20 CONS MicroGrid JA DCOM_Redacted.pdf

Limited Sources Justification and Approval (J&A)

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 1 of 7

Contracting Activity: 20 Contracting Squadron

Purchase Request / Local ID Number: FA480320QA003

Program / Project (and PE, if applicable): Shaw AFB MicroGrid Efficiency Program

Program Type (PEO or Other Contracting): Other Contracting

Authority: Multiple Award Schedule Program (FAR 8.405-6)

Estimated Contract Cost (including options):

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Description of Limitation:

Approval is requested to issue a sole source GSA Areawide Task Order (GS-00P-14-BSD-1055) to opt in to Duke Energy utility saving programs. By issuing this task order Shaw Air Force Base (AFB) will be able to enter the Demand Response Automation (DRA) program as well as Real Time Pricing (RTA) savings initiatives. Shaw's utility company, Duke Energy, will place, own, maintain & operate a base resiliency generator system to form a micro-grid. This will include the installation of 15 625Kw generators with required fuel tanks & switch gear for providing 100% power on the West side of Shaw AFB. Shaw AFB has invested over $20 million into their power suppling infrastructure. By opting into this program the base will increase their power resiliency; giving them the capability to run at full capacity during area-wide outages as well as save on energy costs during peak usage times. An assessment completed by the Office of Energy Assurance (dated 23 Oct 2019) stated the savings & capability of this program is a substantial benefit for Shaw AFB.

COORDINATION (AFFARS 5306.304(a) )

Date

06 Jan 2020

Project Lead / Program Mgr / Requiring Activity

TIGOSSOU T. KOMIVI

20 CES/ CEOER 803-895-9599

Signature

Date

09 Jan 2020

Contracting Officer

KELLI A. FLOYD, TSgt, USAF

20 CONS 803-895-9802

Signature

Date

09 Jan 2020

Local Legal Reviewer

Daniel J. Breen

20 FW/JA, 803-895-1560

Signature

Date

10 Jan 2020

Chief of the Contracting Office (COCO)

JOSHUA W. NABORS, Maj, USAF

20 CONS/CC 803-895-5402

Signature

Date

21 Jan 2020

Senior Contracting Official (SCO or SCCO)

STEVEN NERENBERG

Deputy Director of Contracting, OL-ACC, DSN 574-5372"

Signature

APPROVAL (AFFARS 5306.304(a) )

TIGOSSOU.KOMIVI.TSEGN

ON.1396003690

Digitally signed by

TIGOSSOU.KOMIVI.TSEGNON.1396003690

Date: 2020.01.07 14:19:08 -05'00'

BREEN.DANIEL.J.1247059

Digitally signed by

BREEN.DANIEL.J.1247059411

Date: 2020.01.09 14:36:04 -05'00'

FLOYD.KELLI.ANN.13006

42469

Digitally signed by

FLOYD.KELLI.ANN.1300642469

Date: 2020.01.09 15:25:07 -05'00'

NABORS.JOSHUA.W.1250

983731

Digitally signed by

NABORS.JOSHUA.W.1250983731

Date: 2020.01.10 11:20:34 -05'00'

NERENBERG.STEVE

N.LEE.1021947381

Digitally signed by

NERENBERG.STEVEN.LEE.1021947

Date: 2020.01.21 12:53:54 -05'00'

March 2018 FOR OFFICIAL USE ONLY Page 2 of 7

Date Approval Authority

CHRISTOPHER P. WEGGEMAN, Lt Gen, USAF

ACC/CD, DSN 764-3204

Signature

WEGGEMAN.CHRISTO

PHER.P.1014213224

Digitally signed by

WEGGEMAN.CHRISTOPHER.P.101421322

Date: 2020.01.24 17:03:49 -05'00'

March 2018 FOR OFFICIAL USE ONLY Page 3 of 7

( See guidance at the end of this document for completing the following sections. )

I. Contracting Activity.

Department of the Air Force, Air Combat Command, 20th Contracting Squadron, Shaw AFB, SC is the contracting organization responsible for the individual justification for other than full and open competition. The Procuring Contracting Officer is TSgt. Kelli Floyd, DSN 965-4080

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

Approval is requested to issue a sole source GSA Areawide Contract order against GS-00P-14-BSD-1055 to opt into the Duke Energy Rider DRA-8 and the RTA runoff programs to implement energy efficiency utility services. The GSA task order will be a firm-fixed-price contract for a period of 20 years.

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

Duke Energy will own, install and maintain fifteen (15) 625Kw generators to supply 8Mw power backup this will supplement Shaw AFB main power station during high power demand periods as well as full coverage in the event of a full electrical outage. It includes two four-way switches, three transformers, three generator control enclosures, and 48 Hr fuel tanks with control automation and remote monitoring. The total dollar value for this contract will be $24,000,000.00 with a period of performance of twenty-years and no options this will be treated as a utility contract in regards to the service.

IV. Identification of the justification/rationale for limiting sources and demonstration of the contractor's unique qualifications to provide the required supply/service.

As prescribed by the GSA Areawide contract assessments Duke Progress is the only base electrical provider that feeds the West side of the Shaw AFB and is a mandatory source for electricity. They own, control, and maintain the power sub-station that provides electrical service to the West side of Shaw AFB.

In accordance with 10 U.S.C. 2304, 40 U.S.C. 113(e)(3), FAR 41.201(e), and South Carolina Code of Laws Title 58, this acquisition will be solicited using sole-source to the area franchise holder Duke Energy Progress, Inc. In accordance with Federal Acquisition Regulation (FAR) 41.201(d)(1) and South Carolina Code of Laws Title 58 - Public Utilities, Services and Carriers; Chapter 27. Electric Utilities and Electric Cooperatives, Article 5 Service Rights of Electric Suppliers, Section 58-27-640. Assignment of Service Areas are based on local service providers designated by the GSA areawide contract.

V. Determination by the ordering activity Contracting Officer that the order represents the best value consistent with

FAR 8.404(d).

The anticipated cost to the US Air Force has been determined fair and reasonable. GSA Areawide services provide pre-established fair and reasonable pricing. In addition, submitted labor rates are in compliance with the utility commission. An assessment completed by the Office of Energy Assurance (dated 23 October 2019) showed that the proposed projected costs compared to historical data are consistent with industry and fair market standards. Duke Energy included in its proposal a comparison of prices for equipment with two different companies demonstrating the research done to make Shaw AFB's opportunity to participate in energy saving programs feasible. Based on historical usage Shaw AFB is projected to save roughly $750K annually in electricity costs and $23.5M in manning and maintaining the micro-grid equipment itself. This is $38.5M savings over the 20 year period of the task order.

March 2018 FOR OFFICIAL USE ONLY Page 4 of 7

Additionally, Shaw AFB Civil Engineer Squadron will have the resiliency capability to maintain the base power supply at will. Meaning the energy sustainment and power support to over $3.5B in Air Force assets regardless of area-wide outages due to surge or acts of God.

VI. Description of the market research conducted and the results, or explain why market research was not conducted.

A letter of intent to award was posted on FBO.gov on 19 December 19 with a closing date of 30 December

19. According to the market research conducted, Duke Progress Energy is the only utility company willing and able to provide a micro-grid with regulated services and provide energy cost savings at Shaw AFB as they are the servicing utility provider for the regions designated by the GSA GWAC utilities contract. No responses were received.

VII. Other facts supporting the justification.

Duke Energy will provide all planning, design, and installation of the micro-grid on Shaw AFB allowing the installation to participate in energy reducing and saving programs. Duke will then own, operate, and maintain the newly constructed utility system with Shaw having the control to utilize the micro-grid upon request and notice to Duke Energy.

VIII. Actions 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.

A Letter of Intent to Award was posted to FBO.gov. Due to no other source with the capability to perform the requested services, the Government is procuring the services in accordance with FAR 41.204(c)(1)(i).

IX. 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.

X. 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.

March 2018 FOR OFFICIAL USE ONLY Page 5 of 7

GUIDANCE

I. Contracting Activity.

Fully identify the contracting activity responsible for the proposed contracting action. Include the name/phone number of the Contracting Officer. Specifically identify as a “Limited Sources” Justification. Identify purchase request number, if applicable.

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

State whether the action is a new order or by modification to an existing order. Identify the GSA schedule number, the Blanket Purchase Agreement (BPA) number, the order number for the current action, and the Contactor(s). Indicate the Period of Performance (PoP). Also identify the type of the order/line items on the order (e.g. Firm Fixed Price, Labor Hour, etc).

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

Specifically describe the supplies and/or services to be acquired including the price and quantity of each item in the order and state the total estimated value of the order. For services, state whether the services are performance-based and, if not, provide rationale for not being performance based. Also state the delivery/performance schedule/period for the items under the order.

IV. Identification of the justification/rationale for limiting sources and demonstration of the contractor's unique qualifications to provide the required supply/service.

This section is normally the most detailed part of the justification. To assist you in preparing this justification, an introductory sentence and the four circumstances of FAR 8.405-6 that justify restricting the number of schedule holders are provided below. Select the appropriate cite, then provide, in narrative form, a detailed explanation supporting the specific circumstance cited for limiting the number of schedule holders.

(Introductory sentence) FAR 8.405-6 requires an ordering activity to justify its actions when restricting consideration of schedule contractors to fewer than required in FAR 8.405-1 or 8.405-2.

After selecting the appropriate cite, next select one of the four sentences below and provide a detailed explanation supporting the specific circumstance cited.

FAR 8.405-6(a)(1)(i)(B), “Only one source is capable of responding due to the unique or specialized nature of the work”. (Provide a detailed justification with supporting documentation, as evidence of the “unique or highly specialized” nature of the procurement.

The user/customer typically provides this supporting information. Recommend attaching supporting documentation to the back of the document. General statements are not acceptable.)

FAR 8.405-6(a)(1)(i)(C), “The new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures.” The original order was not issued under sole source or limited source procedures. (Provide details on the previously competed order and explain how this order is a logical follow-on to that order. Explain fully the connection between the previous work/order and the current one.

The user/customer typically provides this supporting information. General statements are not acceptable.)

FAR 8.405-6(a)(1)(i)(A), “An urgent and compelling need exists, and following the ordering procedures would result in unacceptable delays.” (Provide a detailed justification with supporting documentation that explains the exact urgency of the requirement and the schedule impact if time were to be taken to follow FSS ordering procedures. The user/customer typically provides this supporting information. Recommend attaching supporting documentation to the back of the document. General statements of urgency are not acceptable.)

FAR 8.405-6(b)(1), “The item is peculiar to one manufacturer. A brand name item, whether available on one or more schedule contracts, is an item peculiar to one manufacturer.” (Brand name specifications should not be used unless the particular brand name, product or feature is essential to the Government's requirements. Therefore, explain why the particular brand item is essential to the Government's requirements, and why other companies' similar items, or products lacking the particular feature, do not meet, or

March 2018 FOR OFFICIAL USE ONLY Page 6 of 7 cannot meet, or cannot be modified to meet, the agency's need. The user/customer typically provides this supporting information.

General statements are not acceptable.)

V. Determination by the ordering activity Contracting Officer that the order represents the best value consistent with

FAR 8.404(d).

This section needs to be tailored based upon whether the order is for supplies/services not requiring a statement of work (FAR 8.405-1) or if the order is for services requiring a statement of work (FAR 8.405-2).

For FAR 8.405-1 orders the best value determination needs to be based upon the supply or service offered under MAS contracts by surveying at least three schedule contractors through the GSA Advantage! on-line shopping service, or by reviewing the catalogs or price lists of at least three schedule contractors. The ordering Contracting Officer's review of the Contractor's price list(s) and any price reductions sought is also required. (Contracting Officer should seek additional price discounts/concessions based on the specific order requirements on all orders over the micro-purchase threshold.) In addition to price, when determining best value, the ordering activity may consider, among other factors, past performance, special features of the supply or service required for effective program performance, trade-in considerations, probable life of the item selected as compared with that of a comparable item, warranty considerations, maintenance availability, environmental and energy efficiency considerations, and delivery terms.

When an order contains brand name specifications, the Contracting Officer shall post the Request for Quote (RFQ) along with the basis of the justification as required by FAR 8.405-6(b)(3).

For FAR 8.405-2 orders for services requiring a statement of work, FAR 8.405-2(d) requires that an evaluation be performed based on the criteria provided to the schedule contractors. Therefore, the justification must address how the FAR 8.404(d) requirement for an evaluation of the proposed level of effort and mix of labor will be conducted and include a statement that the Contracting Officer will perform a price reasonableness determination as part of the best value determination.

VI. Description of the market research conducted and the results, or explain why market research was not conducted.

Discuss market research that was conducted among schedule holders and the market research results that led to the conclusion to go sole source or to limit the number of schedule holders to be solicited. The narrative in this section should provide a high level of confidence that the requirements of 8.405-1 and 8.405-2 could not be met. If no market research was conducted, state so and provide the rationale.

VII. Other facts supporting the justification.

When FAR 8.405-6(a)(1)(i)(C) is cited for an follow-on acquisition as the basis for the justification, include an estimate of the cost that would be duplicated and the basis and derivation of the estimate, or provide details on why a delay to solicit additional schedule holders would be unacceptable.

Provide any other facts supporting the Limited Sources Justification.

VIII. Actions 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.

Describe all efforts to be taken to remove or overcome any barriers that preclude the agency from meeting the requirements of FAR 8.405-1and FAR 8.405-2 before any subsequent acquisition for the supplies or services is made. If no actions are planned, so state and provide reasons.

IX. Certification by the Contracting Officer.

The contracting officer's signature on the signature page evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

X. Certification by the technical/requirements personnel

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As evidenced by their signatures on the signature page, the technical/requirements personnel have certified that any supporting data contained herein which is their responsibility is both accurate and complete.