EPEC-80JSC023FA073-LSJ Posting.pdf

Rev.:7/2022

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

White Sands Test Facility (WSTF)

LIMITED-SOURCES JUSTIFICATION

El Paso Electric Company (EPEC)/80JSC023FA073

This is a Limited-Sources Justification (LSJ) prepared by the National Aeronautics and Space Administration (NASA) White Sands Test Facility (WSTF) located in Las Cruces, New Mexico.

This acquisition will be conducted under the Multiple-Award Schedule (MAS) Program (Title 41 U.S.C. 152(3)). This action is for a follow-on firm-fixed price task order for electrical utilities/services at WSTF.

It is anticipated that award will be made to El Paso Electric Company (EPEC) under General Services Administration (GSA) Federal Supply Schedule (FSS) 47PA0420D0013- Electric Energy Management Services provided Under the Appropriate Regulatory Authority.

The total estimated price of the proposed order is $17M and the estimated period of performance is September 1, 2023, through August 31, 2033.

Authority Cited and Rationale:

FAR 8.405-6(a)(1)(A). An urgent and compelling need exists and following normal procedures would result in unacceptable delays.

FAR 8.405-6(a)(1)(B). Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

FAR 8.405-6(a)(1)(C). In the interest of economy and efficiency, the new work is a logical follow-on to an original GSA FSS order provided that the original order was placed in accordance with the applicable GSA FSS ordering procedures. The original order or BPA must not have been previously issued under sole-source or limited-sources procedures.

FAR 8.405-6(b), Items Peculiar to One Manufacturer. An item peculiar to one manufacturer can be a particular brand name, product, or a feature of a product, peculiar to one manufacturer. A brand name item, whether available on one or more schedule contracts, is an item peculiar to one manufacturer.

Rationale:

The justification is requested in accordance with FAR 8.405-6(a)(1)(B) only one source capable of providing uninterruptedelectric services to WSTF. The services being requested are currently provided by EPEC utilizing a task order, 80JSC018F0251, under the GSA areawide contract.

Follow-on services are required to ensure continuous support of the Agency mission, as well as the current and future NASA programs tested at WSTF.

In accordance with FAR 41.204(c)(1), any Federal agency having a requirement for utility services within an area covered by a GSA areawide contract shall acquire services under the areawide contract. Therefore, the services will be procured utilizing the GSA areawide Contract 47-PA04-20-D0013 which encompasses WSTF. The areawide contract is a sole source, 10-year, Firm-Fixed-Price (FFP) contract regulated by GSA, the Public Utility Commission of Texas, the New Mexico Public Regulation Commission (NMPRC), and the Federal Energy Regulatory Commission. There is no other electricity service provider in the area.Therefore, the GSA areawide contract reflects the sole source environment which WSTF utilizes to procure electrical services from the approved vendor, EPEC. EPEC operates as a regulated monopoly and is the only source available to furnish electrical services to WSTF.

The Government intends to award EPEC a follow-on firm-fixed price task order with a 10-year period of performance (September 1, 2023, through August 31, 2033) for an estimated value of $1.7M per year and total contract value of $17M.

Determination by the contracting officer that the order represents the best value consistent with FAR 8.404(d):

In accordance with FAR 8.404(d), GSA has already determined the rates for services offered by EPEC to be fair and reasonable. The aforementioned areawide contract provides rates approved in accordance with FAR 41.204(b)(1), which states, areawide contracts generally provide utility service at rates approved and established by a regulatory body and published in a tariff or rate schedule. Electric services in New Mexico are a regulated monopolized market, EPEC cannot raise rates without the approval of the New Mexico Public Regulatory Commission (NMPRC) and other regulatory bodies.

Furthermore, the areawide contract, section 5.4 stipulates “the Contractor hereby represents and warrants to the Government that the Service Rates available to any Ordering Agency hereunder shall at all times not exceed those available to any other customer served under the same Service Classification for the same or comparable service, under like conditions of use.” Additionally, the GSA areawide contract includes FAR clause 52.241-7, Change in Rates or Terms and Conditions of Service for Regulated Services. The clause allows for the contract to be modified to incorporate rate changes approved by the regulatory body having jurisdiction over the utility.

Subsequently, the aforementioned terms mitigate risk associated with any unexpected or excessive rate increase over the period of performance as it protects the Government from paying more than the rates available to the public.

Therefore, it is determined the order represents the best value to the government and remains consistent with FAR 8.404(d).

Market Research:

Market research was conducted in accordance with FAR Part 10 to determine if services are available to meet the Government’s needs. Market research concluded, EPEC is the only source available to furnish electric services to WSTF. Historically, WSTF has maintained a sole source relationship with EPEC for over 60 years, since establishment of WSTF in 1963. This relationship has been solidified for over 15 years by the execution of sole-source, firm-fixed price task orders utilizing the Authorization under GSA areawide contracts.

EPEC is governed by the rules and regulations of the Public Utility Commission of Texas and NMPRC. NMPRC regulates and has jurisdiction over utilities in the WSTF area. The Compliance Officer for NMPRC confirmed, via email, the franchise territories of the NMPRC regulated utilities are not allowed to overlap coverage areas and WSTF is in the EPEC coverage area.

The City of Las Cruces Permits/Inspections division was also contacted and further confirmed via email. no other electric companies are forecasted to enter the monopolized market during the period of performance.

Therefore, it is determined, EPEC is the only source capable of satisfying the Government’s requirement.

Other Facts: A 5-year deviation was approved by the Assistant Administrator for Procurement for the subject services which authorized the 10-year period of performance. This approval elimantes the need to reacquire these services in five (5) years from the same provider utilizing the same GSA areawide contract, increasing efficiency and effectiveness during contract administration

A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

The removal of barriers to competition is not considered feasible or practical at this time due to public regulation of monopolized utility services in New Mexico. The Agency will continue to examine the market in the future for alternative solutions or new sources before executing any subsequent acquisitions for the same requirements.