A.02SoleSourceEssayonsServoBoxDrainRepairREDACTED.pdf

v4, 5 Jan 2015; previous version obsolete

SOLE SOURCE JUSTIFICATION

(Simplified Acquisition Procedures under FAR Part 13 Not Exceeding $700K)

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:

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:

Background: The Essayons was launched in 1982 and repowered in 2009. The Dredge Essayons uses a proprietary Controllable Pitch Propeller (CPP) system designed and manufactured by Propulsion Systems, Inc. (PSI) of Seattle WA

Services: This contract is for labor, materials, and equipment to modify two CPP Servo Boxes per the manufacturer’s design to prevent over pressure and/or starvation of critical hydraulic oil during times when the ship is heeled over. The condition that requires this modification presents itself nearly daily during dredging in the Columbia River System as well as the San Francisco Main Ship Channel. The heavy material dredged in these locations often causes the ship to heel over to 20 degrees or more. This causes the oil in the “downhill” Servo Box to overfill while starving the “uphill” Servo Box. This condition has the potential to interrupt propulsion if emergency measures by the engineering crew are not performed quickly to correct the problem by applying high pressure air to the overfilling Servo Box.

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 v4, 5 Jan 2015; previous version obsolete 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: PSI is the OEM manufacturer and is required to provide the correct proprietary parts and components used to design and make modification safely and correctly. The existing servo boxes were designed and manufactured by PSI. PSI owns all information and drawings of the propeller hub to include the servo boxes.

Impact: There is immediate need to have this servo box issue repaired to ensure the vessel remains in service. If a hub is damaged during the dredging season an immediate replacement is needed. A loss of propulsion could jeopardize the safety of the crew, vessels nearby, and could cause extensive damage to the vessel. Without an immediately available replacement the ship could be out of service for many weeks. With a daily rate of $185,000 the cost of not having these repairs made is $1,295,000 per week.

Alternatives: The hub and servo boxes are designs 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.

6. Actions to Increase Competition:

If the dredge propulsion system is upgraded in the future efforts will be made to utilize more commercially available equipment.

7. Market Research:

This determination is not for a complete replacement of the dredge controllable pitch propeller system, it is to design and install a modification to the existing. The risk to the Government of using non-authorized parts to attempt modifications is far greater than any possible cost savings. Only OEM factory replacement parts can be considered. Research in UNICOR, Ability1, SBDS, GSA Advantage, and internet searches did not reveal any authorized service, repair, or distribution vendors. The Intent to Sole Source notice was posted on 12 August 2020 for fifteen days with no responses received.

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