F--Justification for Other than Full and Open Competition - AZ Environmental Permit

DETERMINATION TO SOLICIT FROM A SINGLE SOURCE Solicitation No.: R14PS00358 Project Name: Arizona Department of Environmental Quality Permit Renewal _____________________________________________________________________________ Pursuant to Federal Acquisition Regulation (FAR) 13.106-1(b)(1), for purchases not exceeding the simplified acquisition threshold (SAT). Contracting Officers may solicit from only one source if the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand name, or industrial mobilization). 1. Agency and Contracting Activity. The Bureau of Reclamation is required to obtain a permit from the Arizona Department of Environmental Quality for the Arizona Pollutant Discharge Elimination System including sampling, reviews, processing fees and the annual permit for FY-14 for the Hoover Dam Wastewater Treatment Plant. The current Arizona Pollutant Discharge Elimination System Permit for the facility will be expiring. 2. Name and Address of Single Source. Arizona Department of Environmental Quality, 1110 W Washington St. Phoenix, AZ 85007 3. Description of Supplies/Services and Estimated Cost. The Arizona Pollutant Discharge Elimination System (AZPDES) Permit Program requires facilities that discharge pollutants from any point source into waters of the U.S., such as the Colorado River, to obtain a permit. These permits are required to be in compliance with the U.S. EPAs program, National Pollutant Discharge Elimination System (NPDES) under Section 402 of the Clean Water Act and penalties can be incurred for non-compliance. The estimated cost is $15,000.00 (maximum fee) per year for the permit application, technical reviews and the permit. The permit is effective for a period of five years from the date of issuance. 4. Description of Circumstances, including why only one source is reasonably available. The Arizona Department of Environmental Quality is the state of Arizonas environmental regulatory agency and is the only agency that is able to issue environmental quality applications and permits. 5. Determination of Fair and Reasonable Cost. The permit fees from the Arizona Department of Environmental Quality (ADEP) are governed by delegated local authorities including the Arizona Secretary of State and are non-negotiable. (See Title 18 Environmental Quality, Article 1. Water Quality Protection Fees). These prices are offered to the public, and therefore are considered to be fair and reasonable. The fees are determined based on sample studies and reviews done by staff from the ADEP, as described in the Title 18 Environmental Quality document attached. 6. Description of Market Research. A comparison to similar environmental quality renewal permits were used to determine price reasonableness. Arizona Department of Environmental Qualitys (ADEP) Pollutant Discharge Elimination System Permit fee is lower than the permit renewal fee from Clark County for air quality discharge renewal permit. For example, Clark Countys annual renewal fee is $8,000.00 each year, whereas the fee for the Pollutant Discharge Elimination System Permit is approximately $15,000.00 for a 5 year period. Therefore, ADEPs prices for these types of permits are within the price range for this requirement and are considered to be fair and reasonable.