JOFOC_FCX_Water_Utility_FY_1st_QTR_19_FBO.docx

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Water Utility Service-Federal Correctional Complex Florence, CO

FY 2019

Pursuant to the Federal Acquisition Regulation (FAR) 6.302-1 (a) (1) and 6.302-1 (b) (3), and Bureau of Prisons Acquisition Policy 6.304 (b), the Federal Bureau of Prisons (BOP) has determined that the procurement of water utility service for the Federal Correctional Complex (FCC) located in Florence, CO, 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 Federal Correctional Complex 5880 State Hwy 67 South Florence, CO 81226

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

This action is for the acquisition of water utility service to the Federal Correctional Complex, (FCC) located in Florence, CO, from the only responsible and responsive provider of such services in the Florence area.

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

FCC Florence requires water 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 Colorado. Services shall be provided on a dependable and adequate daily basis 365 days per year. The City of Florence will be responsible to maintain and/or repair all associated water pipelines and equipment, including associated costs for such repair, up to the delivery point or meter of FCC Florence. Pursuant to FAR Part 41.202, the contractor is required to provide the “entire water 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.).

Water utility service are required from October 1, 2018 through December 31, 2018 and are subject to Funds Availability FAR Clause 52.232-18. The services will be procured by way of purchase order. The estimated quarterly cost for water utility service is $474,551.73.

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:

The City of Florence is the only responsible provider of water utility service in the Florence service area. The City of Florence is authorized by city ordinance, as a responsible and authorized provider of water utility service in the Florence service area. All rates are regulated by city ordinance and resolution approved by the City Council. The City of Florence Code of Ordinances states, “The City Council reserves the exclusive right to deny any water service application for any reason which may include but are not limited to the following:”. (See Code of Ordinance/Resolution attachment.) This authority permits the City of Florence to lawfully be the responsible and authorized provider of water utility service within the Florence service area to include FCC Florence.

FEDERAL BUREAU OF PRISONS- FCC FLORENCE, CO

JOFOC- WATER UTILITY SERVICE

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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 the City of Florence are approved by the City Council through vote and become law for all users within the applicable service territory of the City of Florence. The Contracting Officer has made a determination that the prices offered by the City of Florence are fair and reasonable. They have been reviewed by Financial Management staff and are in accordance with the established billing methodology proposed and adopted by the City of Florence in their resolution. In order to continually ensure price reasonableness, ordinance rates will be analyzed by the Facilities Manager with the assistance of the Supervisory Contracting Officer and Financial Management staff to ensure compliance with FAR 41.401.

8. Description of the Market Survey Conducted:

FCC Florence has a present and continuing need for water utility services. FCC Florence does not have an onsite water supply system; therefore, the need for water utility service has to be found and supplied by a contractor in the local market. Market Research has revealed the presence of city ordinances which establish the City of Florence as the only legal provider of water service with physical, mechanical, and operational capabilities to process the magnitude of service required by FCC Florence. The presence of Ordinances/Resolutions adopted by the City of Florence pertaining to water rates has established the fact that the City of Florence is in the business of providing this service to various consumers in multiple user classes. Market Research has also revealed that the North American Industrial Classification System (NAICS) code for water utility service as 221310 with a size standard of $27.5M. The NAICS industry description for code 221310 has detailed that establishments with this code are primarily engaged in operating water treatment plants and/or operating water supply systems. The water supply system may include pumping stations, aqueducts, and/or distribution mains. The water may be used for drinking, irrigation, or other uses. Since the City of Florence has demonstrated that they are engaged in the operation of such systems, code 221310 is applicable to this acquisition.

Telephone conversations and meetings conducted by Financial Management Staff, including the Supervisory Contract Specialist, in conjunction with staff from the City of Florence has provided evidence that determined that the City of Florence to be the current water utility service provider for FCC Florence and has serviced the facility since 1992. These conversations also confirmed that the City of Florence possesses the sole legal authority to provide water utility service citing the City of Florence Code of Ordinance/Resolution.

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

The provision of water utility service is essential for the safe and orderly operation of FCC Florence, which is designed to house over 2,600 inmates. Local ordinances/resolutions have been established designating the City of Florence as the only legal authority to provide this service to various classes of users within their coverage area.

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

There were no other sources which expressed an interest in this acquisition or that would be able to provide the water utility service to meet the minimum requirements of the government. No other responsible source expressed any interest in competing with the City of Florence to provide water utility service to FCC Florence.

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

The BOP will continue to monitor the market trends in the 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 the BOP will take appropriate action.

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:

FCC Florence

Field Acquisition Office

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:

_____ //SIGNED// 09/18/2018 ___

Duane McMullen, Facility Manager Date FCC Florence, CO

Concurrence of:

//SIGNED// 09/21/2018

A. Matevousian, Complex Warden Date FCC Florence, CO

Approved by:

Field Acquisition Office