Limited_Source_Justification_Propane_Redacted_Redacted_1.pdf

Last updated 6/2/2016

LIMITED SOURCES JUSTIFICATION

Over SAT (FAR 8.405-6(c))

1. Identification of the agency and the contracting activity

Agency: Department of Interior, National Park Service

Contracting Activity: Sequoia & Kings Canyon National Parks, 47050 Generals Highway Three Rivers, CA 93271

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

On September 4, 2021, the National Park Services, Sequoia and Kings Canyon National Parks (SEKI) awarded a five-year contract to San Luis Butane Distributors aka Delta Liquid Energy.

This Limited Source Justification has been prepared for the consent in adding additional funding to our current propane contract - 140P8621F0021. This supplemental work is within the scope of the original contract, which was issued on 09/04/2021 to Delta Liquid Energy and had a current value of $85,935.00 for the base year. We have exhausted in full the $85,935.00 for the base year and currently have $0.00 remaining. The value of the proposed modification is $140,000.00. This additional funding will be sufficient and will carry us through the period of performance dated 9/30/2022 before exercising option year one of the contract.

The KNP fires that ripped through Sequoia & Kings Canyon National Parks from September 2021 through December 2021 resulted in the loss of shore power for extended periods of time. With that loss of power, our emergency generators ran for days on end until they eventually drained the propane tanks. The tanks for generators are located at are Grant Grove Water Treatment Facility, Grant Grove Wastewater Treatment Facility, Grant Grove Maintenance Facility, Red Fir Maintenance Facility, Lodgepole Lift Station, Lodgepole Visitor Center, Clover Creek Wastewater Treatment Facility, Clover Creek Spray Fields. These tanks would annually be filled more than 5-10%, but from all that usage during the fires, the NPS had to top off all the tanks that were drained so that the generators would run and prevent a loss of power.

3. A description of the supplies or services required to meet the agency’s needs (including the estimated value).

The National Park Service, Sequoia and Kings Canyon National Parks (SEKI), located in eastern Fresno and Tulare Counties, California, has an annual requirement for the purchase and delivery of between approximately 70,500 and 114,000 gallons of Liquefied Petroleum Gas (LPG) delivered as needed over the course of a calendar year. Actual annual consumption and delivery volumes vary by weather and other operating considerations. Deliveries will be made, dependent on current, and changeable residential responsibility to between ninety (90) and one hundred thirty-five (135) tanks in various locations within the parks from Mineral King, in the south, to Cedar Grove, in the north.

In order to meet our ongoing operational needs, SEKI requires a mechanism to charge propane orders to in exchange for bulk liquified propane deliveries. We currently have a contract in place but have used all estimated usage per gallons for the base year. Additional funds are needed to cover deliveries to get us through the end of September 30, 2022. It is anticipated that 57,500 gallons are needed for a total of $140,000.00.

4. The authority and supporting rationale (see 8.405-6(a)(1)(i) and (b)(1)) and, if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

As defined by FAR 8.405-6(c), this requirement is a logical follow-on to an original contract 140P8621F0021 awarded against GSA Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The additional propane deliveries are needed to cover heating throughout different areas of the park which include park housing, visitor centers, maintenance facilities, offices, a museum, water and wastewater treatment plants, and emergency generators that provide power to all these locations in the event we lose electricity. For consistency and ease of operation, it is important to continue using the same vendor as they are familiar with tank locations and the only vendor that provided a proposal at the solicitation stage. Driving conditions for propane deliveries include hazardous conditions such as snow, ice, the use of snow chains, and our propane tanks are located in steep mountainous terrain at elevations above 7,000 feet in elevation. This contractor is unique because their drivers are already familiar with our parks and our tank locations. This contractor has been providing SEKI with bulk propane deliveries for the past 12 years prior to this current contract awarded in 2021.

5. A determination by the ordering activity contracting officer that the order represents the best value consistent with 8.404(d).

The Contracting Officer has determined that this acquisition represents the best value and will provide the lowest overall cost alternative to meet the Federal Government’s needs. The vendor submitted pricing information based on what is stated on the GSA contract. Price per gallon shall be based on the BPN posted price for Service Location Farmersville, CA and Pricing Terminal for AePEX Energy (San Joaquin Valley, CA) on the first Monday of each Month, plus mark-up of $0.395 for option year one. San Luis Butane Distributor's will submit revised pricing on the first Monday of each month on GSA Advantage.

GSA has already determined the prices of supplies and services under schedule contracts to be fair and reasonable; however, as the estimated value of this acquisition exceeds the simplified acquisition threshold, NPS will seek further price reductions for supplying and delivering of propane in accordance with FAR 8.405-4.

6. A description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted.

In accordance with FAR 10.002, market research was conducted by technical representatives to determine the availability of the functionality required to meet the Federal Government’s needs.

Per FAR Part 8.002, Priorities for use of Mandatory Government Sources, this requirement is available on GSA Advantage. A Sources Sought was posted on GSA E-buy on April 28 with a due date of May 5, 2021. Under MAS 324110 which includes propane products, service and repair, and rental demurrage related to propane, there are only three vendors available. Amerigas (Large Business), San Luis Butane Distributors (Small Business), and Quarles Petroleum Incorporated (Small). Only San Luis Butane responded to the posting of the Sources Sought. San Luis Butane aka. Delta Liquid is the current vendor that services Sequoia. The CO, Liset Gomez, reached out to Quarles Petroleum another small business to see if they would be willing to service Sequoia. Quarles responded in an email that Sequoia is out of their service are as they only service the state of Virginia. Amerigas did not submit a quotation for this initial requirement and only San Luis Butane submitted a quote for supplying and delivering propane to SEKI.

7. Any other facts supporting the justification.

The KNP fires that ripped through Sequoia & Kings Canyon National Parks from September 2021 through December 2021 resulted in the loss of shore power for extended periods of time. With that loss of power, our emergency generators ran for days on end until they eventually drained the propane tanks. The tanks for generators are located at are Grant Grove Water Treatment Facility, Grant Grove Wastewater Treatment Facility, Grant Grove Maintenance Facility, Red Fir Maintenance Facility, Lodgepole Lift Station, Lodgepole Visitor Center, Clover Creek Wastewater Treatment Facility, Clover Creek Spray Fields. These tanks would annually be filled more than 5-10%, but from all that usage during the fires, the NPS had to top off all the tanks that were drained so that the generators would run and prevent a loss of power.

8. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

In accordance with FAR 8.405-6(b)(3)(i)(B), this Limited-Sources Justification will be posted to e-Buy (http://www.ehuy.gsa.gov ). Any responses to the Limited-Sources Justification will be noted and considered for use in future procurements similar to this one. In addition, SEKI will continue to conduct market research to determine if any other companies are available on GSA schedules that can fulfill the Government’s requirements.

9. Certification by Technical or Requirements Personnel:

I certify that any supporting data that is the responsibility of technical or requirements personnel (e.g verifying the Government’s minimum needs or requirements or other rationale for an exception to fair opportunity) which form a basis for the justification have been certified as complete and accurate:

( (Date) March 30, 2022

(Type or Print Name): _____ (Title): Supervisory Facility Operations Specialist

I certify that the justification is accurate and complete to the best of my knowledge and belief:

(Signature) _______________________________________ (Date) _____________________

(Type or Print Name):

Contracting Officer

ATTACHMENT 4

LIMITED SOURCES JUSTIFICATION

Over SAT (FAR 8.405-6(c))

Reviewed for Legal Sufficiency by Solicitor’s Office (over $500,000 or as requested):

(Signature) ______________N/A_________________________ (Date) ___________________

(Type or Print Name): _________________________________________________ Attorney-Advisor

Reviewed/Concur/Approved by:

(Signature) _____________________________________ (Date) ___________________

(Type or Print Name):

Chief of the Contracting Office

For orders exceeding SAT, but not exceeding $750,000, this certification serves as the Approval of the justification.

Approved by:

(Signature) _______________________________________ (Date) __________________

(Type or Print Name): _________________________________________________ Bureau Competition Advocate For orders exceeding $750,000, but not exceeding $15,000,000, this certification serves as the Approval of the justification.

*NOTE: For Justifications under 8.405-6(a)(1) the approving official shall include a written determination identifying which one of the circumstances applies.