SSJ under FAR part 12 (CO Signed).pdf

DEPARTMENT OF HEALTH & HUMAN SERVICES

PUBLIC HEALTH SERVICE

Division of Acquisition Management Phoenix Area Indian Health Service Two Renaissance Square 40 North Central Avenue Phoenix, Arizona 85004

Sole Source Justification (SSJ)

RFO - FAR 12.102(b) & 12.201-1

1. Acquisition Title: Electric Utility Services – Desert Visions Youth Wellness Center (DVYWC)

Division: IHS

Contracting Activity: Phoenix Area Office

Author: Minkyu Kim, Contract Specialist

Basis for approval: Individual

2. Nature and/or Description of the Action being Approved: The Indian Health Service (IHS), Phoenix Area Office, requires a new firm-fixed-price contract for the provision of electric utility services for the Desert Visions Youth Wellness Center (DVYWC), Sacaton, Arizona. The Government anticipates award using Fiscal Year 2027 appropriated funds.

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Contractor: Gila River Indian Community Utility Authority Performance Period

Dates/Duration Unit Price/CLIN Multiplier Total

Base Period 12 months $70,000 1 $51,000 Option Period 1 12 months $72,100 1 $52,147.50 Option Period 2 12 months $74,263 1 $53,320.82 Option Period 3 12 months $76,491 1 $54,520.54 Option Period 4 12 months $78,786 1 $55,747.25 Option to Extend Services per FAR Clause 52.217-8

6 months $39,393 1 $27,873,63

Estimated Total Dollar Value: $294,609.74 Original Contract Value: $266,736.11 New Contract Value: $266,736.11

3. Description of Supplies and/or Services: The contractor shall provide continuous electric utility services for the Desert Visions Youth Wellness Center (DVYWC), located in Sacaton, Arizona. Services include the continuous delivery of electrical power, metering of electrical consumption, monthly utility billing, operation and maintenance of utility infrastructure up to the point of service, outage response and restoration, and compliance with applicable Tribal, State, Federal, and utility regulations. Services shall be provided for the Government's designated utility accounts throughout the contract period.

4. Statutory Authority Cited and Rationale:

a. This sole source acquisition is being conducted under RFO – FAR 12.201-1 simplified procedures for covered actions > SAT, ≤ $9 million pursuant to 41 U.S.C. 1901.

The contracting officer has determined that only one source is reasonably available based on the following rationale:

The Gila River Indian Community Utility Authority (GRICUA) is the only authorized electric utility provider within the Gila River Indian Community and the only entity capable of furnishing electric utility services to the Desert Visions Youth Wellness Center.

DVYWC is physically connected to GRICUA's electrical distribution system and receives electric service through infrastructure owned, operated, and maintained by GRICUA. No other electric utility provider possesses the legal authority, transmission infrastructure, distribution facilities, or service rights necessary to provide electric service to this location.

Electric utility services are location-specific and dependent upon the existing utility distribution network. Procuring electrical service from another provider would require construction of new transmission and distribution infrastructure, acquisition of easements and regulatory approvals, and significant capital investment that would substantially duplicate costs and result in unacceptable delays. Such an alternative is neither practical nor feasible.

FAR 6.302-1(b)(3) specifically recognizes utility services as circumstances in which only one supplier may be capable of furnishing the required service. Additionally, this acquisition is conducted in accordance with FAR Part 41, Acquisition of Utility Services.

Accordingly, GRICUA is the only responsible source capable of satisfying the Government's requirement.

5. Special Considerations for Certain Contract Extensions or Bridge Contracts: Not applicable.

6. Actions to Increase Competition:

a. A Synopsis Was Not Published: because this requirement is for regulated electric utility services available from only one authorized provider within the designated service territory.

b. Responses Were Not Received: Not applicable.

c. Sources Expressing Interest: Not applicable.

d. Actions to Foster Competition for Future, Similar Requirements: The Government will continue to review future requirements to determine whether competitive opportunities exist. However, electric utility services are provided within exclusive franchised or designated service territories. Unless the service territory or utility provider changes, no additional competition is anticipated for this requirement.

7. Market Research: Market research was conducted by reviewing the service territory and utility provider responsible for supplying electric service to the Desert Visions Youth Wellness Center. The review confirmed that GRICUA is the designated electric utility provider within the Gila River Indian Community and is the only entity authorized to provide electric utility services to the facility.

Because the facility is connected to GRICUA's existing electrical distribution infrastructure, no alternate electric utility providers are capable of providing service without substantial duplication of infrastructure, significant additional cost, and unacceptable delays. The market research concluded that no other responsible sources are available.

8. Procurement history:

a. Contractor: Gila River Indian Community Utility Authority

Contract or Order Number: 75H71222C00003 Award Date and Period of Performance: 12/01/2021 – 09/30/2026 Value (including all options): $250,000.00 Competitive Status: Sole Source Authority formerly relied upon if Not Competed: FAR 6.302-1 / FAR Part 41 Utility Services

9. Additional Information or Other Facts: Electricity is essential to maintain safe and continuous operations at the Desert Visions Youth Wellness Center, including lighting, HVAC systems, security systems, communications equipment, and behavioral health services.

Interruption of electrical service would adversely affect patient care, employee safety, facility security, and mission accomplishment.

10. Technical or Requirements Program Management 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. [Always required.]

X Right-Click "Signature Setup"

Eugena Crossland Chief Nursing Officer Signature & Date:

12. Fair and Reasonable Price Determination: As the contracting officer, I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable, based upon the following:

Select the applicable squares to mark the techniques used:

☐ (1) Price reasonableness based on competitive quotations or offers.

☐ (2) If only one response is received, include a statement of price reasonableness in the contract file. The contracting officer may base the statement on— ☐ (i) Market research.

☒ (ii) Comparison of proposed price with prices found reasonable on previous purchases.

☐ (iii) Current price lists, catalogs, or advertisements. However, inclusion of a price in a price list, catalog, or advertisement does not, in and of itself, establish fairness and reasonableness.

☐ (iv) A comparison with similar items in a related industry.

☐ (v) The contracting officer’s personal knowledge of the item being purchased.

☐ (vi) Comparison to an independent Government estimate.

☒ (vii) Any other reasonable basis, as follows: The proposed prices are determined fair and reasonable because electric utility rates are established and administered under GRICUA's approved utility tariff and rate schedule applicable to all customers within its service territory. Monthly charges are based on actual metered consumption, and historical utility billing has been reviewed to verify pricing consistency.

13. Contracting Officer (CO) Certification and Approval: I hereby certify that this justification is accurate and complete to the best of my knowledge and belief. [Always required; CO approval authority is limited to $900 thousand.]

Joshua Pearlman

Contracting Officer Signature & Date:

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(The following Reviews and Approvals will ordinarily be provided on a separate page at the end of the justification to allow for minor, administrative changes to be made during the review process; delete any individual reviews/approvals not applicable.)

ELEVATED REVIEWS & APPROVALS

14. Insert Division Advocate for Competition (AfC) Review and Approval: I reviewed this justification and find that it adequately supports a sole source acquisition. [Division AfC approval authority is limited to $20 million.]

Typed Name

Title Signature & Date:

15. Insert Division Head of the Contracting Activity (HCA) Review and Approval: I reviewed this justification and find that it adequately supports a sole source acquisition. [HCA approval authority is limited to $90 million.]

Head of the Contracting Activity Signature & Date:

16. HHS Office of General Counsel Review and Concurrence: I reviewed this justification and concur that it adequately supports a sole source acquisition. [Mandatory when SPE approval is required, unless otherwise waived in writing by the SPE.]

Title Signature & Date:

17. HHS Advocate for Competition (AfC) Review and Concurrence: I reviewed this justification and concur that it adequately supports a sole source acquisition. [Mandatory when SPE approval is required.]

HHS Advocate for Competition Signature & Date:

FINAL APPROVAL

18. HHS Senior Procurement Executive Approval: Based on the foregoing, I hereby approve this sole source justification pursuant to the authority cited in section 4 above. [Required if the total award value, including all options and FAR 52.217-8 value, exceeds $90 million.]

HHS Senior Procurement Executive Signature & Date: