J AREDACTED.pdf

Control Number:

JUSTIFICATION REVIEW DOCUMENT

FOR OTHER THAN FULL AND OPEN COMPETITION

Program/Equipment: Energy Savings and/or Conservation at Fort Huachuca, Arizona

Authorities: 10 U.S.C. 2304 (c)(5), and FAR 6.302-5 Amount: $48.5M

Prepared by:

Samuel L. Montanez Signature: _____________________________________________

Technical Point of Contact Date Reviewed: ______________________

IMCOM DSN: 821-3528

Requirements Representative:

Carl W. Aufdenkampe Signature: _____________________________________________

Engineering Plans and Services Division, Chief Date Reviewed: ______________________

IMCOM DSN: 821-3411

Procuring Contracting Officer:

Virginia J. Miller Signature: _____________________________________________

Contracting Officer Date Reviewed: ______________________

ACC-APG, Southwest Division DSN: 821-0452

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Director, Public Works:

John A. Ruble DSN: 821-3141

Signature: ______________________ Date: ________________________

Legal Counsel:

Michael J. Rudkin DSN: 978-7870

Signature: ______________________ Date: ________________________

Special Advocate for Competition:

Debra K. Parra DSN: 978-8248

Signature: _____________________________ Date: _______________________

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: U.S. Army Contracting Command

Aberdeen Proving Ground, Huachuca Division

CCAP-CCH

Fort Huachuca, Arizona 85613-6000

2. Description of Action: Approval is requested for the award and subsequent issuance of task order(s) under the terms and conditions of a Basic Ordering Agreement (BOA) with Southwest Gas Corporation, a public utility company regulated by Arizona Public Utilities Commission, to provide Utility Energy Service Contract

(UESC) services. UESCs offer Federal agencies an effective means to implement energy efficiency, renewable energy, and water efficiency projects. In a UESC, a utility arranges funding to cover the capital costs of the project, which are repaid over the contract term from cost savings generated by the energy efficiency measures.

With this arrangement, agencies can implement energy improvements with no initial capital investment. The net cost to the Federal agency is minimal, and the agency saves time and resources by using the services provided by the utility. The work will be performed under the terms and conditions of the BOA for the U.S. Army

Garrison at Fort Huachuca, Arizona, which is within the Southwest Gas franchised services territory established by Arizona law and the Arizona Public Utilities Commission. The total estimated value of this energy conservation construction Task Order to be issued pursuant to this BOA is approximately $48,500,000.00.

Phases 1 and 2 will total approximately $15,777,387.00, the remaining funds of $32,722,613.00 will be used for phase 3 projects to include those mentioned above. The Firm-Fixed-Price (FFP) BOA and task orders will utilize Operation and Maintenance Army (OMA) funds specific to the fiscal year of award.

3. Description of Supplies/Services: The proposed action will provide energy and water conservation and demand side management type projects and services to reduce energy consumption, directly or indirectly reduce the peak period demand, and provide energy related operations, maintenance and repair services for natural gas, steam, electric power, water, or waste water at U.S. Army Garrison, Fort Huachuca, Arizona, facilities. The energy conservation projects will be amortized for a term not to exceed ten years and the monthly payment will be included on the utility bill. The energy conservation projects will be required to show a net overall savings and thus the cost of the projects will be covered by the utility savings.

4. Authority Cited: FAR 6.302-5 (a)(2) provides that full and open competition is not required where a statue expressly provides that an acquisition be made from a specified source, i.e., the servicing gas or electric utility.

5. Rationale for Authority Cited: The proposed source is Southwest Gas Corporation, 5241 Spring Mountain

Road, Las Vegas, NV 89146-8713, as supported by the following rationale: The statutory authority that allows this contract action is 10 United States Code (U.S.C.) Section 2304(c)(5), as implemented by Federal

Acquisition Regulation (FAR) 6.302-5, "Authorized or required by statute." Section 2801 of Public Law 102-

484 amended 10 U.S.C. Section 2865, which was subsequently amended, renumbered and codified as 10 U.S.C.

Section 2913, to authorize and encourage rnilitary installations to enter into agreements with gas or electric utilities to design and implement cost-effective energy demand and conservation incentive programs, including energy management services, facilities alterations, and the installation and maintenance of energy saving devices and technologies, in order to address the requirements and circumstances of the military installation.

The main purpose of 10 U.S.C. Section 2913 is to authorize and encourage military installations to take advantage of programs offered to customers of gas or electric utilities for reducing energy consumption. Under

42 U.S.C. Section 8256 of the Energy Policy Act, the procedures and methods required by the Energy Policy

Act are "procurement procedures otherwise expressly authorized by statute," and, as a consequence, are exempt from the Competition in Contracting Act requirement for full and open competition under 10 U.S.C. Section

2304(c)(5).

6. Efforts to Obtain Competition: As Southwest Gas’ franchised services territory is established by Arizona law and the Arizona Public Utilities Commission, efforts to obtain competition for this action are not applicable to this action.

7. Actions to Increase Competition: As Southwest Gas’ franchised services territory is established by Arizona law and the Arizona Public Utilities Commission, actions to increase competition are not applicable to this action.

8. Market Survey: A market survey was conducted on 17 August 2011. Southwest Gas’ franchised services territory is established by Arizona law and the Arizona Public Utilities Commission. Southwest Gas expressed interest in competing to be the sole utility provider for all energy conservation projects at Fort Huachuca.

Southwest Gas is a gas or electric utility company that can provide comprehensive energy demand and conservation incentive services and the type of rebates and other financial incentives at Fort Huachuca that are specifically authorized and contemplated by 10 U.S.C. Section 2913.

9. Interested Sources: To date, no sources have written to express an interest. This action will not be synopsized on the Federal Business Opportunities page, per FAR 5.202(a)(5).

10. Other Facts:

a. Procurement History: No procurement history exists for this requirement.

b. The Government has a Statement of Objectives (dated 14 September 2011) for this effort.

c. Subcontracting Competition: Although there are no FAR subcontracting provisions that require competition among potential subcontractors for commercial contracts, the Government will seek to maximize subcontracting competition with a focus on subcontracting to small and small disadvantaged businesses.

11. Technical Certification: I certify that the supporting data under my cognizance, which is included in this justification, is accurate and complete to the best of my knowledge and belief.

Samuel L. Montanez Date: ________________________________

Technical Point of Contract

IMCOM Signature: ____________________________

12. Requirements Certification: I certify that the supporting data under my cognizance, which is included in this justification, is accurate and complete to the best of my knowledge and belief.

Name: Carl W. Aufdenkampe Date: ________________________________

Engineering Plans and Services Division, Chief

IMCOM Signature: ____________________________

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable based on price analysis, and comparison of proposed prices with an Independent Government Estimate. Certified cost or pricing data will not be obtained based on FAR

15.403-1(b)(2).

Virginia J. Miller Date: ________________________________

Contracting Officer

ACC-APG, Southwest Division Signature: ____________________________

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Virginia J. Miller Date: ___________________________

Contracting Officer

ACC-APG, Southwest Division Signature: _______________________

Approval

Based on the foregoing justification, I hereby approve the establishment of an award with Southwest Gas

Corporation, a public utility company regulated by Arizona Public Utilities Commission, to provide a Utility

Energy Service Contract for the U.S. Army Garrison at Fort Huachuca, Arizona. This action is authorized on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(5) as implemented by

FAR 6.302-5 – Authorized or required by statute, subject to availability of funds, and provided the services herein described have otherwise been authorized for acquisition. If the proposed contract action is not completed within

180 days from the below date, this Justification and Approval shall be returned to the Competition Advocate for revalidation. Additionally, should there be changes to the requirements, basis for the justification, market conditions or increases in the estimated value of the proposed action, the Contracting Officer shall document these changes in a memorandum and obtain review/concurrence from the Competition Advocate.

Date: _________________ Signature: _____________________________

Bryon J. Young

Principal Assistant Responsible for Contracting