JOFOC_JES_E_FY19_1_Quarterly-signed.pdf

UNITED STATES DEPARTMENT OF JUSTICE

FEDERAL BUREAU OF PRISONS

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Electric Utility Service FCI JESUP, GA

Pursuant to the Federal Acquisition Regulation (FAR) Part 6.302-1(a)(1) and 6.302-1(b)(3), and the Bureau of Prisons Acquisition Policy (BPAP) 4100.06 Part 6.304(c), the Federal Bureau of Prisons (FBOP) has determined that the procurement of electric utility service for the Federal Correctional Institution (FCI) Jesup, located in Jesup, Georgia, 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 in accordance with FAR Part 6.303-2:

1. Identification of the Agency:

U.S. Department of Justice Federal Bureau of Prisons FCI Jesup 2600 Hwy 301 South Jesup, GA 31599

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

This justification for other than full and open competition is for the acquisition of electric utility services supplied to FCI Jesup from the original and sole provider of such services.

FCI Jesup has a present and continuing requirement for electric service for the proper operation of the facility.

3. Description of supplies or services required to meet the agency needs:

Pursuant to FAR Part 41.202, the Georgia Power Southern Company (GA Power) continues to provide the “entire electric utility service” (i.e., production, distribution, system operation and maintenance, metering, billing, etc.). GA Power shall provide to the government facility at FCI Jesup electric services in a manner and form that is consistent with all applicable laws, rules, codes, industry standards, permits, and regulations, promulgated by any and all governmental authorities having jurisdiction. GA Power shall provide services on an uninterruptible daily basis for 3 months. GA Power will be responsible to maintain and/or repair all associated equipment, including associated costs for such repair, up to the delivery point or meter of FCI Jesup. GA Power will be responsible to ensure that the equipment, utilized to provide electric services will be maintained and operated in compliance with all rules and regulations set by the Public Service Commission of Georgia, in accordance with all Federal, State, County, and local government for a safe electric service.

GA Power shall provide electric utility services for the period from October 1, 2018 through December 31, 2018, for a 3 month period, subject to funds availability (FAR Clause 52.232- 18). The average monthly amount for electric utility service is estimated to be $64,018.56.

The total estimated quarterly amount for electric utility service is $192,055.68.

JOFOC FCI Jesup

Electric Utility Services

4. An identification of the statutory authority permitting other than full and open competition:

This justification to award as a sole source is prepared pursuant to the exception to full and open competition requirements in accordance with the statutory authority for these services that is found at 41 USC § 3304(a)(1), when the supplies or services required by the agency are available from only one responsible source. The application which permits use of the cited statutory authority are stated at FAR Part 6.302-1(b)(3), “When acquiring utility services (see 41.101), circumstances may dictate that only one supplier can furnish the service (see 41.202).” When a public utility supplier refuses to execute a tendered contract the agency may proceed with the acquisition and pay for the utility service under the provisions of 31 USC § 1501(a)(8). Analysis of the market indicates that GA Power has proprietary rights up to the meter at FCI Jesup. In order for another provider to be capable of providing the service, significant capital improvements would be needed. The Bureau would be required to pay for the capital improvements, but it would not recover the costs of duplication of services, connection fees and infrastructure installation costs through competition. The current requirement is for follow-on services and does not include funding for capital improvements.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:

GA Power is a not-for-profit cooperative owned and controlled by the members it serves and is the sole provider of electric utility service in the Jesup, GA service area. The Public Service Commission of Georgia is the governing body that sets all rates and tariffs with the responsibility of electric utility service for the locale in which FCI Jesup resides. GA Power is an entity in the Public Service Commission of Georgia jurisdiction and the only agent authorized by rules and regulations to provide these services within the service area. Having a single supplier of electric for this area is the most efficient method of providing these services. This requirement cannot be conveniently or economically obtained by contracting directly with a private source because building multiple distribution and removal systems would be costly and inefficient.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable including whether or not a notice was or will be publicized as required by FAR Subpart. 5.2:

As stated in FAR Part 5.202(a)(5), exceptions to transmitting a notice to the Government Point of Entry, the contracting officer need not submit a notice when ‘the proposed contract action is for utility services other than telecommunications services and only one source is available.’ A General Services Administration (GSA) area-wide nor a single point contract for electric utility services in the FCI Jesup area is available at this time.

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

The current rates offered by GA Power are equal to the market price levied other commercial and industrial users in the FCI Jesup area. GA Power published tariff has provided sufficient data to the FBOP contracting officer, pursuant to FAR 15.402, Pricing Policy, allowing the ability to make a preliminary determination that such anticipated costs appear to be fair and reasonable. Utility rates are enacted by tariffs set by the Public Service Commission of Georgia, which is charged under Georgia law to ensure that rates be just and reasonable. As regulated by the Public Service Commission of Georgia, GA Power is authorized to provide

(i) production, capacity, and distribution of electric; and (ii) for such utility services as the area may now or hereafter have the power to provide. Electric rates established by the Public Service Commission of Georgia shall be adjusted as necessary by the Commission to compensate proportionately for any increase in the cost of energy purchased by GA Power.

A formal decision in the form of periodic rulings, reviews, or similar actions of a governmental body, or embodied in the laws, are sufficient to set pricing (see FAR 15.403- 1(c)(2)) and the purchasing of supplies and services from a responsible source is determined fair and reasonable. The establishment of the current supply and delivery of services began when the original service connections were installed and the meters set in/or around 1989.

As such, this contracting officer has determined the anticipated cost to the Government will be fair and reasonable.

8. A description of the market research conducted:

Product Service Code: S- Utilities and Housekeeping Services – S112 Utilities/Electricity Services.

North American Industry Classification System (NAICS): 221122 Electric Power Distribution = this industry comprises establishments primarily engaged in the distribution of electric power.

Standard Industrial Classification (SIC) Code: 4911 Electric Services.

Potential Sources: GA Power is the sole provider of electric utility service in the FCI Jesup service area. I applied personal knowledge, interaction with knowledgeable individuals in local and Federal Government regarding market capabilities to meet the requirements, and research of generally accessible literature available on-line were the techniques used in researching this procurement for a supply/services of this type. During construction of the institution, one contract was awarded for the installation and operation of one source of electric leading to the institution.

Commercial Item Determination: Electric utility service is an item that is of a type customarily used by the general public and by non-governmental entities for purposes other than governmental purposes.

Results: It is this Contracting Officers determination there is a source available that is capable of providing the required services. The procurement will be conducted in accordance with the procedures as outlined in FAR Part 12, 13, and 41. A Performance- Based Acquisition (PBA) method will not be used for this procurement as it is determined not applicable. A PBA relies on the use of measurable performance standards and financial incentives in a competitive environment to encourage competitors to develop and institute innovative and cost-effective methods of performing the work.

The Energy Center of Expertise of the U.S. General Services Administration has issued a Delegation of Contracting Authority to the U.S. Department of Justice, Federal Bureau of Prisons to negotiate and execute utility service contracts. This includes the provision of electric service for FCI Jesup.

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

None.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition:

There were no other sources which expressed an interest in this acquisition.

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

Contracting and requirements staff continue to conduct appropriate market research to determine if sources capable of satisfying the agency’s requirement exist and to overcome competition barriers. Deregulation laws are presently nonexistent and no alternative source of service is currently available. If another potential source emerges, the agency will assess whether competition for future requirements is feasible.

12. Contracting Officer’s Certification:

I hereby certify that this Justification and Approval of other than Full and Open Competition is made in good faith that the supporting data and information are accurate and complete to the best of my knowledge and belief, and that I would not be making this request if it were feasible to fully compete this requirement. I further certify that this justification is not the result of lack of advance planning or a desire to expend funds while those funds are still available.

Charles T. Smith, Supervisory Contract Specialist Date FCI Jesup

Charles Smith 10/27/2018

The Energy Center of Expertise of the U.S. General Services Administration has issued a Delegation of Contracting Authority to the U.S. Department of Justice, Federal Bureau of Prisons to negotiate and execute utility service contracts. This includes...