A.02 Single Source JA for Doble Over $1M_Redacted.pdf

Control No. OJL-23-0004 Maintenance & Test Guides, test records, technical reports

In addition, Doble will provide the following associated services:

Annual On-site Training (minimum of two five-day training sessions at a single location for each session determined by CENWD)

Participation in annual client conferences/committees

Doble F6080 calibration service

Oil Committee Services &testing/analysis of insulating oil samples (up to $500 per year)

4. AUTHORITY CITED

Pursuant to 41 U.S.C 1901, as implemented by FAR 13.501(a), soliciting from a single source for procurements over the simplified acquisition threshold.

5. REASON FOR AUTHORITY CITED

5.1. Background

The services to be acquired will support CENWD's Hydropower Test & Evaluation (HT&E) program. The mission of the CENWD HT&E Program is to ensure, by test and analysis in accordance with CENWD Regulation 1130-2-7 (enclosure 1), that Generators, Power Transformers and Transformer Bushings, and Circuit Breakers and Bushings are suitable for initial and continuing service; to minimize risk of damage to equipment and maximize power system reliability; evaluate effectiveness of repairs, adjustments, and modifications; and provide technical support for the condition indicators utilized in the justification for equipment replacement. CENWD Regulation 1130-2-7 requires periodic testing of the listed equipment using power-factor testing. Power-factor testing is a test technique providing information about the integrity of the insulation systems. The test is effective in detecting insulation contamination, the quality of the semiconducting and stress gradient coatings, the amount of void content, partial discharge damage, insulation delamination, and the quality of the impregnation process. The primary function of the testing is for predict preventative and predictive maintenance needs of the high voltage apparatus at the dams. For the testing to be reliable and usable each year Division wide, the data needs to be compatible with the previous year’s data, using the same methods and equipment.

For the last 30 years, Doble has been the only company that can execute the performance testing requirements of the HT&E program. CENWD uses the equipment and associated technical services to perform testing and maintenance of installed power system equipment at Corps hydropower facilities (13 dams). The testing method consists of high voltage insulation testing and analysis techniques utilized to perform diagnostics and predictive maintenance as part of a larger asset management strategy for high value capital equipment, and critical infrastructure. The results allow CENWD to identify and correct incipient problems before they become major failures.

CENWD currently leases five (5) Doble M4100 High Voltage Apparatus Testers and two

(2) Doble M7100 High-Voltage Asset Analyzers, and associated software packages.

CENWD also owns and employs additional Doble test equipment, which it uses in conjunction with the leased Doble test equipment to perform and document insulation integrity, excitation, and other electrical tests on major hydropower electrical apparatus.

The CENWD-owned Doble equipment includes Leakage Reactance test set modules and Sweep Frequency Response Analyzer (SFRA) test sets. The owned SFRA M5200 are obsolete and only a few districts currently have it functional with no means of replacement except purchasing a new M5500.

5.2. Justification

The contract to be awarded is for the continued, follow-on provision of highly specialized electrical testing equipment and services that CENWD currently obtains from Doble, and it is likely that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition.

Substantial Duplication of Costs While market research has shown there are other vendors who provide equipment that is capable of performing similar electrical testing, acquiring this equipment from another vendor would result in a substantial duplication of cost to the Government that is not expected to be recovered through competition. Approximately 32 CENWD engineers and technicians have spent roughly 40-60 hours annually in Doble training courses, conferences, seminars, and process development (including test records database development), specific to the usage of Doble's diagnostic systems. A departure from the Doble equipment lease agreement would incur significant impact to CENWD’s HT&E program in terms of retooling, retraining, test schedules changes, and testing processes and procedures development. $400K is estimated for initial retraining of the 32 members and a full year to complete. The government would also incur the additional cost of $296K to purchase the equipment in lieu of the proposed strategy to lease the equipment.

Furthermore, there would also be a duplication of costs due to the equipment support services included with Doble's equipment lease. Doble is the only vendor that provides equipment leasing. Doble's equipment leasing includes the following equipment support services:

- Historical test records database for test results comparison and trending.

- 24/7 engineering consultation and technical support including annual equipment calibration and minor equipment replacement/repair; and

- Field training, maintenance and test guides, and technical reports.

If any of the leased equipment fails, under the lease agreement, Doble will replace the damaged equipment within a 24-hour period. Doble is the only vendor that offers this prompt equipment replacement. This quick turnaround time is important to CENWD's hydropower operations because if CENWD's generators and transformers are offline, customers lose hydropower generation, impacting our mission and obligation to agency power partners. If equipment was procured from another vendor, the support services (i.e., equipment repair and replacement services) CENWD currently receives from the Doble lease would have to be procured as brand name or sole source procurements via multiple separate contracts as services were required, resulting in additional procurement and contract administration costs.

Data Integrity All test data compiled and analyzed from Doble equipment/testing services has supported CENWD and continues to be the regional benchmark for maintenance and prevention through use of Doble's trademarked diagnostic systems for the last 30 years. CENWD has stored that data in Doble Test Assistant (DTA) software and other vendors' products cannot seamlessly and automatically integrate that data. CENWD owns the raw data, but neither CENWD nor another vendor has developed a similar software system to conduct the required diagnostics, analyses, and trending that the proprietary Doble software does. A change in contractor at this time would introduce substantial uncertainty regarding the integrity of test data, trending capabilities, operability, and overall test program continuity. The ability to compare and trend the data is vital to the extension of CENWD equipment life and prediction of potential equipment failures before they become catastrophic.

Equipment Compatibility .

Furthermore, the Government requires the provided equipment and services to be compatible with testing equipment currently owned by the Government. Similar equipment offered by other vendors is not compatible with CENWD-owned Leakage Resistance test set modules and SFRAs, compromising the ability to continue with established testing methods, techniques, processes, and procedures. In particular, the Doble SFRA test sets that CENWD owns can only use the Doble proprietary software included with the M4100/M7100 testing equipment. Acquiring this testing equipment and services from another vendor, therefore, would require the purchase or lease of compatible Leakage Reactance test set modules and SFRA test sets for proper testing and evaluation to continue without disruption.

Specifically, CENWD relies on access to the test data reference book developed by Doble to interpret test results. The reference book is comprised of approximately 55 million test results which enables users to troubleshoot issues and make adjustments to maximize energy output. As one of the industry's first producers of this test equipment, Doble has been compiling these test results for eighty years which makes the data base the industry standard and an essential component to the HTRE program.

5.3 Impacts

As stated above, if unable to procure Doble equipment, the Corps would lose the capability to compare and trend data that is vital to the extension of CENWD equipment life and prediction of potential equipment failures before they become catastrophic. A loss of any generating unit or transformer will cost the Corps in the millions of dollars not counting the time to replace an asset (one year at a minimum). CENWD would also lose the ability to compare and discuss data, and best practices with the Nashville, Ft Worth, Tulsa, Savannah, Vicksburg and Little Rock Districts, which also use Doble services.

5.4 Alternatives

Consideration was given to the government buying the Doble electrical test equipment in lieu of the current proposed strategy to lease the equipment. The district determined that the purchase costs, based on a 5-year cycle, exceeds the rental cost by approximately $296K.

6. EFFORTS TO OBTAIN COMPETITION

A Notice of Intent to Sole Source was posted to SAM.gov on 02 December 2022. CECT-NWP received no responses to that notice. The J&A will be posted IAW FAR Subpart 13.501.

7. ACTIONS TO INCREASE COMPETITION

This procurement will be a base plus four option years (5 years total). CENWD is actively assessing the current market conditions and technology changes to determine if future competition is feasible. As detailed above and as confirmed by CECT-NWP’s market research, competition is not feasible because only Doble currently provides the type of equipment and support services necessary to meet CENWD’s HT&E program needs. CENWD staff annually assess the market for this equipment via trainings, conferences, product demos, and Federal Columbia River Power System meetings (which include Bonneville Power

Administration, Bureau of Reclamation, CENWD, and public utilities). CENWD staff have and will continue to hold discussions with PacifiCorp technicians, who are currently assessing other products alongside Doble products to determine compatibility and data integration. CENWD staff have and will continue to hold discussions with the Bonneville Power Administration, which is attempting to mirror databases to allow for data transition.

8. MARKET RESEARCH

Market research consisted of the Notice of Intent to Sole Source posted to SAM.gov on 02 December 2022, as well as the routing yearly CENWD staff assessment noted above.

9. OTHER FACTS

a. Recent Procurement history:

1) W9127N20C0008: Awarded to Doble Engineering Company for $890,830.00.

Base plus two years. Awarded on a sole source basis pursuant to 41 U.S.C 1901 as implemented in FAR 13.106-1(b) (2) and conducted pursuant to FAR subpart 13.501(a), only one responsible source and no other supplies or services will satisfy agency requirements. Summary of justification: Only Doble Equipment with the supporting services allows for required compatibility with existing owned equipment and data continuity. There have been no significant changes since this prior procurement.

2) W9127N19C0008: Awarded to Doble Engineering Company for $292,563.88-(1 year). Awarded on a sole source basis pursuant to 41 U.S.C 1901 as implemented in FAR 13.106-1(b) (2) and conducted pursuant to FAR s ubpart 13.501(a), only one responsible source and no other supplies or services will satisfy agency requirements. Summary of justification: Only Doble Equipment with the supporting services allows for required compatibility with existing owned equipment and data continuity. There have been no significant changes since this prior procurement.

3) W9127N18C0011: Awarded to Doble Engineering Company for $289,141.89 (1 year). Awarded on a sole source basis pursuant to 41 U.S.C 1901 as implemented in FAR 13.106-1(b) (2) and conducted pursuant to FAR subpart 13.501'(a); only one responsible source and no other supplies or services will satisfy agency requirements. Summary of justification: Only Doble Equipment with the supporting services allows for required compatibility with existing owned equipment and data continuity. There have been no significant changes since this prior procurement.

4) W9127N12C0026: Awarded to Doble Engineering Company for $1,165,051.61

(Base plus four option years). Awarded on a sole source basis pursuant to FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirement.

b. Other facts: N/A