S_A12_FBO_LEW_JOFOC_Natural_Gas_LDC_Utility_Service.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN

COMPETITION

PUBLIC UTILITY – NATURAL GAS LDC UTILITY SERVICE

UNITED STATES PENITENTIARY LEWISBURG

LEWISBURG, PENNSYLVANIA

Contractor: UGI Central Penn Gas

Period of Coverage: 11/1/2016 through 9/30/2017

Estimated Amount: $323,583.33

UNITED STATES DEPARTMENT OF JUSTICE

FEDERAL BUREAU OF PRISONS

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

NATURAL GAS LOCAL DISTRIBUTION COMPANY (LDC) UTILITY SERVICES

Pursuant to the Federal Acquisition Regulation (FAR) 6.302-1(a)(1) and 6.302-1(b)(3), and the Bureau of Prisons Acquisition Policy (BPAP) 4100.05 at 6.304 (b), the Federal Bureau of Prisons (BOP) has determined that the procurement of natural gas transportation services for the United States Penitentiary (USP) Lewisburg and adjacent Camp, located in Lewisburg, Pennsylvania 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 justification is supported as follows:

1. Identification of the agency and contracting activity:

United States Department of Justice Federal Bureau of Prisons United States Penitentiary Lewisburg PO Box 1000 Lewisburg, PA 17837

2. Nature and/or description of action being approved:

The acquisition consists of the local distribution company providing the distribution of natural gas to USP Lewisburg and adjacent Satellite Camp. There is only one source available to provide this service in the immediate and surrounding areas. USP Lewisburg has a present and continuing requirement for natural gas utility (uninterruptible) transportation service.

3. Description of services required to meet the agency needs and estimated value:

UGI Central Penn Gas, shall provide to the government facility at USP Lewisburg, natural gas utility transportation 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. Services shall be provided on an uninterruptible daily basis (365) days per year. UGI Central Penn Gas will be responsible to maintain and/or repair all associated natural gas lines and equipment, including associated costs for such repair, to the delivery point or meter of USP Lewisburg. Pursuant to FAR Part 41.202, the transportation services for natural gas 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 a purchase order. The transportation of natural gas for the US Penitentiary Lewisburg and the adjacent Satellite Camp is needed.

Estimated value: $ 323,583.33

4. Identification of 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 USC § 3304(a)(1), 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). Analysis of the market indicates that UGI Central Penn Gas has proprietary rights of the pipeline up to the meter at USP Lewisburg. 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 proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:

The vendor, UGI Central Penn Gas, is the sole provider of natural gas transportation services in Kelly Township, PA. This company has statutory authority governing the transportation of natural gas for the locale (Kelly Township) in which both the US Penitentiary Lewisburg and adjacent Satellite Camp reside. The current tariff as issued by the Pennsylvania Public Utility Commission (PUC) is CPG Gas PA. – P.U.C. No. 4, Supplement No. 8 and can be accessed at http://gasmngmt.ugi.com/UGIC/statetariff.shtml.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable including whether or not a notice was or will be publicized as required by FAR Subpart 5.2:

A solicitation was not publicized on the Federal Business Opportunities web site as the contract action is for utility services other than telecommunications services and only one source is available. FAR 5.202(a)(5) applies as the exception. UGI Central Penn Gas will be contacted to determine their willingness to enter into a formal agreement.

7. A determination by the contracting officer that the anticipated cost to the

Government will be fair and reasonable:

The expected cost to the government is fair and reasonable. This determination is based upon the Contracting Officer’s experience, rates recently paid, rates paid by the local hospital facility. The estimated average monthly cost, which was based on invoice history, for the natural gas transportation service is $29,416.66 with a total estimated usage for a 12 month period of $323,583.33. The current rates offered by UGI Central Penn Gas are comparable to the market price levied other commercial and industrial users in the USP Lewisburg area.

8. A description of the market research conducted:

It is this Contracting Officers determination there is a source available that is capable of providing the required services. The requirement will be awarded to UGI Central Penn Gas as a single award of a firm-fixed price requirements type natural gas LDC utility service purchase order utilizing FAR Part 6, 12, 13, and 41. A Performance-Based Acquisition method will not be used for this procurement as it is determined not applicable. A PBA relies on the use of measurable performance standards and financial incentives in a competitive environment to encourage competitors to develop and institute innovative and cost-effective methods of performing the work. One potential source is the incumbent UGI Central Penn Gas, which appears able to satisfy the requirement.

The provision of natural gas service is essential for the orderly operation of USP Lewisburg. History shows and economics dictate that the construction of facilities by multiple utilities in the same location would be extremely costly and disruptive to communities. UGI Central Penn Gas, is small business. UGI Central Penn Gas is a regulated utility. This requirement will not be posted to Fedbizopps as a combined synopsis solicitation to promote competition, broaden industry participation, and assist small business concerns in obtaining contracts for FCC Butner, NC. This requirement meets the exemption at FAR 5.202(5) the proposed contract action is for utility services other than telecommunications services and only one source is available. UGI Central Penn Gas is the sole provider of natural gas LDC service in the USP Lewisburg service area. The FBOP does not currently have the resources to provide the funding for another company to install alternative gas transmission system, another distribution system is not available at the meter, and no other contractor can provide natural gas LDC utility service through UGI Central Penn Gas network. The U.S. General Services Administration has issued a Delegation of Contracting Authority to the U.S. Department of Justice, Federal Bureau of Prisons to negotiate and execute utility service contracts. This includes the provision of natural gas LDC utility service for USP Lewisburg.

9 Any other facts supporting the use of other than full and open competition:

The provision of natural gas LDC utility services is essential to the orderly running of the US Penitentiary and adjacent Satellite Camp operations. The facilities houses 1962 inmates collectively and are situated within the boundaries of the UGI Central Penn Gas franchise territory. A GSA area-wide contract currently does not exist for natural gas transportation services. 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).

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition:

There were no other sources which expressed an interest in this acquisition or that would be able to provide the service to meet the minimum requirements of the government.

11. A statement of the actions, if any, the agency may take to remove or overcome barriers to competition before any subsequent acquisition for the services required:

The vendor, UGI Central Penn Gas will be contacted to determine their willingness to enter into a formal agreement. Bureau of Prisons Facilities and Procurement staff will continue to monitor this requirement to promote full and open competition. Should additional utility services become available in the future, a contact action will be synopsized to obtain competition.

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, the supporting data and information are accurate and complete to the best of my knowledge and belief and 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 advanced planning or a desire to expend funds while those funds are still available.

//SIGNED\\ _11/2/2016___________

Dennis Dempsey, Contract Specialist Date

Field Acquisition Office

I hereby certify that the supporting data, provided by the technical and requirements personnel, which forms the basis for this justification is complete and accurate to the best of my knowledge and belief.

//SIGNED\\ _11/9/2016___________

Ken Neuhard, Facility Manager Date

USP Lewisburg

Concurrence:

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

//SIGNED\\ _11/9/2016___________

David J. Ebbert, Warden Date

USP Lewisburg

Approved:

__//SIGNED\\ ______________ _12/1/2016___________

Jill D. Ryan, Chief, Date

Field Acquisition Office