A.02 BrandNameMTUParts-redacted copy.pdf

v4, 5 Jan 2015; previous version obsolete

BRAND NAME JUSTIFICATION

(Simplified Acquisition Procedures under FAR Part 13 Not Exceeding $700K)

1. Agency/Contracting Activity: U.S. Army Corp of Engineer, Portland District, 333 SW 1st Ave #200, Portland, OR 97204

2. Description of Action:

Nature: New Requirement Follow-on Requirement Mod to Existing Purchase Order/Contract Number

Pricing: Firm-Fixed Price Funds: OMA

Time & Materials Other Funds:

Proposed Contractor:

MTU Authorized Dealer

3. Description of Services or Supplies:

The total estimated value of the proposed action is $120,500.00.

Background: The Dredge Yaquina is a U.S. flagged vessel owned by the federal government. The vessel is currently fully inspected under the authority of the U. S. Coast Guard. Requirements for maintaining certificates authorizing the operation of this vessel in U. S. territorial waters. The Dredge Yaquina was re-powered in 2010 with seven (7) new MTU engines. Preventative maintenance must be performed at scheduled hourly intervals to keep the engine’s operation safe and prevent damage. This maintenance requires genuine MTU parts from authorized dealers. The required maintenance is completed by both crew and service technicians.

Supplies: Provide various parts for the MTU 8V4000 (Main Engines), MTU 12V2000 (Generator and Dredge Engines), and Series 60 (Bow Thruster Engine) aboard the Dredge Yaquina. All parts shall be genuine MTU parts from an authorized dealer.

Dredge Engines: 12V2000, S/N 5352010118

Part Name Part Number Quantity

Clamp 5410780535 10

Tube ASM Fuel Injector 0000170624 54

Plug ASM Injector Clamp w/ O-Ring 5410100535 4

High Press Fuel Line DBL Wall X53107700002 12

Pump Injection (EUP) E0060704101 24

Nozzle ASM Sccc 0010100851 24

Sealing Ring 5419970545 11

Washer Sealing CU S2000/S55 9060170260 11

Sealing Ring 5419970545 11

Line Fuel 5360707932 10

Washer A Cop 007603008109 120

Line Fuel X00036764 1

Fuel Line 5360705232 2

Fuel Line X00041792 2

Line Fuel X00036766 2

Line Fuel X53608600009 2

Fuel Line 5360705132 24

Line Oil Breather LB O+G X00036769 1

Tube Flexible 640 Oil Return ASM O+G X53601800001 4

Hose Intake 70MM 3769971582 8

Sealing Ring 23525543 8

Retainer Breather Element 23526768 8

Element Breather 5310180110 4

Retainer 5310160138 12

Baffle Plate Breather 5310180022 16

Bolt Hex Washer HD 23550249 18

Turbo GT5002 0.90 A/R O+G X00026445 4

Turbo GT5002 0.90 A/R O+G *CORES* X00026445 4

Generator Engines: 12V2000, S/N 5352006145

Pump Injection (EUP) E0060704101 24

Pump Injection (EUP) *CORES* E0060704101 24

Exhaust Manifold X53514100001 3

Exhaust Manifold X00006256 3

Main Engine: MTU 8V4000, S/N 524101142

Injector EX52407500049 16

Injector *CORES* EX52407500049 16

Bow Thruster Engine: Series 60, S/N 06R1009461

Exhaust Manifold DDE E23537770 2

4. Authority:

Action using simplified acquisition procedures (select one):

FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), contracting officers may solicit from one source if the contracting officer determines that the circumstances of the contract action deem only one source reasonably available (e.g. urgency, exclusive licensing agreements, brand name, or industrial mobilization)

FAR 13.501(a)(1): For actions for commercial supplies or services greater than the SAT but not exceeding $7M, the requirements of FAR 13.501(a) apply to sole-source acquisitions conducted pursuant to Subpart 13.5 (Reference: FAR 13.106-1(b)(2)). Subpart 13.5 is the Test Program for Certain Commercial Items (see 41 USC 1901; or for contingencies see 41 USC 1903)

5. Reasons for Authority Cited:

Justification: Authorized dealers have been authorized by the original equipment manufacturer (OEM) to sell, lease, or assemble parts by the manufacturer. They are authorized to sell these parts directly to the consumer. Since the parts are certified by the OEM, they come with warranties from the manufacturer. This includes product defects and premature failure. This eliminates questioning the source, authenticity, and quality of the parts received. When purchasing parts from authorized sellers, they have terms and conditions that protect the buyer from receiving defective parts. These parts will go back to the OEM if they do not pass the inspections.

Impact: The parts to be purchased are for services to be performed at the regular MTU maintenance interval. The parts will be used to service the two (2) main engines, two (2) dredge engines, two (2) ship service generators, and one (1) bow thruster engine. The main and bow thruster engines are required for propulsion of the ship. The ship service generators are needed to provide power to the all of the ship. The dredge engines are required to power the dredge pumps.

If this mission critical equipment is not serviced at the required interval, failure to the engine may occur during the operating season. This will cease all dredging activity due to habitability and operational reasons. This will result in a loss of production at a rate of $95,000/daily. For this reason, it is crucial for the equipment to be serviced at this interval with genuine MTU parts. This greatly reduces the risk of failure to the engines and keeps operation safe.

Although the favorable pricing of the non-authorized dealers (gray market) is alluring, it lacks one major component. The dealers/sellers more often than not are not authorized by the manufacturer to sell OEM parts. This can create a list of problems. The biggest problem is the unknown sourcing of the goods. They may not have come directly from the manufacturer. They could be used or discarded and resold by an unauthorized dealer. This puts the durability, authenticity, and integrity of the parts into question. If these parts fail, they may not have manufacturer’s warranty due to the origin and sourcing of the products. If these products were purchased by the Government for use on our equipment, it could result in damage to the engines. These risks can easily avoided by using quality parts from the OEM.

For this reason, it is vital to purchase from dealers authorized to sell parts directly from the OEM.

Many authorized dealers have terms in their sales that refer directly to the original equipment manufacturer. It eliminates many of the problems stated above. It ensures the parts are authentic and in good condition. This also includes the twelve (12) month, unlimited hours warranty directly from the OEM.

Alternatives: There are several authorized MTU dealers. The parts can be sourced by any dealer, so long as they have proper certification to sell OEM parts. They may be sourced from the manufacturer, but they mostly sell to their authorized dealers.

6. Actions to Increase Competition:

The Government intends to set this aside as a total small business award, as market research shows numerous companies have the ability to provide the items. Currently, there are no known compatible aftermarket products that will maintain the integrity of the engines and warranty. MTU authorized dealers are the only OEM authorized centers to sell genuine parts. Any unauthorized dealers need to submit proof of authenticity of the parts. This document would originate directly from the original manufacturer. They would also need to provide manufacturer warranty on the parts.

7. Market Research:

The OEM has regional distributors in Oregon, Washington, California, Idaho, and Nevada. These distributors generally do not provide parts and services outside of their region.

8. Procurement History:

Previous Purchase Order(s) or Contract(s): Yes No

If "Yes", for each purchase order or contract provide:

Purchase order or contract number: W9127N21P0006, W9127N20P0150, and

W9127N20P0009 Was action competed? Yes No

If action was not competed, state the cited authority, summarize rationale:

9. Additional Facts and/or Information to support the justification.

N/A

10. Technical / Requirements Certification: I certify that the supporting data under my cognizance which is included in this abbreviated J&A is accurate and complete to the best of my knowledge and belief.

Submitted By: Kathlyn Cantu Position Title: Mechanical Engineer Email address:

Kathlyn.R.Cantu@usace.army.mil

CANTU.KATHLYN.

Digitally signed by

CANTU.KATHLYN.ROSE.1539265

Date: 2021.07.06 08:10:57 -07'00'

11. Fair and Reasonable Price Determination: As contracting officer, I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. Basis for the determination is as follows:

Competition is anticipated based on other similar actions where multiple distributors can provide the items required. The price is anticipated to be determined fair and reasonable based on the conditions of FAR 13.106-3(a)(1), receipt of competitive quotes, and FAR 13.106-3(a)(2)(vi), comparison of the proposal to the Independent Government Estimate.

12. Contracting Officer’s Approval (actions less than $700K): I hereby certify that this justification is accurate and complete to the best of my knowledge and belief. Based on the foregoing, I approve this sole source justification subject to availability of funds, and provided that the services and supplies herein described have otherwise been authorized for acquisition.

SIGNATURE:

NAME: Michael Saldana TITLE: Procuring Contracting Officer

DATE:

SALDANA.MICHAEL. Digitally signed by

_E.1173444431

SALDANA.MICHAEL.E.1173444431

Date: 2021.07.19 12:35:26 -07'00'

ROSE.1539265810Signature: