The Solicitation Number is W911N2-13-R-0041. The NAICS Code is 221210. The size standard is 500 employees. The Government intends to solicit and negotiate with one source under the authority of FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements. The proposed sole source is UGI Penn Natural Gas, Inc. The purchase is for a follow-on contract to support the purchase of natural gas services for Letterkenny Army Depot, located in Chambersburg, PA. This anticipated period of performance will be one ten year term. This notice of intent is not a request for competitive proposals; however, any proposa l received within five (5) days of the issuance of this notice will be considered by the government. A determination by the Government not to compete this proposed contract based upon responses to this notice is solely within the discretion of the government. Information received will normally be considered solely for the purpose of determining whether to conduct a competitive procurement. Any proposals should be emailed to
[email protected] no later than 9:00 AM Easter Daylight Time on 26 September 2013. Only proposals received by this date will be considered. Any questions should be directed to Trudy Alleman at 717-267-5874. JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION NATURAL GAS 1. Contracting Agency: Department of the Army, Army Contracting Command-Redstone, Letterkenny Army Depot (LEAD), CCAM-ALK, Chambersburg, PA 17201-4150. 2. Description of Action: The proposed contract will be a new Firm-Fixed Price contract, using Army Working Capital Funds. Purchase Request Number A3W00031417201 applies to this new acquisition. 3. Description of Supplies/Services: Approval is being requested for a follow-on contract to support the purchase of natural gas services for Letterkenny Army Depot. Based on the research performed by policy it has been determined that Principal Assistant Responsible For Contracting (PARC) approval is not required for utilities contracts. The anticipated period of performance will be one ten year term. The estimated contract value of these services is XXXXXXXXX for the first year, with an annual escalation estimated as 4.5%. The estimated contract value for a 10 year period will beXXXXXXXXX.. The actual escalation will vary based on commodity market prices. This procurement will be by other than full and open competition of natural gas for Letterkenny Army Depot from UGI Penn Natural Gas, INC 225 Morgantown Road, Reading, PA, 19611-1949; CAGE Code: 4QVJ9. 4. Authority Cited: The Statutory Authority permitting Other Than Full and Open Competition for this action is 10 U.S.C. 2304 (c) (1) as implemented by FAR 6.302-1(b)(1)(ii) quote mark Only one responsible source and no other supplies or service will satisfy agency requirements. quote mark 5. Reason for Authority Cited: a. As a result of the 1995 Base Realignment and Closure (BRAC) legislation, LEAD was designated for realignment. This realignment resulted in the declaration of approximately 1,500 acres of property as excess to the needs of the Government. By the nature of the realignment decision, areas of the Government enclave cannot be accessed without passing through the excess property, which creates a dependent relationship when considering utility services. b. Within the jurisdiction of BRAC 1995, Franklin County, Pennsylvania, established as its local reuse authority the Letterkenny Industrial Development Authority (LIDA). c. In their economic development conveyance (EDC) application, the LIDA identified the provision of utility services to the Army and its tenants as essential to the success of their reuse effort. The Army agreed, making utilities part of LIDA's EDC and stopping other on-going privatization efforts. The Army's decision was based on its desire and obligation to encourage reuse and its belief that LEAD could negotiate beneficial utility contracts with the LIDA/Franklin County General Authority (FCGA). The agreement through which the utility privatization efforts to LIDA/FCGA were undertaken is the quote mark Memorandum of Agreement between the Department of the Army and Letterkenny Industrial Development Authority for the transfer of a Portion of Letterkenny Army Depot, Chambersburg, Pennsylvania, quote mark which was signed by the Assistant Secretary of the Army on 5 November 1998. Such contracts are in place for water, sewer, and electric services. After negotiations with LIDA it has been determined that LIDA is no longer willing to support the natural gas contract with Letterkenny. This procurement will be by other than full and open competition for natural gas services from UGI Penn Natural Gas, INC 225 Morgantown Road, Reading, PA, 19611-1949; CAGE Code: 4QVJ9. d. As a result of a competitive solicitation issued by LIDA and dated October 15, 1999 for natural gas services to the reuse area, which has been made into an industrial park LIDA has obtained natural gas services from UGI Utilities Inc., Pennsylvania Public Utility Commission-regulated provider of natural gas services. The natural gas regulating station established for the industrial park under the UGI/LIDA contract is the only available means of serving the Government enclave. All natural gas services running through the regulator stations are controlled by UGI. The UGI regulating station is considered to be the only logical source for providing natural gas services to the installation since they own the pipes. 6. Efforts to Obtain Competition: FAR 5.202(a)(5) exempts this requirement from synopsis. Prior to BRAC 1995 and in contemplation of non-BRAC utility service privatization, LEAD did submit a Sources Sought synopsis and while some interest was expressed, no source was prepared to make the capital investment required to meet the Army's needs due to the wide separation of consumption points and the limited volume of natural gas required. Once LEAD was realigned by BRAC 1995, in keeping with BRAC law and policy, there could be no further effort to obtain competition, as UGI by way of LIDA is the sole source provider. 7. Efforts to Increase Competition: There are no actions anticipated to attempt further competition of these services in the future based on the fact that the gas lines were installed and are owned by PPL/Penn Fuels Gas, which was the successful offeror in response to LIDA's Request for Proposal to own/operate/maintain the gas distribution system. Therefore, LIDA and Penn Fuels Gas are the only available source for transportation/supply/distribution of local gas services. 8. Market Research: In accordance with the Federal Acquisition Regulation (FAR) Part 10, market research was conducted by Kylie Scott, General Engineer of Business Operations, during the period 14 May 2013 to 15 May 2013. The techniques utilized were personal knowledge of the item, contacting knowledgeable persons in Government and or/industry such as Jim Coccagna, Engineering Div, LEAD, 15 May 2013. Review of recent market research results for similar or identical supplies/services. The Competition Advocates Shopping List for this procurement was published on 21 May 2013. Market Research indicates that this service can be met by commercial items. FAR Part 12 will be used for this acquisition since it lays out the regulations for commercial buys. 9. Interested Sources: To date, no other sources have expressed an interest; however, any interested source expressing an interest in this acquisition will be given consideration as prescribed by law. FAR 5.202(a)(5) exempts this requirement from synopsis. Prior to BRAC 1995, and in contemplation of non-BRAC utility service privatization, LEAD did submit a Sources Sought synopsis and while some interest was expressed, no source was prepared to make the capital investment required to meet the Army's needs due to the wide separation of consumption points and the limited volume of natural gas required. Once LEAD was realigned by BRAC 1995, in keeping with BRAC law and policy, there could be no further effort to obtain competition, as UGI by way of LIDA is the sole source provider. 10. Other Factors: a. The current contract W911N2-13-C-0002 was an approved sole source contract under the authority of 10 U.S.C 2304 (c) (1), as implemented by FAR 6.302-1 quote mark Only One Responsible Source and No other Supplies or Services will Satisfy Agency Requirements. quote mark b. Relevant procurement history: Contract No: W911N2-13-C-0002 a. Date of award: 01 NOV 2012 b. Contracted Item: Natural Gas c. Contractor: Letterkenny Industrial Development Authority d. Dollar Value: XXXXXXXXX e. Competitive Status: Sole Source f. Authority Cited: 10 U.S.C.2304 (c) (1) as cited in FAR 6.302-1 g. Interested Vendors: One h. Proposals Received: One c. Subcontract Competition: FAR 52.444-5, Competition in Subcontracting, will be included in the solicitation and the ensuing contract. The contractor will be encouraged to compete subcontracting opportunities wherever feasible. The following clauses regarding subcontracting will be included in the solicitation and contract and in all subcontracts for commercial items or commercial components: FAR 52.203-13 Contractor Code of Business Ethics and Conducts FAR 52.219-8 Utilization of Small Business Concerns FAR 52.219-9 Small Business Subcontracting Plan FAR 52.219-16 Liquidated Damages - Subcontracting Plan FAR 52.222-26 Equal Opportunity FAR 52.222-35 Equal Opportunity for Disabled Veterans, Veterans of the Vietnam Era and Other Eligible Veterans FAR 52.222-36 Affirmative Action for Workers with Disabilities FAR 52.222-50 Combating Trafficking in Persons DFARS 252.219-7004 Small Business Sub-Contracting Plan Test Program 11. Technical Certification: quote mark 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. quote mark NAME: Glenn A. Trego SIGNATURE: ____________________ TITLE: Deputy Director of Public Works DATE: _________________ 12. Requirement Certification: quote mark 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. quote mark NAME: Karen M. McCausland SIGNATURE: ___________________ TITLE: Chief, Business Operations Division DATE: _________________ 13. Fair and Reasonable Cost Determination: quote mark I herby determine that the anticipated cost for the Government for this contract action will be fair and reasonable based on a price analysis with the Independent Government Estimate. Certified cost or pricing data is exempted as stated in FAR 15.403-1 (b) (3) as this is a commercial item being acquired. NAME: Sarah Keebaugh SIGNATURE: ____________________ TITLE: Contracting Officer DATE: _________________ 14. Contracting Officer Certification: quote mark I certify that this justification is accurate and complete to the best of my knowledge and belief. quote mark NAME: Sarah Keebaugh SIGNATURE: __________________ TITLE: Contracting Officer DATE: _______________ APPROVAL Based on the foregoing justification, I hereby approve the procurement of Natural Gas Services 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(b))(1)(ii), subject to availability of funds, and provided that the services herein described have otherwise been authorized for acquisition. UGI Penn Natural Gas, INC., 225 Morgantown Road, Reading, Pennsylvania, 19611-1949; CAGE Code: 4QVJ9 is the only known source for this requirement. This procurement will result in a contract for ten years. The total estimated price is XXXXXXXXX broken down per year as follows: 1st Year - 2nd Year - 3rd Year - 4th Year - 5th Year - 6th Year - 7th Year - 8th Year - 9th Year - 10th Year -