A.02_Sole Source Determination_Redacted.pdf

v4, 5 Jan 2015; previous version obsolete

SOLE SOURCE DETERMINATION

(Simplified Acquisition Procedures under FAR Part 13)

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

2. Description of Action: CPP Hub Repair for USACE Hopper Dredge ESSAYONS

Nature: New Requirement Follow-on Requirement

Mod to Existing Purchase Order/Contract Number

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

Name of Proposed Contractor(s): Propulsion Systems Inc. (PSI) Street Address: 8009 7th Ave S City, State, Zip: Seattle, WA 98108-4365 Phone: 206-789-0944

3. Description of Services or Supplies:

The total estimated value of the proposed action is

Background: The Essayons was launched in 1982 and repowered in 2009. The existing Controllable Pitch Propeller (CPP) Hub was designed and manufactured by PSI.

Services: Weld build up and machine flange areas to original dimensions. Provide and install all seals, gaskets, and fasteners needed for re-assembly. Provide all labor equipment and material necessary to restore the hub to condition where all tolerances are within OEM limits. Shop test to the satisfaction of the COR and the vessel’s Chief Engineer. Place in suitable crate for long term storage outdoors with oil head tank. Deliver to USACE district warehouse in Portland Oregon secured in crate and filled with oil suitable for operation and long term storage.

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 $6.5M, 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:

6. Actions to Increase Competition:

7. Market Research:

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: W9127N20P0001 Was action competed? Yes No If action was not competed, state the cited authority, summarize rationale:

FAR 13.106-1(b)(1) sole source award to PSI.

Additional Facts and/or Information to support the justification.

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: Jon Sandstrom Position Title: Mechanical Engineering Tech.

Email address: Jon.J.Sandstrom@usace.army.mil

Signature:____________________________

Justification: PSI is the OEM manufacturer and is required to provide the correct proprietary parts and components. The existing hub was designed and manufactured by PSI. PSI owns all information and drawings of the hub.

Impact: There is immediate need to have this hub repaired as necessary for service. If a hub is damaged during the dredging season an immediate replacement is needed. Without an immediately available replacement the ship could be out of service for many weeks. With a daily rate of the cost of not having a spare hub is per week.

Alternatives: The hub is a design proprietary to PSI. No drawings are available to manufacture spare parts or confirm existing parts are within tolerance. Any reverse engineering effort would take many weeks and have extremely high costs. This would also result in a product unable to be serviced with parts as designed. There is no practical alternative to PSI.

Not as PSI does not authorize any other firm to provide service. The PSI service work is done in compliance with the OEM proprietary drawings. If the dredge propulsion system is upgraded in the future, efforts will be made to use more commercially available equipment.

Prospective vendors have been contacted in the past. They have been unable to assure compliance with factory dimensions and clearance since the proprietary drawings are not available to them. They can restore the hub to operate by re-dimensioning as they see the need and in the process make factory specified dimensions no longer applicable as well as making factory OEM parts not usable.

N/A

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:

There is little competition given the proprietary nature. However costs are verified and it is expected standard shop rates apply and the price is expected to be fair and reasonable. In accordance with FAR 13.106-3(a)(2)(ii) and FAR 13.106-3(a)(2)(vi), the Government will compare the proposal to the Independent Government Estimate to ensure price reasonableness.

12. Contracting Officer’s Approval (actions less than $650K): 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: David L. Dvorak TITLE: Procuring Contracting Officer