FAR-Part 6 Sole-Source-JA_Smith Lake Water Utility 20200721_Redacted.pdf

Control No: MICC-2020-102 Contractor: PWC of Fayetteville

Program/Equipment: Water Services Smith Lake Horse

Version – March 2017 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR PART 6 JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND

OPEN COMPETITION

Program/Equipment: This is a sole source contract action in support of the Directorate of Public Works (DPW), for water services for Smith Lake, a sub-installation of Fort Bragg, NC.

Authority: 10 U.S.C. 2304(c)(1) as implemented by FAR Part 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Amount: $248,782.85

Prepared by: Frank A. Fogg DSN: 236-1671

Contract Specialist Email: frank.a.fogg.civ@mail.mil

Contracting Officer: Heather D. Clifton Contracting Officer

Date: 29 June 2020

DSN: 236-1671

Email: heather.d.clifton.civ@mail.mil

Technical: Audrey D. Oxendine DSN: 239-6010 Chief, Energy and Utilities Br Date: 29 June 2020 Email: audrey.d.oxendine.civ@mail.mil

Requirements: Audrey D. Oxendine Chief, Energy and Utilities Br

DSN: 239-6010

Email: audrey.d.oxendine.civ@mail.mil

Reviews: I have reviewed this justification and find it adequate to support sole source.

Program Manager:

Audrey D. Oxendine DSN: 239-6010

Digitally signed by

OXENDINE.AUDREY.D.12878374

Date: 2020.07.21 09:40:02 -04'00' Date: See Digital Signature

OXENDINE.AUDR

EY.D.1287837450

mailto:frank.a.fogg.civ@mail.mil mailto:heather.d.clifton.civ@mail.mil mailto:audrey.d.oxendine.civ@mail.mil mailto:audrey.d.oxendine.civ@mail.mil

FAR Part 6 Justification and Approval for Other than Full and Open Competition

1. Contracting Activity: The U.S. Army Mission and Installation Contracting Command Center – Fort Bragg (MICC Center - FB), Fort Bragg, North Carolina (NC).

2. Description of Action: This is a sole source contract action in support of the Directorate of Public Works (DPW). MICC Center - FB as the contracting activity is issuing a Firm-Fixed Price (FFP) contract with Public Works Commission city of Fayetteville, 955 Old Wilmington RD, Fayetteville NC 28301-6357. The Government projects to award the contract for 01 September 2020 utilizing Operations and Maintenance, Army funds for fiscal year 2020.

An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

3. Description of Supplies/Services: The Directorate of Public Works (DPW) has a requirement for water services for Smith Lake, a sub installation of Fort Bragg, NC, that is used as a combat training range in support of military operations. Fort Bragg military units and Reserve Component units throughout North Carolina use Smith Lake. Smith Lake supports approximately 7,832 soldiers annually. Smith Lake is approximately 7,917 acres and located 15 miles Southwest of Southern Pines, NC and 28 miles Northwest of Raeford, NC.

Ordering Period: 01 September 2020 through 31 August 2030.

Year One: 01 September 2020 to 31 August 2021 Value: $ 24,291.00 Year Two: 01 September 2021 to 31 August 2022 Value: $ 24,418.18 Year Three: 01 September 2022 to 31 August 2023 Value: $ 24,546.47 Year Four: 01 September 2023 to 31 August 2024 Value: $ 24,676.05 Year Five: 01 September 2024 to 31 August 2025 Value: $ 24,806.93 Year Six: 01 September 2025 to 31 August 2026 Value: $ 24,939.12 Year Seven: 01 September 2026 to 31 August 2027 Value: $25,072.62 Year Eight: 01 September 2027 to 31 August 2028 Value: $25,207.47 Year Nine: 01 September 2028 to 31 August 2029 Value: $25,343.66 Year Ten: 01 September 2029 to 31 August 2030 Value: $25,481.21

Total Value $248,782.85

4. Authority Cited: 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: As defined in FAR Subpart 41.101 Definitions, Utility Services means a service such as furnishing electricity, natural or manufactured gas, water, thermal energy, chilled water, steam, hot water, or high temperature hot water.

The application of part 41 to other services (e.g., rubbish removal, snow removal) may be appropriate when the acquisition is not subject to the 41 U.S.C. chapter 67, Service Contract Labor Standards.

FAR Subpart 41.103(b) allows the DOD to enter into utility service contracts for periods not exceeding ten years.

FAR Subpart 41.202 Procedures states in part that prior to executing a utility service contract, the contracting officer shall comply with Parts 6 and 7 and Subsections 41.201(d) and (e). FAR subpart 6.3 – Other Than Full and Open Competition, 6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements paragraph (b)(3) states 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. IAW FAR Subpart 41.202(b), the contracting officer shall consider (1) GSA area wide contracts, (2) Separate contracts, and (3) Interagency agreements. A search of GSA resulted in no area wide contracts that support the water services out at Smith Lake and the IMCOM has not pursued any type of interagency agreements with Public Works Commission city of Fayetteville. As a result, the Government will continue to obtain water services via separate contract.

Over five years ago, water services were provided at Smith Lake from Public Works Commission city of Fayetteville. In doing so, the resulting contract was part of the utility system and the Public Works (Water Pollution Control Plant). FAR Subpart 41.201 states in part it is the policy of the Federal Government that agencies obtain required utility services form sources of supply which are most advantageous to the Government in terms of economy, efficiency, reliability, or service. Public Works Commission city of Fayetteville has been providing excellent water services to Smith Lake. They have been servicing and maintaining the water for five years with less than 1% change in rates per gallon for consumption and maintenance.

Impact: A break in service would potentially cause a backup or contamination of potable drinking water which would cause an immediate negative impact on the health and wealth of Soldiers who utilize the site for mission and training purposes along with potentially harming the horses that are boarded at Smith Lake Horse Stables.

6. Efforts to Obtain Competition: The Contracting Officer shall publish the notices required by FAR 5.201 by publishing the Notice of Intent to Award on a Sole Source Basis.

a. Effective Competition: Because this is a sole source action, effective competition is not applicable.

b. Subcontracting Competition: It has been determined that there are no subcontracting possibilities for Public Works Commission city of Fayetteville. The determination will be placed in the file once approved.

7. Actions to Increase Competition: The Government conducted market research on 27 June 2020 on the subject requirement under the North American Industrial Classification System (NAICS) code 221310 – Waste collection, treatment, and disposal through a water system. At this time, there is no reasonable expectation that other maintenance service providers will be able to service the water system due to Public Works Commission city of Fayetteville owning the water system.

8. Market Research: The extent of market research conducted was based on the following 221310:

a) Commerciality Determination: The services associated with this requirement are customarily available in the commercial marketplace without modifications. The needs are not military unique. Commercial sources are available. The force main and lift station maintenance requirement is for services of a type offered in the commercial marketplace industry, as State municipalities conduct this type of requirement base on established market price for specific tasks and under standard commercial terms and conditions, these services fit the definition of “commercial item” per paragraph (6) of the definition in FAR part 2.101.

b) Pre-solicitation Conferences: Email correspondence have been continuously held since February 2020 between staff from the DPW and MICC Center-FB in order to discuss the follow-on requirement.

c) Review of recent market research results for similar or identical services. The research was conducted In Accordance With (IAW) FAR part 10. The market research conducted on 27 June2020, on subject requirement under the North American Industrial Classification System (NAICS) code 221310, and the results of this research revealed no contracts suitable for this requirement.

d) North American Industry Classification System (NAICS) Code Selection: In accordance with IAW FAR Part 10, market research was conducted and this requirement is classified under the North American Industry Classification System (NAICS) code 221310 – “Water treatment and distribution” with a size standard of $27.5M and is defined as: “This industry comprises establishments primarily engaged in operating water systems or sewage treatment facilities that collect, treat, and dispose of waste”.

e) Conclusion. Market research clearly established that the Government’s proposed contract will ensure proper water maintenance service located at Smith Lake. Therefore;

based on the information above, only one supplier can furnish the service given the existing circumstance.

In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance and Information (PGI) 206.302-1(d), a notice of intent to award on a sole source basis was posted to beta.sam.gov on 07 July 2020 for 9 days and resulted in zero responses.

9. Interested Sources: The Government issued notice of intent to award on a sole source basis on 7 July 2020 with a closing date of 16 July 2020. No interested sources provided a response.

EY.D.1287837450

Notice. In accordance with FAR Subpart 6.305(a), the justification shall be made public within fourteen (14) days after contract award.

The incumbent contractor information is as follows: Public Works Commission city of Fayetteville, 955 Old Wilmington RD, Fayetteville NC 28301-6357.

10. Other Facts: Procurement History: This is a re-procurement the current contract, W91247-15-P-0161, is Firm-Fixed Price and was awarded 14 August 2015. This requirement was procured using a sole source and provides water service to Smith Lake / Horse stables area, to include force main and lift station maintenance. The current contract’s ordering period is 01 September 2015 – 31 August 2020.

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Date: See Digital Signature

Audrey D. Oxendine

12. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Digitally signed by

OXENDINE.AUDREY.D.12878374

Date: 2020.07.21 09:40:48 -04'00'

Audrey D. Oxendine

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable.

This determination will be made using the following price analysis and the IGE. As a part of this basis, certified cost or pricing data is not required because the item and/or services being acquired are considered commercial.

Heather D. Clifton Contracting Officer

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

CLIFTON.HEATHER. Digitally signed by

CLIFTON.HEATHER.D.1098699666

D.1098699666

Heather D. Clifton Contracting Officer

Date: 2020.07.21 09:46:43 -04'00' Date: See Digital Signature

OXENDINE.AUDREY.D Digitally signed by

.1287837450

OXENDINE.AUDREY.D.1287837450

Date: 2020.07.21 09:40:34 -04'00'

CLIFTON.HEATHER.D.10986 Digitally signed by

99666

CLIFTON.HEATHER.D.1098699666

Date: 2020.07.21 09:46:07 -04'00'

OXENDINE.AUDR

Approval

Based on the foregoing justification, I hereby approve the procurement of water services for Smith Lake, a sub installation of Fort Bragg, NC, on a sole source basis pursuant to the authority of the 10 U.S.C. 2304(c)(1) as implemented by FAR Part 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. The estimated value of the contract is $248,782.85 for a ten year ordering period from 1 September 2020 through 31 August 2030. The approval is subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Digitally signed by

CLIFTON.HEATHER.D.109869966

R.D.1098699666

Heather D. Clifton Contracting Officer

Date: 2020.07.21 09:47:05 -04'00' Date: See Digital Signature

CLIFTON.HEATHE