JOFOC MEN Water and Wastewater Treatments Services FY 2021.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

WATER AND WASTEWATER TREATMENT UTILITY SERVICES

FCI MENDOTA, CA – FY 2021

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(b), the Federal Bureau of Prisons ( BOP) has determined that the procurement of water and wastewater treatment utility services for FCI Mendota located in Mendota, CA 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 Federal Correctional Institution Mendota 33500 W California Ave Mendota, CA

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

This action is for the acquisition of water and wastewater treatment utility services to FCI Mendota located in Mendota, CA, from the sole provider of such services in the Mendota area.

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

FCI Mendota requires water and wastewater treatment utility services in a manner this is consistent with all applicable laws, rules, codes industry standards, permits and regulations, promulgated by and all governmental authorities having jurisdiction on the state of California. Services shall be provided on a dependable and adequate daily basis 365 days per year. The City of Mendota will be responsible to maintain and/or repair all associated water and wastewater treatment pipelines and equipment, including associated costs for such repair, up to the delivery point or meters of FCI Mendota. Pursuant to FAR Part 41.202, the contractor is required to provide the “entire water and wastewater treatment utility service”(i.e. capacity, standby, or backup services, transmission and/or distribution service, quality transportation assurance, system reliability, system operation and maintenance, metering, billing, etc.).

Water and wastewater treatment utility service October 1, 2020 through September 30, 2021 are subject to funds availability (FAR Clause 52.232-18). The services will be procured by way of purchase order. The estimated yearly cost for water and sewer service is $209,5 .00.

Contract Line Item Number Performance Period Estimated Cost ($) CLIN 0001 Oct. 2020 - Sept. 2021 $111,000.00 CLIN 0002 Oct. 2020 - Sept. 2021 $98,500.00

Total Estimated Cost: $209,500.00

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:

The City of Mendota is the sole provider of water and wastewater treatment utility service in the Mendota service area. The City of Mendota is authorized through established and adopted ordinances, as the sole authorized provider water and wastewater utility service in the Mendota service area. All rates are regulated by city ordinance which are passed and adopted as law for all residential, commercial, and industrial users in the County of Fresno. City of Mendota is the authorized provider of these utility services in the Mendota service area and for FCI Mendota.

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 City of Mendota are approved by City Ordinance 13.04.050 and 13.08.070 and incorporated as law for all businesses and residents with the city limits. Through review of these ordinances, the Contracting Officer has determined that the rates proposed by the City of Mendota are considered fair and reasonable. Prices will be analyzed by the Facilities Manager with the assistance of the Contracting Officer in accordance with F.A.R. 41.401 in order to ensure price reasonableness and accuracy.

8. Description of the Market Survey Conducted:

Market research was conducted and results revealed the requirement of water and sewer services can only be filled through the City of Mendota.

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

Based on the results of the above research, it is determined that this requirement can met by a commercial item. Water 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. This Contracting Officer, as the awarding official, has determined that the award of the water utility service purchase order will be performed by the City of Mendota a Government entity. Market research involves obtaining information specific to the item being acquired. The market research conducted by the contracting office and facility department personnel determined that a GSA area-wide or single point contract is not available in accordance with Title 31 USC § 1535. No Interagency Agreement is available for use either. GSA is specifically authorized by law and regulation to purchase utility services on behalf of other agencies by providing an Assisted Acquisition. August 2010, in accordance with Title 40 USC § 121(d), GSA issued the Department of Justice FBOP a Delegation of Authority for nationwide authority to negotiate and execute utility service contracts at Federal facilities under the control and direction of the FBOP in accordance with Title 40 USC § 501(b)(1)(B). The FBOP, as the requiring agency, must make a determination of the best procurement approach that satisfies FCI Mendota’s schedule, performance, and delivery requirements.

The City of Mendota is the current water utility service provider for FCI Mendota and has continuously serviced the facility since dedication. The City of Mendota controls the water distribution capacity . The City of Mendota provides water services to all sectors of the market (public, private, and government). No other source could be expected to make the capital investments for the infrastructure required to provide water service or meet the regulatory approvals to treat and deliver water to meet FCI Mendota’s consumption requirements. Contracting and requirement staff continues 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 in this area and no alternative source of service is currently available. A review of FPDS-NG shows several other agencies (i.e., Department of Interior, VA) are issuing purchase orders to the City of Mendota for their water utility requirements. As with the other agencies, FCI Mendota is a consumer of services from the public utility. If another potential source emerges, the agency will assess whether competition for future requirements is feasible. The provision of water services is essential for the orderly operation of FCI Mendota. History shows and economics dictate that the construction of infrastructure facilities by multiple utilities in the same location would be extremely costly and disruptive to communities. The utility services are regulated by local government to assure fair rates for safe and adequate services. The ratemaking process ensures the lowest reasonable rate for consumers while maintaining the financial stability of the utility. Under the law, the utility is entitled to recovery of its reasonable incurred expenses.

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 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. Should opportunities arise in the future the BOP will take appropriate action to ensure these services are competed.

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 by:

P , Supervisory Contract Specialist FCI Mendota

Date 10/15/2020

Technical or Requirement’s Personnel Certification:

I hereby certify that this request for 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:

Marcos Martinez, Acting Facility Manager FCI Mendota

Date 10/01/2020