MCK_FBO_JOFOC_WW_Utility_Services_FY-17.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN

COMPETITION

PUBLIC UTILITY – WASTEWATER UTILITY SERVICE

FEDERAL CORRECTIONAL INSTITUTION MCKEAN

LEWIS RUN, PENNSYLVANIA

Contractor: Lafayette Township Sewer Authority

Period of Coverage: 10/1/2016 through 9/30/2017

Estimated Amount: $361,791.12

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

FCT McKean Wastewater Utility Service

(a) Pursuant to the Federal Acquisition Regulation (FAR) Part 6.302-l(b)(3), and the Bureau of Prisons Acquisition Policy (BPAP) Acquisition Guidance Document (AGO) 06-006, the Federal Bureau of Prisons (FBOP) has determined that the procurement of Wastewater uti I ity service for the Federal Correctional Institution (FCl)McKean located near Lewis Run , Pennsylvania, meets the criteria established for other than full and open competition. It is futther determined that only one responsible source and no other supplies and/or services wi ll satisfy agency requirements. This limitation on competition ts justified as supported by the following information in accordance with FAR Part 6.303-2:

(b)(l) IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY:

U.S. Department ofJustice Federal Bureau of Prisons FC lMcKean 6975 Route 59 Lewis Run, PA 16738

(b)(2) NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED:

Th is justification for other than fu 11 and open com petition is forthe acquisition ohvastewater utility services supplied to FCI McKean, from the original and sole provider of such services. FCI McKean has a present and continuing requirement for wastewater utility service forthe proper operation of the facility.

(b)(3) DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY

NEEDS:

Pursuant to FAR Part 41.202. the Lafayette Township Sewer Authority (L TSA) continues to provide the "entire wastewater utility service" (i.e., collection, transpo1tation, system operation and maintenance, treatment, metering, billing, etc.). The LTSA shall provide to the government facility at FCl McKean, wastewater services in a manner and form that is consistent with all app licable laws, rules, codes, industry standards, permits, and regulations, promulgated by any and all governmental authorities havingjurisdiction. The L TSA shall provide services on an un-interruptible daily basis

(365) days per year. The LTSA will be responsible to maintain and/or repair all associated pipelines and equipment, including associated costs for such repair, up to the collection point or meter of FCI McKean. The LSTA wil I be responsible to ensure that the pipelines and associated equipment, utilized to provide wastewater services will be maintained and operated in compliance with all rules and regulations set in accordance with all Federal, State, County, and local government for a safe and sanitary wastewater utility service.

The L TSA shall provide wastewater utility services from October, l 2016, through September 30, 2017, subject to funds availability (FAR Clause 52.232-18). The total estimated amount for wastewater utility service is $361,791.12.

Source Selection Information -See FAR 2.101 & 3.104

FCI McKean JOFOC

Wastewater Utility Services

(b)(4) AN IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING OTHER THAN

FULL AND OPEN COMPETITION:

This justification to award as a sole source is prepared pursuant to the exception to fu ll and open competition requirements in accordance with the statutory authority for these services that is found at 41 USC §253 (c)(l), the supplies or services required by the agency are available from only one responsible source. The application which permits use of the cited statutory authority are stated at FAR Part 6.302-l(b )(3), "When acq ui ring utility services (see 41. l 0 l ), circumstances may dictate that only one supplier can furnish the service (see 41.202). Analys is of the market indicates that the LTSA has proprietary rights up to the collection point or meter at FCI McKean. In order for another provider to be capable of providing the serv ice, significant capital improvements would be needed. The Bureau

. would be required to pay for the capital improvements, but it would not recover the costs of duplication of services, connection fees and infrastructure installation costs through competition. The current requirement is for fo llow-on serv ices and does include fund ing fo r capital improvements. In accordance with FAR 9.102(b ), a contracting officer is not required make a responsib ili ty determination when awardi ng to a Foreign, State, or loca l government.

(b)(5) A DEMONSTRATION THAT THE PROPOSED CONTRACTOR'S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF THE

AUTHORITY CITED:

The LTSA is the government-owned so le provider of wastewater utility service in this McKean County serv ice area. The L TSA does not appear to be regulated by the Public Uti lity Commission of Pennsylvania wh ich is the governing body that sets all rates and tariffs for wastewater companies.

LTSA is a local Government entity and the only agent authorized by rules and regulations to provide these services within the service area. Having a single supp lier of wastewater for this area is the most efficient method of providing these services. This requirement cannot be conveniently or economical ly obtained by contracting directly with a private source because building mult iple distribution and removal systems would be costly and inefficient.

(b)(6) A DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED

FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE INCLUDING WHETHER

OR NOT A NOTICE WAS OR WILL BE PUBLICIZED AS REQUIRED BY FAR SUBPART 5.2:

As stated in FAR Part 5.202, exceptions to transmitting a notice to the Government Point of Entry(GPE) at (a)(5), the contracting officer need not submit a notice when 'the proposed contract action is for utility serv ices other than te lecommunications services and only one source is available.

A Genera l Services Administration (GSA) area- wide nor a single point contract for wastewater ut ility services in the FC I McKean area is available at thi s time.

(b)(7) A DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANITCIPATED

COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE :

The current rates offered by the L TSA are equal to the market price levied other commercial and

Source Selection Information -See FAR 2. 101 & 3. 104

Wastewater Util ity Services industrial users in the FCI McKean area. The LTSA has provided sufficient data to the FBOP 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. The LSTA is a non-profit focal Government entity . Utility rates are enacted during meetings of the LTSA, which is charged under Pennsylvania law to ensure that rates be just and reasonable. A formal deci sion 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]) and the purchasing of supplies and services from a responsible source is determined fair and reasonable. As such, this contracting officer has determined the anticipated cost to the Government will be fair and reasonable.

(b)(8) A DESCRIPTION OF THE MARKET RESEARCH CONDUCTED :

Th is documentation is in accordance with FAR Part 10, which describes the policies and procedures for conducting market research in a process of finding viable sources of goods and services to meet government requirements and to find the most suitable approach to acquiring, distributing, and supporting supplies and services. This report is subm itted in support ofan acquisition with an estimated value in excess of the simplified acquisition threshold . Below are the findings of the market research forthe above referenced requirement.

Background: A review of the obligation reveals the following-The Federal Correctional Institution McKean (hereinafter referred to as "FCIMcKean") has accurate and continuing requirement for waste water utility service.

Title: Wastewater Utility Service FCI McKean, to provide wastewater services for the FBOP, FCl McKean near Lewis Run, PA. FCT McKean does not have onsite \vastewater treatment facilities .

Product Service Code: S-Utilities and Housekeeping Serv ices -Sll90tluUtilities.

North American Industrv Classification System CNAICS): 21320 Sewage Treatment

Facilities. Standard Industrial Classification (SIC) Code: 4952 Sewerage Systems.

Estimated Contract Value (including options): $361,791.12

Potential Sources: The LTSA is the sole provider of wastewater utility service in the FCI McKean service area. FAR provides that a formal decision in the form of periodic rulings, reviews, or simi lar actions of a governmental body, or embodied in the laws, are to set pricing and the purchasing of supp lies and services are determined fair and reasonable from a responsible source. J applied personal knowledge, interaction with knowledgeab le individuals in local and Federal regarding market capabilities to meet the requirements, and research of generall y accessible literature available on-line were the techniques used in researching thi s procurement for a supply/services of th is type. During construction of the institution. one contract was awarded for the installation and operation ofone wastewater pipeline leading from the institution. A review of State of Pennsylvania regulations

Source Selection Information -See FAR 2. l 01 & 3.104

Wastewater Utility Services determined that a wastewater utility service is not a deregulated utility. Deregulation would promote competition.

Commercial Item Determination: Wastewater uti lity 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.

Market Analysis :

The results of market research have determined that the government's needs can be met by items customarily avai lable in the commercial marketplace.

The market research conducted by the contracting office and the Facilities Department personnel determined that a GSA area-wide nor a single point contract is available in accordance with T itle 3 1

USC § 1535 . No lnteragency Agreement is avai lab le for use either. GSA is specifically authorized by law and regulation to purchase utility serv ices on behalf of other agencies by providing an Assisted

Acquisition. In August 2010, in accordance with 40 USC 121 § (d), GSA issued the FBOP a

Delegation of Authority for nationwide authority to negotiate and execute utility service contracts at

Federal faci lities under the control and direction of the FBOP in accordance with 40 USC 501 § (b )(l)(B)for a I 0 year period. The FBOP, as the requiring agency, must make a determination of the best procurement approach that satisfies FCI McKean's sched ule, performance, and delivery requirements. The LTSA is the CUJTent wastewater utility service provider for FIC McKean and has serviced the facility since 1989. No other source could be expected to make the capital investments for the infrastructure required to provide wastewater util ity service to meet FCI McKean's requirements.

Results: Based on the information provided by the sources detailed above, the fo ll owi ng information outlines the conclusions and provides the basis for this procurement.

It is this Contracting Officers determination there is a source available that is capable of providing the required services. The procurement will be conducted in accordance with the procedures as outlined in FAR Part 12, 13, and 41. A Performance-Based Acquisition method will not be used for this procurement as it is determined not applicable. A PBA relies on the use of measurable performance standards and financial incentives in a competitive environment to encourage competitors to develop and institute innovative and cost-effective methods of performing the work.

One potential source is a local entity, the incumbent L TSA, which appears able to satisfy the requirement. L TSA is other than small business.

The provision of wastewater utili ty service is essential for the orderly operation of FCI McKean.

History shows and economics dictate that the construction of facilities by multiple utilities in the same

Source Selection Information -See FAR 2.10 I & 3.104

Wastewater Utility Services location would be extremely costly and disruptive to communities. The ra temaking process ensures the lowest reasonable rate for consumers whi le maintaining the financ ial stability of the util ity. Under the law, the utility is entitled to recovery of its reasonable incurred expenses.

The Bureau does not have the state and local approval or the resources to provide the funding for another company to insta ll a treatment plant at the institution, another pipeline is not available, and no other contractor can provide wastewater uti lity service through LTSA pipelines. The U.S.

General Services Adm inistration has issued a De legation of Contracting Authority to the U.S .

Depa1tment of Justice, Federal Bureau of Pri sons to negotiate and execute utility service contracts.

This includes the provision of wastewater utility service for FCJ McKean.

Recommendation: The Government contemplates the single award of a firm-fixed price requirements type wastewater utility service purchase order.

Comments: The conc lusions from this market research wil l be incorporated into the agreement document for providing Wastewater Uti lity Service for FCI McKean.

(b)(9) ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION:

The provision of wastewater utility services is essential for the orderly operation of FCI McKean, which was designed with a rated capacity to co llectively house approximately 1148 inmates. The fac ili ty is an all -male medium security correctiona l faci lity with an adjacent minimum security federal pnson camp. State regulations and local ordinances limit the providers of this service to only one.

(b)(JO) A LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THE ACQUISITION:

There were no other sources which expressed an interest in this acquisition.

(b)(ll) A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE

OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT

ACQUISITION FOR THE SUPPLIES OR SERVICES REQ UIRED:

Contracting and requirement staff continue to conduct appropriate market research to determine if sources capable of satisfying th e agency' s requirement exist and to overcome competition barriers .

Deregulation laws are presently nonexistent and no alternative source of service is currently avai lable. A rev iew ofFPDS-NG shows only the FBOP is currently issuing purchase orders to the LTSA for wastewater utility service. If another potential source emerges, the agency will assess whether competition for future req uirements is feasib le.

Source Selection Information - See FAR 2.10 I & 3. 104

Wastewater Utility Services

Source Selection Information – See FAR 2.101 & 3.104

(b)(12) CONTRACTING OFFICER’S 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, and that I would not be making this request if it were feasible to fully compete this requirement. I further certify that this request is not the result of lack of advance planning or a desire to expend funds while those funds are still available.

//Signed// 7/8/2016

Matthew Joyce, Contract Specialist

FCI McKean

_//Signed//__________________________ 7/26/2016_

Dennis Dempsey, Contract Specialist Date

Field Acquisition Office

(c) I hereby certify that the supporting data, provided by the technical and requirements personnel, which form the basis for this justification is complete and accurate to the best of my knowledge and belief.

_//Signed//__________________________ 7/8/2016_

Ed Fleeson, Facilities Manager Date

Concurrence:

_//Signed//__________________________ 7/8/2016_

M. Recktenwald, Warden Date

Approved:

_//Signed//_________________________ 7/27/2016

Jill D. Ryan, Chief Date

Field Acquisition Office