A6_FBO_JOFOC_Natural_Gas_LDC_Utility_Svcs_FCI_Danbury.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN

COMPETITION

NATURAL GAS LDC UTILITY SERVICE

FEDERAL CORRECTIONAL INSTITUTION DANBURY

DANBURY, CONNECTICUT

Contractor: Yankee Gas

Period of Coverage: 11/1/14 through 9/30/2015

Amount: $226,500.00

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Natural Gas LDC Utility Services

Pursuant to the Federal Acquisition Regulation (FAR) Subpart 6.302-1 (a) and 6.302-1 (b) (3), and the Bureau ofPrisons Acquisition Policy (BPAP) Acquisition Guidance Document AGD06-006, the Federal Bureau ofPrisons (FBOP) has determined that the procurement of natural gas LDC utility services for the Federal Correctional Institution (FCI) Danbury meets the criteria established for other than full and open competition. It is further determined that only one responsible source and no other supplies and or services will satisfy agency requirements. This limitation on competition is justified as supported by the following information in accordance with FAR Part 6.303-2:

1. Agency:

Department of Justice Federal Bureau of Prisons FCI Danbury 33 Y:z Pembroke Road Danbury, CT 06811

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

This action is for the acquisition of natural gas transportation utility services supplied to the FCI Danbury from the sole provider of such services. FCI Danbury has a present and continuing requirement for natural gas transportation utility services for the proper operation of the facility.

3. Description of supplies or services required to meet the agency's needs:

Pursuant to FAR Part 41.202, Yankee Gas Services Company continues to provide the "entire natural gas transportation utility service" (i.e., transmission, distribution, system operation and maintenance, metering, billing, etc.). Yankee Gas shall provide to the government facility at FCI Danbury, natural gas transportation utility services in a manner and form that is consistent with all applicable laws, rules, codes, industry standards, permits, and regulations, promulgated by any and all governmental authorities having jurisdiction. Yankee Gas shall provide services on a daily basis. Yankee Gas will be responsible to maintain and/or repair all associated natural gas lines and equipment, including associated costs for such repair, to the delivery point or meter ofFCI Danbury.

The service required is supply, distribution, and related services for natural gas utility services from November 2014, through September 2015, subject to funds availability (FAR Clause 52.232-18). The services will be procured by way of purchase order. The estimated cost for natural gas transportation utility service is $226,500.

4. Statutory Authority permitting other than full and open competition:

This justification to award as a sole source is prepared pursuant to the exception to full and open competition requirements in accordance with the statutory authority for these services that is found at 41 U.S.C. 253 (c)(l) and FAR 6.302-1(b)(3), when the supplies or services required by the agency are available from only one responsible source. When acquiring utility services (see 41.101), circumstances may dictate that only one supplier can furnish the service (see 41.202).

Analysis of the market indicates that Yankee Gas has proprietary rights up to the meter at FCI Danbury. In order for another provider to be capable of providing the service, significant capital improvements would be needed. The Bureau would be required to pay for the capital improvements, but it would not recover the costs of duplication of services, connection fees and infrastructure installation costs through competition. The current requirement is for follow-on services and does not include funding for capital improvements.

5. Determination that the proposed contractor's unique qualifications or the nature of the acquisition requires use of the authority cited:

Yankee Gas is the sole provider of natural gas LDC utility service for the FCI Danbury. The Natural Gas industry is governed by the Connecticut Department of Energy & Environmental Protection Public Utilities Regulatory Authority (PURA). The Connecticut State Statutes provide Yankee Gas with the Exclusive Franchise Rights in exchange for State Regulated areas.

This authority is provided at Connecticut State Statutes, Title 16, Public Service Companies, Chapter 277, provides for deregulation oflnterruptible Natural Gas only. I 50 Legislative Rule PSC) and the Federal Energy Regulatory Commission. The PURA is the governing body that sets all rates and tariffs with the responsibility of natural gas utility service for the state of Connecticut.

In accordance with State Code: each natural gas utility, to the extent covered by this title, must obey and comply with all requirements of every order, decision, direction, rule, or regulation made or prescribed by the PURA. Yankee Gas currently owns and operates the natural gas pipeline connected to the FCI Danbury meter. If it were possible to make an award to another natural gas utility provider, this new utility provider would have to install and maintain the infrastructure necessary to provide natural gas service for the proper operation ofthe facility. Having a single provider of natural gas for this area is the most cost efficient method of distributing natural gas.

6. Efforts made to solicit from as many potential sources as practicable, including whether a notice was or will be publicized as required by FAR Part 5.2:

As stated in FAR Part 5.202 (a)(5), "the contract action is for utility services other than telecommunications services and only one source is reasonably available. Therefore, a notice is not required in the Government wide point of entry (GPE)." GSA, Energy Management Center of Expertise, has previously determined that there are no area wide contracts for natural gas utilities and that no opportunity exists in the local area to compete the requirement.

7. Contracting Officer Determination that the cost to the Government will be fair and reasonable:

The estimated average monthly cost, which is based on invoice history, for the natural gas utility service is $20,590.90 with a total estimated usage for the 11 month period of $226,500. Prices will be analyzed by the Contracting Officer and Facility Manager in order to determine price reasonableness.

8. A description of the market research conducted:

This documentation is in accordance with FAR Part 10, which describes the policies and procedures for conducting market research in a process of finding viable sources of goods and services to meet government requirements and to find the most suitable approach to acquiring, distributing, and supporting supplies and services. Pursuant to FAR Part 41.202, Yankee Gas continues to provide the "entire natural gas utility service" (i.e., transportation, distribution, system operation and maintenance, metering, billing, etc.). Yankee Gas shall provide to the government facility at FCI Danbury, natural gas utility services in a manner and form that is consistent with all applicable laws, rules, codes, industry standards, permits, and regulations, promulgated by any and all governmental authorities having jurisdiction. Yankee Gas is the sole provider of natural gas utility service in the FCI Danbury area. I applied personal knowledge, interaction with knowledgeable individuals in local and Federal Government regarding market capabilities to meet the requirements, and research of generally accessible literature available on-line were the techniques used in researching this procurement for a supply/services of this type.

The market research conducted by the contracting office and the Facilities Department staff determined that a GSA area-wide nor a single point contract with PS Energy Group, Inc. is available in accordance with Title 31 USC § 1535. GSA is specifically authorized by law and regulation to purchase utility services on behalf of other agencies by providing an Assisted Acquisition. August 2010, in accordance with Title 40 USC§ 121(d), GSA issued the FBOP a Delegation of Authority for nationwide authority to negotiate and execute utility service contracts at Federal facilities under the control and direction of the FBOP in accordance with Title 40 USC§ 501 (b )(1 )(B). Search of previous purchases of similar/identical acquisitions shows Yankee Gas is the current natural gas service provider for FCI Danbury and has serviced the facility since dedication. Also, Yankee Gas is the only service provider capable at this time of providing FCI Danbury with natural gas services. No other company has presented itself with the capabilities nor the infrastructure to these utilities to the current connection site. No other sources have been located that are currently capable or that could acquire the capability of meeting the Bureau's requirement.

9. Other facts supporting the use of other than full and open competition:

The provision of natural gas utility service is essential for the orderly operation ofFCI Danbury.

Yankee Gas is the current natural gas LDC utility service provider for FCI Danbury and has continuously serviced the facility since 2003.

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

There were no other sources which expressed an interest in this requirement. Natural gas utilities is regulated by the PURC that preserves options to utility customers and does not exclude small companies from providing an adequate distribution system.

11. Actions taken by the Agency to remove or overcome barriers to competition:

Contracting and requirement staff continue to conduct appropriate market research to determine if sources capable of satisfying the agency's requirement exist and to overcome competition barriers. If opportunities arise in the future the BOP will take appropriate action to satisfy the agency’s requirement.

12. CONTRACTING OFFICER’S CERTIFICATION:

I hereby certify that this request for Justification and Approval of other than Full and Open

Competition is made in good-faith and that the supporting data and information are accurate and complete to the best of my knowledge and belief, and that I would not be making this request if it were feasible to fully compete this requirement. I further certify that this request is not the result of lack of advance planning or desire to expend funds while those funds are still available.

//S// 1/15/2015

Dennis Dempsey, CS, CEP Date

Field Acquisition Office

I hereby certify that the supporting data, provided by the technical and requirements personnel which form the basis for this justification is complete and accurate to the best of my knowledge and belief.

//S// 10/23/2014

Bruce MacGregor, Facilities Manager Date

FCI Danbury

Concurrence of:

//S// 11/3/2014

H. Quay, Warden Date

FCI Danbury

Approved:

//S// for 1/20/2015

Jill D. Ryan, Chief Date

Field Acquisition Office