JOFOC_-_FCI_Terminal_Island_-_FY_17_FBO.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Federal Correctional Institution – Terminal Island, CA

Water & Wastewater Treatment 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 water and wastewater treatment 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 water and wastewater treatment 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 water and wastewater treatment 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 each 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.). All utility services are required from October 1, 2016 through September 30, 2017. All funding is subject to Funds Availability (FAR clause 52.232-18). The services will be procured by way of purchase order.

FEDERAL BUREAU OF PRISONS – FCI TERMINAL ISLAND

JOFOC – WATER AND WASTEWATER TREATMENT SERVICES

Contract Line Item Number Performance Period Estimated Cost ($)

Total Estimated Cost: $804,000.00

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:

The City of Los Angeles, Department of Water and Power is the sole provider of water and wastewater treatment 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.” In addition to the Los Angeles Department of Water and Power accomplishing it’s mission through fiscal responsibility yielding fair and reasonable pricing, the monthly invoices and associated prices will be analyzed by the Facilities Manager with the assistance of Supervisory Contract Specialist in accordance with F.A.R. 41.401 in order to ensure price reasonableness and accuracy in accordance with the most current approved rates.

8. Description of the Market Survey Conducted:

Additional Market Research has also revealed that the North American Industrial Classification System (NAICS) codes for water supply and irrigation systems and wastewater treatment and/or sewage treatment facilities as 221310, 221320 respectively. The associated size standards for each utility service is as follows: $27.5 Million, $20.5 Million, respectively. The NAICS industry description for code 221310 Water Supply and Irrigation Systems has detailed that establishments with this code are primarily engaged in operating water treatment plants and/or operating water supply systems.

The water supply system may include pumping stations, aqueducts, and/or distribution mains. The water may be used for drinking, irrigation, or other uses.

The NAICS industry description for code 221320, Sewer Treatment Facilities, has detailed that establishments with this code are primarily engaged in operating sewer systems or sewage treatment facilities that collect, treat, and dispose of waste.

Since the Los Angeles Department of Water and Power has demonstrated that they are engaged in the operation of such systems, codes 221310 and 221320 are applicable to this acquisition for utility services.

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

A GSA area-wide contract does not currently exist for water or wastewater treatment 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. Los Angeles Department of Water and Power has not responded to the request of Terminal Island for a contractual agreement.

In addition to their unwritten refusal, they possess ownership of all distribution and infrastructure equipment, because of such, they are the sole provider of water and wastewater treatment utility services for FCI Terminal Island. Disconnection or interruption of utility services would interfere with the continuity of care for the inmates at FCI Terminal Island.

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:

Should competitive opportunities arise in the future FCI Terminal Island will take appropriate action to procure those services in a manner which represents the best value to the government and in accordance with prevailing policy guidance.

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// 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

//Signed// 08/08/16

Jill D. Ryan, Chief Date Field Acquisition Office

//Signed// 08/16/16 Matthew D. Nace, Procurement Executive Date Administration Division

Approved by:

//Signed// 08/18/16 Bradley T. Gross, Assistant Director Date for Administration Competition Advocate