FBO_Version.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Electric Utility Service - USP Leavenworth, KS

Pursuant to the Federal Acquisition Regulation (FAR) 6.302-1 (a) (1) and 6.302-1 (b) (3), and Bureau of Prisons Acquisition Policy 6.304 (c), the Federal Bureau of Prisons (BOP) has determined that the procurement of electric utility service for the United States Penitentiary (USP) located in Leavenworth, KS, meets the criteria established for other than full and open competition. It is further determined that only one responsible source and no other supplies and/or services will satisfy agency requirements. This limitation on competition is justified as supported by the following information:

1. Agency:

Department of Justice Federal Bureau of Prisons United States Penitentiary Leavenworth 1300 Metropolitan Avenue Leavenworth, Kansas 66048

2. Nature and/or Description of Action being Approved:

This action is for the acquisition of electric utility service to USP Leavenworth located in Leavenworth, KS, from the sole provider of such services in the Leavenworth area.

3. Description of Supplies or Services Required to Meet the Agency Needs:

USP Leavenworth requires electric utility services in a manner that is consistent with all applicable laws, rules, codes, industry standards, permits and regulations, promulgated by any and all governmental authorities having jurisdiction in the state of Kansas. Services shall be provided on a dependable and adequate daily basis (365) days per year. Westar Energy will be responsible to maintain and/or repair all associated electric power lines, transformers, and electrical equipment, including associated costs for such repair, up to the delivery point of USP Leavenworth. Pursuant to FAR Part 41.202, the contractor is required to provide the “entire electric utility service” (i.e., capacity, standby or backup service, transmission and/or distribution service, quality transportation, assurance, system reliability, system operation and maintenance, metering, billing, etc.).

Electric utility service from October 1, 2015 thru September 30, 2016 is subject to funds availability (FAR Clause 52.232-18). The services will be procured by way of purchase order. The estimated yearly cost for electric utility service is $1,196,409.98.

FEDERAL BUREAU OF PRISONS- USP LEAVENWORTH, KS

JOFOC- ELECTRIC UTILITY SERVICE

2 | P a g e

Contract Line Item Number Performance Period Estimated Cost ($)

CLIN 0001 10/01/2015 - 10/31/2015 $94,173.84

CLIN 0002 11/01/2015 - 11/30/2015 $87,385.08

CLIN 0003 12/01/2015 – 12/31/2015 $90,382.78

CLIN 0004 01/01/2016 – 01/31/2016 $88,637.15

CLIN 0005 02/01/2016 – 02/29/2016 $85,125.61

CLIN 0006 03/01/2016 – 03/31/2016 $82,376.76

CLIN 0007 04/01/2016 – 04/30/2016 $78,029.15

CLIN 0008 05/01/2016 – 05/31/2016 $91,617.91

CLIN 0009 06/01/2016 – 06/30/2016 $119,859.02

CLIN 0010 07/01/2016 – 07/31/2016 $129,148.64

CLIN 0011 08/01/2016 – 08/31/2016 $126,857.81

CLIN 0012 09/01/2016 – 09/30/2016 $122,816.23

Total Estimated Cost: $1,196,409.98

4. Statutory Authority Permitting Other Than Full and Open Competition:

41 U.S.C. 253 (c) (1) and FAR 6.302-1 (b) (3) When acquiring utility services, circumstances may dictate that only one supplier can furnish the service or when the contemplated contract is for construction of a part of a utility system and the utility company itself is the only source available to work on the system.

5. Determination that Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Requires Use of the Authority Cited:

Westar Energy Inc. is the sole authorized provider of electric utility service in the Leavenworth service area. The City of Leavenworth has granted franchise authority under Ordinance No. 7575 to Westar Energy Inc. All rates are regulated by city ordinance through the Franchise agreement after being approved by the Kansas Corporate Commission (KCC). The Leavenworth Code of Ordinances Article V states, “An ordinance granting to Westar Energy Inc., an electric franchise including the right to construct, operate and maintain electric transmission, distribution and street lighting facilities within the corporate limits of the City of Leavenworth, Kansas. Now, therefore be it ordained by the governing body of the City of Leavenworth, Kansas.”

This authority permits the Westar Energy Inc. to lawfully be the sole and authorized provider of electric utility service within the Leavenworth service area to include USP Leavenworth.

3 | P a g e

6. Efforts Made to Solicit from as Many Sources as Practicable Including Whether or Not a Notice Was or Will be Publicized as Required by FAR Part 5.2:

As stated in FAR 5.202 (a) (5), “the proposed contract action is for utility services other than telecommunications services and only one source is available.” Therefore, a notice is not required in the Government wide point of entry (GPE).

7. Contracting Officer’s Determination that the Cost to the Government Will be Fair and Reasonable:

The current rates offered by Westar Energy Inc. are approved by the City Council through vote and become law for all users within the applicable service territory of the Westar Energy Inc. The City of Leavenworth has stipulated that all rates charged by Westar Energy Inc. shall comply with all applicable federal and state statutes and regulations.

Westar Energy Inc. must have their schedule rates approved by the Kansas Corporate Commission (KCC). “Within KCC’s mission statement, they have stated that the agency shall: regulate rates, services and safety of public utilities, common carriers, and motor carriers; regulate oil and gas production by protecting correlative rights, environmental resources, and energy storage; and promote energy related programs.”

The rate schedules submitted by Westar Energy have to be approved by the KCC prior to being implemented within the service territory. In addition to the KCC’s approval, rate schedules will be analyzed by the Supervisory Contract Specialist with the assistance of the Facilities Manager in accordance with FAR 41.401.

8. Description of the Market Survey Conducted:

USP Leavenworth has a present and continuing need for electric utility services. USP Leavenworth does not have an onsite electric generation system; therefore, the need for electric power utility service has to be supplied by a contractor in the local market.

Market Research has revealed the presence of city ordinances and a franchise agreement which establishes exclusive rights for Westar Energy Inc. to provide electric service to the City of Leavenworth and end users within their service territory, as the only legal provider of electric service.

4 | P a g e

9. Other Facts Supporting the Use of Other Than Full and Open Competition:

The provision of electric utility service is essential for the safe and orderly operation of USP Leavenworth, which is designed to house over 2,200 inmates. Local ordinances have been established designating the Westar Energy Inc. as the only legal authority to provide this service to various classes of users within their coverage area.

10. List of Sources, Expressing in Writing, Interest in the Acquisition:

There were no other sources which expressed an interest in this acquisition or that would be able to provide the electric utility service to meet the minimum requirements of the government. No other responsible source expressed any interest in competing with Westar Energy Inc. to provide electric utility service to USP Leavenworth.

11. Actions Taken by the Agency to Remove or Overcome Barriers to Competitions:

The BOP will continue to monitor the market trends in the utility industry to seek competition or sources that may be able to meet the minimum electrical needs of the government and its utility requirements. Should competition opportunities arise in the future, USP Leavenworth Contracting staff will take appropriate action in accordance with policy.

12. Contracting Officer’s Certification:

I hereby certify that the above justification is accurate and complete to the best of my knowledge and belief.

Submitted by:

//SIGNED//

Amber Wolfington, Supervisory Contract Specialist USP Leavenworth, KS

5 | P a g e

Darrell McKeel, Contracting Officer Field Acquisition Office

Technical or Requirement’s Personnel Certification:

I hereby certify that this request for Justification and Approval of Other than Full and Open Competition is made in good faith that the supporting data and information are accurate and complete to the best of my knowledge and belief:

________//SIGNED//________________________

Richard O’Donnell, Facility Manager USP Leavenworth, KS

Concurrence of:

C. Maye, Warden USP Leavenworth

Jill D. Ryan, Chief Field Acquisition Office

Amber L. Nelson, Acting Regional Director North Central Region

6 | P a g e

__________//SIGNED//__________________

Matthew D. Nace, Procurement Executive

Administration Division

Approved by:

___________//SIGNED//__________________

Bradley T. Gross, Assistant Director for Administration Competition Advocate