FA469024F0075 J_and_A.pdf

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COORDINATION AND APPROVAL DOCUMENT

CONTRACHNO ACTIVITY: 28^ Comnctii« Squadron, Ellsvroidi APB PROGRAM NAME: Ellsworth Wastewater Utility Service AUTHORITY: 10 U.S.C. 2304(cXi)a as implemented by FAR 6.302-l(b)(3)

ESTIMATED CONTRACT COST: S37.M

TYPEJ&A: Individual gQQRDJNATIQN DATE

KEVIN B.Oa Program Engin i^28CES/CBANC

I.USAF

/2

BERNARD W. CLEMENS JR.

Contracting Officer, 28 CONS/CD

V I f^WIN,C^USAFHEATHERF Staff Judge ̂ivocate, 28 BW/JA

BERNARD W. CLEMENS JR. /T

Small Business Specialist, 28 CONS/CD

JUN 04 2012

f. Major, Chief of Contracting Office

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CONTRACllNG ACTIVITY: 28*’* Contiacting Squadron, Ellsworth AFB PROGRAMNAME: Ellsworth Wastewat^Utility Service AUTHORITY: 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-l(b)(3)

ESTIMATED CONTRACT COST: $35.9M

TYFEJ&A: Individual

VTxr AtAN S. lao. LtCol, USAF Chief, COmn^icial Law Division HQ ACCVJAQ

Diiector of Small Business, HQ ACC/SB

13 5^

MICHAEL E.DEBR

Chief, Contracting Division HQACC7A7K

CoUUSAP

E III, General, US/^^ Command

GRii4ARYM.HOI Commander, Air O

I.

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JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

CONTRACTING ACTIVITY

This document constitutes justification and approval for other than full and open competition is executed by the 28th Contracting Squadron on behalf of 28th Civil Engineering Squadron, Ellsworth Air Force Base (AFB), South Dakota.

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

This requirement will be solicited as a new, Firm Fixed Price Indefinite Tenn Utility Contract for wastewater treatment service for Ellsworth AFB, South Dakota. Because the proposed contract is an indefinite term utility contract, it is not in violation of PGI 241.103., which limits utility contracts to 10 years. The type of appropriation that will be used to fund the requirement is 3400 funds.

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY'S NEEDS

Ellsworth Air Force Base, South Dakota proposes to enter into a contract with the South Dakota Ellsworth Development Authority (SDEDA) to connect the Ellsworth AFB wastewater collection system into the new SDEDA Regional Wastewater Treatment Plant located in the adjacent city of Box Elder, South Dakota. SDEDA will install an interceptor gravity sewage line from Ellsworth's current Wastewater Treatment Plant to the new SDEDA Regional Wastewater Treatment Plant. SDEDA will treat all sewage and wastewater generated from Ellsworth AFB.

The service will replace existing wastewater treatment service after the deactivation of Ellsworth AFB's wastewater treatment facility.

The proposed contract will be an indefinite term utility contract with essentially two components- a service component to treat the sewage and a capital component to amortize the cost of the initial capital improvement. While the service component is truly indefinite, the capital component will be 20 years (240 months). For purposes of this justification, the "cost" of this acquisition is computed to the 20 year point to match the capitalization component, though the service portion is structured to continue indefinitely or until conditions warrant the termination of the agreement. The total estimated cost for the initial 240 months of the contract is $35.9M to include approximately $16.SM for sewage treatment service and $19.4M for the capital costs. The estimated annual cost of the service for the first year is $1,717,644. Interest rates are subject to change and as such could affect the capital improvement costs between now and the time of award. The SDEDA wastewater treatment facility is scheduled to be operational on 1 January 2014 and will accept Ellsworth AFB's wastewater at that time.