Single_Source_Justification__-_REDACTED.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 2 of 3

I. Contracting Activity.

Department of the Air Force, Air Force Installation Contracting Agency (AFICA), 319th Contracting Flight, 295 Steen Blvd, Bldg 242, Grand Forks Air Force Base, ND. The requesting agency is the 10th Space Warning Squadron, Cavalier

AFS, ND.

II. Nature and/or description of the action being processed.

This acquisition is for a new, firm-fixed-price, 10 year contract to obtain water utilities for Cavalier AFS (CAFS), ND as their primary source of water. This request is to award a sole source Indefinite Delivery contract to purchase water from Northeast Regional Water District (NRWD), 13532 Hwy 5, Cavalier, ND 58220.

III. Description of supplies/services required to meet agency needs.

This contract is for the purchase of water utility services in accordance with applicable tariff(s), rules, and regulations as approved by the applicable governing regulatory body and as set forth in the contract.

The requirement is for approximately 30,000 KGal of water per year and a total of 300,000 KGal for the term of the contract.

IV. Statutory authority permitting other than full and open competition.

FAR 6.302-1 Only One Responsible Source And No Other Supplies or Services Will Satisfy Agency Requirements, 10 U.S.C. 2304(c)(1) or 41 U.S.C. 253(c)(1). FAR 6.302-1(b)(3) When acquiring utility services (see FAR 41.101) circumstances may dictate that only one supplier can furnish the service.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

NRWD is the only water company in the area of CAFS. No other water companies have the capability to provide water to the CAFS unless they build a pump station and provide piping to CAFS. NRWD has provided the infrastructure and the government has repaid the capitalization costs of under a previous contract, F32605-97-D-U001.

This company is the owner of the water treatment facility, pump houses, and piping for the whole Cavalier, ND area.

All connections are to this water source and to try to outsource to a different utility provider would cause the government to incur significant additional expenses to build a new water treatment facility, add pump houses as needed and run water piping from the new treatment facility to CAFS. Additionally, there would likely be a break in service due to the transition from NRWD to another water provider or the time it would take to build a new treatment facility and run piping to CAFS and that would be unacceptable to not have water service running to support the buildings on base as well as to the family housing that is located on CAFS. Continuous water supply is necessary to operate the mission as well as provide for the occupants living and working on CAFS. NRWD is the only water utility provider for this area to provide the proper amount of water and the Pounds per Square Inch (PSI) required. If the Government were to try to run water from other water providers from their current location, they would not be able to produce the correct PSI that is required.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

Market research showed that there is only one single provider of water utilities for CAFS and the surrounding cities.

Although not required by FAR 5.202(a)(5), the Government will publicize this requirement via FBO to allow for any sources that were not discovered during market research the opportunity to identify their interest and capability to respond to this requirement and submit proposals. Should there be any other interested offerers (highly doubtful for competitive reasons), they would almost certainly not be able to compete from a pricing standpoint.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

IAW FAR 15.404-1(b)(2), The Government may use various price analysis techniques and procedures to ensure a fair and reasonable price. The contracting officer will determine prices offered to be fair and reasonable

Justification and Approval (J&A) for Other Than Full and Open Competition

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 3 of 3 through:

FAR 15.404-1(b)(2)(ii) Comparison of proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items. This method may be used for commercial items including those "of a type" or requiring minor modifications, and

FAR 15.404-1(b)(2)(vi) Comparison of proposed prices with prices obtained through market research for the same or similar items.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

Market research was conducted to see if there was any cost increases in the past ten years and to determine the most prevalent/common terms and conditions in the marketplace. It has been determined that the increase in utility costs is minimal and uniform over a ten year period, . Utility services are considered to be a commercial item as defined at FAR 2.101(b) and is commercially available. It has been determined through this research that utility services are available in the commercial market place but no competitive proposals would be received due to the fact that NRWD is the only company with a water treatment facility in the general location of CAFS. Other companies would not be competitive due to the costs they would incur just to get water into the area.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

None.

X. List of any sources that expressed, in writing, an interest in the acquisition.

None (reference section VI above).

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

There are no known actions that would be economically feasible that CAFS could take to overcome or remove any barriers in the future. Only when NRWD's infrastructure is at the end of its life expectancy and it is economically feasible to replace the existing infrastructure with an entirely new system, would it be beneficial for the government to open this up to competition.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my signature above, I certify that any supporting data contained herein, which is my responsibility, is both accurate and complete.