FBO_NGT.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Natural Gas Distribution Utility Services

Pursuant to the Federal Acquisition Regulation (FAR) Subpart 6.302-1 (a) and 6.302-1 (b) (3), and the Bureau of Prisons Acquisition Policy (BPAP) Acquisition Guidance Document 06-006, the Federal Bureau of Prisons (BOP) has determined that the procurement of natural gas distribution utility services 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 in accordance with FAR Part 6.303-2:

1. Agency:

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 action is for the acquisition of natural gas distribution utility services supplied to the FCI Oxford from the sole provider of such services. FCI Oxford has a present and continuing requirement for natural gas distribution utility services for the proper operation of the facility .

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

Pursuant to FAR Part 41.202, Wisconsin Gas, LLC (DBA: WE Energies) continues to provide the "entire natural gas distribution utility service" (i.e., distribution, system operation and maintenance, metering, billing, etc.). Wisconsin Gas, LLC shall provide to the government facility at FCI Oxford, natural gas LDC 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. Wisconsin Gas, LLC shall provide services on an un-interruptible daily basis. Wisconsin Gas, LLC will be responsible to maintain and/or repair all associated natural gas lines and equipment, including associated costs for such repair, to the delivery point or meter of FCI Oxford.

The service required is distribution, and related services for natural gas LDC utility services from October 1, 2015 through September 30, 2016, subject to funds availability (FAR Clause 52.232-18). The services will be procured by way of purchase order. The estimated cost for natural gas LDC utility service is $129,740.00.

4. Statutorv 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 U.S.C. 253 (c)(l) and FAR 6.302-l(b)(3), when the supplies or services required by the agency are available from only one responsible source. When acquiring utility services (see 41.101), circumstances may dictate that only one supplier can furnish the service (see 41.202). Analysis of the market indicates that Wisconsin Gas, LLC has proprietary rights up to the meter at FCI Oxford. In order for another provider to be capable of providing the service, significant capital improvements would be needed. The Bureau would be required to pay for the capital improvements, but it would not recover the costs of duplication of services, connection fees and infrastructure installation costs through competition. The current requirement is for follow-on services and does not include funding for capital improvements.

5. Determination that the proposed contractor's unique qualifications or the nature of the acquisition requires use of the authority cited: ·

Wisconsin Gas, LLC is the sole provider of natural gas LDC utility service for the FCI Oxford. The Natural Gas industry is governed by the State of Wisconsin Board of Public Utilities and the Federal Energy Regulatory Commission.

6. Efforts made to solicit from as many potential sources as practicable, including whether a notice was or will be publicized as required by FAR Part 5.2:.

As stated inFAR Part 5.202 (a)(5), "the contract action is for utility services other than telecommunications services and only one source is reasonably available. Therefore, a notice is not required in the Government wide point of entry (GPE)." GSA, Energy Management Center of Expertise, has previously determined that there are no area-wide contracts for natural gas LDC utilities and that no opportunity exists in the local area to compete the requirement.

7. Contracting Officer Determination that the cost to the Government will be fair and reasonable:

The estimated average monthly cost, which is based on invoice history, for the natural gas utility service is $10,811.66 with a total estimated usage for the 12 month period of $129,740.00. Prices will be analyzed by the Contracting Officer and Facility Manager in order to determine price reasonableness.

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.

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 natural gas LDC utility service.

Title: Natural Gas LDC Utility Service - FCI Oxford.

Product or Service Code: S- Utilities and Housekeeping Services - S 111 Utilities - Gas.

North American Industry Classification System (NAICS): 221210 Natural Gas Distribution= This industry comprises: ( 1) establishments primarily engaged in operating gas distribution systems (e.g., mains, meters); (2) establishments known as gas marketers that buy gas from the well and sell it to a distribution system; (3) establishments known as gas brokers or agents that arrange the sale of gas over gas distribution systems operated by others; and (4) establishments primarily engaged in transmitting and distributing gas to final consumers.

Standard Industrial Classification (SIC) Code: 4924 Natural Gas Distribution, Deliver I Performance time: In accordance with GSA Natural Gas Supply Contract 21842 effective date of 10/01/2013, GSA requires services that prior to or in conjunction with receiving services from the GSA Natural Gas Supply Contract each facility must have separate agreement in place with their servicing Local Natural Gas Utility Distribution Company (LDC) to allow for the transportation of third party gas.

Wisconsin Gas, LLC wishes not to enter into a bilateral agreement.

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

The provision of natural gas LDC utility service is essential for the orderly operation of FCI Oxford.

Wisconsin Gas, LLC is the current natural gas LDC utility service provider for FCI Oxford and has continuously serviced the facility.

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

There were no other sources which expressed an interest in this requirement. Natural gas LDC utilities is regulated by the State of Wisconsin Board of Public Utilities that preserves options to utility customers and does not exclude small companies from providing an adequate distribution system.

11. Actions taken by the Agency to remove or overcome barriers to competition:

At the present time, full and open competition is not available for the entire natural gas requirement. A GSA are-wide or single-point contract is currently not available, pursuant to FAR Part 41. Contracting staff continue to conduct appropriate market research to determine if sources capable of satisfying the agency's requirement exist.

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.

'00'

Darrell McKee!, Contract Specialist Field Acquisition Office

01/12/2016

Date

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.

Approval:

Al Rauschuber, Section Chief West Central Section

FAO

01/13/2016

Date