Natural Gas Service to Missile Alert Facilities

SINGLE SOURCE DETERMINATION 341ST CONTRACTING SQUADRON MALMSTROM AFB MT (For Simplified Acquisitions) 1. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED This 10-year requirement is to provide natural gas commodity/service to Missile Alert Facilities (MAFs), KILO-01 and LIMA-01, in Harlowton and Judith Gap, MT. Natural gas commodity/service was determined a commercial item/service in accordance with FAR Part 2.101, a commercial item is any item, other than real property, that is of a type customarily used by the general public or by non-governmental entities for purposes other than governmental purposes, and has been sold, leased, or licensed to the general public; or, has been offered for sale, lease, or license to the general public. Market research supports that the natural gas commodity/service meets the criteria of a commercial item. The aggregate estimated amount is $180,448.22. This estimate is above the traditional simplified acquisition threshold (SAT) of $150,000.00; however, the simplified acquisition procedures are applicable in accordance with the procedures set forth by FAR 13.5, Test Program for Certain Commercial Items, which establishes the SAT at $6.5 million. In accordance with 13.106(b)(1)(ii) sole source documentation will be used and formatted as described at 6.303-2 and modified to reflect an acquisition under the authority of the test program for commercial items. In accordance with AFFARS IG 5313.106-1(b)(1), Soliciting From a Single Source, a Single Source Determination is used for acquisitions that exceed the micro-purchase threshold. 2. JUSTIFICATION FOR SOLICITING FROM A SINGLE SOURCE In accordance with 41.202, research was conducted to determine whether an interagency agreement, a GSA areawide contract, or Defense Logistics Agency (DLA) contract/agreement existed. Unfortunately, none of these sources were able to accommodate the natural gas requirement for the two MAFs. Market research was conducted of natural gas providers within the state of Montana and only one source was reasonably able to provide natural gas commodity/service to the desired locations. Due to the limited number of sources the Government pursued a sole source purchase from NorthWestern Energy for natural gas service IAW 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. 3. EFFORTS TO OBTAIN COMPETITION Market research was conducted in order to find sources of competition. Natural gas consumption of Montana is carried over two major pipelines owned by NorthWestern Energy and Williston Bason Interstate, which is affiliated with Montana-Dakota Utilities Co (MDU). NorthWestern Energy is the largest provider of natural gas in Montana and provides transportation of gas service all over the state, including Harlowton and Judith Gap where the two MAFs are located. MDU, however, only serves a limited number of cities located in the Badlands region of Montana. The two MAFs are not located near this region. 4. STEPS TO PRECLUDE FUTURE SINGLE SOURCE AWARDS Future requirements will require the contracting specialist and officer to closely follow the outlined procedures in FAR Part 41.202. The team should reevaluate the availability of natural gas commodity and service offered through area-wide contracts and agreements written by Defense Logistics Agency (DLA), Interagency Agreements, and GSA. If none of these are available, the team should conduct market research to determine whether other providers of natural gas commodity and service are available in the proximity of KILO-01 and LIMA-01. 5. CONTRACTING OFFICER'S DETERMINATION I have determined, in accordance with FAR 13.106-1(b)(1), that the circumstances of this contract action deem only a single source is reasonably available. *See attached for signatures