N4425519C6103_JA_Coos_Bay.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING COMMAND NORTHWEST

1101 TAUTOG CIRCLE

SILVERDALE, WASHINGTON 98315-1101

J&A No. 19-08JA

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Facilities Engineering Command (NAVFAC) Northwest, Silverdale, WA

2. Description of the Action Being Approved.

Action is to award a follow-on, sole-source, ten-year, firm-fixed price utility service contract with the Confederated Tribes of Coos Lower Umpqua and Siuslaw Indians (CTCLUSI) for water and sewer service to support the mission of the Naval Ocean Processing Facility (NOPF) in Coos Bay, OR.

3. Description of Supplies/Services.

The Navy requires potable water and sewer services at the NOP Facility to support the facility’s mission and for fire protection. The current contract with CTCLUSI was awarded 26 February 2009 and expires 25 February 2019. The NOPF will require continuation of water and sewer services when the contract expires.

This contract action is authorized by FAR 41.103(b), Delegated Authority. The estimated ten-year total is approximately $93,277 based on historical usage escalated for future years. Payment will be made by the customer, NOPF, and is funded by O&MN Funds.

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

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. Rationale Justifying Use of Cited Statutory Authority.

FAR 6.302-1(a)(2) provides for the authority that full and open competition need not be provided for procurements where the service is available from only one source and no other type of supplies or services will satisfy agency requirements. FAR 6.302-1(b)(3) identifies an example situation where this authority may be appropriate specifically for utility services (as defined in FAR 41.101) when circumstances may dictate that only one supplier can furnish the service. Coos Bay - North Bend Water Board (CBNBWB) provides water service and the Charleston Sanitary District (CSD) provides wastewater services in the area of the NOPF site. However, NOPF is fully encompassed by Tribal land and neither CBNBWB nor CSD have access to the Navy property. Water and sewer services at the NOPF are available from only one responsible source: CTCLUSI.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

The CBNBWB, as the local municipal provider of water to the area, was questioned regarding whether they could provide water to the Navy site. In an email message received 30 May 2008, a representative of the CBNBWB stated that they came to an agreement with the CTCLUSI that they would place a compound meter to measure all domestic and fire protection water used on tribal land and that the CTCLUSI would provide and maintain the delivery of water to the Navy facility. The Navy would not be a customer of the Water Board. Thus, there is no competitive market. Since there are no other sources from which to obtain these utility services, no attempts were made to solicit offers from other sources. In accordance with FAR Part 5.202(a)(5) and 5.301(b)(5), the Government need not submit a synopsis notice if the proposed contract action, or contract award, is for utility services and only one source is available. However, the DFARS PGI 206.302-1 requires that a notice be advertised and the results included in the Justification. A notice was published on 24 January 2019 on the NECO/FedBizOps website with no responses. Also the Government is required to make the approved Justification publicly available within 14 days after contract award in accordance with FAR Part 6.305(a).

Since there are no other sources from which to obtain these utility services, no other attempts were made to solicit offers from other sources. Additionally, no market research was conducted because there is no other way to obtain water.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined that the anticipated cost to the Government of the utility services covered by this J&A will be fair and reasonable. This determination is based on a review of the published rates for the utility services in accordance with FAR 15.404-1(b)(2)(ii), (iv), and DFARS 215.404-1(b)(i).

8. Actions to Remove Barriers to Future Competition.

No actions are currently being taken to remove barriers to future competition. Utility services are a matter of local government control and NAVFAC has no ability to remove barriers that impact competition.