DETERMINATION and FINDINGS.pdf

DETERMINATION & FINDINGS

For Issuance of a Sole-Source Bridge Contract

South Bay International Wastewater Treatment Plant (SBIWTP)

U.S. Section, International Boundary and Water Commission (USIBWC)

Prepared by: Philip Johnson, Supervisory Contract Specialist

Date: March 6, 2026

I. AUTHORITY

This Determination & Findings (D&F) is prepared pursuant to:

• FAR 1.7 – Determinations and Findings

• FAR 6.302-1, Only One Responsible Source

• Applicable internal USIBWC acquisition procedures

II. PURPOSE

The purpose of this D&F is to support issuance of a sole-source contract to the incumbent contractor, Veolia Water North America – West, LLC, to continue critical Operations & Maintenance (O&M) services at the South Bay International Wastewater Treatment Plant

(SBIWTP).

This temporary sole source contract is required to maintain uninterrupted operations while the Acquisition Division prepares and releases a new competitive solicitation following the cancellation of Solicitation No. 191BWC26R0001. The cancellation was necessary to mitigate deficiencies in the solicitation and ensure that any solicitation and resulting award fully meets the Government’s needs.

The need for this D&F is reinforced by internal leadership and legal direction, including the request for clear CO documentation referenced in RE: SBIWTP O&M Contract.

III. BACKGROUND

A competitive procurement (Solicitation No. 191BWC26R0001) for long-term O&M services at SBIWTP was canceled due to:

• Material technical deficiencies

• Missing and ambiguous PWS requirements

• Discovery of a serious undisclosed OCI

Leadership directed cancellation and re-solicitation, and documentation was initiated through D&F file-share notifications.

A corrected and fully defensible competitive solicitation is being drafted.

However, SBIWTP is a 24/7 critical infrastructure asset with significant environmental, public health, diplomatic, and treaty-related impacts. A performance gap is unacceptable as it would have dire consequences for health and human safety.

IV. FINDINGS

A. Continuity of Operations is Mission-Critical

SBIWTP treats up to 35 MGD and supports:

• NPDES permit compliance

• Environmental protection in the Tijuana River watershed

• Treaty obligations with Mexico

Any lapse in O&M services would result in immediate environmental and operational harm.

B. Only Veolia Can Perform Without Transition Delay

The incumbent has:

• An existing trained workforce

• Site-specific certifications and safety training

• Operational familiarity with the 10-MGD advanced primary expansion

• Established continuity protocols

No other contractor can mobilize without a significant transition period, which presents unacceptable operational risk.

C. Urgency Created by Canceled Solicitation

The cancellation necessitates substantial rework of the PWS, pricing model, evaluation criteria, and OCI provisions—requiring sufficient time to prepare a compliant, competitive acquisition.

During this period, the Government must preserve uninterrupted O&M services. The urgency is reflected in CO-to-leadership communications requesting input for required D&Fs (RE: SBIWTP O&M Contract).

D. Legal and Policy Requirements Support Sole-Source Contract

Legal counsel emphasized the need for clear documentation supporting the cancellation and follow-on actions. This limited-duration sole source contract satisfies:

• FAR requirements for a defensible corrective action

• The need to preserve procurement integrity while addressing material solicitation defects

E. Scope of the Bridge Contract

The contract will:

• Continue existing full-scope O&M services

• Maintain regulatory compliance

• Ensure continuity until the new competitive award is made

• Be for the minimum time necessary (6–12 months)

F. Price Reasonableness

A price analysis will be completed using:

• Historical pricing

• IGCE data

• Negotiated adjustments appropriate to the short-term nature of this action

• Documentation standards consistent with prior D&Fs

V. DETERMINATION

Based on the findings above, I hereby determine that:

A sole-source contract to Veolia is required to ensure uninterrupted, safe, and legally compliant operation of the SBIWTP.

Only Veolia can meet the Government’s needs during the re-solicitation period without unacceptable operational risk.

The circumstances meet the criteria of FAR 6.302-1.

The duration of the sole source contract will be limited to the minimum period necessary to complete the new competitive procurement.

This action is in the best interest of the Government.