JOFOC_OXF_Natural_Gas_Transportation_FY_19_FBO.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Federal Correctional Institution (FCI) - Oxford, WI

Natural Gas Transportation Service – 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 (a), the Federal Bureau of Prisons (BOP) has determined that the procurement of natural gas transportation service for the Federal Correctional Institution (FCI) located in Oxford, Wisconsin 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 Institution Cty. G & Elk Avenue Oxford, WI 53952

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

This action is for the acquisition of natural gas transportation service at the Federal Correctional Institution located in Oxford, Wisconsin from the only responsible provider of such services for Adams County, Wisconsin.

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

FCI Oxford requires natural gas transportation 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 Wisconsin. Services shall be provided on a dependable and adequate daily basis (365) days per year. WE Energies will be responsible to maintain and/or repair all associated natural gas lines and equipment, including associated costs for such repair, up to the delivery point or meter of FCI Oxford. Pursuant to FAR Part 41.202, the contractor is required to provide the “entire natural gas transportation 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.).

Natural gas services from October 1, 2018 through September 30, 2019 are subject to funds availability (FAR Clause 52.232-18).

Contract Line Item Number

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 company is committed to delivering world-class reliability and the very best customer care anywhere.

Customers are the heart of the business and WE works each day to help grow and support communities where vital energy services are provided.

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 WE Energies have been approved and are considered fair and reasonable by the approval of rate tariffs from the Public Service Commission of Wisconsin. Any rate increases are agreed upon by the Public Service Commission of Wisconsin and implemented for end users in their service territory based on usage category classification.

In addition to Public Service Commission’s passing of rates being set as law for different user classes within their service territory, the monthly invoices will be analyzed by the Facility Manager with the assistance of the Contract Specialist in accordance with F.A.R.

41.401 in order to ensure price reasonableness and accuracy for natural gas transportation service.

8. Description of the Market Survey Conducted:

A search was conducted of the GSA Areawide contract listing and no contracts were found that could be utilized to provide natural gas transportation service to FCI Oxford.

FCI Oxford has a continual need for the provision of natural gas transportation service in order to run the institution in an orderly fashion.

WE Energy has the natural gas transportation equipment, technical and operational staff to meet the demands of FCI Oxford and it natural gas requirements.

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

Due to the facts listed in Section 8, the market survey does not reveal that any other contractors would have the legal authority or financial capabilities to offer natural gas transportation service to FCI Oxford without the introduction and proposal of substantial financial increases. WE Energy presents the most cost effective opportunity for the provision of natural gas service to AUSP.

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 natural gas service to meet the minimum requirements of the government.

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 for FCI Oxford. Should opportunities arise in the future the BOP will take appropriate action means for natural gas transportation service at FCI Oxford, WI.

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 and Approved by:

Darrell McKeel, Contracting Officer Date Field Acquisition Office

//SIGNED// 11/13/18