140R8122Q0078_-_Brand_Name_Determination_Redacted.pdf

Solicitation Number: 140R8122Q0078 Page 1 of 5

WBR 1413.106-1 Template 1 (11/2020)

DETERMINATION TO SOLICIT FROM A SINGLE SOURCE

Pursuant to Federal Acquisition Regulation (FAR) 13.106-1(b)(1)(i), for purchases not exceeding the Simplified Acquisition Threshold (SAT) Contracting Officers may solicit from only one source if the circumstances of the contract action deem only one source is reasonably available (e.g., urgency, exclusive licensing agreements, brand name, or industrial mobilization).

Pursuant to FAR 13.106-1(b)(1)(ii), when a single source is identified to provide a portion of the purchase as a Brand-Name, the documentation in paragraph 3 must state that this determination is only for a portion of the requirement.

1. Agency and Contracting Activity. U.S. Department of the Interior, Bureau of Reclamation, Denver Acquisition Operations Branch (AOB), 84-27810

2. Name and Address of Single Source.

Jean Lutz North America, LLC 4370 Boardman Canfield Road Canfield, OH 44406

3. Description of Supplies/Services and Estimated Cost.

The scope of this work is to acquire a commercially available system capable of providing real-time geotechnical Monitoring While Drilling (MWD) and preliminary data analysis that is compatible for shared data analysis with the Federal Highway Administration (FHWA) and state Departments of Transportation (DOTs). The equipment must be installed and maintained by the manufacturer. The system will be used for multiple types of geotechnical drilling (auger, rotary, percussion, wire-line core, etc.).

The acquired MWD system will be installed on a Columbia Pacific Northwest (CPN) Region drill rig, collect data for a drilling season, perform data analysis, and be used to prepare a report documenting system findings to prove the importance of such a system for exploration drilling in North America.

The contractor must provide a MWD system that includes:

A Dialog MX2 data recording box A connection box Appropriate connection cabling between the first two items A depth sensor system with extension cord A revolution per minute sensor for the drill rod A down pressure sensor A rotation torque sensor A fluid pressure sensor for a two (2) -inch diameter line

Solicitation Number: 140R8122Q0078 Page 2 of 5

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A vibration sensor with extension cable A flowmeter for two (2) -inch lines capable of recording mud/water flow with a connection cable Data reporting software Installation, set-up, and training of the operators on-site, in-person at Reclamation’s drill yard in Boise, ID at a time to be determined by Reclamation after award

The system must arrive with all required equipment and accessories to run the system “out of the box,” to be interoperable with Reclamation drilling equipment, and to collect data that is compatible for shared data analysis with FHWA and state DOTs. No additional modifications prior to production level work shall be required. The system shall be provided with up-to-date equipment calibration documentation and shall be manufactured with all new parts. The system shall include at least a one (1) - year commercial warranty provided by the contractor.

The anticipated supply delivery date is 30 (thirty) days after award. The installation and training 1/31/2023. The overall estimated procurement value is

4. Description of Circumstances, including why only one source is reasonably available.

In accordance with FAR 13.106-1(b)(1), specific characteristics of the Dialog MX2 Monitoring While Drilling (MWD) system limit the availability to a sole source.

The Jean Lutz Dialog MX2 is the preferred geotechnical MWD system by members of a Federal Highway Administration (FHWA) consortium. Acquiring and installing the Dialog MX2 will ensure that Reclamation can benefit from the lessons learned by state Departments of Transportation (DOTs) and collect compatible data for shared data analysis with federal and state agencies. For administrative and cost efficiency, the system needs to arrive with all required equipment and accessories “out of the box” and be adaptable as a “plug and play” system.

A variety of petroleum drilling companies offer MWD systems, but the systems are not designed for geotechnical drilling; therefore, the collected data uses separate data points, and the system would not be “plug and play.”

LIM Technology USA also manufactures a PocketLIM geotechnical MWD system, but the torque data collection’s confidence interval is higher in comparison to the Dialog MX2 system. One of Reclamation’s critical data points for MWD data analysis is torque.

Therefore, to provide equivalent data confidence for shared data analysis with the FHWA and state DOTs, Reclamation must acquire the Dialog MX2 system instead of the PocketLIM system.

Solicitation Number: 140R8122Q0078 Page 3 of 5

Only Jean Lutz can furnish the requirements, to the exclusion of other sources, because Jean Lutz is the only manufacturer and government-authorized retailer of Dialog MX2 MWD systems.

5. Determination of Fair and Reasonable Price.

The current independent government cost estimate (IGCE) is , with an estimated cost specifically for the MWD system, excluding installation, training, and travel.

Price lists for the Dialog MX2 MWD system or similar MWD systems are not publicly posted. In addition, insufficient data exists in the Federal Procurement Data System (FPDS) to confidently determine adequate market pricing.

Jean Lutz has received two federal awards, both from the FHWA, one award for $24,066.00 on 8/29/2017 and another for $10,140.00 on 9/21/2020.

Based on the Consumer Price Index (CPI) Inflation Calculator on the Bureau of Labor Statistics (BLS) website, However, this calculation relies on multiple assumptions.

LIM Technology USA, which manufactures the PocketLIM geotechnical MWD system deemed inadequate for Reclamation’s current torque data research needs, has received only one federal award, from the United States Geological Survey (USGS), on 1/12/2018 for $61,600.00.

However, the LIM device data will not be compatible for data analysis with

Reclamation’s FHWA and state DOT partners on this research requirement, Furthermore, LIM is no longer actively registered on SAM.gov.

Based on the limited pricing information available from previous federal government purchases of MWD systems, the Jean Lutz Dialog MX2 system in comparison to the competing LIM MWD system. Prior to award, Jean Lutz’s quote will be evaluated for fair and reasonable pricing, including any potential instances of unbalanced pricing.

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6. Description of Market Research.

The Reclamation Research and Development (R&D) office conducted initial market research via vendor/association contacts, industry publications, and the Internet. Based on its research and discussion with its drilling research partners - the FHWA and state DOTs, the R&D office concluded that only the Dialog MX2 MWD system provided solely by Jean Lutz could fulfill its requirement.

The Reclamation Denver AOB conducted its own market research via the General Services Administration (GSA) Advantage platform, the System for Award Management (SAM), the Dynamic Small Business Search provided by the Small Business Administration (SBA), previous purchases listed on FPDS and the DOI Historical Vendor Research Tool, and the Internet in general.

During the AOB’s initial market research, the Contract Specialist identified several petroleum MWD system vendors, including Schlumberger Technology Corporation, Geotech, Envi, NOV Inc., CAN Global USA Inc, Bentec, Emerson Moore Drilling, and DAT Instruments. Only Schlumberger is currently actively registered in SAM. Upon consultation with the R&D office, the Contract Specialist realized that the petroleum MWD systems were inadequate to provide the geotechnical drilling data desired by the R&D staff.

The Contract Specialist also inquired about LIM’s geotechnical MWD solution, but the R&D office explained that LIM’s higher torque data confidence interval would skew Reclamation’s ability to conduct shared data analysis with Reclamation’s research partners on this effort – the FHWA and multiple state DOTs.

A Notice of Intent to Sole Source was publicly posted to SAM on 2/16/2022 with vendor response due by 2/26/2022. No vendors responded to the notice by the response deadline.

Therefore, Jean Lutz continues to remain the only source capable of fulfilling the Reclamation R&D office’s requirement to acquire a Dialog MX2 MWD system to conduct shared MWD data analysis with the FHWA and state DOTs and prove the importance of MWD systems for exploration drilling in North America.

SIGNATURES

PREPARED BY:

Name: Mark Wolfe, Contract Specialist

Date: 3/ /2022X

MARK

WOLFE

Digitally signed by

MARK WOLFE

Date: 2022.03.03 09:23:12 -07'00'

Solicitation Number: 140R8122Q0078 Page 5 of 5

CONTRACTING OFFICER (CO) (FAR 13.106-1(b)):(All Values)

Name: Amanda Somerville

Date:

X

AMANDA

SOMERVILLE

Digitally signed by

AMANDA SOMERVILLE

Date: 2022.03.03 14:05:25 -07'00' 3/3/22