A.02 Modified Sole-source Justification CPS_Gearboxes W912HN21Q5006.pdf

Control No. ___SAS-21-03____________

SOLE SOURCE JUSTIFICATION

1. Agency/Contracting Activity: U.S. Army Corps of Engineers, Savannah District, 100 West Oglethorpe Avenue, Savannah, GA 31401

2. Description of Action:

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

Pricing: X Firm-Fixed Price Time & Materials Funds: OMA Civil Works Other Funds:

Name of Proposed Contractor(s):

Philadelphia Gear

Street Address: 1242 24th Avenue City, State, Zip: Hueytown, AL 35023 Phone: (205)461-8355

3. Description of Services or Supplies:

The total estimated value of the proposed action is $ 559,000.

Procure services for repair and/or replacement of three right angle gearboxes at Clemson Pump Station, Clemson, SC:

Base: Rebuild/repair (1) Western 240PMR-200 right angle Gearbox (A) to Original Equipment Manufacturer (OEM) specifications.

Option 1: Procure (1) new duplicate Western 240PMR-200 right angle Gearbox to OEM specifications (C).

Option 2: Rebuild/repair (1) Western 240PMR-200 right angle Gearbox (B) to OEM specifications.

4. Authority:

Action using simplified acquisition procedures (select one):

FAR 13.500, General, Simplified Procedures for Certain Commercial Items in accordance with 41 USC 1901: This FAR subpart authorizes the use of simplified procedures for the acquisition of supplies and services in amounts greater than the SAT but not exceeding $7.5 million, including options, if the contracting officer reasonably expects based on the nature of the supplies or services sought, that offers will include only commercial items.

(References: FAR 13.106-1(b)(2); FAR 13.501(a)).

5. Reasons for Authority Cited:

Per FAR 2.101 a commercial item is any item, other than real property that is of a type customarily used by the general public or by non-governmental entities for purposes other than governmental for purposes and has been sold, leased or licensed to the general public and include installation services, maintenance services, repair services, training services, and other services if such services are procured for support of an item. Based on the definition above, the procurement and repair of a gearbox falls under the FAR definition of commercial item.

Philadelphia Gear, a company of Timken Gears and Services, also owns proprietary rights to Western Gear. With these rights, Philadelphia Gear can complete repairs to existing gearboxes, returning them to original equipment manufacturer (OEM) specifications utilizing OEM parts and materials along with OEM engineering knowledge and proprietary drawings. With OEM proprietary rights and resources, Philadelphia Gear will provide a duplicate gearbox to match the two existing Western Gearboxes. The two existing gearboxes and new gearbox will all have a manufacturer’s warranty equal to that of a new gearbox.

6. Actions to Increase Competition: Other vendors were contacted regarding subject repairs and equipment. In each case, the vendor requested detailed drawings that Hartwell Project could not provide since these documents include proprietary information only releasable by Philadelphia Gear. Each vendor cited challenges related to having no drawings and/or specifications for existing equipment. These challenges limited the ability to provide reliable quotes, increased cost, and extended critical timelines not conducive to efficiently meeting the mission at Clemson Pumping Station.

7. Market Research: The NAICS Code for this requirement is 333612-Speed Changer, Industrial High-Speed Drive and Gear Manufacturing which the contractor identifies as his primary NAICS Code. The PSC Code is 3020 – Gears, Pulleys, Sprockets, and Transmission Chain. The Non-manufacturer Class Waiver list does not apply to this procurement as the list applies to supplies not services. Multiple vendors were contacted telephonically to which they requested drawings with listed OEM specifications in order to effectively provide knowledgeable quotes and reasonable timelines. With this information unavailable, vendors stated the need to breakdown existing equipment in order to reverse engineer manufacturing parameters. This was the only option for formally and accurately providing requested quotes. Additionally, an internet search revealed that gearboxes were not available via AbilityOne or UNICOR. A search on GSA Advantage using the words “gear boxes” and the location where the work will be performed (Hueytown, AL, location of contractor’s office) as well as where the gearboxes are used (Clemson, SC) as search criteria did not reveal that any possible vendors could perform the work required. A search on the Small Business Dynamic Search using the NAICS code and the county where the work will be performed (Hueytown, AL, location of contractor’s office) as well as the county where the gearboxes are used (Clemson, SC) revealed one possible vendor, Bearings & Power Transmission, Inc, who could perform the work required however, this company would also need the proprietary information from Philadelphia Gear in order to complete the work.

8. Procurement History:

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

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

Repairs are urgently needed as the gearbox is essential to meeting the mission of Clemson Pumping Station (CPS), which manages the drainage of a 1750-acre flood basin largely occupied by Clemson University. Clemson University has numerous multi-million-dollar facilities located within the basin that are at risk of flooding to include a Wastewater Treatment Facility which services the Clemson campus. Total infrastructure is valued at over $60 million. Failing to maintain drainage of this basin would have significant impact to the health and safety of a large population, significant economic impacts, and overall mission failure. Unlike Philadelphia Gear, other vendors, without the proprietary information, would have to reverse engineer the gearbox. This process would consume valuable time greatly increasing vulnerability of the Clemson Pumping Station mission therefore creating vulnerability to Clemson University infrastructure.

In April 2020, one of the two diesel pumps and associated right angle gearboxes at Clemson Pumping Station failed and in-house labor was able to install the spare pump and associated gearbox so that the Hartwell Project Office did not have mission failure and potentially flood Clemson University during extensive rains. All diesel pumps/gearboxes are over 30 years old and the spare is the least reliable of the three pumps/gearboxes; this is not a good long-term option. Currently Hartwell Project Office has no spare right angle gearboxes if we experience another gearbox failure. Another pump/gearbox failure currently would result in Clemson Pump Station mission failure and potential flooding of Clemson University infrastructure.

Currently the gearbox inventory is not identical and cannot be exchanged one for one.

This provides logistical restrictions and challenges when swapping equipment during breakdowns. Replacing inventory with alike equipment will provide flexibility when breakdowns occur. This will allow for individual components within a system to be replaced versus an entire system. This ability will increase efficiency when timelines are critical in meeting the mission of Clemson Pumping Station.

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.

Title: Hartwell Hydropower Maintenance Supervisor

Signature: __________________________________________

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: The Government will compare the contractor’s quote to the Independent Government Estimate.

12. Small Business: I certify that I have reviewed this document and supporting data and concur with the findings.

13. Legal Review (IAW UAI 5101.602-2-90(c)): I have reviewed this justification and find it legally sufficient.

14. Contracting Officer’s Approval (actions less than $750K): 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.