A.02Sole Source - ILS Control Systems_Redacted.pdf

v4, 5 Jan 2015; previous version obsolete

SOLE SOURCE 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 Funds: OMA

Time & Materials Other Funds: Revolving Funds

Proposed Contractor:

Industrial Logic Systems, LLC (ILS) 1241 N. Lakeview Ave. Suite Q Anaheim, CA 92807-1832

(714) 777-3702

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 authority of the U.S. Coast Guard. Requirements for maintaining certificates authorizing the operation of this vessel in U.S. territorial waters include those contained in 46 CFR Subchapter I. The Dredge Yaquina Dredge Automation system was replaced in 2010 with components manufactured by Industrial Logic Systems, LLC.

Services: Provide labor, material, and services to inspect and repair the ILS Control System for dredge automation. Provide services of OEM Technical Representative to accomplish inspection and repairs.

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: The OEM manufacturer, Industrial Logic Systems, LLC, owns the proprietary rights to the dredge automation system aboard the Dredge Yaquina. ILS is the only qualified and certified vendor for the dredge automation system. Use of non-OEM services and parts may not conform to the testing requirements authorized by the U.S. Coast Guard.

Impact: The services to be performed are part of the annual maintenance and repairs to the dredge automation system. This system is crucial in everyday dredging operations. For this reason, this system is crucial to vessel maneuverability and safety. This equipment is mission critical and involves the safety of human life and high value government assets. The potential impact to the government if the pitch system fails is ship inoperability. This will result in a loss of production at a rate of $95,000 per day. For this reason, it is necessary for the equipment to be serviced at this time by ILS. This ensures all equipment will operate correctly and maintain the manufacturer’s warranty.

Alternatives: There are no practical alternatives. ILS (Industrial Logic Systems, LLC) is the only available source having the proprietary knowledge and information relating to the Dredge Yaquina’s dredge automation system that is required to maneuver the vessel. No other known sources can fulfill the Government’s requirement.

6. Actions to Increase Competition: Market research was conducted in an effort to increase competition. However, the system contains proprietary software and parts and ILS is the only vendor that possess this information and training.

7. Market Research: Only services performed by ILS can be considered for this annual maintenance due to proprietary information and modifications possessed only by ILS.

8. Procurement History:

Previous Purchase Order(s) or Contract(s): Yes No This service has typically been addressed via annual vessel overhaul, not as a separate requirement.

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: Sam Repman Position Title: Port Engineer Email address:

Samuel.J.Repman@usace.army.mil

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:

In accordance with 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.

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.

SIGNATURE:

NAME: Michael Saldana TITLE: Procuring Contracting Officer

DATE:

REPMAN.SAMU

EL.J.1254220333

Digitally signed by

REPMAN.SAMUEL.J.1254220333

Date: 2021.11.24 10:35:54 -08'00'

SALDANA.MICHA

EL.E.1173444431

Digitally signed by

SALDANA.MICHAEL.E.1173444431

Date: 2021.11.24 10:57:38 -08'00'