Water utility service for USMMA

Other / Unclassified

This document is a Justification for Other Than Full and Open Competition (JOFOC) for water utility services at the United States Merchant Marine Academy (USMMA) in Kings Point, NY. It outlines the rationale for not soliciting competitive bids for these services.

This document explains why a sole-source contract is being considered for water utility services. It details that the Water Authority of Great Neck North is the only entity with the necessary infrastructure and legal authority to provide these services to the USMMA campus. The justification highlights the significant costs, delays, and risks associated with establishing an alternative water source, including extensive engineering, environmental approvals, construction, and acquisition of rights-of-way. It also notes that the current provider has a satisfactory performance record. Bidders interested in opportunities that involve utility services or infrastructure in this region may find this document informative regarding the challenges and justifications for sole-source procurements in such specialized areas.

Justification for Other Than Full and Open Competition (JOFOC)

This document justifies the United States Merchant Marine Academy's (USMMA) plan to enter into a contract for public electric utility services on a basis of other than full and open competition. The services are required to support campus-wide electric supply at USMMA, Kings Point, NY.

Provision of electric utility services, including continuous electric power supply delivery, electric transmission and distribution, power reliability and grid support, metering and energy usage monitoring, outage response, system maintenance, and operational coordination. The current contract expires on April 18, 2026.

A new follow-on contract is proposed for a one-year base period with four one-year options, from April 19, 2026, through April 18, 2031. The contract will be Firm Fixed Price, with economic price adjustment for market power usage for electricity supply to buildings and quarters. Other CLINs will be Firm Fixed Price.

• Sole Source Provider: Long Island Power Authority (LIPA) is the only electric utility provider capable of supplying these services due to its ownership of the electric transmission and distribution infrastructure serving the USMMA campus. Public Service Enterprise Group (PSEG) operates the day-to-day operations.
• Unique Qualifications/Infrastructure: LIPA is a regulated municipal electric authority with an exclusive service territory. No other provider has the legal authority or infrastructure to supply power in this designated area.
• Avoidance of Disruption: Award to the incumbent ensures uninterrupted service, critical for mission operations, training, and residential functions for approximately 1520 Midshipmen, faculty, and staff.
• Duplication of Costs: Establishing an alternate electrical source would require significant engineering studies, environmental approvals, new infrastructure construction, and regulatory coordination, leading to substantial duplication of costs and unacceptable delays.

Market research confirmed LIPA as the only regulated electric utility provider authorized and technically capable of supplying electrical power distribution services to USMMA. The campus is physically connected to LIPA's infrastructure, and no competitive alternatives exist due to LIPA's exclusive service territory and infrastructure ownership.

Not applicable, as this is a Justification for Other Than Full and Open Competition.

• The statutory authority cited is 41 U.S.C. § 3304(a)(1) and FAR 6.103-1(b).
• The justification will be publicly available within 14 days after processing the contract action.
• The Contracting Officer will determine anticipated costs to be fair and reasonable based on historical information and published rates.