Natural Gas Service JOFOC FBO.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Administrative United States Penitentiary (AUSP) - Thomson, IL

Natural Gas Service – October – December 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 service for the Administrative United States Penitentiary (AUSP) located in Thomson, Illinois 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 AUSP Thomson 1100 One Mile Road Thomson, IL 61285

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

This action is for the acquisition of natural gas service at the Administrative United States Penitentiary located in Thomson, Illinois from the sole provider of such services for Carroll County, Illinois.

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

AUSP Thomson requires natural gas 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 Illinois. Services shall be provided on a dependable and adequate daily basis (365) days per year. Jo-Carroll Energy 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 AUSP Thomson. Pursuant to FAR Part 41.202, the contractor is required to provide the “entire natural gas 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, 2019 through December 31, 2019 are subject to funds availability (FAR Clause 52.232-18). The services will be procured by way of purchase order. The estimated cost for natural gas service is $90,000.00.

Contract Line Item Number Performance Period Estimated Cost ($)

CLIN 0001

CLIN 0002

CLIN 0003

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:

Jo-Carroll Energy is a member-owned cooperative and the only responsible provider of natural gas service in the Carroll County service area. Jo-Carroll Energy is the only authorized provider of natural gas service in the area based on authority from the Illinois.

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 Jo-Carroll Energy have been approved and are considered fair and reasonable by the voting and acceptance of Cooperative Bylaws by board members. The Cooperative is a Not For Profit and member owned organization. Any rate increases are agreed upon by the Board of Directors and implemented for members within the Cooperative based on usage category classification.

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 service to AUSP Thomson. AUSP Thomson has a continual need for the provision of natural gas service in order to run the institution in an orderly fashion. A market survey was conducted by researching Jo-Carroll Energy’s and the Illinois Commerce Commission’s website to ensure that Jo-Carroll Energy was the sole provider of natural gas service for AUSP. AUSP’s existing infrastructure to support and facilitate the receipt of natural gas is already connected to Jo-Carroll Energy’s natural gas distribution system; thereby, offering the most efficient and cost effective opportunity for the government to continue receiving natural gas service for daily operations. Jo-Carroll Energy is recognized as a Public Utility Cooperative by the Illinois Commerce Commission to provide natural gas service in Carroll County. Jo-Carroll Energy has the natural gas equipment, technical and operational staff to meet the demands of AUSP Thomson 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 service to AUSP without the introduction and proposal of substantial financial increases.

Jo-Carroll 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 AUSP Thomson. Should opportunities arise in the future the BOP will take appropriate action means for natural gas service at AUSP Thomson, IL.

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:

//Signed// Darrell McKeel, Contracting Officer Date Field Acquisition Office