A16 JOFOC_1.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN

COMPETITION

Bureau of Land Management

The Federal Government is required to promote competition to the maximum extent possible. When sole source or brand name acquisition requests are received we are limiting competition and as such, procurement must use a stringent level of judgment when reviewing for approval. Requestor will complete sections 1-5, certify, and submit with the purchase request. Procurement will make final determination and complete sections 6-14 for the contract file. Requestors shall not, in any way, commit the Government or negotiate with a single vendor in anticipation of a sole source award.

REQUESTOR COMPLETES SECTIONS 1-5

_X_Only Once Source ____Brand Name Only ____Other (Explain)

1. Name of Requestor & Office:

Mark Williams

Bureau of Land Management (BLM) Salt Lake Field Office 2370 S Decker Lake Blvd West Valley City, UT 84119-2022

2. Description of the supplies or services required:

Contract will be for seed production services of the endangered species, clay phacelia (Phacelia argillacea), also known as Atwood’s phacelia. Because of the lack of horticultural knowledge for this native, biennial plant, the industry would take on a tremendous risk for seed production. In addition, the standard method for seed-growout operations for forbs require much more seed (e.g. 1/10th to ¼ pound) initially to plant in agricultural fields than what is appropriate for an endangered species. For example, in some years <10 plants might bloom and produce seed across its entire range. In addition, the required scale of production for endangered species is much lower than what is typical sought for other forb species. There are only two sources of information on variability in seed production for this plant; the economic potential is unknown.

Thus, the contract is not for supply (seed) but for a service to produce seed from a known number of plants. Seed will be grown in a commercial greenhouse where the plant price is generally based on the square feet of table space occupied per unit time (i.e. flat week uses

200 in2). In our unique case, we are paying for the table space occupied, as normal. But instead of receiving plants, we are getting the seed produced by those plants.

Horticulturalists and greenhouse staff will scarify seed, plant, water, provide insect and disease control, hand pollinate, vernalize (induce flowering), and harvest seed.

Statutes: The Endangered Species Act of 1973

Section 10 of the Endangered Species Act (ESA) is designed to regulate a wide range of activities affecting plants and animals designated as endangered or threatened, and the habitats upon which they depend. With some exceptions, the ESA prohibits activities affecting these protected species and their habitats unless authorized by a permit from the U.S. Fish and Wildlife Service (Service) or the National Marine Fisheries Service (NMFS). Permitted activities are designed to be consistent with the conservation of the species.

Recovery and interstate commerce permits are issued to allow for take as part of activities intended to foster the recovery of listed species. Interstate commerce permits also allow transport and sale of listed species across State lines (e.g., for purposes such as seed growout).

The contractor would need to acquire a permit from USFWS for this activity. Coordination with USFWS regarding this issue has been initiated and is ongoing.

3. Estimated Dollar Value & How the Estimate Was Prepared:

The cost for greenhouse operations is based on a concept called opportunity cost. Opportunity cost is an average value assigned to the square foot occupied by standard greenhouse plants and their average profit. If Atwood’s phacelia is taking up space, it is reducing the profit that would have been achieved if another more typical greenhouse plant was in its space. The opportunity cost for greenhouse operation is not listed online and is reluctantly given by the industry; the BLM obtained estimates of this cost through informal conversations. We provide a spreadsheet with the weighted average opportunity cost on a yearly basis; the cost is weighted based on the change in profitability across a year of time.

We estimate the cost of producing seed based on a conservative number of 100 seeds produced per plant and a more typical 200 seeds per plant (see next paragraph). High Mountain Nursery produced around 200 seeds per plant in 2019 and that number was also found by Susan Meyer at the Rocky Mountain Research Station.

We estimated per unit cost using the average square foot cost and the number of plants which could be grown in that space. The BLM would require a minimum of two generations be produced per year to bet hedge the risk of plants succumbing to a disease or insect outbreak in a nursery setting. The seed (and plants) can be considered irreplaceable for this species; all seed collections/removal impact the specie and must be approved by the Atwood’s phacelia working group.

To optimize plant vigor and seed production, and to allow for pollination, Atwood’s phacelia is grown at 8 plants per square foot. Using the weighted opportunity cost, we would be allotted 391 square feet of space to grow 3,047 plants over the year time period (see spreadsheet). Since we are requiring at least two generations, the actual space occupied would be less at any one time.

At 100 seeds per plant, expected yield would be 304,700 seeds at a cost of $0.0328 each. At

200 seeds per plant that would yield 609,400 seeds at a cost of $0.0164 each.

As this is a service contract, we are estimating the cost in terms of propagation and care per plant. Given 3,047 plants, it would cost $3.28 to establish, water and feed, prevent disease, vernalize, pollinate, and collect seed per plant for a grand total of $10,000 for the base year.

4. Demonstration of Contractor’s Unique Qualifications:

High Mountain Nursery (HMN) has extensive experience growing native plants. They received funds in 2018 to grow phacelia plants and produce seed on an experimental basis from the USFS from seed collected on private lands (i.e., The Nature Conservancy Clay Phacelia Preserve). Over that time, they experimented with various propagation techniques (see below). Their work yielded important discoveries and breakthroughs in horticultural science. In the past, germination was achieved through laborious laboratory work with germination success at over 80%. HMN has achieved >65% germination success using a combination of scarification and stratification processes that they developed , which can be done at a large scale and at the point of economic viability. Previous attempts to increase the germination rate, outside of the laboratory, were unsuccessful.

Other major breakthroughs or key propagation information obtained through an experimental process:

• the appropriate potting mixes and pot size to prevent disease, increase vigor and allow flowering

• a proprietary method to induce flowering which increases the number of generations possible each year

• the best method for hand pollination (required for year-round propagation)

• the best method for seed collection for commercial application

No other contractor would have the knowledge of these horticultural practices – phacelia is not a commonly-used landscaping plant and non-tropical biennials are not commonly grown.

The agencies do not have the time, money or seed to gamble on another vendor to discover the appropriate methods for seed production for this plant.

5. Market Research Conducted Supporting Request Above:

Not appropriate for this contract based on the small number of plants and restrictions placed on production by the Endangered Species Act. There are no commercial vendors with the expertise required to accomplish the needs of the government.

REQUSTOR CERTIFICATION:

I hereby certify that this justification for other than full and open competition is accurate and complete to the best of my knowledge and belief; and that this requirement does not exceed the Government’s minimum needs.

/s/ Mark Williams, Natural Resource Specialist 25 May 2020_______________ Bureau of Land Management Date

PROCUREMENT COMPLETES SECTIONS 6-14

In accordance with the authority granted under 41 U.S.C. 253(c), this request for award under other than full and open competition is hereby submitted.

6. Agency:

Bureau of Land Management (BLM)

Utah State Office 440 West 200 South, Suite 500 Salt Lake City, UT 84101-1345

7. Nature and/or description of the action being approved:

Sole source award to High Mountain Nursery, PO Box 982126, Park City, UT 84098

8. Statutory/Regulatory Authority:

a) Federal Acquisition Regulation (FAR) Part 13.501(a) for actions not exceeding the Simplified Acquisition Threshold ($250,000)

b) The Federal Land Policy and Management Act of 1976, and

c) The Endangered Species Act of 1973

9. Determination that the Anticipated Costs will be Fair and Reasonable:

Comparison with similar past procurements.

10. Market Survey Conducted or Not Conducted:

N/A

11. Effort Made to Solicit Potential Sources:

DOILFBO200050 Notice of Intent is being posted for 14 days before award on beta.SAM.gov as required by FAR 13.501(a).

12. Additional Facts Supporting the Use of Other than Full and Open Competition:

All other attempts to grow and reproduce seeds for Atwood’s Phacelia have been unsuccessful. High Mountain Nursery has developed a method to successfully cultivate this endangered species; the remaining seed supply is now very low.

13. List of Interested Sources:

14. Statement of Actions, If Any, Agency May Take to Remove Barriers to Competition:

PROCUREMENT CERTIFICATION

I hereby certify that this requirement does not exceed the Government’s minimum needs or schedule requirements and that the basis for award under other than full and open competition is complete and accurate to the best of my knowledge and belief.

________________________________________ 9/10/2020 Vicki Meier, Contracting Officer Date Bureau of Land Management