Rate_Litigation_Oklahoma_JA.pdf

Single Source Justification (Simplified Acquisition)

20 Apr 2017 Page 1 of 2

Contracting Activity: 772ESS/PKD

Project/Program Name: PUBLIC UTILITY RATE INCREASE OKLAHOMA GAS AND ELECTRIC

COMPANY BEFORE THE CORPORATION COMMISSION OF THE STATE OF

OKLAHOMA DOCKET NO. PUD 201800140

Purchase Request/Identification Number: F4ATA69059AW01

Estimated Contract Cost (including Options): $120,000.00

On December 31, 2018, Oklahoma Gas and Electric Company ("OG&E" or 'Company") filed a rate case seeking an annual net increase in retail non-fuel electric rates of 4.4%. The requested increase is driven by cost associated with the Sooner Scrubber and the Muskogee Conversion projects, a requested increase in return on equity ("ROE"), an increase in depreciation expense, and 100% recovery of cash compensation. The

Company's proposed change in rates will result in an increased non-fuel base rate cost of service to Federal

Executive Agencies ("FEA"). The rate design issues which may reduce shifts within the Large Power and

Light Time-of-Use rate schedule that will benefit FEA in this case.

An evaluation of all filed pleadings, testimony, and data is necessary to determine if the rates proposed are non-discriminatory, accurately reflect the actual cost of providing the service, and are necessary under the circumstances. In addition, expert assistance in reviewing all filed and to be filed documents, drafting data requests and responses, testimony, cross examination, briefs, and strategy is necessary for proper preparation of this case. The Contractor's assistance will be needed in all phases of case preparation from this point until the conclusion of the case.

Brubaker & Associates Inc. (BAI) has been identified as the contractor who employs the experts that have been determined with the most extensive background, experience, and track record for having their recommendations followed. Michael P. Gorman has 35 years of experience in this field, has filed testimony in

350 regulatory proceedings, starting June 1991, he started in the utility regulatory field in Sept 1990; a consultant in August 1983; and is a Charted Financial Analyst (CFA).This experience and expertise in dealing with service rate increases and depreciation rates are necessary to assist the Government in the analysis, presentation, and defense of any claims or requests for adjustment to contract terms and conditions as a result of the anticipated litigation. Based on past market research, AFCEC and PKD have no knowledge of any other law firm with this level of technical expertise, experience, proven results, and working knowledge of government rates experience and has filed testimony on behalf of the federal government multiple times.

Their particular expertise, opinion, reputation are what the ULFSC has chosen for this litigation. " 10 USC

2304 (c)(3) and FAR Part 6.302-3(a)(2)(iii) states that full and open competition need not be provided when it is necessary to acquire the services of an expert for litigation.

Section A: General Contract Information

Section B: Description of the Supplies/Services Required

SectionC: Justification for Soliciting from a Single Source or Brand Name

Single Source Justification (Simplified Acquisition)

20 Apr 2017 Page 2 of 2

The Government has reviewed other contract vehicles but has found BAI as the most suitable in regards to their background, experience, and track record along with their record in regards to litigation and no further research is required by the exception. Additionally, an explicit exception to full & open competition for the purchase of the services of an expert to support the Federal Government in any current or anticipated litigation or dispute is found in FAR Subpart 6.302-3(a)(2)(iii).

An explicit exception to full & open competition for the purchase of the services of an expert to support the Federal Government in any current or anticipated litigation or dispute is found in FAR Subpart 6.302-3(a)(2) (iii).

I have determined, in accordance with FAR13.106-1(b)(1), that the circumstances of this contract action deem only a single source is reasonably available.

Date Typed Name and Rank/Grade of Contracting

Officer

Signature of Contracting Officer

Section D: Efforts to Obtain Competition

Section E: Steps to Preclude Future Single Source or Brand NameAwards

Section F: Contracting Officer's Determination

6 Mar 19 George W. Mason