A9_FBO_MIM_JOFOC_Water_ _Wastewater_Utility_Service.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN

COMPETITION

PUBLIC UTILITY- WATER AND WASTEWATER UTILITY SERVICE

FEDERAL DETENTION CENTER MIAMI

MIAMI, FLORIDA

Contractor: Miami-Dade County

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

Estimated Amount: $1,353,300.00

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Water and Sewer Utility Service FDC MIAMI

(a) Pursuant to the Federal Acquisition Regulation (FAR) Part6.302-l(b)(3), and the Bure~u of Prisons Acquisition Policy (BPAP) Part 6.304(c). the Federal Bureau of Prisons (FBOP) h~s d~termme~ tha~ the.

procurement of water and sewer utility service for the Federal Detentio~ ~enter ~h~m1 located m. M1am1.

Florida meets the criteria established for other than full and open competitiOn. It 1s further determmed that only one responsible source (Miami-Dade County Water and Sewer) and no other supplies and/or ~ervic~s will satisfy agency requirements. This limitation on competition is justified as supported by the tollowmg information in accordance with FAR Part 6.303-2:

(b)(l) Identification of the Agency:

U.S. Department of Justice Federal Bureau of Prisons Federal Detention Center Miami 33 NE 4111 Street Miami. Florida 33132

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

This justification for other than full and open competition is tor the acquisition of water and sewer utility services provided to the Federal Detention Center in Miami. Florida from the sole provider of such services in the Miami area. FDC Miami has a present and continuing requirement for water and sewer utility service for the proper operation of the facility.

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

Miami Dade County (hereinafter reterred to as ··the county") shall provide to the government facility at FDC Miami. water and sewer 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 ofFDC 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 tor a safe and sanitary water and wastewater service. Pursuant to FAR Part 41.202, the County continues to provide the "entire water and sewer utility service" (i.e., production. distribution. system operation and maintenance. treatment. metering. billing. etc.).

The County shall provide water and sewer 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 lor water and sewer utility service is $112.700.00. The total estimated amount for a 12-month period is $1.353.300.00.

JOFOC FDC Miami

Water and Sewer Utility Services

(b)(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)( I). when the supplies or services required by the agency arc available from only one responsible source.

The application which penn its 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 of31 USC§ 150 I (a)(8). Analysis of the market indicates that the County has proprietary rights up to the meter at FDC 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 .I 02(b ). a contracting officer is not required to make a responsibility determination when awarding to a Foreign, State. or local government.

(b)(S) A demonstration that the proposed contractor's unique qualifications or the nature of the acquisition requires usc of the authoritv cited:

The County is the sole provider of water and sewer utility service in the FDC 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 sewer service in the Miami area. Having a single supplier of water and sewer service for this area is the most efficient method of providing potable water and collecting and treating sewage. In accordance with Florida Constitution: Counties and Municipalities may exercise the following powers and provide the following services- (6) Stonn water and sewage collc~~i9n and disposal systems. and (7) Development, storage. treatment. puritication, and distribution of water.

(b)(6) A description of efforts made to ensure that offers arc 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 ofEntry(GPE) at (a)(5), the contracting officer need not submit a notice when ··the proposed contract action is for utility

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Water and Sewer Utility Services services other than telecommunications services and only one source is available."

(b )(7) A determination by the contraeting officer that the anticloated cost to the Government will be fair and revonable:

The estimated average monthly cost, which was based on invoice history, for the water and sewer utility service is $112,775.00 with a total estimated usage for a 12 month period of$1,353,300.00. 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 Departineilt 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.

(b)(8) A description of the market researeh 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 fmd 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 FDC Miami has a current and continuing requirement for the purchase of water and sewer 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 Sewer Utility Service- FDC Miami

2. Product or Service Code: S- Utilities and Housekeeping Services - S 114 Water Service and S 119

Other Utilities.

3. Nortb American Industry Classification System <NAICSl: 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, inigation, 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) Cosie: 4941 Water Supply- 4952 Sewerage Systems

II. DELIVERY I PERFORMANCE: Purchase order to provide water and sewer utility services from October 1, 2015 through September 30,2016. The County shall provide to the government facility at

Piie 4

Water and Sewer Utility Services

PDC Miami, water and sewer utility services in a manner and fonn that is CODSistent with all applicable laws, ndes, codes, industry standards, permits, IDCi regulaticms, promulgated by any and all sovernmental authorities having jurisdiction. The County shall provide .-vices on an un-intemaptible daily basis (36S) days per year. The County will be responsible to maintain and/or repair alliiiiOCiated water and sewer lines and equipment, includiDa usociated costs for such repair, from the delivery point or meter of FDC Miami. Pursuant to FAR Part 41.202, the County continues to provide the "entiie.

water 8Dd sewer utility service" (Le., collection, treatment, testin& system operation and mainteniDce, meterin& billins, de.).

IU. POTENTIAL SQURCE8: Miami-Dade County, Department of Water and Sewer, 3071 SW 38* Aveuue, Miami, FL 33233-0316.

IV. MARKET ANALYSIS:

1. The results ·of market researdl have determiued that the Government's needs can·t;e ·met by an·iteril that is of a type customarily available in the comme~cial marketplace and is used by the general public.

2. The following methods were utilia:d to conduct Market Research:

r:l GSA wu contacted with a requested to procure services for the institution. GSA stated tbat L..J 1bere are no area wide contriCtina opportunities in the Miami service area at this time.

r:l Searcbed databue and con1acted GSA Enersy Center of E?qJertise; Found no area wide or · L.J siqle point contract is available. · ·-·- .... ·-

G Searcbed Miami-Dade County website and found, the County is the sole owner of all water IDd sewer pipeliDes servicing FDC Miami IDd 1be FBOP are pun:hasing water and sewer service from the County.

G Seard1ed previous purcbases of similarfldentical acquisitions; Found the County is current provider to FDC Miami 8Dd the Federal Detention Center (FDC). This is a continuation of service.

3. Results: Results of Market Research were u follows: Only on source could be. foUnd. · ·A· Justification for Other than Full and Open Competition is provided for approvaL · · · · ·· · · · · · · · · · ·

V. RECQMMENDATION: .

1. It is this Contrletins Officers determiuation there is a somce available that is capable of providina the required .-vices. The requirement will be awanled to the County as a siqle award of a firm-fixed price requirements type water and ~ewer utility purcbue order utilizing FAR Part 6, 12, 13, and 41. A P~Based Acquisition method will not be used for this procurement as it is determined not applicable. A PBA reHes on 1be use of~le perfonnmce standards and financial incentives in a competitive enviromnent to encourage competiton to develop and institute innovatiw and cost-effective methods of perfmming the work.

2. The County is the sole provider of water and sewer utility service in the FDC Miami service area.

The Miami-Dade County is the governing body that approves all rates with the responsibility of water and sewer services for the locale in which FDC Miami resides. I appHed personal knowleclae, interaction with knowledgeable individuals in local and Federal Government reprding market capabilities to meet the requirements, and research of geuerally accessible literature available on-line were the techniques used in leleiUChins this procurement for a supply/services of this type.

Durin& construction of the institution, one contract was awmled for the installation 8Dd operation of three water and ODe sewer pipeline leading to and ftom the institution. A review of State of Florida

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Water and Sewer Utility Services regulations detennined that a water and a sewer 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. FDC 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 FDC 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 FDC Miami and has serviced the facility since dedication. Also, the County is the only service supplier capable at this time of providing FDC Miami with water and sewer services. No other company has presented itself with the capabilities nor the infrastructure to run water and sewer 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 sewer system at the institution, other pipelines are not available, and no other contractor can provide water and sewer 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 sewer service for FDC Miami.

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

VI. COMMENIS; The Government contemplates the single award of a firm-fixed price requirements type water and sewer utility service purchase order resulting from this requirement. The conclusions from this market research will be incorporated into the document fofproviding Water and Sewer Utility Service for FDC Miami.

(b )(9) Any other facts supporting the use of other thaD fuU aDd opeD eomoetitioD:

The provision of water and sewer utility service is essential for the orderly operation of FDC Miami, which is designed to collectively house with a rated capacity of approximately 2,000 inmates. The institution consists of a Federal Detention Center (FDC) Miami. State regulations and ordinances limit the providers of this service to only one.

(b )(1 0) A 11Jtjp1 of tbe sources. if aDy. that exnreued. in writing, an interest in the aeouisltlon:

There were no other sources which expressed an interest in this acquisition.

Water and Sewer Utility Services

(b)(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, GSA, and National Archives and Records

Administration are issuing orders to the County for water and sewer utility requirements. FDC 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.

(b)(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// _11/10/2015

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// 11/4/2015

David Kennedy, Facilities Manager Date

FDC Miami

Concurrence:

//Signed// 11/6/2015

R. C. Cheatham, Warden Date

FDC Miami

//Signed// 11/16/2015

Jill D. Ryan, Chief Date

Field Acquisition Office

Water and Sewer Utility Services

//Signed// 11/23/2015

H. J. Marberry, Regional Director Date

Southeast Region

//Signed// 12/9/2015

Matthew D. Nace, Date

Procurement Executive

Approved:

//Signed// 12/11/2015

Bradley T. Gross Date

Assistant Director for Administration