A16_JOFOC_FINAL YOSE 271651 Repair and Replacement of 70kV Transmission_1.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION

Over $150,000 (FAR 6.303-2)

Yosemite National Park

YOSE 271651

Critical Repairs and Replacement of 70KV Transmission Line from Parkline to Hwy 140

1. Identification of the Agency and the Contracting Activity:

Department of the Interior, National Park Service, Denver Service Center

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

Critical Repairs and Replacement of 70KV Transmission Line from Parkline to the Hwy 140 (El Portal Road), Yosemite National Park

3. A Description of the Supplies or Services Required to Meet the Agency’s Needs, Including the Estimated Value:

The existing Yosemite Electric Transmission line runs along the El Portal Road and Merced River for approximately 5.1 miles between Old El Portal and the former Yosemite Powerhouse building. This line connects the Pacific Gas & Electric Corporation (PG&E) Yosemite Park substation, which is located adjacent to the Powerhouse, with the PG&E transmission line located just outside the Park boundary. The Park’s transmission line is sandwiched between the two PG&E commercially owned electric facilities: the PG&E Yosemite Park substation near the Park’s Powerhouse and the PG&E transmission line near the western Park boundary. This transmission line serves multiple areas, including Yosemite Valley, Turtleback emergency communications and the Wawona Tunnel distribution systems. In the event this line fails, it would affect as many as 20,000 visitors, residents and concessionaire/park partners daily during the summer months and could render all park communications systems inoperable.

Construction of the existing 70KV transmission line began in May of 1932 and was completed in May of 1933. This existing 70KV line replaced the original 33KV transmission line which was constructed on wood poles in 1924. A section of the existing transmission line consists of copper conductors which were salvaged from the original 1924, 30KV transmission lines.

Therefore, some of the existing conductors on this line are 96 years old and, given the useful design life of this transmission line was estimated at 50 years with proper maintenance as noted on the 1933 completion report, this line has almost doubled its design life with very little maintenance. Professionally performed condition assessments document that components of the line have failed, need to be replaced, and are not code compliant. This means the 54 towers and 324 insulator and conductor components are no longer in compliance with the Federal Energy Regulatory Commission and the California Public Utilities Commission Standards for overhead electric lines.

Over the past 30 years there has been talk of a transfer of ownership from NPS to a commercial power company, however PG&E has made clear during discussions that they will not consider such a change in ownership without the line meeting current regulatory requirements.

Additionally, because this line is currently not meeting its regulatory requirements, PG&E may elect to stop supplying power to the park through this deficient line to protect their liability.

Due to the current poor condition of this line, failure to repair and bring the 5.1 miles of transmission line to current FERC and CPUC standards may result in loss of commercial electrical power to all of Yosemite Valley, Wawona Tunnel, and the Turtleback communications hub for an undetermined amount of time until NPS can contract repairs.

Therefore, it is critical the park proceed as soon as possible with Pacific Gas & Electric in order to initiate repair with minimal delays and as few impacts to the Park as possible.

The project engineer at the Park has provided an independent government estimate in the amount of $10,020,000.

4. An Identification of the Statutory Authority Permitting Other Than Full and Open Competition:

FAR 6.302-1, Only One Responsible Source and Not Other Supplies or Services will Satisfy Agency Requirements - 41 U.S.C. 3304(a)(1)

5. A Demonstration That the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Requires Use of the Authority Cited:

FAR 6.302-1(b)(3) authorizes the utility, PG&E, to complete this work since the contemplated contract is for construction of a part of a utility system and the utility company itself is the only source available to work on the system. PG&E owns and maintains the transmission power up to the NPS owned transmission line and owns the connecting substation within the Park. The work contemplated in this contract will provide for the required repair of the 5.1 miles of 70kV transmission line, reducing outages to Yosemite National Park inclusive of residents, visitors, concessions and park partners. PG&E will also be replacing and repairing their portion of the line up to the Park boundary to bring their line into compliance with FERC and CPUC standards.

PG&E is uniquely qualified to accomplish this transmission line repair project within this rugged and protected park terrain. They have the necessary technical expertise, highly qualified personnel, proper certifications, supplies, and equipment to complete the work and they have past experience for multiple other projects of similar type and of even larger capacity. Since PG&E is the power company who provides power to Yosemite National Park, they have previously completed repairs on this line, as well as completing numerous inspections and assessments of this Government transmission line. PG&E is experienced with this type of high elevation transmission line repair and the unique requirements of working in and around their high voltage transmission lines and their substations, both of which will be impacted when these Yosemite transmission line repairs are completed. They also have the ability to bring in the necessary aerial equipment to help minimize damage to park resources while completing the repairs. Further, PG&E is very experienced working in Yosemite National Park in respect to minimizing environmental impacts and reducing the impacts to visitors since they have been working in the park for 80 years repairing overhead primary and secondary high voltage lines. They are familiar working with the sensitive environmental nature of this transmission line work, as well as working within the seasonal weather conditions which is consistent with this mountainous location. PG&E is also very familiar with the various communication needs, safety concerns, and potential for legal action when working on a high voltage transmission line in such a rugged location.

6. A Description of Efforts Made to Ensure That Offers Are Solicited From as Many Potential Sources as is Practicable, Including Whether a Notice Was or Will Be Publicized as Required by FAR Subpart 5.2 and, If Not, Which Exception Under FAR 5.202 Applies:

In accordance with FAR 5.2, a synopsis will be publicized for the proposed contract action.

7. A Determination By the Contracting Officer That the Anticipated Cost to the Government Will Be Fair and Reasonable:

In negotiating the cost for the subject work, the Contracting Officer will require PG&E to submit supporting documentation. The CO will use this documentation to perform a comparative analysis of costs, to ensure that the negotiated cost to the Government for this work is fair and reasonable. The costs of individual supply components are available in the commercial marketplace and PG&E has established price lists for many of their services.

8. A Description of the Market Research Conducted (see FAR Part 10) and the Results or a Statement of the Reason Market Research Was Not Conducted:

Based on the information above regarding the lack of ability of other firms to perform this work, additional market research was not conducted. No utility company other than PG&E exists in the state of California that can provide the services needed. For liability reasons, PG&E requires approval/certification for anyone working on non-PGE high voltage transmission lines and also regulates any shutdown approval notifications.

PG&E is currently completing the design phase for the referenced repairs. PG&E has satisfactorily completed multiple other transmission line repair projects, as well as other similar projects adjoining the Park on other federal lands and is fully capable of performing this aforementioned work. The NPS has been very pleased with their past quality of the work and the price for the performance of the work.

9. Any Other Facts Supporting the Use of Other Than Full and Open Competition (see FAR 6.303-2 (9) (i) – (iii) for some examples):

NPS crews were considered for this work but the Yosemite National Park High Voltage electrical crew is not certified nor equipped to perform the required repairs to bring the transmission line back into compliance. In addition, PG&E will be performing maintenance to their own transmission line from Exchequer to Yosemite National Park boundary. With PG&E already mobilized in the area, this will provide a cost benefit to the Government by eliminating the need to pay for two separate mobilizations for all the personnel and equipment required to complete the needed repairs. Additionally, this will allow PG&E to mobilize quickly and complete the work with minimal impact to Park operations. PG&E also has extensive experience working nights and weekends to maintain the project schedule and will provide all required coordination in house to avoid delays and disruption to service within the Park.

PG&E is the only firm capable of immediately beginning work on this transmission line without causing extensive power shutdowns for weeks at a time and without causing major additional generation costs associated with long power outages. Any outage poses a safety concern to Park visitors and potentially limits emergency response times. Further, extended outages would expose the Government to numerous claims associated with lost revenue by all Park concessionaires with the impact to the Park’s power supply. Additionally, there would be substantial duplicative costs associated with the coordination and public notifications for any necessary powerline disruptions that would be required if PG&E did not complete the repairs.

It is estimated that having PG&E complete their repair work at the same time as the NPS repair efforts will result in significant savings for the park, potentially millions of dollars.

Completion of this work will drastically increase the commercial power reliability. Further, updating the line to the current FERC and CPUC standards will allow for the possibility of the commercial power company to take ownership of the transmission line, thereby being responsible for the future maintenance and reliability issues. If PG&E were willing to take ownership of this line once the proposed repairs are complete, this would relieve the NPS of the future maintenance required to keep this line in compliance with FERC and CPUC standards.

10. A Listing of the Sources, If Any, That Expressed in Writing, an Interest in the Acquisition:

None.

11. A Statement of the Actions, If Any, the Agency May Take to Remove or Overcome Any Barriers to Competition Before Any Subsequent Acquisition for the Supplies or Services Required:

Due to the nature of this work and the availability of only one utility company to perform, there are no actions available to be taken to remove barriers to competition.

Any other efforts not tied directly to the utility line will be completed without the use of exceptions and will provide for as much competition as practicable.

Yosemite National Park

YOSE 271651

Critical Repairs and Replacement of 70KV Transmission Line from Parkline to Hwy 140

12. Certification:

I certify that any supporting data that is the responsibility of technical or requirements personnel (i.e. verifying the Government’s minimum needs or schedule requirements or other rationale for other than full and open competition) and which form a basis for the justification have been certified as complete and accurate:

(Signature) (Date) 3-31-20

Michael Pieper Project Manager

I certify that the justification is accurate and complete to the best of my knowledge and belief:

(Signature) (Date)

Dane L. Johnson Contracting Officer`

Reviewed/Concur:

(Signature) (Date)

Sharon Miner PWR Branch Chief, Denver Service Center

Reviewed for Legal Sufficiency by Solicitor’s Office (over $500,000 or as requested):

(Signature) (Date)

(Type or Print Name):

Attorney-Advisor

Reviewed/Concur/Approved by:

(Signature) (Date)

Lori Irish Denver Service Center Chief of ContractingApproved by:

(Date) (Signature)

Beth Walden-McCabe Bureau Competition Advocate

DANE

JOHNSON

Digitally signed by DANE

JOHNSON

Date: 2020.05.01 07:39:27 -06'00'

SHARON MINER

Digitally signed by SHARON

MINER

Date: 2020.05.01 08:55:49 -06'00'

Digitally signed by LORI IRISH Date: 2020.05.01 12:17:54 -06'00'