LEX - JOFOC - Water - FY25 Second Signed.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

PUBLIC UTILITY – WATER SERVICE

FEDERAL MEDICAL CENTER LEXINGTON

LEXINGTON, KENTUCKY

Contractor: Kentucky American Water

Period of Coverage: 5/1/2025 through 9/30/2025

Estimated Amount: $687,371.50

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Pursuant to the Federal Acquisition Regulation (FAR) 6.302-1 (a) (1) and.6.302-1 (b) (3), I have determined that the procurement of water supply for the Federal Medical Center located in Lexington, 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. Agency:

Department of Justice Federal Bureau of Prisons Federal Medical Center 3301 Leestown Road Lexington, KY 40511

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

This action is for the acquisition of supply and transportation of domestic water to the Federal Medical Center located in Lexington, KY, from the sole provider of such services in the Lexington area.

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

Water supply service from May 1, 2025, to September 30, 2025, is subject to funds availability (FAR Clause 52.232-18). The services will be procured by way of purchase order. The estimated average monthly cost for water supply service is $137,474.30, and total cost for these five months is $687,371.50.

4. Statutory Authority Permitting Other Than Full and Open Competition:

According to 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:

Kentucky American Water is the sole provider of water supply usage service in the

Lexington service area. Kentucky American Water is authorized by city ordinance, as the sole authorized provider of water supply usage in the Lexington area. All rates are regulated by city ordinance.

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.

7. Contracting Officer’s Determination that the Cost to the Government Will be Fair and Reasonable:

The estimated usage for this five-month period is $687,371.50. Utility rates are approved by the Public Service Commission (PSC). Kentucky American Water is charged under State of Kentucky law to ensure that rates be just and reasonable. The State of Kentucky, City of Lexington, and Kentucky American Water websites have provided sufficient data to the 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. All rates, rules and regulations of Kentucky American Water are subject to the approval of the PSC of the State of Kentucky. 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). The establishment of the current supply and delivery of services began when the original service connections were installed. As such, this Contracting Officer has determined the anticipated cost to the Government will be fair and reasonable.

8. Description of the Market Survey Conducted:

Market research conducted by the contracting office showed that a General Services Administration area-wide contract does not exist. Kentucky American Water is the only supplier capable of providing FMC Lexington with water supply services. Kentucky American Water is the current supply provider for FMC Lexington and has serviced the facility for the past 16 years.

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

Not applicable. Please refer to section 5.

10. List of Sources, Expressing in Writing, Interest in the Acquisition:

There are no other local sources available that would be able to provide the service required by the government.

11. Actions Taken by the Agency to Remove or Overcome Barriers to Competitions:

The Bureau 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 Bureau will take appropriate action to ensure these services are competed.

12. Contracting Officer’s Certification:

In accordance with FAR 6.303-2(12), I hereby certify that this justification is accurate and complete to the best of my knowledge and belief. I further certify to the best of my knowledge and belief that this request is not the result of a lack of acquisition planning, or a desire to expend funds while those funds are still available.

Submitted by:

Heather Surber, Contract Specialist Date FMC Lexington

Clayton Yorek, Contracting Officer Date Field Acquisition Office

Concurrence:

Craig Redd, Chief Date General Contracting Section

Approval:

Kathy Cole, Chief Date Field Acquisition Office