A.02.05 J&A Other than Full and Open Competition.pdf

Control Number: 20-0042

SOLE SOURCE JUSTIFICATION & APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. CONTRACTING AGENCY: US Army Corps of Engineers (USACE), Walla Walla District (CENWW-CT) 201 North 3rd, Walla Walla, WA 99362.

2. DESCRIPTION OF ACTION: This justification is for a new firm-fixed price, sole source contract to supply new Original Equipment Manufacturers (OEM) Basler Exciter Controllers replacements for Lower Monumental Project’s exciter systems used on generating units 1-3.

The estimated amount of purchase is $545,309.00 ($505,569.00 using FY 2020 Small Cap funds and $39,740.00 project funds for the spare parts).

3. DESCRIPTION OF SUPPLIES: The U.S. Army Corps of Engineers, Lower Monumental Lock and Dam, requires replacement of three (3) failing Basler exciter controllers with new Basler exciter controllers. The Basler controllers provide critical controls to Basler Exciters that provide excitation voltages for generating units 1-3.

4. AUTHORITY CITED: FAR 13.501(a) -

(a) Sole source (including brand name) acquisitions.

(1) Acquisitions conducted under simplified acquisition procedures are exempt from the requirements in part 6. However, contracting officers must-

(i) Conduct sole source acquisitions, as defined in 2.101, (including brand name) under this subpart only if the need to do so is justified in writing and approved at the levels specified in paragraph (a)(2) of this section;

(ii) Prepare sole source (including brand name) justifications using the format at 6.303-2, modified to reflect that the procedures in FAR subpart 13.5 were used in accordance with 41 U.S.C.1901 or the authority of 41 U.S.C.1903;

(iii) Make publicly available the justifications (excluding brand name) required by 6.305(a) within 14 days after contract award or in the case of unusual and compelling urgency within 30 days after contract award, in accordance with 6.305 procedures at paragraphs (b), (d), (e), and (f); and

(iv) Make publicly available brand name justifications with the solicitation, in accordance with 5.102(a)(6).

(2) Justifications and approvals are required under this subpart for sole-source (including brand-name) acquisitions or portions of an acquisition requiring a brand-name. If the justification is to cover only the portion of the acquisition which is brand-name, then it should so state; the approval level requirements will then only apply to that portion.

(i) For a proposed contract exceeding $150,000, but not exceeding $700,000, the contracting officer’s certification that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief will serve as approval, unless a higher approval level is established in accordance with agency procedures.

(ii) For a proposed contract exceeding $700,000, but not exceeding $13.5 million, the advocate for competition for the procuring activity, designated pursuant to 6.501; or an official described in 6.304(a)(3) or (a)(4) must approve the justification and approval. This authority is not delegable.

(iii) For a proposed contract exceeding $13.5 million but not exceeding $68 million or, for DoD, NASA, and the Coast Guard, not exceeding $93 million, the head of the procuring activity or the official described in 6.304(a)(3) or (a)(4) must approve the justification and approval. This authority is not delegable.

(iv) For a proposed contract exceeding $68 million or, for DoD, NASA, and the Coast Guard, $93 million, the official described in 6.304(a)(4) must approve the justification and approval. This authority is not delegable except as provided in 6.304(a)(4).

https://www.acquisition.gov/content/part-6-competition-requirements#i1120119 https://www.acquisition.gov/content/part-2-definitions-words-and-terms#i1125359 https://www.acquisition.gov/content/part-6-competition-requirements#i1119771 https://www.acquisition.gov/content/part-13-simplified-acquisition-procedures#i1111258 http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3 http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3 https://www.acquisition.gov/content/part-6-competition-requirements#i1119843 https://www.acquisition.gov/content/part-6-competition-requirements#i1119843 https://www.acquisition.gov/content/part-5-publicizing-contract-actions#i1121037 https://www.acquisition.gov/content/part-6-competition-requirements#i1119317 https://www.acquisition.gov/content/part-6-competition-requirements#i1119818 https://www.acquisition.gov/content/part-6-competition-requirements#i1119818 https://www.acquisition.gov/content/part-6-competition-requirements#i1119818 https://www.acquisition.gov/content/part-6-competition-requirements#i1119818

5. REASON FOR AUTHORITY CITED:

a. BACKGROUND: The U.S. Army Corps of Engineers, Lower Monumental Lock and Dam Project uses Basler Exciters on its main generating units 1-3. The exciter system is mission critical to power generation, power generation control and NERC / WECC generation compliance. Each stand-alone exciter and exciter controllers have no redundancy in case of failure. Exciter control is important to meet BPA load requirements for the Project’s three affected hydroelectric generating units, capable of delivering 155MW each.

The exciters provide a DC excitation voltage to the field winding of the generators and modulates that voltage for generation control. Excitation control stability is a critical function of power generation. The Basler Exciters and integrated Basler Exciter Controllers were installed as one system in 2005. The installed exciter controller’s interface or human machine interface (HMI) and proprietary software work as a part of an integrated Basler exciter system and these products installed in 2005 are now obsolete and are no longer supported.

Reliability of the exciters is critical because any failures could result in mission critical loss to power generation and have catastrophic effects which may affect personnel safety.

b. JUSTIFICATION: Safe and reliable hydroelectric power generation is a top priority for the Walla Walla District and Bonneville Power Administration (BPA). The exciter controllers have reached the end of the product’s life cycle, are no longer supported and pose a cyber-security threat due to outdated software. The cost to replace and install a complete integrated exciter system would require a large capitalization expense as referenced by contract award W912EF10C0037 which was awarded to Andritz Hydro Corp to replace the excitation systems for units four through six at Lower Granite Dam for the amount of $2.1 million dollars.

Purchasing a new Basler exciter controller would be cost effective to the government and can be installed by project personnel. Other manufactures of exciter controllers are available but would not be compatible with our Basler exciter controls and exciters. Basler brand of exciter controller would be a cost effective purchase for the Government due to the proprietary nature of the Basler exciter controllers.

c. IMPACT: The exciter system is mission critical by providing a DC excitation voltage to the field winding of the generators and modulates that voltage for control stability for power generation. Without the replacement of new exciter controllers, main units 1-3 would be forced out of service and unable to produce electrical power. This would result in lost revenue of approximately $80,000 per day per unit for the Bonneville Power Administration.

Also, units 1-3 are priority units critical for adult fish passage. Water that flows through the generator turbines help attract fish to the fish ladder entrance on the north shore closest to unit one. When water is not passed through the turbines during high flow times, it must be sent through the spillway which increases the dissolved nitrogen in the river that can affect the health of both adult and juvenile fish.

d. Alternatives: Would have to replace the entire exciter system on units 1-3 for ~$2M (see section b).

6. EFFORTS TO OBTAIN COMPETITION: Basler is the only vendor that manufactures upgrade kits for our original Basler exciter system. A notice of intent to make a Sole Source award will be published on beta.SAM.gov as required by FAR 5.201.

7. DETERMINATION OF FAIR AND RESONABLE COSTS: A price analysis will be conducted by comparing prices paid for similar purchases under previous contracts.

8. MARKET RESEARCH: Different regional representatives for Basler components were found, but no vendors, retailers or suppliers offering Basler upgrade components. There are other vendors that manufacture generator exciter systems, but the cost to replace an entire system to a different brand would result in a contract for millions of dollars.

9. OTHER FACTS: None

10. INTERESTED SOURCES: Basler Electric Company, see section six.

11. CONTRACT SPECIALIST: I certify that the information supporting this single source determination is accurate and complete to the best of my knowledge based on the supporting data provided by technical or requirements personnel.

Prepared by: Andrew Sprys

Title: Contract Specialist Signature: ____________________

12. DETERMINATION: I hereby determine the circumstances of this contract action deem only one source reasonably available due to the existence of an existing warranty which precludes modification by another firm.

Approved by: Brooke Moore

Title: Contracting Officer Signature: ____________________

Reviewed by: Theresa Hampson

Title: Contracting Officer Signature: ____________________