JOFOC_-_FMC_RCH_-_FY_19_RPU_1st_Qtr_FBO.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Federal Medical Center (FMC) – Rochester, MN

Electrical, Commercial Water, Waste Water Sewer, & Storm Water Sewer Utility Services 1st Quarter 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 Electrical, Commercial Water, Waste Water Sewer, and Storm Water Sewer services for the FMC Rochester located in Rochester, MN 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 2110 East Center Street Rochester, MN 55904

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

This justification for other than full and open competition is for the acquisition of electrical, commercial water, wastewater sewer, and storm water sewer services for the FMC Rochester located in Rochester, MN from the only provider of such services in the Rochester area.

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

FMC Rochester requires electrical, commercial water, wastewater sewer, and storm water sewer 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 Minnesota. All utility services shall be provided on a dependable and adequate daily basis (365) days per year.

Rochester Public Utilities of Rochester, MN will be responsible to maintain and/or repair All associated equipment lines for each utility service provided, including associated costs for such repair, up to the delivery/transport/receipt point or meter of FMC Rochester.

Pursuant to FAR 41.202, the contractor is required to provide the “entire utility service for each utility” (i.e., capacity, standby or backup service, transmission and/or distribution service, quality transportation, assurance, system reliability, system operation and maintenance, metering, billing, etc.). All utility services are required from October 1, 2018 through December 31, 2018.

FEDERAL BUREAU OF PRISONS – FMC ROCHESTER, MN

JOFOC – ALL UTILITY SERVICES

Contract Line Item Number Performance Period Estimated Cost ($)

CLIN 0001

Total Estimated Cost:

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:

Rochester Public Utilities of Rochester, MN is the only responsible provider of each utility service required by FMC Rochester and the FMC Rochester service area.

All rates are regulated and approved by both The Utility Board and the Rochester City Council of Rochester, MN.

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 Rochester Public Utilities have been adopted by Utility Board and the Rochester City Council. The rates are considered fair and reasonable due to review and approval process by both the Utility Board and Rochester City Council of Rochester, MN.

, the monthly invoices and associated prices will be analyzed by the Facilities Manager with the assistance of the Contract Specialist in accordance with FAR 41.401 in order to ensure price reasonableness and accuracy in accordance with the most current approved rates.

8. Description of the Market Survey Conducted:

Market Research revealed that Rochester Public Utilities of Rochester, MN is the only authorized water, wastewater treatment, storm water sewer, and electricity utility supplier capable of and authorized to provide these services.

Additional Market Research has also revealed that the North American Industrial Classification System (NAICS) codes for water supply and irrigation systems, wastewater treatment and/or sewage treatment facilities, and electric power distribution as 221310, 221320, and 221122 respectively. The associated size standards for each utility service is as follows: $27.5 Million, $20.5 Million, 1,000 employees respectively. The NAICS industry description for code 221310 Water Supply and Irrigation Systems 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.

The NAICS industry description for code 221320 Sewer Treatment Facilities, has detailed that establishments with this code are primarily engaged in operating sewer systems or sewage treatment facilities that collect, treat, and dispose of waste. The NAICS industry description for code 221122 Electric Power Distribution, has detailed that establishments with this code are primarily engaged in operating (1) electric power distribution systems (i.e., consisting of lines, poles, meters, and wiring) or (2) operating as electric power brokers or agents that arrange the sale of electricity via power distribution systems operated by others. Since Rochester Public Utilities of Rochester, MN has demonstrated that they are engaged in the operation of such systems, codes 221310, 221320, and 221122 are applicable to this acquisition for utility services.

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

A GSA area-wide contract does not currently exist for any of the utility services in the Olmstead County area. FMC Rochester has an ongoing need for these services and would not be able to operate the facility in an orderly fashion if services were interrupted or not provided.

Disconnection or interruption of utility services would interfere with the continuity of care for the inmates at FMC Rochester, MN.

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 service to meet the minimum requirements of FMC Rochester’s utility service requirements.

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

FMC Rochester, MN 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 FMC Rochester’s utility requirements. Should competitive opportunities arise in the future FMC Rochester’s will take appropriate action to procure those services in a manner which represents the best value to the government.

12. Contracting Officer’s Certification:

I hereby certify that the above justification is accurate and complete to the best of my knowledge and belief.

Approved by:

//SIGNED// 11/26/18

Darrell L. McKeel, Contracting Officer Date Field Acquisition Office