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Department of the Army Limited Source Justification

For GSA Purchases above the Simplified Acquisition Threshold

1. Contracting Activity: The United States Army Contracting Command-Warren (ACC-WRN) Anniston Army Depot (ANAD) is the procuring activity for this action.

2. Description of Action: This action is for a new sole source firm-fixed price contract for Energy Management Services (EMS) under the terms and conditions of the General Services Administration (GSA) Area Wide Contract (AWC) GS-OOP-15-BSD-1133 for Alabama Power Company, a public utility company regulated by the Alabama Public Service Commission, to provide Utility Energy Services Contracts (UESC) services without full and open competition. The work will be performed at Anniston Army Depot (ANAD), Anniston, Alabama, which is within the Alabama Power Company franchised service territory established by the Alabama Public Service Commission, under the terms and conditions of the GSA AWC. Implementation of UESC projects is projected in the FY16-FY17 Directorate of Public Works (DPW) budget using Army Working Capital Funds (AWCF).

3. Description of the Supply or Service Purchased: Subject to the provisions of the AWC and under authorization of the Multiple Award Schedule Program, Alabama Power Company will provide project development and installation efforts to implement energy and water conservation projects at various locations at ANAD. Results of the Investment Grade Audit (IGA) conducted by Alabama Power state that 14 individual energy conservation measures (ECMs) can be supported, and when combined will have a substantial positive impact on ANAD achieving the Army’s energy conservation goals.

Implementation of these ECMs will allow the United States Government to effectively improve the aforementioned facilities and reduce its electricity, gas, and water demand.

The energy and water savings will reduce the site’s electricity, gas, and water allocation, resulting in utility cost avoidance and compliance with mandatory laws and statues to reduce energy and water consumption. The total estimated value of this action will be approximately $21M.

4. Authority Cited: Energy Policy Act of 1992, Section 152, Federal Energy Management Amendments; 42 United States Code (U.S.C.) 8256(a), Incentives for Agencies; and Federal Acquisition Regulation (FAR) 8.405-6(c)(1), Federal Supply Schedules, Limited Sources, which states that this acquisition is to be conducted under the authority of the Multiple Award Schedule Program. 48 Code of Federal Regulations (CFR) 41.204(c)(1), GSA Areawide Contracts, prescribes: “Any Federal agency having a requirement for utility services within an area covered by an areawide contract shall acquire services under that areawide contract.”

5. Reason for Authority Cited: A UESC is considered an electrical service and will be executed as an Exhibit C to the GSA Area Wide Utility Contract with Alabama Power Company. Section 152 of the Energy Policy Act of 1992, codified in 42 U.S.C. Section 8256, encourages Government installations to enter into agreements with electric, water, and gas utilities to design and implement cost-effective demand and conservation incentive programs to address the requirements and circumstances of Government installations. The main purpose of 42 U.S.C. 8256 is to authorize the Government to take advantage of the expertise, rebates, and other financial incentives offered to customers of utility service providers for reducing energy consumption. Under 42 U.S.C. 8256, the procedures and methods required by the energy policy acts are procurement procedures otherwise expressly authorized by statue, and as a consequence, are exempt from the Competition in Contracting Act requirement for full and open competition. Alabama Power is the only utility company willing and able to provide comprehensive EMS at ANAD in accordance with 42 U.S.C. 8256. Further, 48 CFR 41.204(c)(1) states, “Any Federal agency having a requirement for utility services within an area covered by an areawide contract shall acquire services under that areawide contract.” Alabama Power Company has performed many projects for electrical services within the GSA contract, such as engineering related to electrical distribution improvements and energy management improvement projects. Under 2013 Code of Alabama, Title 37 – Public Utilities and Public Transportation, Chapter 14 – Service Territories for Electric Suppliers, Section 37-14-1 (AL Code § 37-14-1 (2013)), boundaries are established for Electric Service Territories within the state. Each utility company is restricted to certain regions within Alabama. Electrical services for most of Central and South Alabama are provided by Alabama Power Company. Services for Anniston Army Depot located in Calhoun County are restricted to Alabama Power Company.

6. Market Research: Market research based on Department of Energy (DOE), Federal Energy Management Program (FEMP), and GSA guidance was conducted on 4 March 2016. According to GSA guidance, “if the GSA Areawide Contract is available in the service area, the facility shall use that Areawide Contract.” Internet research found that two companies, Alabama Power and Alagasco, hold Areawide Contracts with ANAD, but no other companies are part of the GSA Areawide Public Utility Contract, and no other companies are authorized under AL Code § 37-14-1 (2013) to provide utility services to Calhoun County, Alabama, except Alabama Power. In summary, Alabama Power has the ability and is willing to provide ANAD with a UESC.

7. Other Facts:

a. Alabama Power has the ability to provide all of the requirements to support a UESC, including design, installation, funding, and the timely execution of the needed services. In addition, the associated costs for procurement, contract administration, and performance assurance that Alabama Power will perform on behalf of the United States Government represent a significant savings in time and costs.

b. 42 U.S.C. 8256 allows the Government to take advantage of the expertise, rebates, and other financial incentives offered to customers of utility service providers for reducing energy consumption.

8. Actions to Increase Competition: ANAD is addressing current authorized recommendations and will follow future outlined UESC guidance related to increased competition requirements.

9. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete and to the best of my knowledge and belief.

Printed Name:

Electronic Signature:

Title: Date:

10. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Printed Name: Electronic Signature:

11. Contracting Officer’s Best Value Determination: I hereby determine that this order represents the best value consistent with FAR 8.404(d) and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government’s needs.

Printed Name: Electronic Signature:

Title: Date:

12. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Printed Name: :

APPROVAL OF LIMITED SOURCE JUSTIFICATION

Based on the foregoing justification, and as Principal Assistant Responsible for Contracting pursuant to Army Materiel Command (AMC) Head of Contracting Activity (HCA) Delegation of Authority (DOA) #15-19, I hereby approve the procurement of EMS at ANAD, with a total estimated value of $21M, pursuant to the authority of 42 U.S.C.

8256(a) as implemented by FAR 8.405-6(c)(1), subject to availability of funds, and provided that the supplies or services herein described have otherwise been authorized for acquisition.

Signature: __________________________