FBO.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Electric Utility Service FCI Oxford, WI

FY 2016

6.303-2(a) Pursuant to the Federal Acquisition Regulation (FAR) Part 6.302-1(a) (1) and 6.302-1(b) (3), and the Bureau of Prisons Acquisition Policy (BPAP) Part 6.304(c), the Federal Bureau of Prisons (FBOP) has determined that the procurement of Electric utility service for the Federal Correctional Institution (FCI) Oxford, 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 Identification of the Agency:

U.S. Department of Justice Federal Bureau of Prisons FCI Oxford County G & Elk Ave Grand Marsh, WI 53936

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 provided to FCI Oxford, from the original and sole provider of such services. FCI Oxford has a present and continuing requirement for electric utility service for the proper operation of the facility.

3 Description of supplies or services required to meet the agency needs:

FCI Oxford requires electric utility services in a manner and form that is consistent with all applicable laws, rules, codes, industry standards, permits, and regulations, promulgated by any and all governmental authorities having jurisdiction. Services shall be provided on an un-interruptible daily basis for 10 months.

The provider will be responsible to maintain and/or repair all associated electric lines and equipment, including associated costs for such repair, from the delivery point or meter of FCI Oxford. Pursuant to FAR Part 41.202, the contractor is required to provide the “entire electric utility service” (i.e., generation, distribution, metering, billing, etc.).

Electric utility services shall be provided from December 1, 2015, through September 30, 2016, subject to funds availability (FAR Clause 52.232-18). The estimated average monthly cost is:

Contract Line Item Number Performance Period Estimated Annual Cost ($)

CLIN 0001 – Month 1 October 1 - 31, 2015 $48,365.00 CLIN 0002 – Month 2 November 1 - 30, 2015 $53,520.00 CLIN 0003 – Month 3 December 1 – 31, 2015 $54,125.00 CLIN 0004 – Month 4 January 1 – 31, 2016 $64,715.00 CLIN 0005 – Month 5 February 1 – 29, 2016 $61,960.00 CLIN 0006 – Month 6 March 1 – 31, 2016 $65,275.00 CLIN 0007 – Month 7 April 1 – 30, 2016 $60,390.00 CLIN 0008 – Month 8 May 1 – 31, 2016 $59,845.00

JOFOC FCI OXFORD

Electric Utility Services

CLIN 0009 – Month 9 June 1 – 30, 2016 $61,450.00 CLIN 0010 – Month 10 July 1 – 31, 2016 $59,800.00 CLIN 0011 – Month 11 August 1 – 31, 2016 $60,400.00 CLIN 0012 – Month 12 September 1 – 30, 2016 $61,815.00 Total Estimated Cost: $711,660.00

4 An identification of the statutory authority permitting other than full and open competition:

This justification to award as a sole source is prepared pursuant to the exception to full and open competition requirements in accordance with the statutory authority for these services that is found at 41 USC § 253(c)(1), when the supplies or services required by the agency are available from only one responsible source.

5 A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:

The Adams-Columbia Electric Cooperative is the sole provider of electric utility service in the FCI Oxford service area. The Adams-Columbia Electric Cooperative is the only agent authorized by rules and regulations to provide electric service for the locale in which FCI Oxford resides.

6 A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable including whether or not a notice was or will be publicized as required by FAR Subpart. 5.2:

As stated in FAR Part 5.202, Exceptions to transmitting a notice to the Government Point of Entry(GPE) at (a)(5), the contracting officer need not submit a notice when “the proposed contract action is for utility services other than telecommunications services and only one source is available.” There are no General Services Administration (GSA) area-wide contracts for electric utility services in the FCI Oxford area at this time.

7 A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

The estimated average monthly cost, which was based on invoice history, for the electric utility service is $59,305.00 with a total estimated cost for a 12 month period of $711,660.00. The current rates offered by the Adams-Columbia Electric Cooperative are equal to the market price levied other industrial users in the FCI Oxford area. The Adams-Columbia Electric Cooperative has provided sufficient data to the FBOP contracting officer, pursuant to FAR 15.402, Pricing Policy, allowing the ability to make a preliminary determination that such anticipated costs appear to be fair and reasonable.

Utility rates are enacted by resolutions by the Public Service Commission of Wisconsin. A formal decision in the form of periodic rulings, reviews, or similar actions of a governmental body, or embodied in the laws, are sufficient to set pricing (see FAR 15.403[c][2]). The establishment of the current supply and delivery of services began when the original service connections were installed in 1973.

8 A description of the market research conducted:

This documentation is in accordance with FAR Part 10, which describes the policies and procedures for conducting market research in a process of finding viable sources of goods and services to meet government requirements and to find the most suitable approach to acquiring, distributing, and supporting supplies and services. This report is submitted in support of an acquisition with an estimated value in excess of the simplified acquisition threshold. Below are the findings of the market research for the above referenced requirement.

I. Background: A review of the obligation reveals the following – The Federal Correctional Institution Oxford (hereinafter referred to as “FCI Oxford”) has a current and continuing requirement for electric utility service.

1. Title: Adams-Columbia Electric Cooperative, Inc., to provide electric services for the FBOP, FCI Oxford in Grand Marsh, WI. FCI Oxford does not have an onsite electric facility.

2. Product or Service Code: S- Utilities and Housekeeping Services – S112 Utilities/Electricity.

3. North American Industry Classification System (NAICS): 221122 Electric Power Distribution Facilities this industry comprises establishments primarily engaged in operating electrical facility that distribute electric power.

4. Standard Industrial Classification (SIC) Code: 4911 Electric Services

II. Potential Sources: The Adams-Columbia Electric Cooperative is the sole provider of electric utility service in the FCI Oxford service area. The Public Service Commission of Wisconsin is the governing body that approves all rates with the responsibility of electric services for the locale in which FCI Oxford resides.

FAR provides that a formal decision in the form of periodic rulings, reviews, or similar actions of a governmental body, or embodied in the laws, are sufficient to set pricing and the purchasing of supplies and services are determined fair and reasonable from a responsible source. I applied personal knowledge, interaction with knowledgeable individuals in local and Federal Government regarding market capabilities to meet the requirements, and research of generally accessible literature available on-line were the techniques used in researching this procurement for a supply/services of this type.

Deliver / Performance time: Pursuant to FAR Part 41.202, Adams-Columbia Electric Cooperative continues to provide the “entire electric utility service” (i.e., generation, distribution, system operation and maintenance, metering, billing, etc.). The Adams-Columbia Electric Cooperative shall provide to the government facility at FCI Oxford, electric utility services in a manner and form that is consistent with all applicable laws, rules, codes, industry standards, permits, and regulations, promulgated by any and all governmental authorities having jurisdiction. The Adams-Columbia Electric Cooperative shall provide services on an un-interruptible daily basis (365) days per year. The Adams-Columbia Electric Cooperative will be responsible to maintain and/or repair all associated electrical lines and equipment, including associated costs for such repair, from the delivery point or meter of FCI Oxford.

The Adams-Columbia Electric Cooperative shall provide electric utility services from October 1, 2015, through September 30, 2016, subject to funds availability (FAR Clause 52.232-18). The total estimated annual amount for electric utility service is $711,660.00.

III. Commercial Item Determination: Electric utility service is an item that is of a type customarily used by the general public and by non-governmental entities for purposes other than governmental purposes.

IV. Market Analysis:

1. The results of market research have determined that the government’s need can be met by an item customarily available in the commercial marketplace.

2. The market research conducted by the contracting office and the Facilities Department staff determined that there is no GSA area wide contract for utilities in the FCI Oxford area. The Adams-Columbia Electric Cooperative is the only service supplier capable at this time of providing FCI Oxford with electric services, and has serviced the facility since dedication. No other company has presented itself with the capabilities or the infrastructure to run electric lines to the current connection site.

3. I have determined that the North American Industrial Classification System (NAICS) code is 221122 – Electric Services Size Standard = 1000 Employees.

V. Results: Based on the information provided by the sources detailed above, the following information outlines the conclusions and provides the basis for this procurement.

1. It is this Contracting Officers determination there is a source available that is capable of providing the required services.

2. One potential source is a local entity, the incumbent Adams-Columbia Electric Cooperative is able to satisfy the requirement and is regulated by the Public Service Commission of Wisconsin. Adams-Columbia Electric Cooperative is other than small business.

3. The provision of electric utility service is essential for the orderly operation of FCI Oxford. The specifications/description requirements documents shall specify needs using market research in a manner designed to promote full and open competition and only include provisions or conditions to the extent necessary to satisfy the needs of the FBOP or as authorized by law. However, the Public Service Commission of Wisconsin regulations state that in order to provide economical and efficient service to a community, the state of Wisconsin grants electric distribution companies the right to provide their service within a specific geographic area. History shows and economics dictate that the construction of facilities by multiple utilities in the same location would be extremely costly and disruptive to communities. The ratemaking process ensures the lowest reasonable rate for consumers while maintaining the financial stability of the utility. Under the law, the utility is entitled to recovery of its reasonable incurred expenses.

4. This requirement will not be posted to Fedbizopps as a combined synopsis solicitation to promote competition, broaden industry participation, and assist small business concerns in obtaining contracts for FCI Oxford, WI. This requirement meets the exemption at FAR 5.202(5) the proposed contract action is for utility services other than telecommunications services and only one source is available. The Adams-Columbia Electric Cooperative is the sole provider of electric utility service in the FCI Oxford service area. The only agent authorized by rules and regulations to provide electric service in the FCI Oxford area.

5. The Bureau does not have the state and local approval or the resources to provide the funding for another company to install a Power plant/distribution services at the institution, another power plant/distribution system is not readily available, and no other contractor can provide electric service through Adams-Columbia Electric Cooperative lines.

6.

7. I also make the determination that this procurement action “NOT” be set-aside for small business. The

Small Business Procurement Review for the purchase of utility services has been granted a waiver by the Office of Small and Disadvantaged Business Utilization to the FBOP for submitting routine procurements to the Office of Small and Disadvantaged Business Utilization for review in accordance with PGD 09-02.

VI. Recommendation: The Government contemplates the single award of a firm-fixed price requirements type electric utility service purchase order. This JOFOC is for a purchase order from October 1, 2015, through September 30, 2016.

Comments: The conclusions from this market research will be incorporated into the agreement document for providing Electric Utility Service for FCI Oxford.

9 Any other facts supporting the use of other than full and open competition:

The provision of electric utility service is essential for the orderly operation of FCI Oxford, which is designed to collectively house more than approximately 1400 inmates. The institution consists of a medium security Federal Correctional Institution, and a Federal Prison Camp. Regulations and ordinances limit the providers of this service to only one. Utility requirements do not require follow-on acquisition actions. Therefore, 6.302-1(a)(2)(ii) is not applicable.

10 A listing of the sources, if any, that expressed, in writing, an interest in the acquisition:

There were no other sources which expressed an interest in this acquisition.

11 A statement of the actions, if any, the agency may take to remove or overcome barriers to competition before any subsequent acquisition for the supplies or services required:

Contracting and Requirement staff continue to conduct appropriate market research to determine if sources capable of satisfying the agency’s requirement exist to overcome competition barriers. Deregulation laws are presently nonexistent and no alternative source of service is currently available. A review of FPDS-NG shows only the FBOP is issuing orders to the Adams-Columbia Electric Cooperative for electric utility requirements. FCI Oxford is a consumer of services from the public utility. If another potential source emerges, the agency will assess whether competition for future requirements is feasible.

12 Contracting Officer’s 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, and that I would not be making this request if it were feasible to fully compete this requirement. I further certify that this request is not the result of lack of advance planning or a desire to expend funds while those funds are still available.

//SIGNED//

Darrell McKeel, Contract Specialist Date Field Acquisition Office

I hereby certify that the supporting data provided by the technical and requirements personnel who form the basis for this justification is complete and accurate to the best of my knowledge and belief.

Gary Asberry, Facility Manager Date FCI Oxford

Concurrence:

L.C. Ward, Warden Date FCI Oxford

Jill D. Ryan, Chief Date Field Acquisition Office

Sara M. Revell, Regional Director Date North Central Region

Matthew D. Nace, Procurement Executive Date Administration Division

Approval:

Bradley T. Gross, Assistant Director Date for Administration Competition Advocate