I_4 SF 1012 - Limited-Sources Justification FY26 signed.pdf

DEPARTMENT OF THE TREASURY

LIMITED-SOURCES JUSTIFICATION

Acquisition Title: PEPCO Electricity Services This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401)

Treasury Standard Form – 1012 (Rev 12/24)

Prescribed by Treasury: DTAP 1008.405-6

1. Identification of the agency and the contracting activity:

Internal Revenue Service (IRS), Facilities Management & Security Services, Facilities Support Branch, Washington, DC.

Contracting Activity: Office of the Chief Procurement Officer (OCPO), Operation Supports Division, HCO/CFO/C&L/COO/CPO& Risk Branch

2.a Nature and/or description of the action being approved:

The purpose of this limited sources justification is to obtain approval to award a firm-fixed price (FFP) sole source contract for electric utility services with Potomac Electric Power Company (PEPCO) through the General Services Administration (GSA) areawide Public Utility Contract No. 47PA0420D0064. In accordance with FAR 41.204 (c)(1) which states “Any Federal agency having a requirement for utility services within an area covered by an area-wide contract shall acquire services under that area-wide contract”. The IRS Facilities Support Branch works to deliver a safe, secure, and optimal work environment for employees throughout the agency. To facilitate a safe environment Facilities Support utilizes GSA’s areawide public utility contract for continued electricity services to the IRS Headquarters building located at 1111 Constitution Avenue, N.W., Washington, DC.

The anticipated period of performance of this requirement is October 13, 2025, through October 12, 2026.

2.b Name of the vendor: Potomac Electric Power Co.

2.c Requisition No.: 5000216533 2.d Bridge contract: ☐ Yes ☒ No 2.e Brand name: ☐ Yes ☒ No 3.a A description of the supplies or services required to meet the agency’s needs:

This requirement is to obtain electricity services within the geographical area of Washington, DC. Based on United States (US) statue restrictions in title 40 U.S.C 501 only GSA has the authority to procure and negotiate utility rates for Federal Agencies. Due to the nature of the service and authority regulations only the areawide contractor PEPCO is permitted to provide electricity equipment, connection, and electric power to 1111 Constitution Avenue, NW, Washington, DC.

The service provider is issued an order from the requesting agency against the GSA utility contract for electric power usage. Meter Usage is measured, recorded, calculated and billed to the Agency monthly.

3.b Includes IT: ☐ Yes ☒ No 3.c IGCE/Estimated dollar value: $1,624,000.00

4.a Identification of the authority being used (Check the appropriate box that applies).

Acquisition Title: PEPCO Electricity Services This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401)

Treasury Standard Form – 1012 (Rev 12/24)

Prescribed by Treasury: DTAP 1008.405-6

☐ FAR 8.405-6(a)(1)(i)(A) – An urgent and compelling need exists, and following the procedures would result in unacceptable delays.

☒ FAR 8.405-6(a)(1)(i)(B) – Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

☐ FAR 8.405-6(a)(1)(i)(C) – In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order or BPA provided that the original order or BPA was placed in accordance with FSS procedures in accordance with the applicable Federal Supply Schedule ordering procedures. The original order or BPA must not have been previously issued under sole-source or limited-sources procedures.

☐ FAR 8.405-6(b) – Items peculiar to one manufacturer. (i.e., Brand Name specifications)

4.b Supporting Rationale:

This acquisition is being conducted under the authority of FAR Part 8.003 use of other Mandatory Sources and in accordance with FAR Part 8.405-6 limited sources justification approval. In accordance with FAR Part 8.405-6(b)(1) only one source is capable of responding due to the product being peculiar to one manufacturer. Electric utilities are heavily regulated by the state and federal agencies therefore, only a few companies are authorized to provide utility services. This restricts the ability to obtain services outside of GSA. Moreover, in accordance with FAR 8.405-6(a)(1)(i)(B) there is only one electric company in the Washington, DC area capable of providing the level of service necessary to support the IRS Headquarters Building. PEPCO is uniquely qualified to meet the governments need as the only electric power supplier in the area. Presently, GSA has not contracted with another utility company to provide electric services to Federal Agencies in the Washington, DC area therefore, no other Contractor can provide the service.

5. A determination by the ordering activity Contracting Officer that the order or BPA represents the best value consistent with FAR 8.404(d):

In accordance with FAR Part 8.404(d) Services offered on schedule are priced either at hourly rates, or at a fixed price for performance of a specific task. GSA has already determined the prices of supplies and fixed-price services, and rates for services offered at hourly rates, under schedule contracts to be fair and reasonable. Therefore, the ordering activity is not required to make a separate determination of fair and reasonable pricing. The Contracting Officer anticipates that the cost to procure electric utility service will be fair and reasonable based on the statutory regulation and negotiated rates the Government established for utility services.

6. A description of the market research conducted among schedule holders and the results or a statement why market research was not conducted:

Acquisition Title: PEPCO Electricity Services This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401)

Treasury Standard Form – 1012 (Rev 12/24)

Prescribed by Treasury: DTAP 1008.405-6

There are no Treasury Mandatory sources capable of fulfilling this requirement as agencies are statutorily directed to utilize GSA to obtain utilites through GSA. However, Market Research was conducted to find sustainable electricity services under the GSA area-wide contract.

Research indicates here is only one provider in the Washington, DC metropolitan authorized to provide electricity service and that is PEPCO.

7.a Any other facts supporting this justification:

Unless an agency obtains an exception waiver from GSA granting the authority to obtain utility services outside of the areawide contract as prescribed in FAR 41.103 the GSA Areawide Public Utility Contract must be utilized.

Presently, the IRS does not have GSA’s authorization to enter into an agreement with utility companies outside of the mandated geographical area and it would not be practical to enter into an agreement with another source. Subsequently, GSA areawide contract with PEPCO is the only source authorized to provide electric services to sustain functions at the IRS Headquarters Building.

7.b Attachments: ☐ Yes ☒ No

N/A

8. A statement of the actions, if any, the Requiring Activity and Contracting Activity may take to remove or overcome any barriers that led to restricted consideration before any subsequent acquisition for the supplies and services is made:

Currently, there are no methods available to overcome any barriers that restrict this acquisition as (GSA) is authorized by 40 U.S.C. 501 to prescribe policies and methods governing the acquisition and supply of utility services for Federal Agencies. Therefore, seeking fair and open competition is not feasible for this service.

9. Certifications and Approvals:

9.a Program Office Certification (Requiring Activity). I hereby certify that any supporting information and data provided (e.g., the Government’s minimum needs or requirements, or other rationale for the limited sources) and which form the basis for this justification for an exception to fair opportunity, are accurate and complete to the best of my knowledge and belief.

Name: Vashone Jordan Date: 07/10/2025

Signature:

X Vashone D. Jordan

COR

Acquisition Title: PEPCO Electricity Services This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401)

Treasury Standard Form – 1012 (Rev 12/24)

Prescribed by Treasury: DTAP 1008.405-6

9.b Contracting Officer Certification and Approval. I hereby determine the circumstances of this acquisition support the justification to acquire these supplies or services on a limited source basis. I also certify this limited-sources justification is accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the authorized contracting officer for this acquisition, I hereby approve the processing of this requirement on a limited-source basis.

Name: Kimberlee R. Brown Date: 09/25/2025

Signature:

10. Additional Reviews and Approvals (As applicable):

10.a Bureau Chief Information Officer or Authorized Designee (for IT requirements that are over $5 million, but not exceeding $75 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification. (Note: The Bureau CIO may delegate their authority for proposed contracts over $5 million, but not exceeding $15 million to the Associate Bureau CIO(s).)

Name: Date:

Signature:

10.b Advocate for Competition (if over $750,000, but not exceeding $15 million) (Contracting Activity). I have reviewed this limited-sources justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the ordering activity’s Advocate for competition, I hereby approve this limited-sources justification.

Name: Date:

Signature:

10.c Head of the Procuring Activity or Authorized Designee (if over $15 million, but not exceeding $75 million) (Contracting Activity). I have reviewed this limited-sources justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the head of the procuring activity or authorized designee, I hereby approve this limited-sources justification.

Name: Date:

Signature:

10.d Treasury Chief Information Officer (for IT requirements that are over $75 million).

I have reviewed this justification and find it to be accurate and complete to the best of my

Acquisition Title: PEPCO Electricity Services This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401)

Treasury Standard Form – 1012 (Rev 12/24)

Prescribed by Treasury: DTAP 1008.405-6 knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification.

Name: Date:

Signature:

10.e Senior Procurement Executive (if over $75 million) (Contracting Activity). I have reviewed this limited-sources justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, I hereby approve this limited-sources justification.

Name: Date:

Signature: