JA Waterax Mark-3 Parts_Final.pdf

Single Source or Brand Name Justification over SAT, October 2020

Justification for Single Source or Brand Name United States Department of Agriculture

FAR 13.5 – Simplified Procedures for Certain Commercial Items

1. Identification of the agency and the contracting activity.

The requisitioning activity for this requirement is the United States Department of Agriculture (USDA) Forest Service Northwest Incident Support Cache, Northern Rockies Support Cache and Northwest Support Cache. The contracting activity is the USDA Forest Service, Washington Office Procurement and Property Services, Transition Team (WO-PPS-TT).

2. The nature and/or description of the action being approved.

This action is an individual justification and approval document to FAR 13.501 as based on procurement of items peculiar to one manufacturer. The purpose of this requirement is to procure brand name MARK-3 fire pump parts for sustainment of MARK-3 brand fire pumps across the USDA Forest Service during fire season. This action will be awarded as a firm fixed price Purchase Order contract for original manufactured equipment of MARK-3 fire pump parts.

3. A description of the supplies or services required to meet the agency’s needs (including the estimated value).

The USDA Forest Service incident support cache offices require genuine MARK-3 fire pump parts to maintain the warranty of MARK-3 pumps currently owned by the USDA Forest Service.

4. The statutory authority permitting other than full and open competition.

41 U.S.C § 1901 - Simplified Acquisition Procedures up to $7.5 million, as authorized by FAR 13.500(a) and implemented by FAR 13.501(a).

In accordance with FAR Part FAR 13.501(a), items peculiar to one manufacturer, an item peculiar to one manufacturer can be a particular brand name, product or a feature of a product, peculiar to one manufacturer. A brand name item, whether available on one or more schedule contracts, is an item peculiar to one manufacturer.

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority.

WATERAX Corporation is the sole Original Equipment Manufacturer (OEM) of the Mark-3 High-Pressure Portable Pump Systems and pump replacement parts. The use of WATERAX Corporation/OEM Spare Parts is required to maintain manufacturer warranty and qualification specification for the MARK-3 Pump under USFS QPL- 5100-274-001. OEM parts are required to repair the Mark-3 pumps to the manufacturer specification in order to maintain the performance standard required by Forest Service Test and Development Center. The Forest Service requires pump parts to maintain its WATERAX Mark-3 fire pumps. These pumps are used on fires often in rugged and high-altitude terrain during emergency circumstances.

Repairs are made in house by the Forest Service. These pump parts are a repetitive annual need to maintain the WATERAX Mark-3 fire pumps and have been procured under Brand Name procedures each year to date. Market Research was conducted to determine if there were any new entrants to the market that could provide acceptable pump parts that would function with the existing inventory of WATERAX Mark-3 pumps and increase competition.

WATERAX Corporation responded to the Request for Information stating that WATERAX Corporation does not provide warranty coverage on the MARK-3 fire pump and/or repair parts resulting from the failure or substandard, inadequate or improper performance of any third party part, component, product or equipment, whether or not combined, packaged, incorporated, installed or used with a Seller brand part, component, product or equipment.

Parts used for repair must be WATERAX genuine OEM parts or the warranty would be voided on the pump or parts. WATERAX went on to say that it has only two authorized resellers.

The Forest Service requires that parts needed for pump repairs for the WATERAX MARK-3 pumps be genuine WATERAX parts in order to reduce the risk of operational pump failures due to the use of non-OEM incompatible parts that may not be designed to operate in high altitudes. The risk of failure or substandard pump operation as a result of using another manufacturer’s part is unacceptable and risky when used in high altitude and/or emergency fire situations.

The use of MARK-3 genuine pump parts with the current Forest Service inventory of fire pumps is further supported to prevent unnecessary additional repair costs. The U.S. Forest Service currently has three (3) Caches that maintain the WATERAX Mark-3 High-Pressure Portable Pumps for the National Cache Systems. The cost of a new Mark 3 High Pressure Portable Pump System from Defense Logistics Agency (DLA) is approximately $3,682.52.

The current inventory amongst these caches are approximately 2000+, with an estimated value at $7,365,040.00. Without utilizing OEM replacement parts, the USFS could incur significant replacement cost for its Mark-3 High-Pressure Portable Pumps.

6. A description of efforts made to ensure offers are solicited from as many potential sources as is practicable.

A Sources Sought, # 2024M3RP, was issued on December 30, 2020 and sent to three vendors.

WATERAX Corporation, the original equipment manufacturer, responded as a viable source that sells the needed parts and has indicated that there are only two vendors that are authorized to sell MARK-3 genuine pump parts with the OEM warranty: Ed M. Feld Equipment Company, Inc. and Heiman Fire Equipment. The USDA Forest Service confirmed that Ed M. Feld Equipment and Heiman Fire Equipment were valid potential sources and authorized resellers of MARK-3 Fire Pump parts. Additional Internet searches resulted in no additional sources or pump part resellers that could warrant their parts or certify the parts would be compatible with the WATERAX pumps.

7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The USDA Forest Service performed its due diligence in doing market research for acquiring goods that would optimize competition and yield fair and reasonable pricing. Prior FS pricing history for WATERAX pump parts within the Forest Service is available for comparison purposes under purchase orders 1263A920P6009, 1204T020P0026, and 12046W20P0052.

Based on available past pricing history and the availability of at least three known sources, it is expected that the anticipated costs from MARK-3 pump parts will be able to be found fair and reasonable through competition and past pricing history.

8. A description of the market research conducted and the results or a statement of the reason Market Research was not conducted.

The results received from Sources Sought# 2024M3RP issued on December 30, 2020 concluded that three sources are available to provide genuine MARK-3 fire pump parts; WATERAX Corporation, Ed M. Feld Equipment Company and Heiman Fire Equipment.

An internet search identified and confirmed the OEM, WATERAX Corporation and two authorized WATERAX dealers that can supply MARK-3 fire pumps and parts with the WATERAX warrant: Ed M. Feld Equipment Company and Heiman Fire Equipment.

WATERAX Corporation Vice President, Marcello Iacovella, confirmed that WATERAX Corporation is the sole manufacturer and government agency provider of the proprietary WATERAX Corporation line of the fire pumps and respective genuine spare parts. WATERAX Corporation model pumps include: MARK-3®, BB-4®, MINI-STRIKER®, ULTRASTRIKER®, STRIKER II®, B2X®, RANCHER®, VERSAX®.

9. Any other facts supporting the use of other than full and open competition.

The specifications of the WATERAX Corporation fire pumps and pump parts are proprietary to WATERAX Corporation. Market research indicates other companies’ similar products do not meet the Agency’s warranty needs for the USDA Forest Service owned product of MARK-3 fire pumps. There are at least three known potential sources (the OEM and 2 OEM authorized distributors) available that can provide competition.

10. A listing of the sources, if any, that expressed a written interest in the acquisition.

WATERAX Corporation, 3801 NE 109th Avenue, Suite A, Vancouver, Washington 98682 Contact: Marcello Iacovella, miacovella@waterax.com, Phone: 514.497.1490

Ed M. Feld Equipment Company, 113 N. Griffith Rd, Carroll, Iowa 51401 Contact: John Feld, john@feldfire.com, Phone: 712.792.3143

Heiman Fire Equipment, 25814 Rudolph Avenue, Sioux Falls, SD 57107 Contact: Deb Hatting, debhatting@heimanfire.com, Phone: 712-724-6212 mailto:miacovella@waterax.com mailto:john@feldfire.com mailto:debhatting@heimanfire.com

11. A statement of actions, if any, the agency may take to remove or overcome any barriers to competition if subsequent acquisitions are anticipated.

The Forest Service will continue to research the market on subsequent contracting actions new market entrants through internet searches and industry wide request for information techniques. This will provide industry the opportunity to respond to our requirements with any possible acceptable “or equals” or identify new sources available that can provide original equipment manufacturer parts. The barriers to competition will most likely continue until the Forest Service buys other brands of pumps or the WATERAX Corporation changes it business model on authorized resellers.