Justification_for_Other_than_Full_and_Open_Competition_Redacted.pdf

23 January 2018

Justification for Other than Full and Open Competition

Organization: Naval Reactors Laboratory Field Office (NRLFO), U.S. Department of Energy

Nature and/or description of the action being approved: New acquisition for the

Transportation of Natural Gas to the Naval Nuclear Laboratory (NNL) located site in West

Mifflin, PA

NAICS Code: 221210, Natural Gas Distribution

Product and Service Code: S 111, Utilities-Gas

Estimated Value:

Statutory Authority Permitting Other than Full and Open Competition: FAR 6.302-1 (a)(2)

-- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency

Requirements

Demonstration that the Proposed Contractor's Unique Qualifications or the Nature of the

Acquisition Requires Use of the Authority Cited: As allowable per FAR 6.302-l(b)(3) relating to the procurement of utility services, this contract will not be competitively solicited, as the Peoples Natural Gas Company is the sole owner of the natural gas lines and is the only supplier for the transportation of natural gas in the West Mifflin area.

A new Master Agreement, SPE600-I 7-D-7500, has been negotiated between the Defense

Logistics Agency (DLA) and Constellation New Energy (CNG) for the supply of Natural Gas at the Bettis Atomic Power Laboratory. Delivery Order DE-DT-0013118 has been issued against this Master Agreement upon approval of Requisition 17NR000066. This delivery order covers a two-year period, effective April 1, 2017 and continuing through March 31, 2019.

This new contract action will be for the actual transportation of the natural gas procured under

Delivery Order DE-DT-0013118, which is not part of the Delivery Order with DLA. The proposed contract action Peoples Natural Gas will replace the current contract, DE-AMl 1-

02PN38216, that will fully expire on January 31, 2018. This new contract will begin on February

1, 2018 and run through March 31, 2019. The new contract is being limited to a 14-month period to bring the end dates of the natural gas supply and transportation contracts into alignment so that they can be renewed in parallel in the future, after which it will be resolicited every two years.

Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential

Sources as is 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: The exception at FAR 5.202(a)(5) is applicable as this contract action is for the acquisition of utility services and only one source is available, Peoples Natural Gas Company.

Determination by the Contracting Officer that the Anticipated Cost to the Government

Will be Fair and Reasonable: The requiring activity, Bechtel Marine Propulsion Corporation

(BMPC) prepared an Independent Cost Estimate on IO January 20 I 8, which will be used by the

Contracting Officer to conclude that the offered price is fair and reasonable. The Contracting

Officer anticipates that the cost to the Government will be fair and reasonable.

The basis of the total estimated cost for action is the going MCF (one thousand cubic feet of natural gas) unit rate multiplied by the estimated MCF usage over a 14-month period. This estimate was generated by averaging the actual per-month usage values between October 2015 and October 2017 and adding in the appropriate additional monthly fees and adjustments. The results of this estimate can be found in the contract file.

Description of the Market Research Conducted and the Results or a Statement of the

Reason Market Research was Not Conducted: Market research was conducted by BMPC. As the infrastructure that transports the natural gas is owned solely by the Peoples Natural Gas

Company, there are no alternate sources available.

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

Listing of the Sources, if any, That Expressed, in Writing, an Interest in the Acquisition: As of the date of this document, no sources have expressed a written interest in this acquisition.

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. The procuring office will continue to work with the requiring activity to reevaluate market conditions and consider alternate strategies that will allow for competition of future contract actions for the transportation of natural gas to the Naval Nuclear Laboratory (NNL) site in West Mifflin, PA.

Document prepared by:

The Contracting Officer certifies that this justification is accurate and complete to the best of the Contracting Officer's knowledge and belief.

Approving Official:

X