JOFOC_EDAM Gap Assessment_redacted.pdf

Justification for Other than Full and Open Competition Western Area Power Administration

FAR 6.302-1 Sole Source

1. Identification of the agency and the contracting activity.

Western Area Power Administration (WAPA), 615 S. 43rd Ave, Phoenix, AZ 85005. Desert Southwest Region’s Procurement Office.

2. The nature and/or description of the action being approved.

Western Area Power Administration of the Department of Energy plans to contract by means other than full and open competition.

This document sets forth the justification and approval for the use of one of the exceptions to full and open competition allowed under Federal Acquisition Regulation (FAR) 6.302-1. This Sole Source procurement action is for a Gap Assessment for Operating in the California Independent System Operator Extended Day Ahead Market.

3. A description of the supplies or services required to meet the agency’s needs.

WAPA began participation in the California Independent System Operator (CAISO) Western Energy Imbalance Market (WEIM) for its Desert Southwest Region on April 5, 2023. Prior to making the decision to join WEIM, a gap assessment was performed by Utilicast, LLC.

WAPA now seeks a second gap assessment to gauge its potential participation in the CAISO Extended Day Ahead Market (EDAM). The Extended Day-Ahead Market (EDAM) is a voluntary day ahead electricity market designed to deliver significant reliability, economic, and environmental benefits to balancing areas and utilities throughout the West. The day-ahead market efficiently positions supply to meet forecasted demand across the EDAM footprint and identifies economic transfers between participating areas, providing reliability, economic, and environmental benefits for participating balancing areas and their utilities.

4. The statutory authority permitting other than full and open competition.

In accordance with FAR 6.302-1, U.S. Code Citation 41 U.S.C 3304(a)(1) which allows for other than full and open competition for only one responsible source and no other supplies or services will satisfy agency requirements.

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority.

Utilicast was initially awarded a services contract to perform a gap assessment on 01/20/2020, contract 89503120PWA000267. This assessment was utilized to assist WAPA in determining what was required to join a market to provide energy imbalance services.

Contract 89503121PWA000460, dated 06/29/2021 was awarded to Utilicast for a period of performance of 07/12/2021 to 05/31/2023 to Implement Energy Imbalance Services. These services were performed in two different phases. Modification P00005 and P00006 were issued to extend the period of performance for these services through 31 May 2024.

A follow-on contract, 89503124PWA000760, dated 5/22/2024, was issued for a six-month period to complete the final phase of market implementation services, WEIM Post Go-Live Services Support.

Utilicast is intimately familiar with WAPAs current state and capabilities to effectively deliver a comprehensive gap assessment to assist in determining potential participation in the CAISO EDAM. Utilicast has been the sole provider of contracted energy imbalance market implementation services throughout the region for WAPA and have provided expertise specific to WAPA’s needs.

All utilities within the region have relied upon Utilicast to meet deadlines and refine processes as market participation has progressed.

Utilizing a new contractor would cause delay, potential additional cost, and continuity loss for a critical project. Awarding to Utilicast would provide WAPA with an inclusive assessment in determining the best way forward and participation with EDAM, they have been consistently engaged in WAPA's energy imbalance market implementation which directly correlates with the gap assessment results.

6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable.

GSA and Federal Business Opportunities (FBO) were researched along with Request for Information (RFI’s) to industry during the initial gap assessment requirement. No other companies responded other than Utilicast. The previous procurement was posted on FBO with no response from other parties.

Market Research was conducted by Desert Southwest Regions Energy Management and Marketing Office Manager. Discussions with multiple utilities and their interaction with Utilicast were completed as well as discussions with market operators. All utilities and market operators contacted by WAPA concluded that Utilicast has extensive experience in performing energy gap assessments.

7. Cite the anticipated dollar value of the proposed acquisition including options if applicable and a determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

This requirement is to complete a gap assessment to assist in determining potential participation in the CAISO EDAM. The estimated cost is $115,000 for six months of service. This cost is significantly less than the initial gap assessment performed by Utilicast. Previous gap assessments conducted for WAPA have been reviewed to determine the Government Estimate and should adequately reflect the estimated cost is considered fair and reasonable.

8. A description of the Market Research (MR) conducted and the results or a statement of the reason MR was not conducted.

DSBS was researched on 21 November 2024 for contractors available under NAICS 541690 using keywords energy gap analysis without restriction to the location. This search resulted in 0 small business firms. Based on documentation for the initial phase of this requirement resulting in contract #89503120PWA000267, market research was conducted utilizing GSA and FBO. An RFI posting resulted in no response. The incumbent contractor was the only contractor at the time to respond to WAPA’s request for this requirement.

9. Any other facts supporting the use of other than full and open competition such as.

None

10. A listing of the sources, if any, that expressed a written interest in the acquisition.

Utilicast LLC., UEI # F6WLGPB9CLN7

11. A statement of actions the agency may take to remove or overcome any barriers to competition if subsequent acquisitions are anticipated. (Requestor and Procurement)

Utilicast has been consistently engaged in WAPA's energy imbalance market implementation which directly correlates with the gap assessment results. The contractor has the knowledge and experience that no other company possesses which accrues to the benefit of the government.

Certification

The information contained in this Justification for Other than Full and Open Competition is certified accurate and complete to the best of my knowledge and belief.

Name of Requestor Date Title

Contracting Officer Date