JOFOC_-_USP_ATW_-__Natural_Gas_Contract_Award_FBO.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

10 Year Contract

Natural Gas Utility Service – USP Atwater, CA

Pursuant to the Federal Acquisition Regulation (FAR) 6.302-1 (a) (1) and 6.302-1 (b) (3), and Bureau of Prisons Acquisition Policy 6.304 (c), the Federal Bureau of Prisons (BOP) has determined that the procurement of natural gas service for the United States Penitentiary located in Atwater, CA, meets the criteria established for other than full and open competition. It is further determined that only one responsible source and no other supplies and/or services will satisfy agency requirements. This limitation on competition is justified as supported by the following information:

1. Agency:

U. S. Department of Justice Federal Bureau of Prisons United States Penitentiary 1 Federal Way Atwater, CA 95301

2. Nature and/or Description of Action being Approved:

This justification for other than full and open competition is for the acquisition of natural gas utility services provided to the United States Penitentiary (USP) located in Atwater, CA, from the original and sole provider of such services. USP Atwater has a present and continuing requirement for natural gas utility service for the orderly operation of the facility.

3. Description of Supplies or Services Required to Meet the Agency Needs:

USP Atwater requires natural gas utility services in a manner that is consistent with all applicable laws, rules, codes, industry standards, permits and regulations, promulgated by any and all governmental authorities having jurisdiction in the state of California.

Services shall be provided on a firm and interruptible daily basis (365) days per year.

West Coast Gas Company Inc. will be responsible to maintain and/or repair all associated natural gas lines and equipment, including associated costs for such repair, from the delivery point or meter of USP Atwater. Pursuant to FAR Part 41.202, the contractor is required to provide the “entire natural gas utility service” (i.e., standby or backup service, transmission and/or distribution service, quality assurance, system reliability, operation and maintenance, metering, billing, etc.)

Natural gas utility services are required from the Effective Date of Award (EDOA) Through 120 months from EDOA, subject to funds availability (FAR Clause 52.232-18).

FEDERAL BUREAU OF PRISONS – USP ATWATER

RFPP06181100003 – JOFOC – NATURAL GAS SERVICE

The FBOP shall purchase natural gas utility service defined as adequate supply to accommodate the transmission and/or distribution system designed specifically for receipt and use of natural gas utility services from West Coast Gas Company Inc. in order to maintain daily operations of the USP.

Contract Line Item Number

Performance Period Estimated Cost ($)

CLIN 0001 – PP 1 Effective Date of Award (EDOA) through 12 months from EDOA

Total Estimated Cost: $3,688,495.00 **PP = Performance Period**

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

This justification for other than full and open competition is prepared pursuant to the exception to full and open competition requirements in accordance with the statutory authority for these services that is found at 41 U.S.C. 253 (c) (1), when the supplies or services required by the agency are available from only one source. The application which permits use of the cited statutory authority are stated at FAR 6.302-1 (b) (3) When acquiring utility services (see 41.101), circumstances may dictate that only one supplier can furnish the service (see 41.202).

5. Determination that Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Requires Use of the Authority Cited:

West Coast Gas is the sole provider of these services to the United States Penitentiary (USP) in Atwater, CA. West Coast Gas Company Inc. is the sole proprietor of the transportation system that provides natural gas up to the meter of USP Atwater. West Coast Gas Company Inc., is a regulated, full service, natural gas supplier and distribution utility company. West Coast Gas Company is regulated by the California Public Utility

Commission (CPUC) as to rates, services levels, safety and reliability.

6. Efforts Made to Solicit from as Many Sources as Practicable Including Whether or Not a Notice Was or Will be Publicized as Required by FAR Part 5.2:

As stated in FAR 5.202 (a) (5), “the proposed contract action is for utility services other than telecommunications services and only one source is available.” Therefore, a notice is not required in the Government wide point of entry (GPE). However, a Pre-Solicitation notice was posted to Federal Business Opportunities (FBO) to seek suppliers which may be able to meet the minimum requirements of the USP by providing natural gas service.

West Coast Gas Company Inc. was the only response received from the Pre-Solicitation Notice.

7. Contracting Officer’s Determination that the Cost to the Government Will be Fair and Reasonable:

The current rate schedule offered by West Coast Gas Company has been approved by the CPUC, as well as, substantiated by the California Public Utilities Code as referenced in Section 451 -, “All charges demanded or received by any public utility, or by any two or more public utilities, for any product or commodity furnished or to be furnished or any service rendered or to be rendered shall be just and reasonable. Every unjust or unreasonable charge demanded or received for such product or commodity or service is unlawful. Every public utility shall furnish and maintain such adequate, efficient, just, and reasonable service, instrumentalities, equipment, and facilities, including telephone facilities, as defined in Section 54.1 of Civil Code, as are necessary to promote the safety, health, comfort, and convenience of its patrons, employees, and the public. All rules made by a public utility affecting or pertaining to its charges or service to the public shall be just and reasonable.”

8. Description of the Market Survey Conducted:

USP Atwater has a present and continuing need for natural gas utility services. USP Atwater does not have an onsite natural gas well and distribution system; therefore, the need for natural gas utility service has to be found and supplied by a contractor in the market. Market research has revealed the presence of approved tariff schedules which establish West Coast Gas as the only legal contractor with physical, mechanical, and operational capabilities to process the magnitude of service required by USP Atwater.

Market Research has also revealed that the North American Industrial Classification System (NAICS) code for natural gas utility service as 221210. The NAICS industry description for code 221210 has detailed that establishments with this code are primarily engaged in operating gas distribution systems (e.g., mains, meters); (2) establishments known as gas marketers that buy gas from the well and sell it to a distribution system; (3) establishments known as gas brokers or agents that arrange the sale of gas over gas distribution systems operated by others; and (4) establishments primarily engaged in transmitting and distributing gas to final consumers. Since West Coast Gas Company has demonstrated that they are engaged in the operation of such systems, code 221210 is applicable to this acquisition.

Also, a Sources Sought Synopsis was issued to discover any potential sources which may be able to satisfy the requirement of processing USP Atwater’s natural gas utility service. No responses were received.

9. Other Facts Supporting the Use of Other Than Full and Open Competition:

The provision of natural gas utility service is essential for the orderly operation of USP Atwater, which is designed to house over 1,500 inmates. Tariff Schedules have been established designating the West Coast Gas Company as the only legal authority to provide this service to various classes of users within their coverage area. A Source Sought Synopsis was issued to FBO to generate interest in this opportunity, as well as, to determine if any sources were capable of meeting this requirement. No responses were received.

10. List of Sources, Expressing in Writing, Interest in the Acquisition:

West Coast Gas Company Inc . is the only source that has expressed a written interest in this utility acquisition.

11. Actions Taken by the Agency to Remove or Overcome Barriers to Competitions:

Contracting and requirement staff will continue to conduct appropriate market research to determine if sources capable of satisfying the agency’s requirement exist and to overcome competition barriers. Laws which support deregulation of this utility service are not available in the Atwater natural gas utility market. Contracting staff will continue to monitor the market trends and CPUC rulings in the natural gas supply and distribution industry to seek competition or sources that may be able to meet the minimum needs of USP Atwater and its natural gas utility requirements. Should opportunities arise in the future the BOP will take appropriate action.

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.

Signed 06/02/2016 Darrell McKeel, Contracting Officer Date Field Acquisition Office

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 05/26/2016 Dale Day, Facility Manager Date USP Atwater, CA

Concurrence of:

Signed 05/26/2016 Andre Matevousian, Warden Date USP Atwater, CA

Signed 06/03/2016 Jill D. Ryan, Chief Date

Field Acquisition Office

Signed for 06/10/2016 Matthew D. Nace, Procurement Executive Date Administration Division

Approved:

Signed _06/17/2016 Bradley T. Gross, Assistant Director Date for Administration

Competition Advocate