Leo_Wood_JA_2017_46_c1_Redacted.pdf

PROCUREMENTSENSITITVE FOR OFFICIAL USE

ONLY SEE FAR 2.101 AND 3.104

Version: May 2016

Control No. MICC 2017-46 Contractor: Sho-Me Power Electrical Cooperative

Service: Full Electrical Requirements for Fort Leonard Wood, Missouri

JUSTIFICATION REVIEW DOCUMENT

FOR FAR PART 6 JUSTIFICATION AND APPROVAL FOR

OTHER THAN FULL AND OPEN COMPETITION

DESCRIPTION OF PROGRAM: Full Service Electric Power Supply including transmission and ancillary services, Sho-Me Power Electric Cooperative, Garrison Command, Fort Leonard Wood, Missouri.

Authority: 10 U.S.C. 2304(c)(1) as implemented by FAR Part 6.302-1 – Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Amount: $8,947,842.72 (4-months)

Contract Specialist:

Christine L. Wilson DSN:

Lead Contract Specialist/Contracting Officer Date:

Email:

Procuring Contracting Officer:

James E. Tucker Director, MICC LW Email:

DSN:

Date:

Lead Counsel:

Contract and Fiscal Law Attorney Email:

Technical Representative:

Utilities Program Manager Email:

DSN:

Date:

DSN:

Version: May 2016

Control No. MICC 2017-46 Contractor: Sho-Me Power Electrical Cooperative

Service: Full Electrical Requirements for Fort Leonard Wood, Missouri

REVIEWS: I have reviewed this justification and find it adequate to support other than full and open competition.

CONTRACTING OFFICER:

James E. Tucker

Signature:

Date: See Digital Signature

LOCAL CONTRACTS ATTORNEY/LEAD COUNSEL:

0 1

Signature: Date:

SMALL BUSINESS SPECIALIST, SMALL BUSINESS PROGRAMS:

DIRECTOR, FORT LEONARD WOOD:

James E. Tucker DSN:

DIRECTOR, FIELD DIRECTORATE OFFICE - EUSTIS:

Version: May 2016

Control No. MICC 2017-46

ASSISTANT DIRECTOR, SMALL BUSINESS PROGRAMS:

Signature: Date: See Digital Signature

MICC OFFICE OF COUNSEL:

SPECIAL ADVOCATE FOR COMPETITION:

Scott D. Kukes DSN:

Version: May 2016

Control No. MICC 2017-46

DEPARTMENT OF THE ARMY

FAR PART 6

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. CONTRACTING AGENCY: Mission and Installation Contracting Command (MICC) Fort Leonard Wood, 8112 Nebraska Avenue, Fort Leonard Wood, Missouri 65473.

2. DESCRIPTION OF ACTION: The US Army Garrison at Fort Leonard Wood, Missouri requests a Fixed Price modification to extend the period of performance for four months on contract W911S7-16-D-0004 with Sho-Me Power Electric Cooperative for procurement of Full Electric Power Service to meet the full electric energy requirements for Fort Leonard Wood, Missouri. The contract award will be subject to FAR Clause 52.232-18, Availability of Funds. The acquisition of electric services will be Sole-Source in accordance with FAR Section 41.205(d) and DFARS Section 241.205.

3. DESCRIPTION OF SUPPLIES/SERVICES: The anticipated period of performance is from 1 May 2017 to 31 August 2017 to ensure continuity of electric services at Fort Leonard Wood, Missouri. The total estimated value is $8,947,842.72.

The estimated values are based on a current estimated cost of kilowatt hour for wholesale customer rates and historical data of monthly usage. Fort Leonard Wood proposes to acquire full electrical requirements from Sho-Me Power Electric Cooperative, which is inclusive of all central station energy needs including power, transmission, and all ancillary services. The charges in the power supply contract will reflect transmission fees as well as capacity and energy and associated ancillary services. The period of performance proposed is as follows:

Extension Period: 1 May 2017 to 31 August 2017

4. AUTHORITY CITED: This action is authorized under provision of 10 U.S.C.

2304(c)(1) as implemented by FAR 6.302-1 Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. REASON FOR AUTHORITY CITED: Pursuant to FAR 6.302-1(a)(2), this requirement is available only from the Sho-Me Power Electric Cooperative for services described above. This is to extend the current contract in place to mitigate a lapse of service. Specifically, extension is necessary in order to allow time needed to obtain approval of the Acquisition Plan prior to obtaining approval of the J&A by the Senior Procurement Executive (SPE) mentioned under paragraph 7.

Version: May 2016

Control No. MICC 2017-46

a. AUTHORITY. As described at FAR 6.302-1(a)(2), when the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for.

Fort Leonard Wood has received full service electrical service from Sho-Me Power Corporation, or its successor, Sho-Me Power Electric Cooperative since 1958. Responses to a Request for Information (RFI) posted to Federal Business Opportunities (FBO.GOV) reveals that no other power companies currently operating in the area surrounding Fort Leonard Wood possess the ability to provide Fort Leonard Wood with full requirements, e.g., all power requirements, ancillary services, and all transmission services. GSA has no area-wide contracts for the area as Pulaski County, Missouri is an unregulated territory served only by unregulated electric cooperatives all of which are part of the Sho- Me Power Cooperative system.

b. ALTERNATIVES.

1) Suspension of Operation. Without electric power the installation cannot operate. The installation would have to be closed. Electric power cannot be obtained for Fort Leonard Wood without use of the Contractors lines and transmission system. Closing the installation is not considered a feasible option.

2) Use of In-House Resources. There are not sufficient on-site generators on the installation to meet the installations’ requirements for electricity.

ACSIM has already determined that it is not cost effective to construct an electric generation plant at Fort Leonard Wood at this time.

3) Solicitation Using Full and Open Competition. Responses to Sources

Sought reveal that there are numerous vendors willing to sell power to the Army. However, no one vendor or even two can provide full service, e.g.

power, ancillary services and transmission services from the source of generation to Fort Leonard Wood’s distribution system. Power cannot be obtained outside the rural electric cooperative system without a minimum of three transmission contracts and the obtaining of ancillary services from multiple sources.

Control No. MICC 2017-46

Service: Full Electrical Requirements for Fort Leonard Wood, Missouri

PROCUREMENTSENSITITVE FOR OFFICIAL USE

ONLY SEE FAR 2.101 AND 3.104

Version: May 2016

c. JUSTIFICATION: There is currently no other source for complete electric capacity and energy service. No other company owns transmission lines in the portion of the State of Missouri where Fort Leonard Wood is located. Only Sho- Me Electric Power Cooperative can provide electric power, all ancillary services and all transmission services to the installation.

d. IMPACT: If an extension is not executed with Sho-Me Electric Power Cooperative electrical service to the installation will be discontinued.

6. EFFORTS TO OBTAIN COMPETITION: This justification is a four (4) month extension to the current contract, as referenced herein.

7. ACTIONS TO INCREASE COMPETITION: Fort Leonard Wood applied for and was granted market participant status by MISO (Midcontinent Independent System Operator, INC.) in August 2013. A transmission study was commissioned with MISO to determine if capacity was available to pseudo tie electric power into the AECI/ rural electric cooperative area of operations. The results of the study indicated that procurement of raw power and transmission through MISO was feasible. However, it was also still clear that there was no supplier who could offer full electric service to the Government.

8. MARKET RESEARCH: The Government has posted two Requests for Information (RFI) for bulk electric power and ancillary services. The first was performed in December 2011 and resulted in no valid interest. A second RFI was performed in November 2014 after the installation obtained Market Participant status and had performed a transmission study. Limited responses were received from renewable energy suppliers interested in the renewable portion of our requirement but no suppliers wishing to offer full electric service. An unsolicited proposal was later received from one potential supplier which indicated some level of interest in providing services through MISO to the transmission gate with the rural electric cooperatives. No sources were discovered that could provide all required services in one contract. The Southwest Power Administration (SWPA) was contacted. They responded that they were fully subscribed and that even if power became available Fort Leonard Wood does not qualify for consideration for any future allocations because the installation does not own and operate its own distribution system.

Service: Full Electrical Requirements for Fort Leonard Wood, Missouri

PROCUREMENTSENSITITVE FOR OFFICIAL USE

ONLY SEE FAR 2.101 AND 3.104

Likewise, SWPA could only provide power not transmission and ancillary services. GSA was contacted but indicated that although it had retail area contracts in Northern Missouri it did not procure wholesale electric nor have contracts in areas of Missouri serviced primarily by rural electric cooperatives. An Addendum to the Market Research Report was completed on 17 March 2017. Results of Addendum to the Market Research Report yielded no change in acquisition strategy.

9. INTERESTED SOURCES: There are no interested sources other than the incumbent Contractor who can provide a replacement contract on a full requirements electrical services basis.

10. OTHER FACTS:

a. Procurement History:

1) The current contract expires 30 April 2017 and electrical service must be maintained to support the Fort Leonard Wood mission.

2) Procurement History: Fort Leonard Wood has procured full requirements electrical service through Sho-Me Electrical Cooperative and its predecessor Sho-Me Power since 1957.

3) Subcontracting Competition. There are no Subcontracting Opportunities.

Contract Number Award Date Competitive Contractor Authority Cited DABDE23-73-C-0199 30 JAN 1959 Unrestricted –

Sole Source Sho-Me Power

FAR 6.301-

1(a)(2)(iii)(B)

DABT31-89-D-0030 12 JUN 1989 Unrestricted – Sole Source

Sho-Me Power

FAR 6.301-

1(a)(2)(iii)(B)

W911S7-11-D-0009 1 APR 2011 Unrestricted – Sole Source

Sho-Me Electric Cooperative

FAR 6.301-

1(a)(2)(iii)(B)

W911S7-16-D-0004 1 APR 2016 Unrestricted – Sole Source

Sho-Me Electric Cooperative

FAR 6.301-

1(a)(2)(iii)(B)

Service: Full Electrical Requirements for Fort Leonard Wood, Missouri

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Utilities Program Manager, Directorate of Public Works

12. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Utilities Program Manager, Directorate of Public Works

13. Fair and Reasonable Cost Determination: “I hereby determine that the anticipated price for this contract action will be fair and reasonable. The techniques identified at FAR 15.404-1(b)(2)(ii) will be used to ensure award will be at fair and reasonable prices. The Contracting Officer will ensure that final orders issued against this contract shall be fair and reasonable through comparison of historical costs paid, comparison of independent Government Cost Estimates (IGCE), and analysis of data other than certified cost or pricing data.”

Director, MICC-Leonard Wood Procuring Contracting Officer

Date: See

14. Contracting Officer Certification: "I certify that this J&A is accurate and complete to the best of my knowledge and belief."

Director, MICC-Leonard Wood Procuring Contracting Officer

Date: See