A9_FBO_COX_JOFOC_Electric_FY16_1a.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN

COMPETITION

PUBLIC UTILITY – ELECTRIC UTILITY SERVICE

FEDERAL CORRECTIONAL COMPLEX COLEMAN

COLEMAN, FLORIDA

Contractor: Sumter County Electric Cooperative, Inc.

Period of Coverage: 10/1/2015 through 9/30/2016

Amount: $5,201,700.00

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Electric Service FCC Coleman

Pursuant to the Federal Acquisition Regulation (FAR) Part 6.302-1(a) and 6.302-1(b)(3), and the Bureau of

Prisons Acquisition Policy (BPAP) Part 6.304(c), the Federal Bureau of Prisons (FBOP) has determined that the procurement of Electric services for the Federal Correctional Complex (FCC) Coleman located in Coleman, Florida, 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) Identification of the Agency:

U.S. Department of Justice

Federal Bureau of Prisons

FCC Coleman

846 NE 54

th

Terrace

Coleman, Florida 33521

(2) Nature and/or description of action being approved:

This procurement action is for the acquisition of Electric services for the FCC Coleman located in Coleman, Florida, from the sole provider of such services in the FCC Coleman area. FCC Coleman has a present and continuing requirement for Electric services for the proper operation of the facility.

(3) Description of supplies or services required to meet the agency needs:

Pursuant to FAR Part 41.202, Sumter County Electric Cooperative, Inc. continues to provide the “entire electric service” for FCC Coleman. Sumter County Electric Cooperative, Inc. shall provide to the government facility at FCC Coleman, electric 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. Sumter County Electric Cooperative, Inc. shall provide services on an un-interruptible daily basis (365) days per year. Sumter County Electric Cooperative, Inc.

will be responsible to operate and maintain all facilities required to furnish electric services to specified delivery points a FCC Coleman.

Sumter County Electric Cooperative, Inc. shall provide Electric service from October 1, 2015, through

September 30, 2016, for a 12 month period, subject to funds availability (FAR Clause 52.232-18). The total estimated annual amount for electric service is $5,201,700.00

Contract Line Item Number Performance Period Estimated Monthly Cost ($)

CLIN 0001 October 2015 $427,350.00

CLIN 0002 November 2015 $399,000.00

CLIN 0003 December 2015 $406,350.00

CLIN 0004 January 2016 $383,250.00

CLIN 0005 February 2016 $381,150.00

JOFOC FCC Coleman

Electric Utility Service

CLIN 0006 March 2016 $404,250.00

CLIN 0007 April 2016 $409,500.00

CLIN 0008 May 2016 $435,750.00

CLIN 0009 June 2016 $458,850.00

CLIN 0010 July 2016 $477,750.00

CLIN 0011 August 2016 $535,500.00

CLIN 0012 September 2016 $483,000.00

Total Estimated Cost: $5,201,700.00

(4) An identification of the 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 USC § 253

(c)(1), when the supplies or services required by the agency are available from only one responsible source.

The application which permits use of the cited statutory authority are stated at FAR Part 6.302-1(b)(3), “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 Sumter County Electric Cooperative, Inc.

has proprietary rights to provide electric service at FCC Coleman. 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) A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:

Sumter County Electric Cooperative, Inc. is the publicly-owned sole provider of electric services in the FCC

Coleman service area. Sumter County Electric Cooperative, Inc. is the only agent authorized by rules and regulations to provide electric services in the FCC Coleman area. Having a single provider of electric services for this area is the most efficient method of providing electricity because the investment in the infrastructure required to produce and deliver a product such as electricity is very expensive to build and maintain.

(6) A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable including whether or not a notice was or will be publicized as required by FAR Subpart. 5.2:

As stated in FAR Part 5.202, Exceptions to transmitting a notice to the Government Point of Entry(GPE) at

(a)(5), the contracting officer need not submit a notice when “the proposed contract action is for utility services other than telecommunications services and only one source is available.”

(7) A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

The estimated average monthly cost, which was based on invoice history, for electric services is $433,475.

with a total estimated usage for a 12 month period of $5,201,700.00. The Public Service Commission (PSC) of Florida has rate structure jurisdiction over municipal and rural cooperative electric utilities. The PSC provides a regulatory process that results in fair and reasonable rates while offering rate base regulated

Electric Utility Service utilities an opportunity to earn a fair return on their investment. Sumter conducts periodic cost of service studies to determine rates and once set, are submitted to Sumter’s board for approval. Electric rates are then forwarded to the PSC of Florida for oversight/approval. Sumter Electric Cooperative, Inc is charged under

Florida law to ensure that rates be just and reasonable. Based on the cost for services on the contract that expired July 31, 2014 there is sufficient data for the FBOP contracting officer, pursuant to FAR 15.402, Pricing Policy, to allow the ability to make a preliminary determination that such anticipated costs appear to be fair and reasonable. Sumter County Electric Cooperative, Inc. is an electric distribution cooperative and operates under the guidelines of the Florida law. A formal decision in the form of periodic rulings, reviews, or similar actions of a governmental body, or embodied in the laws, are sufficient to set pricing (see FAR

15.403-1[c][2]). The establishment of the current supply and delivery of services began when the original service connections were installed. As such, this Contracting Officer has determined the anticipated cost to the Government will be fair and reasonable.

(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. This report is submitted in support of an acquisition with an estimated value in excess of the simplified acquisition threshold. Below are the findings of the market research for the above referenced requirement.

Background: A review of the obligation reveals the following – The Federal Correctional Complex

Coleman (hereinafter referred to as “FCC Coleman”) has a current and continuing requirement for electric services.

Title: Electric Utility Service for the FBOP, FCC Coleman in Coleman, Florida; Product or Service Code for

Electric: S- Utilities and Housekeeping Services – S112 Utilities Electric; North American Industry

Classification System (NAICS): 221122 Electric Power distribution - This U.S. industry comprises electric power establishments primarily engaged in either (1) operating electric power distribution systems (i.e., consisting of lines, poles, meters, and wiring) or (2) operating as electric power brokers or agents that arrange the sale of electricity via power distribution systems operated by others; Standard Industrial Classification

(SIC) Code: 4911 Electric Services.

Potential Sources: Sumter County Electric Cooperative, Inc. is the sole provider of electric services in the

FCC Coleman service area. The FAR provides that a formal decision in the form of periodic rulings, reviews, or similar actions of a governmental body, or embodied in the laws, are sufficient to set pricing and the purchasing of supplies and services are determined fair and reasonable from a responsible source. 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.

During construction of the institution, one contract was awarded for the installation and operation of electric services.

Deliver / Performance time: Pursuant to FAR Part 41.202, Sumter County Electric Cooperative, Inc.

continues to provide the “entire electric service” (i.e., distribution, testing, system operation and maintenance, metering, billing, etc.). Sumter County Electric Cooperative, Inc. shall provide to the

Electric Utility Service government facility at FCC Coleman, electric 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. Sumter County Electric Cooperative, Inc. shall provide services on an un-interruptible daily basis (365) days per year. Sumter County Electric Cooperative, Inc.

will be responsible to maintain and/or repair all associated above and underground cable lines and equipment, including associated costs for such repair, from the delivery point or meter of FCC Coleman.

Commercial Item Determination: Electric utility services is an item that is of a type customarily used by the general public and by non-governmental entities for purposes other than governmental purposes.

Market Analysis: The results of market research have determined that the government’s needs can be met by an item customarily available in the commercial marketplace.

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 the Sumter County Electric Cooperative, 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 Sumter County Electric Cooperative, Inc. is the current electric services provider for FCC Coleman and has serviced the facility since dedication. Also, Sumter County Electric

Cooperative, Inc. is the only service supplier capable at this time of providing FCC Coleman with electric services. No other company or municipality has presented itself with the capabilities or the infrastructure to run underground electric lines to the current connection site. The amount compensated for the construction of the electric infrastructure systems currently being used at FCC Coleman is not available. No other sources have been located that are currently capable or that could acquire the capability of meeting the

Bureau’s requirement.

Results: Based on the information provided by the sources detailed above, the following information outlines the conclusions and provides the basis for this procurement.

It is this Contracting Officers determination there is a source available that is capable of providing the required services. The procurement will be conducted in accordance with the procedures as outlined in FAR

Part 6, 12, 13, and 41. A Performance-Based Acquisition method will not be used for this procurement as it is determined not applicable. A PBA relies on the use of measurable performance standards and financial incentives in a competitive environment to encourage competitors to develop and institute innovative and cost-effective methods of performing the work.

One potential source is a local entity, the incumbent, which appears able to satisfy the requirement and is regulated by the State of Florida. Sumter County Electric Cooperative, Inc. is other than small business.

The provision of electric services is essential for the orderly operation of FCC Coleman. The specifications/description requirements documents shall specify needs using market research in a manner designed to promote full and open competition and only include provisions or conditions to the extent necessary to satisfy the needs of the FBOP or as authorized by law. History shows and economics dictate that the construction of infrastructure facilities by multiple utilities in the same location would be extremely costly and disruptive to communities. The utility is regulated by state government to assure fair rates for

Electric Utility Service safe and adequate service. The ratemaking process ensures the lowest reasonable rate for consumers while maintaining the financial stability of the utility. Under the law, the utility is entitled to recovery of its reasonable incurred expenses.

This requirement will not be posted to Fedbizopps as a combined synopsis solicitation to promote competition, broaden industry participation, and assist small business concerns in obtaining contracts for

FCC Coleman, Florida. This requirement meets the exemption at FAR 5.202(5) the proposed contract action is for utility services other than telecommunications services and only one source is available.

Sumter County Electric Cooperative, Inc. is the private-owned sole provider of electric services in the FCC

Coleman service area. Sumter County Electric Cooperative, Inc. is an entity of Sumterville, Florida, the only agent authorized by rules and regulations to provide electric services in the Coleman area. Having a single supplier of electric services for this area is the most efficient method of providing electricity.

The Bureau does not have the state and local approval or the resources to provide the funding for another company or municipality to install underground electrical cables and no other contractor or municipality can provide electric service through Sumter County Electric Cooperative, Inc. underground cables.

The U.S. General Services Administration has issued a Delegation of Contracting Authority to the U.S.

Department of Justice, Federal Bureau of Prisons to negotiate and execute utility service contracts. This includes the provision of electric service for FCC Coleman.

I also make the determination that this procurement action “NOT” be set-aside for small business. The

Small Business Procurement Review for the purchase of utility services has been granted a waiver by the

Office of Small and Disadvantaged Business Utilization to the FBOP for submitting routine procurements to the Office of Small and Disadvantaged Business Utilization for review in accordance with PGD 09-02.

Recommendation: The Government contemplates the single award of a firm-fixed price requirements type electric services purchase order resulting from this requirement.

Comments: The conclusions from this market research will be incorporated into the document for providing

Electrical Services for FCC Coleman.

(9) Any other facts supporting the use of other than full and open competition:

The provision of electric service is essential for the orderly operation of FCC Coleman, which is designed to collectively house with a rated capacity of approximately 6,900 inmates. The complex consists of a Central

Administration Building, FCI Coleman Low, FCI Coleman Medium, USP 1 Coleman, USP 2 Coleman and a

FPC Coleman Camp. State and county regulations and ordinances limit the providers of this service to only one.

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

There were no other sources which expressed an interest in this acquisition or that would be able to provide the service to meet the minimum requirements of the government.

Electric Utility Service

(11) A statement of the actions, if any, the agency may take to remove or overcome barriers to competition before any subsequent acquisition for the supplies or services required:

Contracting and requirement staff should continue to conduct appropriate market research to determine if sources capable of satisfying the agency’s requirement exist and to overcome competition barriers.

Deregulation laws are presently nonexistent and no alternative source of service is currently available. A review of government procurement database shows only the FBOP is currently issuing orders to Sumter

County Electric Cooperative, Inc. for electric utility requirements. FCC Coleman is a consumer of services from the public utility. If another potential source emerges, the agency will assess whether competition for future requirements is feasible. FCC Coleman will continue to monitor the trends in the utility industry to see competition or sources that may be able to meet the minimum needs of the government and its utility requirements. Should opportunities arise in the future FCC Coleman will take appropriate action.

(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, 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 a desire to expend funds while those funds are still available.

Dennis Dempsey, Contract Specialist 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.

Raphael Ramos, Facilities Manager Date

FCC Coleman

Concurrence of:

Tamyra Jarvis, Complex Warden Date

FCC Coleman

Jill D. Ryan, Chief Date

Field Acquisition Office

//Signed// 8/4/2015

//Signed// 8/4/2015

//Signed// 8/5/2015

//Signed// 8/6/2015

Electric Utility Service

H. J. Marberry, Regional Director Date

Southeast Regional Office

Matthew D. Nace, Procurement Executive Date

Administration Division

W. F. Dalius, Jr., Date

Assistant Director for Administration

Approved:

Denise M. Class, Senior Deputy Assistant Director Date

Administration Division / Competition Advocate

//Signed// 8/26/2015

//Signed// 8/28/2015

//Signed// 8/28/2015

//Signed// for

8/28/2015