Control_Number_12-0013.pdf

CONTROL NO. 12-0013

AUTHORITY: FAR 6.302-1 AMOUNT: $769,034.00 (EST)

NAME TELEPHONE NO

Michael Dixon 816-389-3577

TITLE DATE

Contract Specialist 13-Sep-2012

NAME TELEPHONE NO

David Best 816-389-3404

TITLE DATE

Contracting Officer

NAME TELEPHONE NO

Nolan Fisher 816-389-3034

TITLE DATE

Supervisory Natural Resource Manager

NAME TELEPHONE NO

Nolan Fisher 816-389-3034

TITLE DATE

Supervisory Natural Resource 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 Nolan Fisher 816-389-3034

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

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 Wilson 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: 2012.09.13 12:38:14 -05'00'

13 September 2012

13 September 2012

13 September 2012

13 September 2012FISHER.NOLAN.D.1231392943 Digitally signed by FISHER.NOLAN.D.1231392943 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=FISHER.NOLAN.D.1231392943 Date: 2012.09.13 13:48:51 -05'00'

09/13/2012SAULSBERRY.ARTHU

R.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: 2012.09.13 16:06:05 -05'00'

19 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: 2012.09.19 13:15:04 -05'00'

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: 2012.09.19 13:56:09 -05'00'

Control #12-0013

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 non-expiring Civil Operations and Maintenance (O&M Civil) appropriations to acquire and fund electric utilities for the Wilson Lake Project.

3. DESCRIPTION OF SUPPLIES/SERVICES OR NATURE OF

CONSTRUCTION: Electric utility services for the Wilson Lake Project in Sylvan Grove, 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 $769,034.00. 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 $19,138.00 CLIN 0002 – Option Period 1 1 Jan 2013 – 31 Dec 2013 $77,907.00 CLIN 0003 – Option Period 2 1 Jan 2014 – 31 Dec 2014 $79,261.00 CLIN 0004 – Option Period 3 1 Jan 2015 – 31 Dec 2015 $80,614.00 CLIN 0005 – Option Period 4 1 Jan 2016 – 31 Dec 2016 $81,968.00 CLIN 0006 – Option Period 5 1 Jan 2017 – 31 Dec 2017 $83,322.00 CLIN 0007 – Option Period 6 1 Jan 2018 – 31 Dec 2018 $84,676.00 CLIN 0008 – Option Period 7 1 Jan 2019 – 31 Dec 2019 $86,029.00 CLIN 0009 – Option Period 8 1 Jan 2020 – 31 Dec 2020 $87,383.00 CLIN 0010 – Option Period 9 1 Jan 2021 – 31 Dec 2021 $88,736.00

Total Estimated Cost: $769,034.00

4. AUTHORITY CITED: 10 U.S.C. § 2304(c)(1), as implemented by the Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(iii), “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 Wilson 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 9,000 acre Wilson Lake and an additional 13,000 acres of land around the lake. Three (3) recreation areas around the lake are managed and maintained by USACE. These parks include roads, utility systems, developed campsites, beaches, boat ramps, fish cleaning stations, playgrounds, and picnic areas.

The three (3) campgrounds that are managed by the Wilson Lake are Lucas Park, Minooka Park, and Sylvan Park. 54 of the campsites at Lucas Park, 66 of the campsites at Minooka Park, and 24 of the campsites at Sylvan Park have electrical hookups.

Shower buildings, sanitary dump stations, playgrounds, and fish cleaning stations are located in most parks. The Project Office and other administration buildings at Wilson Lake also have electric utilities as well. Without electric lighting in these areas the people camping will not be able to see after dark with a risk of injuries at Wilson Lake Project. Risks include physical injury due to unseen trip hazards, personal safety and security when using restroom facilities, and impair ability to avoid contact with wildlife.

These issues create heightened liability for the Government. Moreover, failure to provide a reasonably safe place for users 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 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 Rolling Hills Electric Cooperative is capable of providing electricity to the aforementioned parks. 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 Lincoln County clearly identifies Rolling Hills Electric

Cooperative as having territorial rights over Wilson Lake Project. The period of performance dates for this award does not impact the decision to restrict competition.

(c) All previous contracts for Wilson Lake Project are with the Rolling Hills Electric Cooperative.

Electric utilities are contracted to:

Rolling Hills Electric Cooperative 208 West 1st Street P.O. Box 125 Ellsworth, Kansas 67439

(d) Over the last 10 years, electric utility costs were over $33,369.77 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 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 Rolling Hills Electric Cooperative to the parks provides energy for campgrounds, including, but not limited to: utility buildings, restrooms, water pressurization, storm shelters, and security lighting. Each year, approximately 275,000 visitors come to Wilson Lake. This number would be significantly reduced if electric utilities were not available for the campers and visitors of the parks and campgrounds at Wilson Lake.

(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 (Rolling Hills Electric Cooperative) 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 Supervisory Natural Resource Manager, Mr. Nolan Fisher, 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 parks at Wilson Lake were located within the Rolling Hills Electric Cooperative 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 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 electric utility contract at the Wilson Lake Project is currently with Rolling Hills Electric Cooperative. The most recent contract number is W912DQ- 04-C-0011. 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: Nolan Fisher DATE: _________________________

TITLE: Supervisory Natural Resource 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: Nolan Fisher DATE: _________________________

TITLE: Supervisory Natural Resource 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: ___________________

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.12764299 Date: 2012.09.13 13:15:28 -05'00'

BEST.DAVID.MA

TTHEW.127642

Digitally signed by

BEST.DAVID.MATTHEW.1276429937

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=BEST.DAVID.MATTHEW.12764299 Date: 2012.09.13 13:15:44 -05'00'

FISHER.NOLAN

.D.1231392943

Digitally signed by

FISHER.NOLAN.D.1231392943

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=FISHER.NOLAN.D.1231392943 Date: 2012.09.13 13:49:41 -05'00'

FISHER.NOLA

N.D.1231392

Digitally signed by

FISHER.NOLAN.D.1231392943

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=FISHER.NOLAN.D.123139294 Date: 2012.09.13 13:50:00 -05'00'

NWD SIGNATURES ARE REQUIRED BELOW:

Document Identification

J&A NWK 12-0013

FOR NWD CONCURRENCE:

SIGNATURE DATE

NWD SB

NAME (Type or Print) TELEPHONE NO Mark N. Roush 360-748-8735 Assistant Counsel for SIGNATURE DATE Procurement Law and Contract Disputes Regional Counsel, PARC- NAME (Type or Print) TELEPHONE NO DAL (NWD/POD Regions) Thomas J Warren 503-808-3795

SIGNAUTRE DATE

Procurement Analyst NAME (Type or Print) TELEPHONE NO Wendy A Spegal 503-808-3966

SIGNAUTRE DATE

Northwestern Division Regional Contracting Chief NAME (Type or Print) TELEPHONE NO Julie Anderson 503-808-3979

ROUSH.MARK.NATH

ANIEL.1230159781

Digitally signed by

ROUSH.MARK.NATHANIEL.1230159781

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=ROUSH.MARK.NATHANIEL.1230159781 Date: 2012.09.26 20:50:18 -07'00'

SPEGAL.WENDY.ANN.

1161150823

Digitally signed by SPEGAL.WENDY.ANN.1161150823 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=SPEGAL.WENDY.ANN.1161150823 Date: 2012.09.27 07:12:42 -07'00'

WARREN.THOMAS.JACOB.11634

20410

Digitally signed by WARREN.THOMAS.JACOB.1163420410 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=WARREN.THOMAS.JACOB.1163420410 Date: 2012.09.27 08:43:04 -07'00'

ANDERSON.JULIE.A.1176

016988

Digitally signed by ANDERSON.JULIE.A.1176016988 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=ANDERSON.JULIE.A.1176016988 Date: 2012.09.27 13:27:22 -07'00' 27 September 2012

27 September 2012

27 September 2012

26 September 2012

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: Patricia Brown Trainer DATE: _________________________

TITLE: Special Competition Advocate SIGNATURE: ___________________

TRAINER.PATRICIA.B

ROWN.1231892393

Digitally signed by

TRAINER.PATRICIA.BROWN.1231892393

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=TRAINER.PATRICIA.BROWN.1231892393 Date: 2012.09.28 11:08:55 -05'00'

28 September 2012