NOI - out.docx

Bureau of Reclamation Form, RF-102 02-2016

Bureau of Reclamation Form, RF-102 12-2011

NOTICE OF INTENT TO AWARD

This Funding Announcement is not a request for applications. This announcement is to provide public notice of the Bureau of Reclamation’s intention to fund the following project activities without full and open competition.

ABSTRACT

Recipient

Orchard Mesa Irrigation District

Anticipated Federal Amount $1,500,000

Anticipated Non-Federal Amount There is no cost-share requirement for this grant.

Award Instrument

Grant

OVERVIEW

The Grand Valley Power Plant (Plant) was constructed near the town of Palisade, Colorado in the early 1930s by the United States through the Bureau of Reclamation and since that time it has received few upgrades. The Plant is still currently owned by Reclamation and operated by the Orchard Mesa Irrigation District (District) and Grand Valley Water Users Association (Association) under a Lease of Power Privilege (LOPP) with Reclamation. The continued operation of the Plant is critical to Colorado River operations as it is located at the beginning of the 15 Mile Reach, which hosts fish currently on the Endangered Species list.

The Endangered Species Act obligates the Bureau of Reclamation (Reclamation) to avoid jeopardizing the continued existence of fish on the Endangered Species list in the 15-Mile Reach of the Colorado River. Reclamation relies on project power water rights to meet these obligations, which is needed for the continued operation of the Plant.

The Plant is in critical need of over $5 million of major renovations to bring it up to current safety and operational standards. One of the two turbines is currently out of service. Most of the facility’s components are over 80 years old, significantly past their useful life, and repair parts are no longer available. The work from this grant is crucial to avoiding the Plant shut down in the near future, thereby risking Reclamation’s project water right and Reclamation’s ability to avoid jeopardizing the continued existence of the fish on the Endangered Species list.

RECIPIENT INVOLVEMENT

Under their authority and contract obligations the recipient will conduct operations, maintenance, and provide replacement of the Plant. OMID contracts with Sorenson Engineering for the overall rehabilitation of the Plant. Since October 2016, Sorenson Engineering has dismantled and removed one of the two units at the Plant, begun measurements, and designed for replacements. Sorenson Engineering has provided initial cost estimates and construction timelines. OMID, GVWUA, and Sorenson Engineering will provide Reclamation with all plans, designs, and materials descriptions for approval prior to any work on the plant.

RECLAMATION INVOLVEMENT

No substantial involvement on the part of Reclamation is anticipated for the successful completion of the objectives to be funded by this award. It is anticipated that Reclamation’s involvement will consist of standard federal stewardship responsibilities such as monitoring project performance, technical assistance at the request of the recipient, and design reviews by the Technical Services Center.

SINGLE-SOURCE JUSTIFICATION

DEPARTMENT OF THE INTERIOR

SINGLE SOURCE POLICY REQUIREMENTS

Department of the Interior Policy (505 DM 2) requires a written justification which explains why competition is not practicable for each single-source award. The justification must address one or more of the following criteria as well as discussion of the program legislative history, unique capabilities of the proposed recipient, and cost-sharing contribution offered by the proposed recipient, as applicable.

In order for an assistance award to be made without competition, the award must satisfy one or more of the following criteria:

(1) Unsolicited Proposal – The proposed award is the result of an unsolicited assistance application which represents a unique or innovative idea, method, or approach which is not the subject of a current or planned contract or assistance award, but which is deemed advantageous to the program objectives;

(2) Continuation – The activity to be funded is necessary to the satisfactory completion of, or is a continuation of an activity presently being funded, and for which competition would have a significant adverse effect on the continuity or completion of the activity;

(3) Legislative intent – The language in the applicable authorizing legislation or legislative history clearly indicates Congress’ intent to restrict the award to a particular recipient of purpose;

(4) Unique Qualifications – The applicant is uniquely qualified to perform the activity based upon a variety of demonstrable factors such as location, property ownership, voluntary support capacity, cost-sharing ability if applicable, technical expertise, or other such unique qualifications;

(5) Emergencies – Program/award where there is insufficient time available (due to a compelling and unusual urgency, or substantial danger to health or safety) for adequate competitive procedures to be followed.

Reclamation did not solicit full and open competition for this award based on the following criteria:

(4) UNIQUE QUALIFICATIONS

Single Source Justification Description:

Under lease of power privilege (LOPP), Contract No. 0-07-40-P0180, OMID have exclusive responsibility for operating, maintaining, and replacing components of the Plant. Reclamation has determined that it is not appropriate or feasible to allow any other applicants to compete for this award. OMID, as required by their LOPP with the United States, have initiated the overall rehabilitation of the Plant and is considered an eligible applicants by the LOPP.

The Plant is in critical need of major rehabilitation. If the work is not completed by OMID, the Plant will need to be shut down in the near future, thereby risking Reclamation’s project water right and Reclamation’s ability to avoid jeopardizing the continued existence of four species of endangered fish.

OMID are uniquely qualified to carry out the proposed renovations because they are responsible for the operation and replacement of the Plant. No other entity is familiar with the plant’s operation, maintenance, and rehabilitation needs. No other entity, other than Reclamation, has the authority to do the required work. OMID have diligently operated and maintained the plant since 2010 and they have the expertise necessary to carry out the renovations.

OMID operate and conduct regular maintenance of the Plant and other project facilities on the Grand Valley Project. Using a different recipient to for the rehabilitation may cost dramatically more than normal for operation and maintenance if OMID does not update this Plant.

OMID have already contracted with Sorenson Engineering for initial design work, cost estimates, and construction timelines. The overall Plant rehabilitation project has already begun under OMID. One of the power generating units has been dismantled and replacement parts are being designed. OMID contract Sorenson Engineering has provided similar services for the transferred works operating entity on the Uncompahgre Project.

STATUTORY AUTHORITY

Full citation: Upper Colorado and San Juan River Basins Endangered Fish Recovery Programs: Public Law 106–392 as amended through Public Law 112-270

Public. L. 106-392

Section 1. Purpose. The purpose of this Act is to authorize and provide funding for the Bureau of Reclamation to continue the implementation of the endangered fish recovery implementation programs for the Upper Colorado and San Juan River Basins in order to accomplish the objectives of these programs within a currently established time schedule.

Section 3(f) ADDITIONAL AUTHORITY.—The Secretary may enter into agreements and contracts with Federal and non-Federal entities, acquire and transfer interests in land, water, and facilities, and accept or give grants in order to carry out the purposes of this Act.

Public Law 112-270 To amend Public Law 106-392 to maintain annual base funding for the Upper Colorado and San Juan fish recovery programs through fiscal year 2019.

Section 3(d)(2) of Public Law 106-392 is amended- (1) by striking "2011" each place it appears and inserting "2019".

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