JOFOC_-_FCI_Terminal_Island_-_FY_17_FBO.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Federal Correctional Institution – Terminal Island, CA

Electric Utility Services FY-2017

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 services for the Federal Correctional Institution located in San Pedro, CA 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 Federal Correctional Institution – Terminal Island 1299 South Seaside Avenue San Pedro, CA 90731

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

This justification for other than full and open competition is for the acquisition of electric utility services for the Federal Correctional Institution located in San Pedro, CA from the sole provider of such services in the Los Angeles area.

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

The Federal Correctional Institution 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 California. All utility services shall be provided on a dependable and adequate daily basis (365) days per year. The City of Los Angeles Department of Water and Power will be responsible to maintain and/or repair all associated equipment lines for electric utility service provided, including associated costs for such repair, up to the delivery/transport/receipt point or meters of FCI Terminal Island. Pursuant to FAR Part 41.202, the contractor is required to provide the “entire utility service for each utility” (i.e., capacity, standby or backup service, transmission and/or distribution service, quality transportation, assurance, system reliability, system operation and maintenance, metering, billing, etc.).

FEDERAL BUREAU OF PRISONS – FCI TERMINAL ISLAND

JOFOC – ELECTRIC UTILITY SERVICES

Contract Line Item Number Performance Period Estimated Cost ($)

Total Estimated Cost: $528,000.00

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

41 U.S.C. 3304 (a) (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:

The City of Los Angeles, Department of Water and Power is the sole provider of electric utility services required by FCI Terminal Island and the San Pedro utility service area.

The City of Los Angeles, Department of Water and Power has an approved tariff/City Ordinance by the City of Los Angeles. The City of Los Angeles, Department of Water and Power is now the sole authorized provider of water and wastewater treatment in the San Pedro area. All rates are regulated and approved by the Los Angeles City Council.

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 The City of Los Angeles, Department of Water and Power rates have been adopted by Los Angeles City Council for all residential, commercial, and industrial users that are geographically located within their service territory. The rates are considered fair and reasonable due to review and approval process from the City Council.

The Mission Statement of the Los Angeles Department of Water and Power is quoted as:

“Providing clean, reliable water and power and excellent customer service in a safe, environmentally responsible and cost-effective manner.”

8. Description of the Market Survey Conducted:

The Contracting Officer reviewed the GSA Areawide Contract List and there are no current contract opportunities for electric service in the Los Angeles service area at this time. FCI Terminal Island has a present and continuing need for electric utility services. FCI Terminal Island does not have an onsite electric generation plant;

therefore, the need for electric utility services have to found and supplied by a contractor in the local market. Market Research revealed that Los Angeles Department of Water and Power, is the only authorized electric utility supplier capable of and authorized to provide these services. The Los Angeles Department of Water and Power was contacted in writing to determine their willingness to enter into a contractual agreement as instructed in FAR 41.202.

Additional Market Research has also revealed that the North American Industrial Classification System (NAICS) code for electric power distribution service as 221122. The associated size standard for this utility service is 1000 Employees or less.

The NAICS industry description for code 221122, Electric Power Distribution, has detailed that establishments with this code are primarily engaged in either (1) operating electric power distribution systems (i.e., consisting of poles, lines, meters, and wiring) or (2) operating as electric power brokers or agents that arrange the sale of electricity via power distribution systems operated by others. Since the Los Angeles Department of Water and Power have demonstrated that they are engaged in the operation of such a utility establishment distributing electric power, NAICS code

221122 is applicable to this acquisition.

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

A GSA area-wide contract does not currently exist for electric utility services in the Los Angeles County area. FCI Terminal Island continues to have an ongoing need for these services and would not be able to operate the facility in an orderly fashion if services were interrupted or not provided.

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 service to meet the minimum requirements of FCI Terminal Island’s utility service requirements. Los Angeles Department of Water and Power is the only source available to provide these services as requested by the institution.

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

FCI Terminal Island will continue to monitor the market trends in the utility industry to seek competition or sources that may be able to meet the minimum needs of it’s utility requirements.

12. Contracting Officer’s Certification:

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

//Signed// 07/28/16

Christine J. Trujillo, Supervisory Contract Specialist Date

FCI Terminal Island, CA

//Signed// 08/08/16

Darrell L. McKeel, Contracting Officer Date 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// 07/29/16 Stine Grant, Facilities Manager Date

Concurrence of:

//Signed// 08/01/16

Gabriel Gutierrez, Acting Warden Date

Approved by:

//Signed// 08/09/16

Jill D. Ryan, Chief Date Field Acquisition Office