existing generators will increase the risk of danger to public health of the drinking water for over 13,500 residents and the EPA would be unable to fulfill its mission and the FEMA mission assignment.

6) A description of efforts made to ensure offers/quotes are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized in FEDBIZOPPS (as required by FAR 5.2) and, if not, which exception under 5.202 applies.

No efforts were made to ensure offers were solicited from as many sources as practicable as the Agency’s need for the services is of such an unusual and compelling urgency in order to avoid endangerment to public health and the environment that the required notice will be publicized in accordance with FAR 13.501(a)(1)(iii) within 30 days after contract award.

7) The anticipated dollar value of the proposed acquisition, including options if applicable, and a determination by the contracting officer that the anticipated cost to the government will be fair and reasonable. [Note: dollar amounts may not exceed statutory limitations for use of the simplified procedures under FAR 13.5.] The contracting officer has determined that the anticipated prices will be fair and reasonable based one several methods including comparison of pricing of a same or similar item;

published price list; comparison of historical prices paid, and straight-line depreciation method due to the equipment is being already utilized. The total award price is $694,998. By signing the justification, the contracting officer has made a determination that the costs/prices to the government are expected to be fair and reasonable.

8) A description of the market research conducted and the results or the reason market research was not conducted.

Market research was not conducted, due to the urgent and compelling nature of this acquisition and as such there is only one vendor capable of meeting the minimum requirements of the Government for this instant acquisition.

9) Any other facts supporting the use of sole source.

None at this time.

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

None at this time.

11) A statement of any actions the agency will take to remove or overcome any future barriers to competition.

The only barrier currently identified was unusual and compelling circumstances. There are no other barriers identified that would create future barriers to competition.

Project Officer’s Review Certification: I certify that the evidence which form the basis for this justification is accurate and complete to the best of my knowledge and belief.

Signed by: Mark Pane Date:5/15/2018

Contracting Officer’s Review Certification: I certify that the information provided is accurate and complete to the best of my knowledge and belief.

Signed by: Lei Yang Date: 5/14/2018

Approved by: Alexandra Rajkowski-Reyes, Chief R2 Contracts Management Branch Date: 5/16/2018