N--SW Gas On-Site Pipeline Installation VASNHS Medical Center Sole Source Justification

DEPARTMENT OF VETERANS AFFAIRS JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION FAR 6.302-5, 41 U.S.C. 253 (c) (1) 1. Agency and Contracting Activity Identification: The VISN 22 Network Contracting Activity, as directed by the VA Southern Nevada Healthcare System, will enter into a Purchase Order that requires justification for other than full and open competition. The Purchase Order Number is 593-X17000. 2. Nature of Acquisition Being Approved: VASNHS has a requirement for natural gas piping facilities for the Central Plant and Kitchen at the new North Las Vegas Medical Center (Project CA2202). The proposed solicitation shall result in a firm-fixed price construction contract. 3. Description of Requirement: The Contractor shall 1) excavate and backfill a 36" wide and 24" deep trench from the existing pipe on Walnut Street to the VA property line, and backfill after the piping installation; 2) install polyethylene pipe from Deer Springs Road to the SE corner of the new Medical Center (at the east end of the Warehouse) and backfill the trench; and 3) install polyethylene pipe from the property line at Walnut Street to the Energy Center (NW corner of Cooling Tower Yard) and backfill the trench. The period of performance is July 18, 2011, through September 30, 2011. The independent Government estimated cost is $113,774.00. 4. Statutory Authority Permitting Other Than Full and Open Competition: The services are being procured under the authority of 41 U.S.C. (c) (2), FAR Part 6.302-1(a). 5. The Nature of the Acquisition Requires Use of the Authority Cited: Southwest Gas Corporation, operating under the Public Utilities Commission of Nevada, is the sole natural gas provider in Southern Nevada. Generally, when contracting for utility services the Contractor installs the facilities required to provide services and charges a monthly facility cost recovery rate to the customer. Southwest Gas Corporation refuses to execute a tendered contract as outlined in FAR 41.201(b), or a GSA Areawide Contract, specifically stating they require all customers to use their forms and clauses, which is prohibited under the referenced Clause. Moreover, Southwest Gas Corporation requires the facilities installation be performed by a Contractor they have certified, and will not allow their certified Contractors to perform the services under separate contract with the customer. 6. A Description of Efforts Made to Ensure That Offers From as Many Potential Sources As Practicable and Whether a Notice Will Be Publicized. Research was conducted via the Internet and in direct contact with GSA to identify whether there were any GSA Areawide Contracts; searched the "Newcomers & Visitors Guide" section of the Embarq Yellow Pages for Las Vegas, NV; and searched the Centralized Contractor Registry for natural gas service providers. There are no GSA Areawide Contracts for natural gas or other natural gas service providers in Southern Nevada. A notice has been publicized for this procurement. DEPARTMENT OF VETERANS AFFAIRS NETWORK 22 LOGISTICS OFFICE JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION FAR 6.302-1, 41 U.S.C. 253 (c) (1) 7. Anticipated Cost: The anticipated cost should be fair and reasonable to the Government based on the Using Service estimate utilizing RS Means, and performance uncertainties can be identified and reasonable estimates of their cost impact can be made. The Contractor is willing to accept a firm fixed-price representing assumption of the risks involved. 8. Results of Market Survey: Southwest Gas Corporation is the only responsible source providing natural gas services in Southern Nevada. 9. Any Other Facts Supporting the Use of Other Than Full and Open Competition: None. 10. Any Other Interested Sources? There are no other sources that have expressed an interest to date. 11. A Statement of the Actions, if any, the Agency May Take To Remove or Overcome Any Barriers to Competition Before Any Subsequent Acquisition is required: It is not anticipated that any subsequent requirement will be needed by the Government. 12. I hereby certify that the above is accurate and complete to the best of my knowledge and belief. David R. Goodman _________________ Contracting Officer (Date) Kevin Blanchard __________________ Network Contracts Manager (Date)