S_A12_FBO_FAI_JOFOC_Wastewater_Utility_Service_FY17.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN

COMPETITION

PUBLIC UTILITY – WASTEWATER UTILITY SERVICE

FEDERAL CORRECTIONAL INSTITUTION FAIRTON

FAIRTON, NEW JERSEY

Contractor: Cumberland County Utilities Board

Period of Coverage: 10/1/2016 through 9/30/2017

Estimated Amount: $390,000.00

UNITED STATES DEPARTMENT OF JUSTICE

FEDERAL BUREAU OF PRISONS

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

WASTEWATER UTILITY SERVICES FCI FAIRTON

Pursuant to the Federal Acquisition Regulation (FAR) Subpart 6.302-1 (a) and 6.302-1 (b) (3), and the

Bureau of Prisons Acquisition Policy (BPAP) 4100.05 Part 6.304(b), the Federal Bureau of Prisons

(FBOP) has determined that the procurement of wastewater utility services for the Federal Correctional

Institution (FCI) Fairton, 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 in accordance with FAR Part 6.303-2:

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY:

Department of Justice

Federal Bureau of Prisons

Federal Correctional Institution Fairton

655 Fairton-Millville Road

Fairton, NJ 08320

2. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED:

This action is for the acquisition of wastewater utility service provided to the FCI Fairton, from the sole provider of such services in the Fairton, New Jersey, area. The FBOP, a component of the

Department of Justice (DOJ) has a preceding, current, and continuing requirement for wastewater utility service for the proper operation of the facility in order to provide a safe, secure environment to confine offenders and protect the public. The FBOP, Field Acquisition Office working to satisfy the acquisition needs of the FCI Fairton, intends to make a single award to the contractor who shall provide wastewater utility services upon request by the institution. The pricing includes all associated charges to the government for providing the services required (e.g., insurance, overhead, minimum wages, planning, etc.). The quantity of supplies/services to be provided by the contractor is estimated. These estimates are not a representation to a offorer or contractor that the estimated quantities will be required or ordered, or that conditions affecting requirements will remain stable or normal. General information regarding the FBOP and its facilities is located at www.bop.gov.

3. DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY’S

NEEDS:

Pursuant to FAR Part 41.202, the Cumberland County Utilities Authority (CCUA) continues to provide the “entire wastewater utility service” (i.e., collection, conveyance, treatment, system operation and maintenance, metering, billing, etc.). CCUA shall provide to the government facility at

FCI Fairton, wastewater utility services in a manner and form that is consistent with all applicable laws, rules, codes, industry standards, permits, and regulations, promulgated by any and all governmental authorities having jurisdiction. The CCUA shall provide services on an uninterruptible daily basis 365 days per year. CCUA will be responsible to maintain and/or repair all associated pipelines and equipment, including associated costs for such repair, up to the collection point or meter of FCI Fairton. CCUA will be responsible to ensure that the pipelines and associated equipment, utilized to provide wastewater utility services will be maintained and operated in compliance with all rules and regulations set by the State of New Jersey, in accordance with all Federal, State, County, and local government for a safe and secure wastewater utility service.

http://www.bop.gov/

JOFOC FCI FAIRTON

Wastewater Utility Service

The service required is collection, treatment, transportation and related services for wastewater utility services from October 1, 2016, through September 30, 2017, subject to funds availability (FAR Clause

52.232-18). The services will be procured by way of purchase order. The estimated cost for the wastewater utility is as follows: Wastewater: $390,000.00.

Contract Line Item Number Performance Period Estimated Annual Cost ($)

CLIN 0001 October through December 2016 $100,000.00

CLIN 0002 January through March 2017 $95,000.00

CLIN 0003 April through June 2017 $95,000.00

CLIN 0004 July through September 2017 $100,000.00

Total Estimated Cost: $390,000.00

4. AN IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING OTHER

THAN FULL AND OPEN COMPETITION:

This justification to award as a sole source 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. 3304 (a)(1) and FAR 6.302-1(b)(3), when the supplies or services required by the agency are available from only one responsible source. The application which permits use of the cited statutory authority are stated at FAR Part 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).” In order for another provider to be capable of providing the service, significant capital improvements would be needed. The Bureau would be required to pay for the capital improvements, but it would not recover the costs of duplication of services, connection fees and infrastructure installation costs through competition. The current requirement is for follow-on services and does not include funding for capital improvements.

5. A DEMONSTRATION THAT THE PREPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF THE

AUTHORITY CITED:

It is the policy of the Federal Government to obtain utility service from sources which are most advantageous to the Government in terms of economy, efficiency, reliability, and/or service. CCUA is the sole provider of wastewater utility service in the FCI Fairton service area. CCUA is a public municipal entity in the State of New Jersey, the only agent authorized by rules and regulations to provide wastewater utility service in the Fairton area. Having a single provider of wastewater utility service for this area is the most efficient method of providing wastewater service. The New Jersey Board of Public Utilities (NJBPU) is the administrative agency charged under new Jersey law with the supervision and control over all public utilities in the state. The NJBPU however, does not have regulatory authority over municipal utilities. The CCUA is authorized under authority of P.L. 1977, Chapter 384 (N.J.S.A. 40:14B-1)(et seq) and pursuant to Article V, Section 502 of its Service Agreement.

6. A DESCRIPTION OF EFFORTS MADE TO SOLICIT FROM AS MANY POTENTIAL

SOURCES AS PRACTIVABLE, INCLUDING WHETHER A NOTICE WAS OR WILL BE

PUBLICIZED AS REQUIRED BY FAR PART 5.2:

As stated in FAR Part 5.202, Exceptions to transmitting a notice to the Government Point of

Entry(GPE) at (a)(5), the contracting officer need not submit a notice when “the proposed contract action is for utility services other than telecommunications services and only one source is available.”

There are no General Services Administration (GSA) area-wide or single point contracts for wastewater utility service in the FCI Fairton area at this time. This contracting officer has determined, in accordance with FAR 5.202(a)(5), that this requirement appears to be a non-competitive market and the contracting officer need not submit a notice of, nor the issuance of, the

RFQ to the GPE.

7. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED

COST TO THE GOVERNMENT WILL BE FAIR AND REASOANBLE:

The estimated average quarterly cost, which is based on invoice history, for the wastewater utility service is $97,500 with a total for the 12 month period of $390,000.00. The current rates offered by the CCUA are equal to the market price levied other commercial, industrial, and Government users.

Prices will be analyzed by the Contracting Officer and Facility Manager in order to determine price reasonableness. Utility rates are approved by the CCUA. The CCUA, which is charged under State of New Jersey law to ensure that rates be just and reasonable. The State of New Jersey and CCUA websites have provided sufficient data to the FBOP contracting officer, pursuant to FAR 15.402, Pricing Policy, allowing the ability to make a preliminary determination that such anticipated costs appear to be fair and reasonable. A formal decision in the form of periodic rulings, reviews, or similar actions of a governmental body, or embodied in the laws, are sufficient to set pricing (see FAR

15.403-1[c][2]). The establishment of the current collection and removal services began when the original service connections were installed and the meters set. As such, the Contracting Officer has determined the anticipated cost to the Government will be fair and reasonable.

8. A DESCRIPTION OF THE MARKET RESEARCH CONDUCTED:

This documentation is in accordance with FAR Part 10, which describes the policies and procedures for conducting market research in a process of finding viable sources of goods and services to meet government requirements and to find the most suitable approach to acquiring, distributing, and supporting supplies and services. This report is submitted in support of an acquisition with an estimated value in excess of the simplified acquisition threshold. Below are the findings of the market research for the above referenced requirement.

Background: A review of the obligation reveals the following – The Federal Correctional Institution

Fairton (hereinafter referred to as “FCI Fairton”) has a current and continuing requirement for wastewater utility service.

Title: The CCUA to provide wastewater utility service for the FBOP, FCI Fairton.

Product or Service Code: S- Utilities and Housekeeping Services –S119 Other utilities.

North American Industry Classification System (NAICS): 221320 Sewage Treatment Facilities = this industry comprises establishments primarily engaged in operating water and sewer systems or sewage treatment facilities that collect, treat, and dispose of waste.

Standard Industrial Classification (SIC) Code: 4952 Sewerage Systems

Potential Sources: CCUA is the sole provider of wastewater utility service in the FCI Fairton area per the original connection agreement. I applied personal knowledge, interaction with knowledgeable individuals in local and Federal Government regarding market capabilities to meet the requirements, and research of generally accessible literature available on-line were the techniques used in researching this procurement for a supply/services of this type. The CCUA is a body politic and corporate and a public instrumentality of the State of New Jersey. Due to its historical relationship with the FCI Fairton under the initial infrastructure connection contract, the CCUA is the only contractor that can maintain and sustain the current and future infrastructure management of all required utility systems.

Deliver / Performance time: Pursuant to FAR Part 41.202, the CCUA continues to provide the “entire wastewater utility service” (i.e., collection, treatment, disposal, system operation and maintenance, metering, billing, etc.). The CCUA shall provide to the government facility at FCI Fairton, wastewater utility services in a manner and form that is consistent with all applicable laws, rules, codes, industry standards, permits, and regulations, promulgated by any and all governmental authorities having jurisdiction. The CCUA will be responsible to maintain and/or repair all associated wastewater lines and equipment, including associated costs for such repair, from the collection point or meter of FCI Fairton.

Commercial Item Determination: Wastewater utility services are items that are of a type customarily used by the general public and by non-governmental entities for purposes other than governmental purposes.

Market Analysis: The results of market research have determined that the government’s needs can be met by an item customarily available in the commercial marketplace.

The following methods were utilized to conduct Market Research:

X Reviewed historical acquisition information.

X Personal knowledge in procuring supplies/services of this type.

X Review of Government and/or commercial databases for relevant information.

X FedBizOpps Sources Sought Synopsis; Found no other interested party capable of providing wastewater utility service.

X Searched database and contacted GSA Energy Center of Expertise; Found no areawide or single point contract is available.

X Searched FPDS-NG; Found only the FBOP are purchasing wastewater utility service from the CCUA.

X Searched previous purchases of similar/identical acquisitions; Found the CCUA is current provider to FCI Fairton. This is a continuation of service.

X Reviewing results of recent market research undertaken to meet similar or identical requirements.

X Contacting knowledgeable individuals in Government and Industry regarding market capabilities to meet requirements.

Results: Results of Market Research were as follows: Only on source could be found. A Justification for Other than Full and Open Competition is provided for approval.

The market research conducted by the contracting office and the Facilities Department staff determined that a GSA area-wide nor a single point contract with CCUA is available in accordance with Title 31 USC § 1535. GSA is specifically authorized by law and regulation to purchase utility services on behalf of other agencies by providing an Assisted Acquisition. August 2010, in accordance with Title 40 USC § 121(d), GSA issued the FBOP a Delegation of Authority for nationwide authority to negotiate and execute utility service contracts at Federal facilities under the control and direction of the FBOP in accordance with Title 40 USC § 501(b)(1)(B). Search of previous purchases of similar/identical acquisitions shows the CCUA is the current wastewater service provider for FCI Fairton and has serviced the facility since dedication. No other company has presented itself with the capabilities nor the infrastructure to provide this utility service to the current connection site. The amount compensated for the construction of the wastewater infrastructure systems currently being used at FCI Fairton is not available. No other sources have been located that are currently capable or that could acquire the capability of meeting the Bureau’s requirement.

Results: Based on the information provided by the sources detailed above, the following information outlines the conclusions and provides the basis for this procurement.

Recommendation: The Government contemplates the single award of a firm-fixed price requirements type wastewater utility service purchase order resulting from this requirement.

Comments: The conclusions from this market research will be incorporated into the document for providing Wastewater Utility Service for FCI Fairton.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION:

The provision of wastewater utility service is essential for the orderly operation of FCI Fairton, which has a rated capacity to collectively house approximately 824 inmates. State regulations and local ordinances limit the provider of this service to only one provider.

10. A LISTING OF SOURCES, IF ANY, THAT EXPRESSED IN WRITING, AN INTEREST IN

THE ACQUISITION:

There were no other sources which expressed an interest in this requirement.

11. A STATEMENT OF THE ACTIONS TAKEN BY THE AGENCY TO REMOVE OR

OVERCOME BARRIERS TO COMPETITION:

Contracting and requirement staff continue to conduct appropriate market research to determine if sources capable of satisfying the agency’s requirement exist and to overcome competition barriers.

Deregulation laws are presently nonexistent and no alternative source of service is currently available. A review of government procurement databases shows only the FBOP is issuing orders to the CCUA for wastewater utility requirements. FCI Fairton is a consumer of services from the public utility. If another potential source emerges, the agency will assess whether competition for future requirements is feasible. FCI Fairton will continue to monitor the trends in the utility industry to see if competition or sources that may be able to meet the minimum needs of the government and its utility requirements. Should opportunities arise in the future FCI Fairton 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 and that the supporting data and information are accurate and complete to the best of my knowledge and belief, and that I would not be making this request if it were feasible to fully compete this requirement. I further certify that this request is not the result of lack of advance planning or desire to expend funds while those funds are still available.

//SIGNED\\ 11/30/2016

Dennis Dempsey, Contract Specialist 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\\ for 10/17/2016

Date

Richard E. Cahill, Facilities Manager

Concurrence:

In accordance with BPAP 4100.05 Subpart 6.304(c), I certify I have reviewed this justification and find it adequate to support other than full and open competition.

//SIGNED\\ 10/19/2016

Mark A. Kirby, Warden Date

FCI Fairton

Approval:

//SIGNED\\ 12/1/2016

Jill D. Ryan, Chief Date

Field Acquisition Office