SoleSourceContractJustificationNSF2025.docx

Sole Source CONTRACT Filing Justification Template

Use the following justification template for preparing to file sole source contracts in the Sole Source Contracts Database (SSCD). Once completed, copy and paste the answers into the corresponding SSCD question and answer fields. You will also need to include a copy of this completed form in the documents you post to your agency website and in WEBS.

What is a sole source contract?

"Sole source" means a contractor providing goods or services of such a unique nature or sole availability that the contractor is clearly and justifiably the only practicable source to provide the goods or services. (RCW 39.26.010)

Unique qualifications or services are those which are highly specialized or one-of-a-kind.

Other factors which may be considered include past performance, cost-effectiveness (learning curve), and/or follow-up nature of the required goods and/or services. Past performance alone does not provide adequate justification for a sole source contract. Time constraints may be considered as a contributing factor in a sole source justification, however will not be on its own a sufficient justification.

Why is a sole source justification required?

The State of Washington, by policy and law, believes competition is the best strategy to obtain the best value for the goods and services it purchases, and to ensure that all interested vendors have a fair and transparent opportunity to sell goods and services to the state.

A sole source contract does not benefit from competition. Thus the state, through RCW 39.26.010, has determined it is important to evaluate whether the conditions, costs and risks related to the proposal of a sole source contract truly outweigh forgoing the benefits of a competitive contract.

Providing compelling answers to the following questions will facilitate DES’ evaluation.

Specific Problem or Need

· What is the business need or problem that requires this contract?

An internal quarantine in the Grandview area was established in 2022 as part of a multi-year plan to eradicate Japanese beetle (WAC 16-470-700) The initial area included 49 square miles, and was expanded to 74 square miles in 2023 by emergency rule as more beetles were detected outside the initial boundaries. Based on beetle detections from 2023, the WSDA expanded the quarantine area to 127 square miles in 2024 through official rulemaking processes.

The internal quarantine for Japanese beetle includes yard debris as one of its regulated articles (WAC 16-470-710). This prohibits it from being transported from inside the quarantine to outside. Restriction of the movement of yard debris places a burden on residents as this restricts them from placing yard debris in their collection containers, and waste management companies from transporting this waste. Landscapers would also be unable to dispose of yard debris from within the quarantine area outside of the quarantine area. To combat this issue, WSDA established a free yard debris drop off area in Grandview in summer 2022. This site has seen heavy use from residents and businesses in the impacted area from 2022-2024. In 2024, WSDA was able to establish an additional drop-off area in Sunnyside through Natural Selection Farms. With Japanese beetle eradication still in progress, keeping these locations operational is a must. Continued contracting with Natural Selection Farms would allow us to maintain an additional, free drop-off site for impacted residents in the quarantine area, as well as provide us services for disposing of yard debris collected from the Grandview site.

Sole Source Criteria

· Describe the unique features, qualifications, abilities or expertise of the contractor proposed for this sole source contract.

Natural Selection farms is one of the largest permitted compost facilities in Washington. Before the Japanese beetle quarantine was established, they were a collection service for yard debris, leaves, wood waste, fruit pumice and other waste material for most of Yakima County. Green waste from some of the largest landfills and transfer stations in the area also used to be diverted to Natural Selection Farms for use in their compost. Natural Selection Farms also has extensive trucking and logistics experience, transporting tens of thousands of tons of compost every year. Their experience handling green waste and trucking makes them the ideal choice as a solution for WSDA’s green waste needs.

· What kind of market research did the agency conduct to conclude that alternative sources were inappropriate or unavailable? Provide a narrative description of the agency’s due diligence in determining the basis for the sole source contract, including methods used by the agency to conduct a review of available sources. Use DES’ Market Research Template if assistance is needed.

WSDA was limited to market research within the proposed quarantine expansion as waste would not be able to leave the boundaries. To prevent the spread of Japanese beetle, any drop-off location must be within the expanded quarantine boundary. The geographical limitations are the main factor in determining that no other contractor could perform this work. Prior to the establishment of the Grandview drop-off, Yakima Waste Systems was contacted by phone in October of 2021 to inquire on the price of container rental and hauling. Even if the work could be done there was not a location the green waste could be hauled without violating the then proposed quarantine.

· As part of the market research requirements, include a list of statewide contracts reviewed and/or businesses contacted, date of contact, method of contact (telephone, mail, e-mail, other), and documentation demonstrating an explanation of why those businesses could not or would not, under any circumstances, perform the contract; or an explanation of why the agency has determined that no businesses other than the prospective contractor can perform the contract.

The biggest limiting factor to our research is that we are limited to business within the quarantine area. Conversations with Yakima Waste Systems in 2021 were not fruitful as we still lacked an area within the quarantine area where waste could be collected or hauled to.

A potential, alternative collection area, a transfer station in Outlook was newly included in the quarantine in 2024, but was subsequently decommissioned.

Additionally, in April 2024 discussions were held with the waste company Basin Disposal about estimated costs in introducing a curbside waste-separation to a one mile square area in Pasco. The cost for establishing and maintaining this program was far higher than what WSDA feasibly could spend short and long-term for this project. This was only for an area of around 900 customers, whereas the Japanese beetle quarantine area contains upwards of 17,000 impacted properties.

· Per the Supplier Diversity Policy, DES-090-06: was this purchase included in the agency’s forecasted needs report?

N/A

· Describe what targeted industry outreach was completed to locate small and/or veteran-owned businesses to meet the agency’s need?

While conducting outreach for the Small Business Economic Impact Statement (SBEIS) Survey for the initial 2022 quarantine, I was responsible for identifying and contacting small business related to yard debris/green waste and waste disposal companies. Based on business names provided by Yakima and Benton counties I was unable to identify small businesses that dealt with waste disposal or waste collection that were within the proposed quarantine boundaries.

· What considerations were given to unbundling the goods and/or services in this contract, which would provide opportunities for Washington small, diverse, and/or veteran-owned businesses. Provide a summary of your agency’s unbundling analysis for this contract.

WSDA considers unbundling and opportunities for small businesses whenever possible. In this instance, green waste cannot be transported outside the quarantine area, so we were limited to searching for firms within the Japanese Beetle quarantine boundaries. In this case we cannot unbundle services as the contractor needs to have ample resources, physical space, and proper permitting to receive and store the amount of green waste we anticipate receiving.

· Provide a detailed and compelling description that includes quantification of the costs and risks mitigated by contracting with this contractor (i.e. learning curve, follow-up nature).

The quarantine area is currently 127 square miles around Grandview, Sunnyside and surrounding areas of Yakima and Benton Counties.

We contracted with Natural Selection farms in 2024. Their experience and expertise were demonstrated through their customer service, professionalism and safety record. Natural Selection Farms did not have to acquire any new equipment for this project work, therefore the project work that was billed only involved collection and hauling fees for the green waste. Since other potential contractors have not been identified within the quarantine area so far, a new contractor would likely need to acquire the required equipment and space to perform the project work.

Natural Selection farms is one of the largest permitted compost facilities in Washington. Before the Japanese beetle quarantine was established, they were a collection service for yard debris, leaves, wood waste, fruit pumice and other waste material for most of Yakima County. Green waste from some of the largest landfills and transfer stations in the area also used to be diverted to Natural Selection Farms for use in their compost. Natural Selection Farms also has extensive trucking and logistics experience, transporting tens of thousands of tons of compost every year. Their experience handling green waste and trucking makes them the ideal choice as a solution for WSDA’s green waste needs.

In addition, this facility is located within the Japanese Beetle quarantine area, so can accept and process green waste while complying with Japanese Beetle quarantine restrictions.

To mitigate this significant risk, WSDA is providing green waste drop off sites for residents and landscaping within the quarantine area. Since the agricultural sector provides billions of dollars annually to the state, the maximum $250,000 price of compost collection within the quarantine area is a good value for Washington citizens as well as our agricultural partners.

· Is the agency proposing this sole source contract because of special circumstances such as confidential investigations, copyright restrictions, etc.? If so, please describe.

N/A

· Is the agency proposing this sole source contract because of unavoidable, critical time delays or issues that prevented the agency from completing this acquisition using a competitive process? If so, please describe. For example, if time constraints are applicable, identify when the agency was on notice of the need for the goods and/or service, the entity that imposed the constraints, explain the authority of that entity to impose them, and provide the timelines within which work must be accomplished.

The start of Japanese beetle flight season is on May 15th. After this date, yard debris as a regulated article cannot be transported outside the quarantine area.

Residents tend to begin performing yard work that creates this regulated waste around March and April. April is a priority deadline for having this yard debris drop site operational for the public. Before the Japanese beetle flight season starts and restricts movement of regulated articles, our goal is to have this site open to the public before it impacts residents’ activities.

· What are the consequences of not having this sole source filing approved? Describe in detail the impact to the agency and to services it provides if this sole source filing is not approved.

If WSDA doesn't provide a solution for residential and landscaping green waste, there is a risk that green waste will be transported outside the Japanese Beetle quarantine area. This would spread the insects farther across the state, posing an even greater risk to our agricultural economic sector. Insect pests get more and more costly to eradicate the larger the population becomes and the longer the population has to establish.

To mitigate this significant risk, WSDA is providing green waste drop off sites for residents and landscaping within the quarantine area. Since the agricultural sector provides billions of dollars annually to the state, the maximum $250,000 price of compost collection within the quarantine area is a good value for Washington citizens as well as our agricultural partners.

Sole Source Posting

· Sole Source Posting on Agency Website - Provide the date in which the sole source posting, the draft contract, and a copy of the Sole Source Contract Justification Template were published on your agency’s website.

· If failed to post, please explain why.

· Provide the date in which the sole source posting, the draft contract, and a copy of the Sole Source Contract Justification Template were published in WEBS.

· If failed to post, please explain why.

· Were responses received to the sole source posting in WEBS?

· If one or more responses are received, list name of entities responding and explain how the agency concluded the contract is appropriate for sole source award.

Reasonableness of Cost

· Since competition was not used as the means for procurement, how did the agency conclude that the costs, fees, or rates negotiated are fair and reasonable? Please make a comparison with comparable contracts, use the results of a market survey, or employ some other appropriate means calculated to make such a determination.

The contract with Natural Selection Farms in 2024 had comparable market prices with previously approved contracts for similar services with Alba’s Excavating LLC. Natural Selection Farms would not be increasing prices for services in 2025, making this a great opportunity to continue work with this proven contractor. Their prices are also comparable to the market rate for yard debris disposal at the Cheyne Landfill and the Terrace Heights landfill. Both are located in Yakima County but outside the quarantine area.

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