JOFOC17_SHE_Electric_FY_18_FBO.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Federal Correctional Institution (FCI) - Sheridan, OR

Electric Utility Service – FY 2018

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 service for the FCI Sheridan located in Sheridan Oregon 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 (FCI) 27072 SW Ballston Road Sheridan, Oregon 97378

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 the FCI located in Sheridan, Oregon from the original and sole provider of such services. FCI Sheridan has a present and continuing requirement for electric utility service for the orderly operation of the facility from the sole provider of such services for Yamhill County, Oregon.

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

FCI Sheridan 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 Oregon.

Services shall be provided on a dependable and adequate daily basis (365) days per year.

Portland General Electric will be responsible to maintain and/or repair all associated Electrical lines and equipment, including associated costs for such repair, up to the delivery point or meter of FCI Sheridan. 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 services from October 1, 2017 through September 30, 2018 are 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 service based on the last 12 months of billing data is $800,811.24.

FEDERAL BUREAU OF PRISONS – FCI SHERIDAN

JOFOC – ELECTRIC SERVICES

Contract Line Item Number Performance Period Estimated Cost ($) CLIN 0001 October 1 – 31, 2017 $61,947.97 CLIN 0002 November 1 – 30, 2017 $62,272.57 CLIN 0003 December 1-31, 2017 $72,781.35 CLIN 0004 January 1- 31, 2018 $73,611.69 CLIN 0005 February 1-28, 2018 $62,111.23 CLIN 0006 March 1-31, 2018 $64,259.24 CLIN 0007 April 1-30, 2018 $63,401.16 CLIN 0008 May 1-31, 2018 $63,596.60 CLIN 0009 June 1-30, 2018 $62,684.77 CLIN 0010 July -31, 2018 $67,443.35 CLIN 0011 August 1-31, 2018 $74,776.05 CLIN 0012 September 1-30, 2018 $71,925.26 Total Estimated Cost: $800,811.24

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:

Portland General Electric is the sole provider of electric service in the Yamhill County service area. Portland General Electric has been granted franchise authority for the Yamhill County service area. Portland General Electric is the sole provider of electric service in the Sheridan, OR. Portland General Electric is authorized by the Orgeon Public Utility Commission to provide electric service to their customer base at a rate that has been reviewed and approved by the Public Utility Commission. The Public Utility Commission serves as guide for Portland General Electric in the provision of electric services as a part of their normal business operations. FCI Sheridan is physically located in Portland General Electric’s area of coverage. Due to FCI Sheridan’s physical location and existing infrastructure, the FCI is positioned to receive more economical service from Portland General Electric. With existing infrastructure, the FCI will not have to incorporate additional construction costs and connection fees to have adequate service to meet the daily operational demand of the FCI. Portland General Electric has franchise authority which enables them to service the needs of it’s customer base in the Sheridan area.

The operating area of Portland General Electric includes four regions of Northwest Oregon.

The FCI lies within Yamhill County and this county is geographically located within Portland General Electric’s service territory. The presentation of these factors coupled with existing connected infrastructure make Portland General Electric the only viable viable option for the provision of electric service at FCI Sheridan.

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 Portland General Electric have been approved and are considered fair and reasonable by the Oregon Public Utility Commission. The Oregon Public Utility Commission regulates utility pricing to ensure that rates are just, fair and reasonable. The Contracting officer has used market research tools and past acquisition knowledge to make the determination that the prices issued by Portland General Electric are fair and reasonable. As a part of continual price monitoring and billing methodology, monthly bill prices will be analyzed by the Facilities Manager with the assistance of the Supervisory Contract Specialist in accordance with F.A.R. 41.401 in order to ensure price reasonableness and accuracy for electric service.

8. Description of the Market Survey Conducted:

A market survey was conducted by contacting Portland General Electric, as well as, internet research of the Oregon Public Utility Commission’s website to ensure that Portland General Electric was the sole provider of electric service for FCI Sheridan and authorized to do so. Market research has revealed the presence of franchise authority and local laws which establish the Portland General Electric as the only legal provider of electric service with physical, mechanical, and operational capabilities to process the magnitude of service required by FCI Sheridan. FCI Sheridan’s existing infrastructure to support and facilitate the receipt of electricity is already connected to Portland General Electric’s electricity transmission and distribution system; thereby, offering the most efficient and cost effective opportunity for the government to continue receiving electric service for daily operations and agency mission fulfillment. Portland General Electric is recognized as a Utility by the Oregon Public Utility Commission to provide electric service in Yamhill County. Market Research has also revealed that the North American Industrial Classification System (NAICS) code for electric utility service as 221122. The NAICS industry description for code 221122 has detailed that establishments with this code are primarily engaged in either (1) operating electric power distribution systems (i.e., consisting of lines, poles, 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 Portland General Electric has demonstrated that they are engaged in the operation of such utility service and distribution systems, code 221122 is applicable to this acquisition.

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

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 electric service to meet the minimum requirements of the government.

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 needs of the government and its utility requirements for FCI Sheridan. Should opportunities arise in the future the BOP will take appropriate action to obtain the most cost effective means for electric service at FCI Sheridan.

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// 08/25/17

William Anderson, Supervisory Contract Specialist Date FCI Sheridan, OR

//SIGNED// 08/30/2017

Darrell 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//___________ _08/25/17__

David L. Childress, Facility Manager Date

Concurrence of:

______//SIGNED///___________________ ___08/25/17_____

Richard B. Ives, Warden Date

//SIGNED// 08/31/17

Darren Doggett, Acting Chief Date

Field Acquisition Office

//SIGNED// 09/08/17

Loneryl Burns Date

Acting Procurement Executive

Approved by:

//SIGNED// 09/08/17

Bradley T. Gross Date Assistant Director for Administration Competition Advocate