A.02BrandName - Parts for MTU Engine Annual Maintenance KO Signed.pdf

v4, 5 Jan 2015; previous version obsolete

BRAND NAME JUSTIFICATION

(Simplified Acquisition Procedures under FAR Part 13 Not Exceeding $750K)

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 Time & Materials Funds: OMA Other Funds:

Proposed Contractor:

MTU Authorized Dealer

3. Description of Services or Supplies:

The total estimated value of the proposed action is $130,000.00.

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 parts for the MTU 8V4000 (Main Engines), MTU 12V2000 (Generator and Dredge Engines), and Series 60 (Bow Thruster Engine) aboard the Dredge Yaquina. Upon award, the Contractor shall provide transportation for the cores listed above to be shipped from USACE to the Contractors facility for core credit. All parts shall be genuine MTU parts from an authorized dealer

Dredge Engines: 12V2000, S/N 5352010118 Part Name Part Number Quantity

Generator Engines: 12V2000, S/N 5352006145 Part Name Part Number Quantity Pump Injection (EUP) E0060704101 24 Pump Injection (EUP) CORE Credit E0060704101 12 Cylinder Head, Complete E5360101320/87 48 Cylinder Head, CORE Credit 48 Liners 5360110410 30 Pistons (Complete Assembly) 5220302217 30

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: MTU authorized dealers are required by the original equipment manufacturer (OEM) to sell, lease, and perform engine services 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.

Impact: The parts to be purchased are for services to be performed at the regular MTU annual 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.

Connecting Rods X00034198/90 4 Bearing Conn Rod Lower 5360382410 4 Bearing Conn Rod Upper 5420382211 4

Main Engine: MTU 8V4000, S/N 524101142 Part Name Part Number Quantity Injector EX52407500049 16 Injector CORE Credit EX52407500049 16 Intercooler E5240900214/87 1 Intercooler CORE Credit 1

Bow Thruster Engine: Series 60, S/N 06R1009461 Part Name Part Number Quantity Injectors R5327473 6

The parts to be purchased are for annual maintenance services to be performed as part of the MTU maintenance interval schedule. The seven (7) engines on board the Dredge Yaquina require annual maintenance. This includes some repairs and services that can only be completed using authorized original equipment manufacturer (OEM) MTU parts. If these mission critical pieces of equipment are not serviced at the required interval, failure to the engines may occur during the operating season. This will cease all dredging activity due to safety and operational reasons. This will result in a loss of production at a rate of $95,000/daily. For this reason, it is necessary for the equipment to be serviced at this interval using OEM parts. This ensures all equipment will operate correctly and maintain the manufacturer’s warranty.

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.

6. Actions to Increase Competition:

The Government intend to compete this as full and open to increase competition to the maximum extent possible. 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 authorized distributors in Oregon, Washington, California, Idaho, and Nevada that can provide OEM parts with manufacturer warranty.

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: ______________________ 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

Signature:____________________________ DATE: 16 June 2022

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 of these components. However, costs are compared with past procurements 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 $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.

DATE: 16 June 2022 SIGNATURE: __________________________ NAME: Brandon Lasich TITLE: Procuring Contracting Officer