JOFOC - Natural Gas Distribution - FY 20 FBO.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Natural Gas Utility Service

Federal Prison Camp Duluth, MN – FY 2020

Pursuant to the Federal Acquisition Regulation (FAR) 6.302-1 (a) (1) and 6.302-1 (b) (3), and Bureau of Prison Acquisition Policy (BPAP) 6.304(a), the Federal Bureau of Prisons (BOP) has determined that the procurement of Natural Gas services for the Federal Prison Camp (FPC) located in Duluth, Minnesota 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 FPC Duluth 4464 Ralston Dr.

Duluth, Minnesota 55811

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

This action is for the acquisition of Natural Gas usage to the FPC located in Duluth, MN, from the sole provider of such services in the Duluth, MN area.

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

FPC Duluth requires natural gas 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 Minnesota. Services shall be provided on a dependable and adequate daily basis (365) days per year. The City of Duluth DBA Comfort Systems will be responsible to maintain and/or repair all associated natural gas lines and equipment, including associated costs for such repair, up to the delivery point or meter of FPC Duluth. Pursuant to FAR Part 41.202, the contractor is required to provide the “entire natural gas 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.).

Natural Gas services from October 1, 2019 through September 30, 2020 are subject to funds availability (FAR Clause 52.232-18). The services will be procured by way of purchase order.

The current Justification for Other Than Full and Open Competition is set to expire on September 30, 2020.

FEDERAL BUREAU OF PRISONS – FPC DULUTH

JOFOC – NATURAL GAS SERVICES

Contract Line Item Number

Performance Period Estimated Cost ($)

CLIN 0001 October 2019 CLIN 0002 November 2019 CLIN 0003 December 2019 CLIN 0004 January 2020 CLIN 0005 February 2020 CLIN 0006 March 2020 CLIN 0007 April 2020 CLIN 0008 May 2020 CLIN 0009 June 2020 CLIN 0010 July 2020 CLIN 0011 August 2020 CLIN 0012 September 2020 Total Estimated Cost:

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:

City of Duluth, DBA Comfort Systems is the only responsible provider of Natural Gas service in the Duluth, MN service area. City of Duluth, dba Comfort Systems is authorized by city ordinance, as the only responsible authorized provider of Natural Gas service in the Duluth, MN area. All rates are regulated by city ordinances.

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 City of Duluth, dba Comfort Systems are voted on and approved through the passage of City Ordinances. With the passage and approval of the ordinance, authority is granted to Comfort Systems to continue the provision of natural gas services for all users in their geographic service territory. Once the ordinance is passed, it then becomes law for all end users that are within the geographic service territory of the City of Duluth. Monthly natural gas invoices and prices will be analyzed by the Facilities Manager with the assistance of the Contracting Officer in accordance with FAR 41.401 in order to ensure price reasonableness and accuracy in accordance with published ordinance rates.

8. Description of the Market Survey Conducted:

FPC Duluth contracting office has determined via the geographical service area of natural gas providers in Duluth Minnesota that the City of Duluth dba Comfort Systems is the sole provider for natural gas service in the geographical area. Market Research has also revealed that the North American Industrial Classification System (NAICS) code for Natural Gas Distribution utility service as 221210.

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

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

City of Duluth, dba Comfort Systems has expressed in writing that they are not interested in entering into a contractual agreement for services, as well as water and sewer services.

FPC Duluth Contracting Office has requested a Request for Contact Action packet to be completed by the Facilities Department.

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

FPC Duluth Facilities and Acquisition staff will continue to monitor the market trends in the local utility industry to seek competition or sources that may be able to meet the minimum needs of the government and its utility requirements. Should opportunities arise in the future, FPC Duluth will take appropriate action to ensure these services are competed.

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// Melissa Kunkel, Contract Specialist Date FPC Duluth, MN

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:

Paul Wernke, Facility Manager Date FPC Duluth, MN

Approved by:

Darrell McKeel, Contracting Officer Date

Field Acquisition Office