1. Contracting Activity. Naval Facilities Engineering Command, Mid- Atlantic, 9742 Maryland Avenue, Norfolk, Virginia 23511-3095 2. Description of the Action Being Approved. Request approval for the use of other than full and open competition to request a feasibility study from Virginia Natural Gas (VNG), in connection with the energy measures described in further detail below. VNG is the local utility company servicing Virginia, and is regulated by the Virginia State Corporation Commission. As discussed in detail below, this feasibility study is necessary to support a Utility Energy Service Contract (UESC) with VNG at JEBLCFS, whereby VNG will provide various incentives to the Government (including financing) in projects that will reduce energy consumption and install various improvements at JEBLCFS. As of the present time, funding has not been secured for the feasibility study, so a specific appropriation is not available for insertion into this document. The timeframe of the study is not finalized at this time. However, typical timeframes for similar feasibility studies are generally in the six-to-nine month range, from the date of the notice to proceed. 3. Description of Supplies/Services. The feasibility study is necessary prior to the design/implementation of a UESC project at JEBLCFS. Specifically, JEBLCFS has requested that NAVFAC Mid-Atlantic assist with a UESC project with VNG. This UESC project, pursuant to 10 U.S.C. 2913(d), will involve the reduction of energy consumption involving HVAC upgrades and retro-commissioning at twenty-nine (29) buildings, lighting retrofits at twenty-seven (27) buildings, water retrofits at twenty-seven (27) buildings, and renewables at twenty-one (21) buildings. The total area for this project is approximately 984 KSF to include 742 KSF at JEB Little Creek and 242 KSF at Fort Story. Eliminating buildings heated by fuel oil and switching to natural gas-fired systems and improvements to the building heating and controls are necessary in order to improve system efficiency and provide a long-term solution to the maintenance and reliability problems currently being experienced by JEBLCFS. As a result of the installation of these measures, the Navy will be moving toward its goals in regard to EISA and Executive Orders requiring reduction of green house gas emissions. Rough estimates show an annual energy savings of 17,461 MBTU or $595,828 and show a simple payback of 7.75 years, not including maintenance savings which will reduce payback time. VNG will advance financing costs for the design/implementation of the project, which will be repaid upon completion and acceptance of the project, over an agree-to period (approximately 10 to 15 years). Prior to the design/implementation of this UESC project, the Navy must procure a feasibility study, which is necessary to determine which ECMs are actually possible, cost effective, and will result in the savings that will ultimately pay for the UESC project. This feasibility study will provide the detailed “road map? for the ECMs and specific actions that will form the design/implementation of this UESC. The feasibility study is necessary prior to proceeding with the design/implementation of the UESC, and the feasibility study is thus a prerequisite for the necessary energy improvements to the above-referenced buildings at JEBLCFS. 4. Statutory Authority Permitting Other Than Full and Open Competition It is requested that other than full and open competition be permitted and implemented pursuant to 10 U.S.C. Section 2304(c)(1), as implemented by FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.? 5. Rationale Justifying Use of Cited Statutory Authority. VNG is the only regulated, local servicing gas utility company for the geographic area that includes JEBLCFS. Because of VNG’s status as the only regulated, local servicing gas utility for this installation, VNG is the only entity that would be able to actually perform the design and implementation of this UESC project. Specifically, VNG would be authorized under statute as a “utility? to perform the UESC project (see 10 U.S.C 2913(d)(1), authorizing agreements with “utilities?); and VNG would be the only entity practically able to perform the design and implementation of the ECMs discussed above. In this situation, VNG is the only responsible source that can perform the feasibility study necessary prior to the design/implementation of this UESC project. Specifically, because VNG is the current servicing utility and the entity that will actually design/implement the ECMs, VNG is the only entity that will be able to define the precise costs and technical requirements of the project. These precise costs and technical requirements are the essence of the feasibility study being procured by the Government, and due to the circumstances described above, the Government must obtain this information and the feasibility study from VNG. Thus, for the reasons set forth above, VNG is the only responsible source that can perform this particular feasibility study. 6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable. A Notice of Intent (NOI) was published in the Federal Business Opportunities (FEDBIZOPS) (https://www.fbo.gov/), with regard to the UESC project described above at JEBLCFS. The NOI synopsized the Government’s requirement and the intention to award a UESC contract, per 10 U.S.C. 2913(d). The NOI invited interested parties to identify their interest and ability to meet the requirements stated in the NOI, and to submit a corporate capabilities statement for consideration. VNG was the only utility to respond. This paragraph above describes the NOI with respect to the UESC project as a whole, but does not describe efforts with regard to the feasibility study which is the subject of this Justification and Approval (“J&A?). With regard to the feasibility study, under the circumstances described above, VNG is the only entity that can perform this particular study. VNG is the current servicing utility, and VNG is the only entity that will be able to provide the precise costs and technical requirements of the UESC project. Thus, other offerors would not be able to perform the feasibility study which is the subject of this J&A. With regard to market research, market research conducted has shown that VNG is the only regulated, local servicing gas utility company for the geographic area that includes JEBLCFS. In accordance with FAR 6.305, “Availability of the Justification?, this justification will be made available for public inspection. 7. Determination of Fair and Reasonable Cost. The contract price for the feasibility study will be negotiated. The Contracting Officer will determine the price for the feasibility study to be fair and reasonable prior to award of any contract. The Contracting Officer may use various means to ensure a fair and reasonable price, including but not limited to a comparison with an independent government estimate, and /or historical data regarding similar feasibility studies. 8. Actions to Remove Barriers to Future Competition. The contracting activity has no plans at this time to compete future contracts for the supplies/services covered by this document (feasibility studies for JEBLCFS UESC project). If another potential source emerges, the contracting activity will assess whether competition for future requirements for such items is feasible. For future UESC projects in general, a NOI would be generated for such UESC projects. This would allow interested sources to become involved in the UESC project as a whole. With regard to the feasibility study that is the subject of the J&A, the contract will require that VNG establish competitive procedures, acceptable to the Contracting Officer, in selection of subcontractors, suppliers, and third-party financiers.
