A9_FBO_MIA_JOFOC_-_Water_ _Sewer_FY_2016.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN

COMPETITION

PUBLIC UTILITY – WATER AND WASTEWATER UTILITY SERVICE

FEDERAL CORRECTIONAL INSTITUTION MIAMI

MIAMI, FLORIDA

Contractor: Miami-Dade County

Department of Water and Sewer

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

Estimated Amount: $1,700,000.00

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Water and Wastewater Utility Service FCI/FPC MIAMI

Pursuant to the Federal Acquisition Regulation (FAR) Subpart 6.302-1(a)(1) 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 water and wastewater utility service for the Federal Correctional Institution and Federal Prison Camp located in Miami, Florida meets the criteria established for other than full and open competition.

It is further determined that only one responsible source (Miami-Dade County Water and Sewer) 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 and the Contracting Activity:

U.S. Department of Justice Federal Bureau of Prisons FCI Miami 15801 SW 137th Avenue Miami, Florida 33177

(2) Nature and/or Description of Action Being Approved:

This justification for other than full and open competition is for the acquisition of water and wastewater utility services provided to the Federal Correctional Institution (FCI) Miami and Federal Prison Camp (FPC), located in Miami, Florida from the sole provider of such services in the Miami area. FCI/FPC Miami has a present and continuing requirement for water and wastewater utility service for the proper operation of the facility.

(3) A Description of the Supplies or Services Required to Meet the Agency’s Needs:

Miami Dade County (hereinafter referred to as “the county”) shall provide to the government facility at FCI /FPC Miami, water and wastewater 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. The County shall provide services on an un-interruptible daily basis (365) days per year. The County will be responsible to maintain and/or repair all associated pipelines and equipment, including associated costs for such repair, up to the delivery point or meter of FCI/FPC Miami.

The County will be responsible to ensure that the pipelines and associated equipment, utilized to provide water and wastewater services will be maintained and operated in compliance with all rules and regulations set by the Florida Department of Public Health, in accordance with all Federal, State, County, and local government for a safe and sanitary water and wastewater service. Pursuant to FAR Part 41.202, the County continues to provide the “entire water and wastewater utility service” (i.e., production, distribution, system operation and maintenance, treatment, metering, billing, etc.).

The County shall provide water and wastewater utility services for the period 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 monthly amount for water and wastewater utility service is $141,666.67. The total estimated amount for a 12-month period is $1,700,000.00.

Contract Line Item Number Performance Period Estimated Annual Cost ($) CLIN 0001 October 2015 $148,000.00

JOFOC FCI/FPC Miami

Water and Wastewater Utility Services

CLIN 0002 November 2015 $157,000.00 CLIN 0003 December 2015 $159,000.00 CLIN 0004 January 2016 $177,000.00 CLIN 0005 February 2016 $172,000.00 CLIN 0006 March 2016 $172,600.00 CLIN 0007 April 2016 $135,000.00 CLIN 0008 May 2016 $113,000.00 CLIN 0009 June 2016 $109,200.00 CLIN 0010 July 2016 $120,000.00 CLIN 0011 August 2016 $117,200.00 CLIN 0012 September 2016 $120,000.00 Total Estimated Cost: $1,700,000.00

(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).” When a public utility supplier refuses to execute a tendered contract the agency may proceed with the acquisition and pay for the utility service under the provisions of 31 USC § 1501(a)(8). Analysis of the market indicates that the County has proprietary rights up to the meter at FCI/FPC Miami. 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. In accordance with FAR 9.102(b), a contracting officer is not required to make a responsibility determination when awarding to a Foreign, State, or local government.

(5) A Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Requires Use of the Authority Cited:

The County is the sole provider of water and wastewater utility service in the FCI/FPC Miami service area.

The County is an entity of the State of Florida, the only agent authorized by rules and regulations to provide water and wastewater service in the Miami area. Having a single supplier of water and wastewater service for this area is the most efficient method of providing potable water and collecting/treating sewage. In accordance with Florida Constitution: Counties and Municipalities may exercise the following powers and provide the following services - (6) Storm water and sewage collection and disposal systems, and (7) Development, storage, treatment, purification, and distribution of water.

(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:

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 Cost to the Government Will Be Fair and Reasonable:

The estimated average monthly cost, which was based on invoice history, for the water and wastewater utility service is $141,666.67 with a total estimated usage for a 12 month period of $1,700,000.00. Utility rates are enacted by resolutions by the County. The County, which is charged under State of Florida law to ensure that rates be just and reasonable. The State of Florida, Miami-Dade County, and the Department of Water and Sewer Management websites have provided sufficient data to the FBOP contracting officer, pursuant to FAR 15.402, Pricing Policy, allowing the ability to make a preliminary determination that such anticipated costs appear to be fair and reasonable. The County is a municipal corporation and operates under the guidelines of the State of Florida Charter. 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 and the Results:

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. The amount of market research will vary, depending on such factors as urgency, estimated dollar value, complexity, and past experience. Market research involves obtaining information specific to the item being acquired. 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.

I. BACKGROUND: A review of the obligation reveals the following – The FCI/FPC Miami has a current and continuing requirement for the purchase of water and wastewater utility service for the continuation of normal operations of the institution in order to provide a safe, secure environment to confine offenders and protect the public.

1. Title: Water and Wastewater Utility Service – FCI/FPC Miami

2. Product or Service Code: S- Utilities and Housekeeping Services – S114 Water Service and S119

Other Utilities.

3. North American Industry Classification System (NAICS): 221310 Water Supply and Irrigation

Systems = this industry comprises establishments primarily engaged in operating water treatment plants and/or operating water supply systems. The water supply system may include pumping stations, aqueducts, and/or distribution mains. The water may be used for drinking, irrigation, or other uses; and 221320 Sewage Treatment Facilities = this industry comprises establishments primarily engaged in operating water systems or sewage treatment facilities that collect, treat, and dispose of waste.

4. Standard Industrial Classification (SIC) Code: 4941 Water Supply - 4952 Sewerage Systems

II. DELIVERY / PERFORMANCE: Purchase order to provide water and wastewater utility services from October 1, 2015 through September 30, 2016. The County shall provide to the government facility at FCI/FPC Miami, water and wastewater 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. The County shall provide services on an un-interruptible daily basis (365) days per year. The County will be responsible to maintain and/or repair all associated water and wastewater lines and equipment, including associated costs for such repair, from the delivery point or meter of FCI/FPC Miami. Pursuant to FAR Part 41.202, the County continues to provide the “entire water and wastewater utility service” (i.e., collection, treatment, testing, system operation and maintenance, metering, billing, etc.).

III. POTENTIAL SOURCES: Miami-Dade County, Department of Water and Sewer, 3071 SW 38th Avenue, Miami, FL 33233-0316

IV. MARKET ANALYSIS:

1. The results of market research have determined that the Government’s needs can be met by an item that is of a type customarily available in the commercial marketplace and is used by the general public.

2. The following methods were utilized to conduct Market Research:

X GSA was contacted with a requested to procure services for the institution. GSA provided that there are no area wide contracting opportunities in the Miami service area at this time.

X Searched database and contacted GSA Energy Center of Expertise; Found no area wide or single point contract is available.

X Searched Federal Procurement database and found, DOD, GSA, VA, National Archives and the FBOP are issuing purchase orders to the County.

X Searched Miami-Dade County website and found, the County is the sole owner of all water and sewer pipelines servicing FCI/FPC Miami and the FBOP are purchasing water and sewer service from the County.

X Searched previous purchases of similar/identical acquisitions; Found the County is current provider to FCI/FPC Miami and the Federal Detention Center (FDC). This is a continuation of service.

3. Results: Results of Market Research were as follows: Only one source could be found. A Justification for Other than Full and Open Competition is provided for approval.

V. RECOMMENDATION:

1. It is this Contracting Officers determination there is a source available that is capable of providing the required services. The requirement will be awarded to the County as a single award of a firm-fixed price requirements type water and wastewater utility purchase order utilizing 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.

2. The County is the sole provider of water and wastewater utility service in the FCI/FPC Miami service area. The Miami-Dade County is the governing body that approves all rates with the responsibility of water and wastewater services for the locale in which FCI/FPC Miami resides. 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 three water and one sewer pipeline leading to and from the institution. A review of State of Florida regulations determined that a water and a wastewater utility service is not a deregulated utility. Deregulation would promote competition. In the case of utilities owned and operated by municipalities, the Florida Public Service Commission does not have jurisdiction. FCI/FPC Miami is within the Miami-Dade County Zoning District. The County is other than small business.

3. This requirement will not be posted to Fedbizopps to promote competition, broaden industry participation, and assist small business concerns in obtaining contracts for FCI/FPC Miami. 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. The Department of Water and Sewer Management is an entity of the County, the only agent authorized by rules and regulations to provide water and sewer service in the Miami-Dade County area. Having a single supplier of water and sewer service for this area is the most efficient method of providing potable water service and collecting and treating sewage.

4. Search of previous purchases of similar/identical acquisitions shows the County is the current water and sewer service provider for FCI/FPC Miami and has serviced the facility since dedication. Also, the County is the only service supplier capable at this time of providing FCI/FPC Miami with water and wastewater services. No other company has presented itself with the capabilities nor the infrastructure to run water and wastewater lines 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. The Bureau does not have the state and local approval or the resources to provide the funding for another company to install a new water and wastewater system at the institution, other pipelines are not available, and no other contractor can provide water and wastewater service through the County pipelines.

5. 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 water and wastewater service for FCI/FPC Miami.

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

VI. COMMENTS: The Government contemplates the single award of a firm-fixed price requirements type water and wastewater utility service purchase order resulting from this requirement. The conclusions from this market research will be incorporated into the document for providing Water and Wastewater Utility Service for FCI/FPC Miami.

(9) Any Other Facts Supporting the Use of Other Than Full and Open Competition:

The provision of water and wastewater utility service is essential for the orderly operation of FCI/FPC Miami, which is designed to collectively house with a rated capacity of approximately 2,000 inmates. The institution consists of a Federal Correctional Institution (FCI) and Federal Prison Camp (FPC) Miami.

State 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.

(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 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 databases shows only the FBOP, DOD, GSA, VA, and National Archives and

Records Administration are issuing orders to the County for water and wastewater utility requirements.

FCI/FPC Miami 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.

(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.

//Signed// _8/26/2015

Dennis Dempsey, Contract Specialist Date

Field Acquisition Office

(c) 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.

//Signed// _8/26/2015

Gerald Salter, Facilities Manager Date

FCI/FPC Miami

Concurrence:

//Signed// _9/1/2015

B. H. Romero, Warden Date

FCI/FPC Miami

//Signed// _9/11/2015

Jill D. Ryan, Chief Date

Field Acquisition Office

//Signed// _9/30/2015

H. J. Marberry, Regional Director Date

Southeast Regional Office

//Signed// for _10/9/2015

Matthew D. Nace, Procurement Executive Date

Administration Division

//Signed// _10/13/2015

W. F. Dalius, Jr. Date

Assistant Director for Administration

Approved:

//Signed// _10/13/2015

Denise M. Class Date

Sr. Deputy Assistant Director for Administration

Competition Advocate