J A_TEAD_Utility.pdf

Control No: PCO 13-12 Program/Item: TEAD Potable Water & Wastewater Service Est Dollar Value:

Department of Army Justification and Approval for Other than

Full and Open Competition

1. Contracting Activity: U.S. Army Contracting Command – Rock Island (ACC-RI), Rock Island Arsenal, Rock Island IL 61299-8000.

2. Description of Action: This action will result in a Firm Fixed Price contract with the City of Tooele (1U2M6) for water and sewer utility services. Award is projected for 30 May 2013 and AWCF funds will be used to finance this procurement. A service acquisition strategy is required and will be submitted for approval.

3. Description of Services: Provide water and sewer utility services for Tooele Army Depot from the City of Tooele. The proposed contract’s initial period of performance is 01 June 2013 through 31 May 2014 with nine one (1) - year evaluated option periods. The utility service consists of two separate requirements one for water and sewer service and another for a sewer impact fee. The water and sewer service initial period cost is with nine option periods which total

The sewer impact fee initial period cost is with three option periods which total The total amount of the initial period requirement is and with option periods the total amount is

4. Authority Cited: 10 U.S.C. 2304(c)(1), as authorized by FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements. FAR 6.302-1(b)(3), When acquiring utility services circumstances may dictate that only one supplier can furnish the service; or when the contemplated contract is for construction of a part of a utility system and the utility company itself is the only source available to work on the system.

5. Reason for Authority Cited:

a. This is a follow-on sole source acquisition for water and sewer utility services at Tooele Army Depot from the City of Tooele (1U2M6).

b. Tooele Army Depot is the Department of Defense’s western region conventional ammunition hub for the storage, receipt, issue, maintenance, and demilitarization. Its mission is to support Warfighter readiness through superior receipt, storage, issue, demil, and renovation of conventional ammunition and the design, manufacture, fielding and maintenance of ammunition peculiar equipment. The Depot was established in 1942 in an area with a historical tradition of Indian cultures located in northeastern Tooele County, Utah, on the western slope of the Oquirrh Mountains, 35 miles southwest of Salt Lake City. Tooele Army Depot is approximately 24,000 acres with 181 buildings and 902 storage igloos. The Depot supports approximately 524 civilians, 2 military, 67 contractors, and 42 tenants.

c. Originally, the entire installation was water and sewer utility services independent by maintaining its own water wells and sewage treatment site. In 1993, the Base Realignment and Closure Commission (BRAC) reduced the Depot’s mission which led to the selling of 1700 acres and 258 buildings to the City of Tooele. The Depot, however, still required partial use of those

Est Dollar Value:

facilities so a lease was set up with the City of Tooele for which required the use of the City of Tooele's utility service for the leased facilities as they were no longer connected the installation’s utility system.

d. In 2012, the Tooele Army Depot discontinued use of its own sewage lagoons and connected its entire sewer system to the City of Tooele. An agreement was made to transfer ownership of approximately 1,400 linear feet of the Depot sewer line to the City of Tooele and also construct a new sewage collection facility within the City of Tooele in partnership with Tooele County. This resulted in a mandatory impact fee of assessed by the City of Tooele for processing the Depot’s new sewage requirement. The City of Tooele allowed the Depot to pay its impact fee obligation over a period of five years, The first installment of was already paid under the current contract.

Currently the City of Tooele is the sole provider for water service of the leased facilities and sewer service for the entire installation. The City of Tooele utility service rates are subject to a regulatory body which is the Tooele City Council.

e. This service is necessary for the Tooele Army Depot’s mission for its culinary water, fire protection, and wastewater (sewage) disposal. To comply with EPA and Utah State environmental standards sewage must be processed and treated in a manner in which Tooele Army Depot no longer has the capability or facilities to complete. The cost is prohibitive and would require several to upgrade or reconstruct the government owned facilities to comply with the regulatory requirements. If this were not approved, the mission would need to shut down until another remedy could be put in place. This service has a direct impact and is vital to the safe operation to include the safety of Government employees and mission of the Tooele Army Depot. In that the entire Tooele Army Depot sewer line system is connected to the City of Tooele, and in that a significant portion of what was formerly Tooele Army Depot was transferred to the City of Tooele and the City thus has water and sewer connections to these facilities, the City of Tooele is the only entity that can provide these services. Any other alternative would result in substantial additional cost to the Government and would result in substantial duplication of cost, neither of which could be recouped through operations.

6. Efforts to Obtain Competition: A sources sought was published in the Government wide point of entry (FedBizOpps) in accordance with FAR 41.202(a). In addition, this J&A shall be synopsized in FedBizOpps to alert interested future contractors and subcontractors.

7. Actions to Increase Competition: Tooele Army Depot will continue to monitor the market trends in the utility industry to seek competition that may be able to meet the minimum needs of its water and sewer utility requirements. If in the future competitive opportunities for this service become available from more than one supplier, appropriate actions will be taken to implement and increase the competition.

8. Market Research: Market research was conducted by internet research, direct contact with the City of Tooele and a sources sought published in FedBizOpps. The results of the market research conclude that the City of Tooele is the sole source provider for water service of the leased facilities and sewer service for the entire installation.

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9. Interested Sources: To date interest has been received from one service provider in response to the sources sought published on FedBizOpps. The Government later rescinded the sources sought due to an existing agreement established between the Depot and the City of Tooele for sewage treatment.

In accordance with FAR 5.202(a)(5), The proposed contract action is for utility services other than telecommunications services and only one source is available. Therefore, a proposed acquisition notice is not required in the Government wide point of entry.

10. Other Facts:

Procurement History:

Contract: W90WL5-13-C-0001 Contractor: Tooele City Corporation (1U2M6) Award Date: 10/10/2012 Competitive Status: Sole Source Authority: FAR 6.302-1

WINN.SALLY.M.1230420633

Digitally signed by WINN.SALLY.M.1230420633 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=WINN.SALLY.M.1230420633 Date: 2013.07.30 11:03:02 -05'00'

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Approval

Based on the foregoing justification, I hereby approve the procurement of municipal services for Tooele Army Depot on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1) subject to availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.

Date: _ Signature: _ _ _

Sally M. Winn Contracting Officer

WINN.SALLY.M

.1230420633

Digitally signed by

WINN.SALLY.M.1230420633

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=WINN.SALLY.M.1230420633 Date: 2013.07.30 11:03:24 -05'00'