RedactedACC1618.pdf

1. Contracting Activity: The United States Army Contracting Command- Warren (ACC-WRN), is the procuring activity responsible for this action.

2. Description of Action: ACC-WRN proposes to award, on a sole source basis, a new firm-fixed price type contract to NextEnergy for the installation of a microgrid at Camp Grayling, MI.

The total estimated value of this action is $260,000. The contract will be funded with 2011

Research, Development, Test &Evaluation 2040 funds.

3. Description of Supplies/Services: NextEnergy shall install a 500kW Electronic Power

Control and Conditioning (EPCC) Enduring Base (EB) Beta unit, a Supervisory Control and

Data Acquisition (SCADA) Unit, four (4) Smart Load Interface Controller (SLIC) boxes, a 1.5 kW Wind Generator, and a 1.5 kW Solar Shade outside the Facilities Engineering Building at

Camp Grayling, MI. All this equipment was developed by NextEnergy at their facility and at their subcontractor’s facility in Muskegon, under previous contract W56HZV-05-C-0741.

NextEnergy shall provide the Smart Load Interface Controller (SLIC) unit as well as the switchgear and all the cables and connectors that are required for the installation of the microgrid and all equipment associated with it. NextEnergy shall also reconfigure the SLIC boxes so they work in conjunction with Camp Grayling’s utility, prior to installation at Camp Grayling.

NextEnergy shall perform quarterly site visits to Camp Grayling to check on the system and ensure it is functioning properly during the following period of performance: 7 May 2012 to 6

May 2012. An option for an additional twelve (12) months of services following the base performance period will be included. The contractor shall also provide technical support to two

TARDEC events during the performance period.

The Michigan National Guard, at Camp Grayling, is currently waiting for this equipment to be installed so they can have back-up power on essential buildings and increase the percentage of alternative energy used to power the base. This will bring them closer to achieving clean energy goals specified locally. The microgrid installation will also permit Camp Grayling to meet the goals of the Army Energy Security Implementation Strategy, as well. These include: reduced energy consumption; increased energy efficiency across platforms and facilities; increased use of renewable/alternative energy; assured access to sufficient energy supplies; and, a reduction in adverse environmental effects of energy consumption. The total estimated value of this action is

$260,000.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10

U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2), “Only One Responsible Source and

No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Reason for Authority Cited: NextEnergy is the only company with the knowledge to reconfigure and install the EB Beta Unit, SCADA Unit and SLIC Boxes. This technology was developed by them. If another contractor were selected, they would have to develop their own microgrid technology because NextEnergy owns the proprietary rights to all the equipment that will be used in this project. In order to develop alternative equipment, the new source would duplicate costs of approximately $2M for the Government (derived from NextEnergy’s development effort), and delay implementation of this project by at least 12 months, which is unacceptable to the government. NextEnergy must start work by 7 May 2012 in order to complete all tasks by the government’s required performance completion date of 25 JAN 2013.

Performance is required by that date in order for Camp Grayling to stay on schedule regarding their sustainability plan.

6. Efforts to Obtain Competition: For reasons stated in paragraph 5, only one source will be solicited. This action is being synopsized to help identify any interest sources whose names will then be forwarded to TARDEC for consideration.

7. Actions to Increase Competition:

Due to the one-time nature of the National Guard’s requirement at Camp Grayling, no future acquisitions of this kind are contemplated.

8. Market Research: Over the past 12 months there was a solicitation to design and fabricate a microgrid in Oahu, HI which was awarded in JUN 2011 (W56HZV-09-D-0153), which provided much market research on the microgrid units currently available. There were several responses to this solicitation which illustrated that while the technology is similar each company had a different way of designing the microgrid. The result of the sources-sought synopsis showed other sources capable of performing the type of work involved here, but none of them would be in a position either to meet the government’s required delivery, or to perform work on

NextEnergy’s microgrid

.9. Interested Sources: To date no other sources have written to express interest in this acquisition. The notices required by FAR 5.201 will be published and any proposals received shall be considered.

10. Other Facts:

(a) Procurement History:

Plug-in Hybrid Electric Vehicle, W9132T-09-2-0026, 26 AUG 2009-27 AUG 2014, $3.26M, Sole Source

Tactical Modular Mobile Microgrid Power System (TM3PS), W56HZV-10-C-L627, 29 SEP

2010-30 JUN 2011, $586K, Sole Source

Electronic Power Conditioning and Control, W56HZV-05-C-0741, 2005-30 SEP 2011, $10.25M, Sole Source

Reliable Secure and Efficient Energy Demonstrations, DAAB07-03-D-B006, Task Order 0224, Awarded 13 JUL 2007 and was completed 30 SEP 2009, Full and Open Competition

(b) Subcontracting Competition:

The COR will monitor the contractor by requiring monthly reports, a final report and the delivery and proper installation of the microgrid equipment no more than 45 days after the contract award.

11. Technical Certification: Include the following statement:

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.

Typed Name: Jillian McDonald Date: __12 SEP 2011__

Title: Electrical Engineer, Transportation Energy Security, RDECOM NAC Signature:

//Signed//

12. Requirements Certification:

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.

Typed Name: Jim Parker Date: ___16 Nov 11________

Title: Acting Director, RDECOM NAC Signature: ___/s/jmp____________

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. ACC will use price analysis to determine that the price is fair and reasonable.

Certified cost or pricing data will not be required in accordance with FAR 15.403-1 (b)(3), Acquisition of Commercial Items.

Typed Name: John Sarti Date: ___11/21/2011______

Title: Contracting Officer Signature: __signed/js/_____

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: John Sarti Date: ___11/21/2011______

Title: Contracting Officer Signature: __signed/js/_____

Approval

Based on the foregoing justification, I hereby approve the procurement of the Camp Grayling

Microgrid Installation to NextEnergy in the estimated amount of $260,000 on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1), subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Typed Name: John Sarti Date: ___11/21/2011______

Title: Contracting Officer Signature: __signed/js/_____