23_SIMACQ-PHD-BD3-0002 (Eaton UPS)_Sole Source JA Final Redacted.pdf

Brand Name/Sole Source Justification under $250K

PMD Number: PID SIMACQ-PHD-BD3-0002

Department: Code 10

Company Name/Brand: Eaton - Uninterruptable Power Supply (UPS)

Description of Product, Supplies or Services required to meet the agency’s needs:

NSWC PHD is seeking a preventive and service maintenance agreement to support our Eaton Uninterruptible Power Supply (UPS) and Power Distribution Unit (PDU). Specifically, NSWC PHD requires after-hours 7x24 service with parts and labor, one UPS preventive maintenance, one sealed battery preventive maintenance, and a pre-site survey. Further, NSWC PHD requires the preventative and service maintenance agreement from an Eaton authorized service support provider with the Eaton developed proprietary service software/firmware for 3-phase Eaton Uninterruptible Power Supply (UPS) in order to install UPS firmware updates and to calibrate the UPS when needed to meet Eaton’s most current operating specification. Finally, this preventative and service maintenance require the vendor to replace all faulty parts with Eaton Parts.

Identification of Justification Rational:

☒ The Material or service must be compatible will aspects (Form, Fit, and Function) with existing systems presently installed.

☒ A patent, copyright, proprietary data, or licensing agreement limits competition.

☒ These are “direct replacement(s)” parts/components for existing equipment.

☐ Urgency.

Identification of the Justification Rationale Explained: **If using form, fit, and function, describe the current equipment and how the new item/service must coordinate or interface.

**If using patent, copyright, proprietary data, describe the proprietary data. **If using direct replacement, describe this below.

NSWC PHD has an Eaton Uninterruptable Power Supply (UPS) currently installed in BLDG 1524. During NSWC PHD’s last power outage on August 26, 2022, Eaton UPS did not automatically transfer to shore power; causing NSWC PHD Code 1021 Facilities Operations to contact Eaton support to walk them through the process of having to power up the Eaton UPS system manually. Therefore, we require a service contract to be executed immediately to determine the Eaton UPS is working correctly. Failure to service the Eaton UPS and repair this in a timely manner can cause extensive damage to the Communication Office environment, including servers, network equipment and all circuits providing communication to the command, which can be damaged from an unplanned power outage.

Eaton has developed a proprietary service software for 3-phase Eaton UPS products and is the only vendor capable of providing this service support to our Eaton UPS. No other service supplier is authorized to possess Eaton proprietary (copyrighted) software, repair documentation, process or materials. Furthermore, Eaton does not train, certify or support independent third-party service providers to deliver or service Eaton UPS and power quality products. In fact, even if NSWC PHD were to use a third-party vendor to perform software updates on the UPS, because of Eaton’s proprietary software, Eaton would still need to be present during the service.

Specific Characteristics of the Item or Service required that Limit the Availability to a Sole Source or Brand Name: **This is the most important section. Explain in detail why this company or brand are the only ones that can meet the requirement.

As stated, Eaton is the only vendor capable of providing NSWC PHD with the required service.

If NSWC PHD used another third-party vendor, although this third-party vendor could service some UPS functions and partially support our requirements, without authorization from the manufacturer, the existing Eaton UPS warranty would be invalidated. Therefore, the third-party vendor would need to outsource Eaton, the manufacturer, to use or service the 3-phase Eaton UPS software. Not having the authorization to work on our Eaton 3-phase UPS system can cause delayed service or repair, impacting the data center environment, which provides network connectivity to all NSWC PHD command networks.

If Eaton no longer existed and NSWC PHD had to use only a third-party vendor, we would need to buy a completely new UPS system. The estimated cost for the new system plus installation would result in a substantial duplication of cost of $120,000 that is not expected to be recovered through competition. This cost estimate is based on the $56,000 it cost to purchase and install the original UPS system in 2016. Further, based on the original installation and purchase of the UPS system back in 2016, purchasing a new system in order to use a third-party vendor would result in an unreasonable delay of approximately 14 months. This estimate includes not only the 12 months to purchase the new system, but also the two months delay to install the new system.

This length of delay is unreasonable since it would cause NSWC PHD command to be without communication on all SIPR and NIPR networks. The delay will affect all missions and projects that this command supports worldwide.

Market Research Conducted:

The requirements generator performed market research and contacted searched vendors using Google and Microsoft Edge. The contract Department also Sourced Sought this request and six vendors applied; however, none were authorized to have Eaton proprietary software to work on the Eaton UPS units. Although other vendors could service the Eaton UPS system, they were not authorized to perform software updates to the Eaton 3-phase UPS system without the original equipment manufacturer (Eaton), which is required for this procurement. There are no authorized resellers of this service available.

Statement of Actions, if any to Remove Barriers to Competition in the Future:

NSWC PHD will continue to conduct market research as warranted to provide a broader vendor base as applicable for the types of supplies/services covered by this document. If other potential sources emerge, NSWC PHD will assess whether competition for future requirements is feasible.

Legal Counsel:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

SURANE.JULIANNE.

MARIE.1522887796

Legal Office:

Digitally signed by

SURANE.JULIANNE.MARIE.1522887796

Date: 2022.11.21 09:10:55 -08'00'

Julianne Surane, Assistant Counsel Phone No. 805-228-8520 Date

Contracting Officer:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

WYNN.ARTHUR.P.JR.108048

Contracting Officer Signature:

Digitally signed by

WYNN.ARTHUR.P.JR.1080480870

Date: 2022.11.21 09:16:19 -08'00'

Arthur Wynn, Code 0271 Phone No. 805-228-6111 Date