USMMA Electric Utility JOFOC.pdf signature.pdf1_Redacted redact_Redacted.pdf

U.S. Department of Transportation

1200 New Jersey Avenue, S.E.

Washington, DC 20590

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (JOFOC)

REFERENCE: Electric Utility Service-USMMA

1. Identification of the agency and contracting activity.

U.S. Department of Transportation, United States Merchant Marine Academy (USMMA)

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

The United States Merchant Marine Academy (USMMA) proposes to enter a contract on a basis of other than full and open competition for provision of public electric utility services required to support campus-wide electric supply requirements at USMMA, Kings Point, NY.

3. Description of the supplies or services required to meet the agency’s needs, including the estimated value.

A Firm Fixed Price Contract Purchase Order (PO) 6923G223M000001 was awarded in 2024 to Long Island Power Authority (LIPA) who owns the electric transmission and distribution and Public Service Enterprise Group (PSEG) operates the day-to-day operations under contract, to provide Electric Utility Service to supply electricity to the USMMA campus and quarters including continuous electric power supply delivery, electric transmission and distribution services, power reliability and grid support, distribution, metering and energy usage monitoring, outage repose and restoration services, system maintenance and operational coordination, utility billing and usage reporting and related regulated utility services necessary for uninterrupted campus operations. The current contract Period of Performance is set to expire on 18 April 2026.

The new proposed follow-on contract needed continued support for one-year base with four one-year options from 19 April 2026 through 18 April 2031 at a total price of

Due to volatility of the electricity utility supply, CLIN for electricity supply utility for buildings and quarters market power usage will be fixed price with economic price adjustment and rest of the CLINS will be Firm Fixed Price.

Reliable electric service is mission essential to support training, administrative fire protection systems, heating and cooling infrastructure, food services operations, facility operations, and residential occupancy requirements at USMMA. NAICS code 221112 and PSC code S112.

4. Identification of the statutory authority permitting other than full and open competition.

41 U.S.C. § 3304(a)(1) and Revolutionary FAR Overhaul (RFO) FAR 6.103-1(b), Only one responsible source and no other supplies or services will satisfy agency requirements, permits MARAD to use other than competitive procedures for this activity

5. Demonstration that the unique qualifications of the proposed contractor or nature of the acquisition require using the authority cited.

LIPA is the only electric utility provider capable of supplying electrical power services to USMMA located in Kings Point, New York. LIPA owns the electric transmission and distribution, and the Public Service Enterprise Group (PSEG) operates the day-to-day operations under contract electrical supply and distribution infrastructure that serves the USMMA campus, including power lines, service connections, grid, and metering equipment.

Because the Authority maintains exclusive ownership and operational control of the infrastructure serving the Academy, no other contractor can provide this service.

LIPA and PSEG performance to date, all contracts have been captured in the Contract Performance Assessment Rating System (CPARS). All CPARS ratings have been Satisfactory or above.

DOT/USMMA’s requirement is uniquely suited to the LIPA. The contractor has proven successful performance on the previous contract 6923G223M000001.

In accordance with FAR 6.103-1(b), full and open competition need not be provided when services can only be provided by a single source due to unique capabilities. LIPA is a regulated municipal electric authority with an exclusive service territory that includes the USMMA installation. No other utility provider has the legal authority or infrastructure required to supply electrical power within this designated service area.

Award of this follow-on contract to the incumbent ensures there is no disruption to the mission-essential reliable electric utility service for USMMA operation. The Academy supports approximately 1520 Midshipmen, faculty, and staff and requires uninterrupted electrical power service for domestic use, fire protection systems, food service operations, and facility maintenance. Furthermore, consistent with FAR 6.103-1(b), award to another source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. Establishing an alternate electrical source would require extensive engineering studies, environmental approvals, construction of new electric transmission infrastructure, acquisition of rights-of-way, and regulatory coordination with state and local agencies. These actions would require significant time and financial investment and would introduce unacceptable delays in providing essential utility services.

6. Description of efforts to ensure offers were solicited from as many potential sources as practicable, including whether a notice will be publicized and, if not, which exception applies.

In accordance with RFO FAR 6.301(b), “Availability of the justification,” this justification shall be publicly available within 14 days after processing the contract action.

7. Determination by the CO that the anticipated cost to the government will be fair and reasonable.

Based on the prior historical information and published rates publicly available, the CO will determine that the anticipated price(s) will be fair and reasonable prior to award of this follow-on contract.

8. Description of the market research conducted and results, or a statement of the reason market research was not conducted.

Market research was conducted through a review of municipal electric authority records, service territory maps, local franchise authorizations, existing campus electric utility infrastructure, and historical service provider data, responses of Contracting Officer of GSA’s areawide Utility contract and posted Sources Sought in SAM.gov on January 30, 2026. All market research confirmed that the LIPA is the only regulated electric utility provider authorized and technically capable of supplying electrical power distribution services to the USMMA.

The market research verified that the USMMA campus is physically connected to the electrical distribution infrastructure owned and operated by the LIPA. The Authority maintains exclusive responsibility for the transmission, treatment, distribution, and metering of electrical power within its designated service area.

No competitive electrical distribution alternatives exist due to the Authority’s exclusive service territory, regulatory status as a municipal electric provider, and ownership of the infrastructure required to deliver electrical power to the Academy. The PSEG operates the day-to-day operations under contract, to provide Electric Utility Service No other responsible sources were identified that could meet the Government’s requirements without substantial duplication of cost or unacceptable delays.

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

Electric utility services are location-dependent and infrastructure-based. The electrical distribution system serving the USMMA is owned, and controlled by the LIPA and PSEG, the franchised municipal electrical utility provider for the Kings Point, New York service area. Electrical distribution infrastructure is fixed and not interchangeable between providers, and no alternative sources are physically connected to the USMMA campus electric system.

Transition to another electric provider would require construction of new electric transmission wires, acquisition of property easements, environmental and regulatory approvals, engineering design, and significant capital investment. Such an effort would be cost-prohibitive and would result in unacceptable delays in providing essential utility services to the Academy.

Any interruption or delay in electric service would negatively impact mission operations, health and safety requirements, fire protection systems, training activities, food service operations, and residential functions at USMMA. Reliable electrical power service is required to support daily operations and maintain sanitary conditions for approximately 1520 Midshipmen, faculty, and staff residing and working on campus throughout the year.

These facts further support the use of Other Than Full and Open Competition pursuant to FAR 6.103-1(b) and 41 U.S.C. § 3304(a)(1), as only one responsible source is capable of meeting the Government’s requirement.

10. Listing of any sources that expressed a written interest in the acquisition.

None. No other sources are authorized to provide electrical power distribution service within the USMMA service territory.

11. Statement of any actions the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the services/supplies.

N/A