Control_Number_12-0012.pdf

CONTROL NO. 12-0012

AUTHORITY: FAR 6.302-1 AMOUNT: $181,228.59 (EST)

NAME TELEPHONE NO

Michael Dixon 816-389-3577

TITLE DATE

Contract Specialist

NAME TELEPHONE NO

David Best 816-389-3404

TITLE DATE

Contracting Officer

NAME TELEPHONE NO

Daniel Hays 816-389-3093

TITLE DATE

Operations Project Manager

NAME TELEPHONE NO

Daniel Hays 816-389-3093

TITLE DATE

Operations Project Manager

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 Daniel Hays 816-389-3093

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

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: Water Utilities at Kanopolis Lake Project

Prepared By:

Contracting Officer

Technical

Requirements

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: 2012.08.21 12:32:11 -05'00'

30 July 2012

21 August 2012

HAYS.DANIEL.W.1231374554 Digitally signed by HAYS.DANIEL.W.1231374554 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=HAYS.DANIEL.W.1231374554 Date: 2012.08.21 14:48:57 -05'00' 21 August 2012

21 August 2012

21 August 2012

22 August 2012

816-389-3206

SAULSBERRY.ARTHUR.ERIC.1

230627890

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: 2012.08.31 10:58:39 -05'00'

4 September 2012MCCARTHY.TERESA.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: 2012.09.04 08:05:50 -05'00'

6 September 2012

HONDERD.RACHEL.ANNE.116

2028002

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: 2012.09.06 21:33:28 -05'00'

Control #12-0012

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 water utilities for the Kanopolis Lake Project.

3. DESCRIPTION OF SUPPLIES/SERVICES OR NATURE OF

CONSTRUCTION: Water utility services for the Kanopolis Lake Project in Kanopolis, 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 $181,228.59. 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 $4,778.67 CLIN 0002 – Option Period 1 1 Jan 2013 – 31 Dec 2013 $19,114.69 CLIN 0003 – Option Period 2 1 Jan 2014 – 31 Dec 2014 $19,114.69 CLIN 0004 – Option Period 3 1 Jan 2015 – 31 Dec 2015 $19,114.69 CLIN 0005 – Option Period 4 1 Jan 2016 – 31 Dec 2016 $19,601.92 CLIN 0006 – Option Period 5 1 Jan 2017 – 31 Dec 2017 $19,601.92 CLIN 0007 – Option Period 6 1 Jan 2018 – 31 Dec 2018 $19,601.92 CLIN 0008 – Option Period 7 1 Jan 2019 – 31 Dec 2019 $20,100.03 CLIN 0009 – Option Period 8 1 Jan 2020 – 31 Dec 2020 $20,100.03 CLIN 0010 – Option Period 9 1 Jan 2021 – 31 Dec 2021 $20,100.03

Total Estimated Cost: $181,228.59

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 Kanopolis Lake manages the lake to provide benefits to the nation in areas of flood damage reduction, recreation, fish and wildlife management, water supply, and water quality improvement. USACE manages the 3,400 acre Kanopolis Lake and an additional 11,000 acres of land around the lake. Two (2) parks around the lake are managed and maintained by USACE. These parks include roads, utility systems, developed campsites, beaches, boat ramps, and picnic shelters.

The two (2) campgrounds that are managed by the Kanopolis Lake are Riverside Park and Venango Park. 30 of the campsites at Venango Park have water hookups. Shower buildings, playgrounds, and fish cleaning stations are located in most parks. The Project Office and other administration buildings at Kanopolis Lake also have water utilities as well. Without water utilities in these areas the campers that visit the lake as well as the staff that works at Kanopolis Lake are subject to dehydration, unsanitary conditions, and waterborne contaminates which can lead to serious health risks. These issues create heightened liability for the Government. Moreover, failure to provide a clean, potable water source runs counter to the Corps Mission of providing safe recreational areas.

The Contracting Division of the Kansas City District has used other than full and open procedures for awarding water utility contracts throughout the District at various Lake Project offices and other Corps of Engineer managed areas. The main reason for this is that water 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) Due to the current territorial boundaries, only Post Rock Rural Water District is capable of providing water to the aforementioned parks. Utilities in the State of Kansas are governed by the Kansas Corporation Commission; however, the Commission does not regulate rural water districts. Governance of rural water districts varies from one community to another. Further research revealed that the Kansas Rural Water Association represents nearly 800 water and wastewater utilities throughout Kansas and is the governing authority regulating the water district covering Kanopolis Lake Project.

Kansas Statue Chapter 82a, Article 6, § 5 (K.S.A. 82a-605) states “the owners of land within said district shall constitute the governing body of each water-supply district incorporated under this act within their respective counties and shall constitute a board of directors.” The Kansas Rural Water Association website maintains detailed maps outlining the boundaries of its water districts. A map of Ellsworth County clearly identifies Post Rock Water District as having territorial rights over Kanopolis Lake Project. The period of performance dates for this award does not impact the decision to restrict competition.

(c) All previous contracts for Kanopolis Lake Project are with the Post Rock Rural Water District.

Water utilities are contracted to:

Post Rock Rural Water District

103 North Douglas Ellsworth, Kansas 67439-3213

(d) Over the last 10 years, water utility costs were approximately $10,620.00 per year on average. It is assumed that future costs are expected to increase, either due to rate increases or increased usage by visitors. 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 gallons required is not specified in the Scope of Work; instead, the Scope of Work requires that the contractor provide water service in a manner and form that is consistent with all applicable laws, rules, codes, industry standards, permits, and regulations, promulgated by any and all governmental authorities having jurisdiction.

The major reason the specific number of gallons is not identified by the Scope of Work is because the water requirements fluctuate constantly and is very difficult to identify between all the different water meters that are covered by this award.

(3) Impact: Water service from Post Rock Rural Water District to the parks provides water for campgrounds, including utility buildings and restrooms. Post Rock Rural Water District also provides potable water to support the staff located in the Project Office and other administrative buildings at Kanopolis Lake. Each year, approximately 225,000 visitors come to Kanopolis Lake. This number would be significantly reduced if water utilities were not available for the campers and visitors of the parks and campgrounds at Kanopolis Lake.

(4) Alternatives: Since by statute there is no competition, the only real alternative would be to go without water utilities; this alternative would require the project office and parks to close due to health and safety concerns.

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 (Post Rock Rural Water District) 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 between 28 May 2012 and 20 July 2012. The General Service Administration (GSA) area-wide schedule was reviewed with no indication of usable contracts. Mr.

Dixon contacted the Operations Project Manager, Mr. Daniel Hays, who indicated there is no competition in the area due to statute.

The Kansas Rural Water Association regulates 800 rural water districts and details that the area covered by the Post Rock Rural Water District (CAGE: 1FCC8) covers both the Kanopolis and Wilson Lake Projects.

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 Corporation 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 water utility contract at the Kanopolis Lake Project is currently with Post Rock Rural Water District. The most recent contract number is W912DQ-04-C-0016. 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: Daniel Hays DATE: _________________________

TITLE: Operations Project Manager 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: Daniel Hays DATE: _________________________

TITLE: Operations Project Manager 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: ___________________

HAYS.DANIEL.W.12313

74554

Digitally signed by HAYS.DANIEL.W.1231374554 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=HAYS.DANIEL.W.1231374554 Date: 2012.08.21 14:50:33 -05'00'

HAYS.DANIEL.W.1231

374554

Digitally signed by HAYS.DANIEL.W.1231374554 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=HAYS.DANIEL.W.1231374554 Date: 2012.08.21 14:51:12 -05'00'

21 August 2012

21 August 2012

BEST.DAVID.

MATTHEW.1

276429937

Digitally signed by

BEST.DAVID.MATTHEW.1276429937

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=BEST.DAVID.MATTHEW.127642993 Date: 2012.08.22 08:35:37 -05'00'

BEST.DAVID.M

ATTHEW.1276

429937

Digitally signed by

BEST.DAVID.MATTHEW.1276429937

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=BEST.DAVID.MATTHEW.1276429 Date: 2012.08.22 08:35:56 -05'00'

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of water 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: David Best DATE: _________________________

TITLE: Contracting Officer SIGNATURE: ___________________

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.12764 29937 Date: 2012.08.22 08:36:19 -05'00'