Construction service procuring relocation of utility services

GENERAL SERVICES ADMINISTRATION 6PQE ACQUISITION BRANCH DESIGN AND CONSTRUCTION DIVISION PROPERTY MANAGEMENT DIVISION REGION 6 JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION Pursuant to FAR 6.302-1(b) - 1. Identification of Project: This justification is for utilizing sole source subcontractor under a Indefinite Delivery/Indefinite Quantity Design Build Construction Contract in the Kansas City Metro Area. The procurement will require the use of a sole source subcontractor to perform necessary utility type services. - 2. Nature and/or description of the action being approved: The electrical services for the 2306-2312 E. Bannister Federal Complex are presently served from the Kansas City Power & Light (KCP&L) electrical substation located on the west side of the Bannister Federal Complex. With the exception of the 2306-2312 buildings, it is anticipated that the Federal Complex will be under new ownership in 2015. In order to avoid encroachment on the vacated space and to properly maintain electrical services, it is necessary to have the lines terminate at the new property site line. 3. A description of the supplies or services required to meet the agency's needs (including the estimated value: The project consists of changing the two electrical primary 13.2kV building services from the NNSA complex wide switchgear to KCP&L direct utility feeds so that building 2306-2312 is served directly from KCP&L with primary meeting by KCP&L and billed to GSA. The general contractor shall furnish and install all materials, equipment, systems and appurtenances necessary to provide a complete fully functional, workmanlike system that meets or exceeds the associated codes, standards, utility and owner requirements. The general contractor shall provide the switchgear, pads, underground conduits and electrical feeders and make the connections from this new switch to the nearest manhole with existing "T" splices and provide new "T" splices to connect KPCP&L services to both substations. KCP&L would provide utility feeds to a pad mounted switch to be located somewhere between there and the two existing substations that feed the building. In addition they would provide the feed from their overhead lines, and underground to this switch and acquire the easement. KCP&L will identify any necessary utility company easements and coordinate with the contractor and GSA. KCP&L will also perform inspections fo the contractor's work and will perform the "Electrical Utility" portion of the work. KCP&L will work with GSA and the general contractor to gain successful coordination of power re-distribution. 4. An identification of the statutory authority permitting other than full and open competition: FAR Part 6.302 -1 Only one responsible source and no other supplies or services will satisfy agency requirements. FAR 6.302-1(b) states that when there is a reasonable basis to conclude that the agency's minimum needs can only be satisfied by the following items, then a sole source procurement may be utilized. (i) Unique supplies or services available from only one source or only one supplier with unique capabilities; or (ii) For DoD, NASA, and the Coast Guard, unique supplies or services available from only one or a limited number of sources or from only one or a limited number of suppliers with unique capabilities. (2) The existence of limited rights in data, patent rights, copyrights, or secret processes; the control of basic raw material; or similar circumstances, make the supplies and services available from only one source (however, the mere existence of such rights or circumstances does not in and of itself justify the use of these authorities) (see Part 27). (3) When acquiring utility services (see 41.101), circumstances may dictate that only one supplier can furnish the service (see 41.202); or when the contemplated contract is for construction of a part of a utility system and the utility company itself is the only source available to work on the system. 5. Demonstration that the proposed contractor's unique qualifications or the nature of the acquisition requires use of the authority cited: Kansas City Power and Light Company is an electric utility company serving the Kansas City metropolitan area. It is a wholly owned subsidiary of Great Plains Energy Incorporated. Electricity pricing (sometimes referred to as electricity tariff or the price of electricity) varies widely from country to country, and may vary significantly from locality to locality within a particular country. There are many reasons that account for these differences in price. The price of power generation depends largely on the type and market price of the fuel used, government subsidies, government and industry regulation, and even local weather patterns As a public utility provider, KCP& L provides electrical power, heat and light. In most countries such enterprises are state-owned and state-operated; in the U.S. they are mainly privately owned, but they operate under close regulation. Given the technology of production and distribution, they are considered natural monopolies, since the capital costs for such enterprises are large and the existence of competing or parallel systems would be inordinately expensive and wasteful. Government regulation in the U.S., particularly at the state level, aims to ensure safe operation, reasonable rates, and service on equal terms to all customers. Some states have experimented with deregulation of electricity and natural-gas operations to stimulate price reductions and improved service through competition, but the results have not been universally promising. 6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies. The acquisition of this service is a sole-source action. There are no other electrical utility providers available for use who can terminate services at the Federal Bannister Complex. Therefore, no effort for competition was sought for this portion of the proposed procurement. This notice will be posted to FedBizOpps in accordance with FAR subpart 6.302-2(d)(2). 7. Demonstration that the anticipated cost will be fair and reasonable. Government regulation in the U.S., particularly at the state level, aims to ensure safe operation, reasonable rates, and service on equal terms to all customers. Per the recommendation to acquire services from KCP&L, the technical team estimated the cost of the KCP&L services required to construct the power separation contract. Per FAR subpart 15.404-1(b)(2)(v), the Contracting Officer determined the estimated price to be fair and reasonable based upon the Independent Government Estimate. In order to effectively control the cost of this portion of the contract, the Government will utilize an allowance. The purpose of allowance items is to defer selection of actual products and systems to a later date when directions will be provided to the Contractor. The Contracting Officer will issue a modification to incorporate allowance items in the work after actual products and systems have been determined. The Government will inform offerors of this allowance amount and procedures, for its formal execution, within the solicitation. 8. Description of market survey conducted. No survey was conducted. 9. Other facts supporting the use of other and full and open competition. None 10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition. This subpart is not applicable to this acquisition. 11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required. None DETERMINATION It is therefore determined in accordance with the above justification and 10 U.S.C. 2304 ( c ) and 6.302-1(b), the sole source services utility services required under the IDIQ Power Separation Project at 2306-2312 E. Bannister Road, Kansas City, MO, will be subject to Other Than Full and Open Competition and meets the Government's minimum needs. In adherence with Subpart 6.302-1, the Government approves the identification of KCP&L in the specification of this requirement. I certify that this justification for other than full and open Competition for this acquisition is accurate and complete to the best of my knowledge and belief. _____________________________ _________ Lisa M. Hancock Date Contracting Officer GSA PBS 6PQW West Acquisition Management Division