Control_Number_12-0008.pdf

CONTROL NO. 12-0008

AUTHORITY: FAR 6.302-1 AMOUNT: $154,000.00 (EST)

NAME TELEPHONE NO

Michael Dixon 816-389-3577

TITLE DATE

Contract Specialist 12-Sep-2012

NAME TELEPHONE NO

David Best 816-389-3404

TITLE DATE

Contracting Officer

NAME TELEPHONE NO

James Campbell 816-389-3680

TITLE DATE���������

Deputy Area Engineer

NAME TELEPHONE NO

James Campbell 816-389-3680

TITLE DATE���������

Deputy Area Engineer

SIGNATURES ARE REQUIRED BELOW:

I have reviewed this J&A and find the justification adequate to support other than full and open competition

SIGNATURE DATE

NAME (Type or Print) TELEPHONE NO Arthur Saulsberry 816-389-3927

SIGNATURE DATE���������

NAME (Type or Print) TELEPHONE NO James Campbell 816-389-3680

SIGNATURE DATE

NAME (Type or Print) TELEPHONE NO Jana Strait 816-389-3699

SIGNATURE DATE

NAME (Type or Print) TELEPHONE NO Teresa McCarthy 816-389-3918

SIGNATURE DATE

NAME (Type or Print) TELEPHONE NO MAJ Rachel Honderd 816-389-3206

Requirements

Deputy for Small Business

Project Manager

Office of Counsel

DCC/CCC Contracting Chf

Field Competition Advocate

JUSTIFICATION REVIEW DOCUMENT FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT/EQUIPMENT: Electric Utilities at Benedictine Bottoms Wildlife Area

Prepared By:

Contracting Officer

Technical

STRAIT.JANA.LYNN.1150399234 Digitally signed by STRAIT.JANA.LYNN.1150399234 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=STRAIT.JANA.LYNN.1150399234 Date: 2012.09.13 11:05:24 -05'00'

14 September 2012

CAMPBELL.JAMES.DOUGLAS.1231972176

Digitally signed by CAMPBELL.JAMES.DOUGLAS.1231972176 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=CAMPBELL.JAMES.DOUGLAS.1231972176 Date: 2012.09.14 11:35:24 -05'00'

SAULSBERRY.ARTHUR.ERIC.1230627890 Digitally signed by SAULSBERRY.ARTHUR.ERIC.1230627890 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=SAULSBERRY.ARTHUR.ERIC.1230627890 Date: 2012.09.19 10:36:50 -05'00'

See Signature on Last Page 19 September 2012

HONDERD.RACHEL.ANNE.1162028002

Digitally signed by HONDERD.RACHEL.ANNE.1162028002 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=HONDERD.RACHEL.ANNE.1162028002 Date: 2012.09.25 11:23:43 -05'00'

Control #12-0008

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. CONTRACTING AGENCY: U.S. Army Corps of Engineers (USACE), Kansas City District (NWK), Contracting Division, 647 Federal Building, 601 East 12th Street, Kansas City, Missouri 64106-2896.

2. DESCRIPTION OF ACTION: A new firm-fixed-price (FFP) contract using FY12 Operations and Maintenance (Civil) (O&M Civil) appropriations to acquire electric utilities for the Benedictine Bottoms Wildlife Area.

3. DESCRIPTION OF SUPPLIES/SERVICES OR NATURE OF

CONSTRUCTION: Electric utility services for the Benedictine Bottoms Wildlife Area near Atchison, Kansas. The period of performance for the base award and all nine (9) option periods will not exceed nine (9) years and three (3) months. The option years will be evaluated at the time of award based on pricing set by regulation. The total estimated price of the proposed contract, including all options is $154,000.00. Clauses 52.217-8 “Option to Extend Services” and 52.217-9 “Option to Extend the Term of the Contract” will be included with the contract award, but the final end date will not exceed 31 December 2021. The estimated prices for the base and option periods are listed below.

Contract Line Item Number Performance Period Estimated Cost ($) CLIN 0001 – Base Period 1 Oct 2012 – 31 Dec 2012 $3,500.00 CLIN 0002 – Option Period 1 1 Jan 2013 – 31 Dec 2013 $14,000.00 CLIN 0003 – Option Period 2 1 Jan 2014 – 31 Dec 2014 $15,000.00 CLIN 0004 – Option Period 3 1 Jan 2015 – 31 Dec 2015 $15,500.00 CLIN 0005 – Option Period 4 1 Jan 2016 – 31 Dec 2016 $16,000.00 CLIN 0006 – Option Period 5 1 Jan 2017 – 31 Dec 2017 $17,000.00 CLIN 0007 – Option Period 6 1 Jan 2018 – 31 Dec 2018 $17,000.00 CLIN 0008 – Option Period 7 1 Jan 2019 – 31 Dec 2019 $18,000.00 CLIN 0009 – Option Period 8 1 Jan 2020 – 31 Dec 2020 $19,000.00 CLIN 0010 – Option Period 9 1 Jan 2021 – 31 Dec 2021 $19,000.00

Total Estimated Cost: $154,000.00

4. AUTHORITY CITED: 10 U.S.C. § 2304(c)(1), as implemented by the Federal Acquisition Regulation (FAR) 6.302-1 and the Department of Defense FAR Supplement (DFARS) 206.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”.

5. REASON FOR AUTHORITY CITED:

(1) Background: The USACE staff at the Missouri River Area Office located in Napoleon, Missouri is responsible for managing the Benedictine Bottoms Wildlife Area.

The Corps of Engineers purchased the area as a Missouri River Fish and Wildlife

Mitigation Project in 1993 and 1994. The area was purchased under authorization of Congress through the Mitigation Project in § 334(a) of the Water Resources Development Act (WRDA) of 1986. The 2,112 acre Benedictine Bottoms was then leased to the Kansas Department of Wildlife, Parks and Tourism for management in 1998 after development.

The area is a 2,112 acre wildlife area in the flood plain of the Missouri River just 2.5 miles northeast of Atchison, Kansas on River Road. The river borders the area on the south and east. This site is managed for three (3) habitat types that existed in the area before development, timber, native grass and wetlands. During construction more than 175,000 trees were planted, 550 acres of native grass were planted and 230 acres of wetlands were maintained.

The Wildlife Area contains a maintenance building with a small office and an employee restroom facility. The office requires electrical service to support office equipment. The restroom facility has an electric water heater as well as an electric space heater to keep pipes from freezing in the winter. Besides the building there are three (3) pumps that are used to provide water to constructed wetlands; these provide habitat to migratory waterfowl. If there is no electric service to this site the office and restroom facility would be not be able to be utilized. However the biggest negative would be the inability to provide water to wetlands constructed to mitigate for habit loss due to the Missouri River Bank Stabilization and Navigation Project.

The Contracting Division of the Kansas City District has used other than full and open procedures for awarding of electric utility contracts throughout the District at various Lake Project offices and other Corps of Engineer managed areas. The main reason for this is that electric companies are regulated and have very clear territorial boundaries.

The Kansas City District has used sole source procedures for the last 10 years and likely longer than 10 years, however, there are no active contract files going further back than 2003 that can substantiate that claim.

(2) Justification:

(a) Only one (1) available source, as required by Kansas statute.

(b) The following are facts:

Due to the current territorial boundaries, only Westar Energy is capable of providing electricity to the aforementioned area. Utilities in the State of Kansas are governed by the Kansas Corporation Commission. The Commission regulates five cornerstone industries and has the responsibility of ensuring that electricity vendors provide safe, adequate, and reliable services at reasonable rates. The authority of the Commission is derived from Kansas Statute, Chapter 74, Article 6, § 2 (K.S.A. 74-602) which describes the powers, duties, authority, and jurisdiction conferred upon the Commission. Kansas Statute, Chapter 66, Article 1, § 172 (K.S.A. 66-1,172) which dictates that the Corporation Commission shall cause the state to be divided into electric service territories and within each territory, only one retail electric supplier shall provide retail electric service. Territorial agreements are authorized to specifically designate the boundaries of the electric service area of each electric service supplier. The Kansas Corporation Commission website maintains detailed maps outlining the boundaries of the electric providers. A map of Atchison County clearly identifies Kansas Power and Light Company as having territorial rights over the Benedictine Bottoms Wildlife Area, however, upon further research, the Division of Kansas Power and Light for that area is Westar Energy. The period of performance dates for this award does not impact the decision to restrict competition.

(c) All previous contracts for the portion of the lake that covers the aforementioned parks are with the Westar Energy.

Electric utilities are contracted to:

Westar Energy, Inc. (DBA: KPL Division) P.O. Box 758500 Topeka, Kansas 66675-8500

(d) Over the last 10 years, electric utility costs were approximately $9,311.15 per year on average. It is assumed that future costs are expected to increase, either due to rate increases or increased usage at the wildlife area. The basis for this assumption is the increase in rates and number of visitors noted over the last 10 years. The minimum requirements for the amount of delivery voltage required is not specified in the Scope of Work; instead, the Scope of Work requires that the contractor provide electric service in a manner and form that is consistent with (1) all applicable laws, regulations, permits, and electric codes, and (2) the facility’s service requirements. The major reason the specific voltage is not identified by the Scope of Work is because the electric requirements fluctuate constantly and is very difficult to identify between all the different electric meters that are covered by this award.

(3) Impact: Electric service from Westar Energy to the office, restroom facility, and water pumps. Each year, approximately 47,000 visitors come to the Benedictine Bottoms Wildlife Area. It would be extremely difficult to support this amount of visitors if the administrative staff did not have facilities to work out of that had electric utilities. The estimate on the number of visitors was based on traffic counts conducted by the Kansas Department of Wildlife, Park and Tourism.

(4) Alternatives: Since by statute there is no competition, the only real alternative might be emergency electrical generators, which is too costly to fuel and maintain.

6. EFFORTS TO OBTAIN COMPETITION: Market research was conducted, details of which are in the market research section of this document. None of these efforts have yielded additional potential sources. There is no competition anticipated for this procurement. The requirement was not synopsized for the reasons detailed in paragraph 9 of this document. Only one (1) source was solicited (Westar Energy) and only one (1) offer was received. Competition is not feasible for the reasons outlined in paragraph 5(2)(b) of this document.

7. ACTIONS TO INCREASE COMPETITION: This is a regulated utility service that has territorial rights to this area. USACE is unable to procure services from another source. This utility contract will be structured with annual options, and an annual review will be required prior to exercising each option. Per FAR 41.401, it is deemed to be advantageous for the Government to exercise annual reviews in order to take advantage of any changes in the market, policies, and regulations. The annual review will include market research to examine the competitive alternatives for more advantageous service offerings. Any new GSA area-wide contracts, changes in market competition, or state regulations will be identified and addressed prior to exercising each option.

8. MARKET RESEARCH: Michael Dixon, Contract Specialist, conducted market research during the week of 28 May 2012. The GSA area-wide schedule was reviewed with no indication of usable contracts. Mr. Dixon contacted the Deputy Area Engineer, Mr. James Campbell, who indicated there is no competition in the area due to statute.

Mr. Dixon utilized maps located on the Kansas Corporate Commission website to verify that the Benedictine Bottoms Wildlife Area was located within the Westar Energy territory.

In summation, the sources of information that were utilized were the GSA Energy Center of Expertise Library, the National Association of Regulatory Utility Commissioners, and the Kansas Corporate Commission. These sources are reputable and reliable because they are either owned by a Government entity or they are given authority to be the regulating body for utility awards in their respective areas by some statutory authority. A sources sought was not performed for the reasons detailed in paragraph 9 of this documents, and there were no questions raised from conducting market research.

9. INTERESTED SOURCES: This utility service procurement is exempt from synopsizing, in accordance with FAR 5.202(a)(5). The proposed contract action is for utility services other than telecommunications services and only one (1) source is available. A determination to document the exception to posting a synopsis was signed by the Contracting Officer on 26 July 2012.

10. OTHER FACTS: The electric utility contract at the Benedictine Bottoms Wildlife Area is currently with Westar Energy. The most recent contract number is W912DQ-04- C-0048. The base year covered the period from 1 October 2002 through 30 September 2003, with exercised option years from 1 October to 30 September each year. This contract will expire on 30 September 2012. The current award was not competed and was also a sole source award under the same authority as detailed in this Justification and Approval document. The procurement history was retrieved by research the current contract file and all the modifications located in both the Procurement Desktop Defense (PD2) and Corps of Engineers Financial Management System (CEFMS) in July 2012.

The Scope of Work cannot be developed in such a way to better enhance competition due to the reasons outlined in Paragraph 5(2)(b) above. Other than the facts listed above, there are no additional or unusual facts surrounding the history of this procurement.

11. TECHNICAL 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.

NAME: James Campbell DATE: _________________________

TITLE: Deputy Area Engineer SIGNATURE: ___________________

12. REQUIREMENTS 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.

NAME: James Campbell DATE: _________________________

TITLE: Deputy Area Engineer SIGNATURE: ___________________

13. FAIR AND REASONABLE COST DETERMINATION:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. IAW FAR 15.403-1(b)(2), the Contracting Officer shall not require certified cost or pricing data to support any action when the Contracting Officer determines that prices agreed upon are based on prices set by law or regulation.

NAME: David Best DATE: _________________________

TITLE: Contracting Officer SIGNATURE: ___________________

14. CONTRACTING OFFICER CERTIFICATION:

I certify that this J&A is accurate and complete to the best of my knowledge and belief.

NAME: David Best DATE: _________________________

TITLE: Contracting Officer SIGNATURE: ___________________

BEST.DAVID.MAT

THEW.12764299

Digitally signed by

BEST.DAVID.MATTHEW.1276429937

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=BEST.DAVID.MATTHEW.1276429937 Date: 2012.09.14 09:00:43 -05'00'

BEST.DAVID.

MATTHEW.1

276429937

Digitally signed by

BEST.DAVID.MATTHEW.127642993

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=BEST.DAVID.MATTHEW.127642 Date: 2012.09.14 09:00:58 -05'00'

14 Sept 2012

14 Sept 2012

CAMPBELL.JAMES.DO

UGLAS.1231972176

Digitally signed by

CAMPBELL.JAMES.DOUGLAS.1231972176

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=CAMPBELL.JAMES.DOUGLAS.1231972176 Date: 2012.09.14 11:38:08 -05'00'

CAMPBELL.JAMES.DO

UGLAS.1231972176

Digitally signed by

CAMPBELL.JAMES.DOUGLAS.1231972176

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=CAMPBELL.JAMES.DOUGLAS.1231972176 Date: 2012.09.14 11:39:37 -05'00'

APPROVAL

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

NAME: Teresa McCarthy DATE: _________________________

TITLE: District Contracting Chief SIGNATURE: ___________________

19 September 2012

MCCARTHY.TERE

SA.F.1006816513

Digitally signed by

MCCARTHY.TERESA.F.1006816513

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=MCCARTHY.TERESA.F.1006816513 Date: 2012.09.19 13:08:58 -05'00'