JOFOC Electricity Service.pdf

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SOLE SOURCE JUSTIFICATION

FOR AN ACTION EXCEEDING THE SIMPLIFIED ACQUISITION THRESHOLD

USING SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS

(AUTHORITY: FAR 13.501(a), 41 U.S.C. 1901)

140802-24-0083

1. Agency and contracting activity. Department of Commerce, National Oceanic and Atmospheric Administration (NOAA) Acquisition and Grants Office (AGO), Eastern Acquisition Division (EAD), and Office of Marine and Aviation Operations (OMAO), and Marine Operations Center

(MOC).

2. Nature and/or description of the action being approved.

This is a sole source justification for a follow-on contract to an existing purchase order. The existing purchase order, 1305M223PNMAN0038, is with Central Lincoln People’s Utility District (Central Lincoln). It is planned to award a follow-on firm fixed price purchase order to Central Lincoln.

3. Description of supplies or services required to meet the agency’s needs (including the total estimated value).

This requirement is to provide electricity to the NOAA MOC-P facility located at 2002 SE Marine Science Drive in Newport, Oregon 97365. The electricity to be provided will power the entire MOC-P facility as well as vessels that require varying levels of shore power. The Period of Performance is April 1, 2024 to March 31, 2025. The total estimated value for this requirement is

$XXX.

4. Statutory authority permitting the sole source (including brand name) acquisition.

☒ 41 U.S.C. 1901, using SAP up to $7.5M as authorized by FAR 13.500(a) and implemented by FAR 13.501(a).

□ 41 U.S.C. 1903, using SAP up to $15M for contingency operations as authorized by FAR 13.500(c) and implemented by FAR 13.501(a).

5. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited. The contracting officer has determined the following circumstances justify the use of a sole source as supported below:

Only one source – Central Lincoln is a not-for-profit local governmental entity and the only electricity provider in the Newport, Oregon area. Utilities are ruled by FAR Part 41. Per FAR 41.201(d)( l ),"none of the funds appropriated by that Act or any other Act with respect to any fiscal year by any department, agency, or instrumentality of the United States, may be used for the purchase of electricity by the Government in any manner that is inconsistent with state law

140802-24-0083 governing the providing of electric utility service, including state utility commission rulings and electric utility franchises or service territories established pursuant to state statute, state regulation, or state-approved territorial agreements." Per Oregon Revised Statutes (ORS) 757.669(6), Policy Regarding Consumer-Owned Electric Utilities (attachment I), "The Legislative Assembly declares that it is the policy of the State of Oregon regarding consumer-owned utilities to preserve the existing exclusive distribution rights of electric utilities as and to the extent such rights exist under current law." Furthermore, on April 1st 1999, per the Public Utility Commission of Oregon's Order No. 99-449 (attachment II), Central Lincoln is exclusively serving Newport, Oregon. A map from Oregon’s Department of Energy-Public Utilities can be found at https://www.oregon.gov/energy/energy-oregon/pages/find-your-utility.aspx. Central Lincoln is the only provider of electricity at this location and the electricity is provided through its lines and meters. Central Lincoln, has provided the required services to the satisfaction of NOAA since July, 2011. Therefore, for the reasons cited herein, it is considered to be in the best interest of NOAA to negotiate a sole source purchase order with the proposed vendor for the required services.

6. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies.

Central Lincoln is the only electricity provider servicing Newport, Oregon and in accordance with FAR 5.202(a)(5) “the contracting officer need not submit the notice required by 5.201 when the contracting officer determines that the proposed contract action is for utility services other than telecommunications services and only one source is available.” Therefore, in accordance with FAR 5.202(a)(5) a posting will not be published in the Government Wide Point of Entry.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

Central Lincoln is a not-for-profit local governmental entity that provides electricity in a specified community area, in this case exclusively to Newport, Oregon. It has provided electric service to MOC-P since the opening of the facility in July 2011 and publishes its rates online; rates for this contract are per Schedule 350 - Commercial and Industrial Service (attachment III) and are set by the contractor's publicly elected board of directors. The price will be determined to be fair and reasonable per FAR 13.106-3(a)(2)(iii), “Current price lists, catalogs, or advertisements.”

8. Description of the market research conducted (see Part 10) and the results or a statement of the reason market research was not conducted.

Market research was conducted, specifically focusing on the local laws/regulations governing Oregon electricity utilities to verify the exclusivity of Newport's electricity supply by Central Page 3 of 4 Lincoln as well as researching the firm and its rates. Based on the results of the market research, it was determined Central Lincoln is the only company capable of meeting the requirements. Additionally, a search of GSA’s area wide contracts (attachment IV) for utility services was conducted and Central Lincoln was not included.

9. Any other facts supporting the use of a sole source (including brand name), such as:

All supporting facts have been documented herein.

10. List of the sources that expressed a written interest in the acquisition.

No sources have indicated an interest in this requirement. As discussed in section 6, a synopsis is not required.

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

At this time the barriers to competition cannot be overcome unless the Public Utility Commission of Oregon changes its order to grant Central Lincoln exclusivity in Newport, Oregon and allows multiple entities to serve the area.

12. Technical/Requirements Representative Certification

I certify that this requirement constitutes the Government’s minimum needs and the supporting data provided herein is accurate and complete to the best of my knowledge and belief.

Contracting Officer Representative

13. Office of General Counsel Concurrence

Concur

Date

14. Contracting Officer’s Certification and Approval

I certify this justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer

Date

Date

Office of General Counsel