RFO Part 12.201(a) Restricting Competition_Redacted.pdf

Single Source Justification

Western Area Power Administration (WAPA)

RFO FAR 12.102(a), Restricting competition, under SAT

PR 26WA162166

1. Identification of the agency and the contracting office.

Department of Energy, Western Area Power Administration (WAPA), Colorado Storage River Project

2. Description of supply or service required to meet the agency’s needs.

WAPA DSW requires the procurement and delivery of replacement transformer bushings compatible with the existing 345kV KU5A high-side transformer located at the Glen Canyon

Substation. Specifically, the requirement is for original equipment manufacturer (OEM) or fully compatible ABB Style 230N0800AA (230kV, 8000 Amp) and ABB Style 025W0412AT (25kv, 400/1200 amp) O Plus C OIP bushings.

The anticipated contract action will be awarded as a non-competitive, Firm-Fixed- Price (FFP) purchase order. WAPA intends to award this requirement on a sole source basis to Power Asset Recovery

Corporation (PARC), UEI: R3WHNFQ72372.

3. The rationale or circumstances for limiting competition.

Reasons:

1. Critical Infrastructure and Reliability Mandate: The Glen Canyon Substation is a critical bulk electric system asset responsible for transmitting approximately 80% of the Colorado River Storage

Project’s (CRSP) average annual 5.3 billion kWh power generation. It is a vital node for maintaining

Western Electricity Coordinating Council (WECC) reliability standards. During recent routine diagnostic testing, the 345kV KU5A transformer was found to have three out-of-specification bushings operating at over three times their allowable power factor rating. Due to the imminent risk of catastrophic failure, the transformer was immediately forced offline. This emergency shutdown has severely degraded system reliability and transmission capacity during peak seasonal demand.

2. System Vulnerability and Extreme Financial Risk: Currently, the remaining high-side transformers at the Glen Canyon Substation are carrying the entire generation load without operational redundancy on the 345 kV system. This system primarily serves critical load centers in the Las Vegas and Phoenix metropolitan areas. Operating without redundancy during high ambient- temperature months forces the remaining active units to operate near maximum capacity, accelerating thermal degradation and significantly increasing the probability of a secondary cascading failure.

Should an additional transformer fail, the lead time for a replacement 345 kV, 600\ MVA Government-

Furnished Equipment (GFE) transformer is currently estimated at 60 months (5 years), with procurement costs exceeding $25 million per unit. The vulnerability of operating without this critical transformer exposes the federal government and regional utilities to severe grid instability, widespread outages, and substantial financial liabilities.

3. Unique Source Availability and Technical Compatibility: To restore the KU5A transformer to service, WAPA requires original equipment manufacturer (OEM) or fully compatible ABB Style

230N0800AA and ABB Style 025W0412AT bushings. Due to supply chain constraints and manufacturing backlogs, standard market lead times for newly manufactured bushings of this specification exceed 12 to 18 months, which is unacceptable given the immediate threat to grid stability.

Market research indicates that Power Asset Recovery Corporation (PARC) is capable to provide these critical components within the required time frame to mitigate the immediate risk of a long-term outage at the Glen Canyon Substation.

Consequently, competition is limited to PARC to prevent immediate and severe disruption to WAPA's transmission operations.

4. A description of the Market Research (MR) conducted and the results or a statement of the reason MR was not conducted.

Market research was conducted by contacting known sources. As stated above, research findings identified Power Asset Recovery Corporation (PARC) capable to provide these critical components within the required timeframe to mitigate the immediate risk of a long-term outage at the Glen Canyon

Substation.

5. Price estimate, including all options, if applicable.

6. Recommended source.

Power Asset Recovery Corporation (PARC)

4321 Strausser St.

NW Canton, OH 44720

UEI: R3WHNFQ72372

Certification

The information contained in this Justification for Other than Full and Open Competition is certified accurate and complete to the best of my knowledge and belief.

, Requestor Date

Program and Regulatory Advisor for CRSP

Date

Contracting Officer