JA_for_Electric_Service_for_SIAD_-_Approved_-_.pdf

CMO Control #: 2015‐058

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command – Warren (SIAD) is the contracting activity for this action.

2. Description of Action: Approval is being requested for a new ten-year firm-fixed price per Kilowatt Hour (KWH) contract for Electric Services from Plumas Sierra Rural Electric Cooperative (PSREC), located in Portola California, a Cooperative regulated by the Rural Utilities Service and Public Utilities Commission for Sierra Army Depot (SIAD) in Herlong, California. The estimated ten-year total is $27.5M and will be funded annually using Army Working Capital funds.

3. Description of Supplies/Services: Acquisition of electric services for facilities located at SIAD in Herlong, California. Approximately 15,986,700 KWH and 34,425.3 KW per year is anticipated, at an estimated cost of $2.75M per year, for a ten year estimate of $27.5M

4. Authority Cited: The statutory authority permitting other than full and open competition for this action is Title 10 United States Codes (U.S.C.) 2304(c)(1), as implemented under Federal Acquisition Regulation (FAR) 6.302-1(a)(2), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: SIAD currently receives electric service from Plumas Sierra Rural Electric Cooperative (PSREC), located in Portola California, a Cooperative regulated by the Rural Utilities Service and Public Utilities Commission. Prior to 2004 utilities were provided by Lassen Municipal Utility District (LMUD) in Susanville, California. As a result of Base Realignment and Closure (BRAC) 1995, utilities at Sierra Army Depot were conditionally excessed to the Local Reuse Authority (LRA) which was established as a result of BRAC 1995. In 2001 PSREC and LMUD reached an agreement in principle that LMUD would sign a contract with PSREC allowing service to Sierra Army Depot. In August 2002, the Army entered into a Memorandum of Understanding with the Lassen County LRA to transfer the SIAD electric distribution system from the Army to the LRA and from the LRA to PSREC (by bills of sale) and the concurrent assignment of the Agreement from LRA to PSREC to provide distribution service past the SIAD master meter for the Army pursuant to the terms of the agreement. All obligations required by PSREC to start providing electric service were established on 1 March 2004. Since all distribution lines that now service SIAD are owned and maintenance by PSREC, the Government has no other sources available.

The estimated costs are based on an average of the last three years of electrical costs.

CMO Control #: 2015‐058

6. Efforts to Obtain Competition: As of the date of transfer of the electrical service area serving SIAD from LMUD to PSREC, PSREC is the only authorized electrical service provider serving SIAD.

a. Effective competition. There is no competition anticipated for this acquisition.

b. Subcontracting. There are no subcontracting opportunities anticipated for this acquisition.

7. Actions to Increase Competition: At this time it is not possible to compete this requirement; however SIAD will keep abreast of the situation and should another electric service provider establish service to support SIAD they will be considered for future procurements.

8. Market Research: The contract specialist conducted market research on 12 January 2015 by obtaining information from California Department of Energy (http://www.energy.ca.gov/maps/serviceareas/) that identifies all the electric service boundaries throughout the state. The map indicates Sierra Army Depot is located within the service area boundaries of PSREC, which thereby is the sole provider of electric service to SIAD.

9. Interested Sources: To date no other sources have written to express an interest in this acquisition or that would be able to provide electric service to meet the minimum requirements of the Government, without introducing substantial cost increases to the Government by proposing capital improvements in order to meet the needs of the Government. As exempted by FAR 5.202(a)(5) this requirement will not be synopsized.

10. Other Facts: The current rates offered by the Plumas Sierra Rural Electric have been approved by the Cooperative and are considered fair and reasonable. No concerns have been raised relating to price unreasonableness. Prices will continue to be analyzed by the Contracting Officer with the assistance of the Facilities Manager in accordance with FAR 41.401, and as required by FAR 52.241-8, in order to ensure price reasonableness and accuracy for electric services. The original contract, W912GY-04-C-0001 was issued on a non-competitive basis based on the agreement as a result of BRAC 1995. No justification document was prepared.

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.

Typed Name: George Ray Date: February 24, 2015

Title: Garrison Manager Signature:

E-Signed by RAY.GEORGE.E.1108510443 VERIFY authenticity with e-Sign

CMO Control #: 2015-058

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.

Typed Name: George Ray Date: February 24 2015

Title. Garrison Manager Signature:

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. Fair and reasonable determination is based on using the average rate per KWH and 'r0fl/ charged over the last 3 years. Certified Cost and Pricing data is not required in accordance with FAR 15.403-1 (c)(2)

Typed Name: Kim Deleon Date: February 25, 2015

Title: Contracting Officer Signature:

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

Typed Name:

Title:

Concurrence:

Signature:

Date: February 25. 2015

Signature:

KRISTAN A. MENDOZA

Principal Assistant Responsible for Contracting Army Contracting Command - Warren

CMO Control #: 2015-058

APPROVAL

Based on the foregoing justification and as Principal Assistant Responsible for Contracting (PARC) pursuant to Army Materiel Command (AMC) Head of the Contracting Activity (HCA) Delegation of Authority (DOA)# 15-01 I hereby approve the procurement of Electric Service for Sierra Army Depot (SIAD) on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1 ), as implemented by FAR 6.302-1 (a)(2) , subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition. The estimated ten-year total is $27.5M and will be funded annually.

Date: ~°"-\~A~f_{L_/_S._ Signature DJ~(L~

MICHAEL R. HUTCHISON

Deputy to the Commanding General