JA 24-88-4 IID Electric Water Utility Service PIEE.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND SOUTHWEST

750 PACIFIC HIGHWAY

SAN DIEGO CA 92132-5190

IN REPLY REFER TO

J&A No. 24-88-4

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

IN SUPPORT OF ELECTRIC SERVICES

1. Contracting Activity.

Department of the Navy, Naval Facilities Engineering Systems Command Southwest (NAVFAC

SW), San Diego, California.

2. Description of the Action Being Approved.

Approval is requested to negotiate and award a sole source utility service contract with Imperial

Irrigation District (IID) to provide electric and water services to Navy and Marine Corps installations located in IID’s franchise area within the NAVFAC SW area of responsibility. This is a firm-fixed price contract for a term of ten years with an estimated value of $750,000. This contract will be funded with Operations and Maintenance funds of the appropriate year.

3. Description of Supplies/Services.

Electric and water services will be provided in accordance with applicable regulations, rules and standards adopted by the Federal, State, and local agencies having regulatory authority. Services may include, but are not limited to, adding new electric and water service accounts, deleting old accounts, relocating service meters, and any other electric or water services required by the Navy and Marine Corps installations served by IID.

4. Statutory Authority Permitting Other Than Full and Open Competition.

The statutory authorities permitting other than full and open competition when only one utility service supplier can provide the required utility services are 10 U.S.C. § 3204(a)(1), which provides for the use of other than full and open competition where only one responsible source and no other services will satisfy agency requirements, and Federal Acquisition Regulation

(FAR) 6.302-1(b)(3), which applies to acquiring utility services when circumstances dictate that only one utility service supplier can provide the required utility services.

5. Rationale Justifying Use of Cited Statutory Authority.

With respect to the acquisition of electric utility services, Section 8093 of the Department of

Defense Appropriations Act of 1988, Public Law 100-202, provides that federal government agencies may not purchase electricity in any manner that is inconsistent with state law governing the provision of electric utility services, including state utility commission rulings and electric utility franchises or service territories established pursuant to state statute, state regulation or state approved territorial agreements.

J&A No. 24-88-4

IID is a public electric and water utility company regulated by the California Public Utilities

Commission (CPUC). Pursuant to applicable state laws and regulations, the CPUC has granted

IID the exclusive right to provide electric and water utility services in the franchise service territory in which the Navy and Marine Corps facilities covered by this contract action are located. Therefore, with respect to electric and water utility services, full and open competition procedures are not available because IID is the only utility service provider authorized by the

CPUC and applicable state law to provide the required electric utility services.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

Pursuant to FAR 5.202(a)(5), a synopsis was not published in the System for Award Management at (https://www.SAM.gov) as the proposed contract is for utility services other than telecommunications services and only one source is available.

A market survey was conducted to determine if there are other electric and water utility service providers other than IID that are authorized to provide the required electric and water utility services at the Navy and Marine Corps installations covered by this contract action. Methods used for the market survey included online research through the Federal Procurement Data

System and review of the historical data for the previous IID contracts (N68711-70-C-1205 and

N68711-70-C-1239). Search results demonstrate IID is the only utility service provider authorized by state law to provide electric and water utility services in the geographical area in which the Navy and Marine Corps installations covered by this contract action are located.

Additionally, there are no United States General Services Administration area-wide contracts, Interagency Agreements, or other separate contracts currently available for the required electric utility services.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government for the services covered by this Justification & Approval will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, the use of full and open competitive procedures to acquire the required electric and water utility services is not available because the CPUC and state law authorizes only IID to provide the required electric and water utility services at the

Navy and Marine Corps installations covered by this contract action. For future acquisitions of electric and water utility services, market research will be conducted to determine whether utility service providers other than IID are authorized to provide the required electric and water utility services or the use of full and open competitive procedures is available.

https://www.sam.gov/