A.02Sole Source Dredge Yaquina MTU_Redacted.pdf

SOLE SOURCE JUSTIFICATION

(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:

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

Pricing: Firm-Fixed Price Funds: OMA

Time & Materials Other Funds:

Proposed Contractor:

Name of Proposed Contractor(s):

Pacific Power Group, LLC

Street Address: PO Box 1949 City, State, Zip: Vancouver, WA 98668 Phone: 360-887-7400

3. Description of Services or Supplies:

The total estimated value of the proposed action is

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 installed by qualified OEM technicians.

This requirement is for all parts, materials, and labor to

4. Authority:

Action using simplified acquisition procedures (select one):

v4, 5 Jan 2015; previous version obsolete

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. This is the same for the engine services. The authorized dealers warranty the work and parts of the engine services to be performed.

Impact: The services to be performed are part of the MTU maintenance interval schedule. The engine

If th mission critical equipment not serviced at the required interval, failure to the engine 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 by MTU authorized technicians with genuine MTU parts. This ensures all equipment will operate correctly and maintain the manufacturer’s warranty.

Alternatives: There are no known alternatives. Pacific Power Group, LLC is the only known source having the proprietary knowledge and information relating to the MTU engines installed on the Yaquina. No other known sources can fulfill the Government’s requirement.

6. Actions to Increase Competition: Currently, there are no known compatible aftermarket products that will maintain the integrity of the engines and only certified OEM technician are qualified to provide these services.

Market Research: The OEM has regional distributors in Oregon, Washington, California, Idaho, and Nevada. These distributors generally do not provide services outside of their region. Pacific Power Group, LLC is the only authorized distributor of MTU service provider in the Portland District.

1. Procurement History:

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

If "Yes", for each purchase order or contract provide:

v4, 5 Jan 2015; previous version obsolete

Purchase order or contract number:

Was action competed? Yes No

If action was not competed, state the cited authority, summarize rationale:

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

N/A

3. 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:

4. 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:

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 previous purchases and to the Independent Government Estimate to ensure price reasonableness.

5. Contracting Officer’s Approval (actions less than $7 0K): 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:

TITLE:

Michael Salda a Procuring Contracting Officer

CANTU.KATHLYN.

ROSE.1539265810

Digitally signed by

CANTU.KATHLYN.ROSE.15392658

Date: 2021.12.15 08:35:46 08'00'

SALDANA.MICHA

EL.E.1173444431

Digitally signed by

SALDANA.MICHAEL.E.1173444431

Date: 2021.12.17 08:54:46 -08'00'