A02.06 SEL Sole Source Justification FINAL_Redacted.pdf

ERDC Control No. 21-2250

Justification and Approval for Other than Full and Open Competition for SEL Microgrid Study

Requirement: The objective of this effort is to validate the ERDC Generic Installation model and conduct multiple studies using the model in a Hardware-in-the-Loop (HIL) environment.

Authority: FAR 6.302-1(a)(2) - Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Amount: $323,570.00 over a 6-month duration

Prepared by:

Typed Name: Angela Holcomb Title: Contract Specialist Phone: 217-373-3375 Email: Angela.D.Holcomb@usace.army.mil _____________________________

Technical Representative:

Typed Name: Thomas Bozada Title: Program Manager Phone: 217-373-7277 Email: Thomas.A.Bozada@usace.army.mil _____________________________

Contracting Officer:

Typed Name: Andrea Thomas Signature & Date Title: Contracting Officer Phone: 217-373-6746 Email: andrea.j.thomas@usace.army.mil _____________________________

HOLCOMB.ANG

ELA.1406524619

Digitally signed by

HOLCOMB.ANGELA.1406524619

Date: 2021.07.22 10:29:45 -05'00'

BOZADA.THOMAS.

ALLEN.1133058547

Digitally signed by

BOZADA.THOMAS.ALLEN.1133058

Date: 2021.07.22 10:35:37 -05'00'

Andrea Thomas

Digitally signed by Andrea Thomas Date: 2021.07.22 14:43:33 -05'00'

Justification and Approval for Other than Full and Open Competition for SEL TMS Microgrid Study

1. Agency and Contracting Activity:

The U.S. Army Corps of Engineers (USACE) Engineer Research and Development Center (ERDC), Construction Engineering Research Laboratory (CERL), 2902 Newmark Dr, Champaign, IL 61822

2. Description of Action Being Approved:

ERDC-CERL seeks to award a sole-source, follow-on, Firm-Fixed Price (FFP) contract under the authority of FAR 6.302-1(a)(2)(iii) to SEL Engineering Services, Inc. (SEL ES). Under a Broad Agency Announcement (BAA) contract with ERDC-CERL awarded in fiscal year 2020 (FY20), SEL ES conducted a study of two Department of Defense (DoD) installations using real-time hardware-in-the -loop (HIL) modeling and simulation equipment to determine their suitability for acceptance of a Tactical Microgrid Open Architecture (TMOA)-based microgrid.

While these studies proved extremely valuable, much of the studies cannot be shared publicly, nor can the installation “virtual twins” be used for additional research due to security concerns.

To overcome this problem, ERDC-CERL has created a generic Army installation with notional, but detailed data, that can be used for realistic studies of future electrical distribution studies.

ERDC-CERL requires that the model be tested and validated to be used to conduct additional research into the adoption and implementation of the TMOA at military installations. The expected outcome of this contract is validation of the ERDC generic model and a report detailing the comparison between a TMOA implementation and current commercial practices. The comparison will consider cost, physical hardware, and security.

This new contract to test and evaluate the ERDC generic installation model using the TMOA in a real-time HIL modeling and simulation will entail a six (6) month period of performance with a total estimated value of $323,570.

3. Description of Supplies/Services:

The highly specialized services required consist of testing and validating the ERDC generic model of an Army installation for completeness and accuracy; use the ERDC model to simulate and compare multiple use cases using TMOA and current industry practices using real-time HIL equipment; examine cybersecurity protocols using Risk Management Framework (RMF) procedures; and document the results. Specific tasks include:

Evaluate, test, and validate the ERDC-developed installation electrical model Develop TMOA simulation scenarios and use cases Conduct four sets of model runs using developed TMOA scenarios and uses cases Document the RMF procedures applied to the TMOA Document a simplified ruleset for TMOA and use of HIL in microgrid implementation

4. Statutory Authority:

10 United States Code 2304(c)(1) as implemented in Federal Acquisition Regulation 6.302- 1(a)(2)(iii), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. Specifically, the original contractor is deemed to be the only responsible source to provide these follow-on highly specialized services because award to any other source would result in (A) substantial duplication of cost to the Government that is not expected to be recovered through competition; and (B) unacceptable delays in fulfilling the agency’s requirements.

5. Rationale Justifying Use of Cited Statutory Authority:

SEL ES has been identified as the only responsible source and no other services will satisfy the Government’s requirements. SEL ES has direct experience and familiarity in understanding how the TMS and TMOA operate and how to implement the virtual installation in an HIL environment. They have an intimate knowledge of Army and DoD energy resilience requirements and installation electrical systems.

SEL ES has worked extensively with the Government on other research and development using the Tactical Microgrid Standard (TMS). In September of 2020, a BAA contract (W9132T19C0019) entitled “Incremental Conversion of Garrison Power Systems to Interoperable Microgrids” was awarded to SEL ES for research and development (R&D) services to develop digital twins for the electrical system of two DoD installations for the purpose of investigating the suitability of the TMOA at these two locations. In addition, SEL ES developed extensive knowledge of the TMOA as a sub-recipient on an Other Transaction Authority (OTA) award (W15QKN-13-9-000) let by Picatinny Arsenal in 2017 that required the prime to build multiple microgrid prototypes using the TMS. TMS is the standard that governs the TMOA. As part of this effort, SEL ES developed commercial-grade TMS components and continues to be the only source of tested, warranted, and U.S. made commercial-grade TMS microgrid components.

The previous TMS and TMOA related Government work by SEL ES and its development of the SEL, Inc. TMS product line provide SEL ES a combination of background and product knowledge and experiences that render them the only contractor capable of provisioning these highly specialized services in a manner that fits within the timeframe of the current program requirements. Specifically, this unique knowledge consists of the core elements of the TMS including the TMS data model, communication architecture, and load-sharing protocols. Not only has SEL ES mastered the TMS but they have developed a line of commercial grade microgrid based on the TMS and TMOA. Both this knowledge and the SEL TMS devices are needed to complete this effort. No other vendor understands the TMOA sufficiently to conduct the detailed analysis required for this effort. Only SEL ES has a team who is fully capable of beginning work on this new contract in FY21 as required by the overall program schedule and available funding limitations, which has strict milestones based on current Army and DoD needs.

Any postponement in getting the study completed will have cascading delays in implementing vital microgrid solutions at military installations. This includes delaying vital improvements to meet critical installation energy resilience requirements, complying with national climate change objectives, and reducing the cost of supplying power to installations. Delays in attempting to find another provider and the time required to spin up a new provider would effectively force a shutdown of current actions to implement the TMOA pending completion of the study. It is likely that award to any other source would result in both a substantial duplication of costs to the Government that are not expected to be recovered through competition and unacceptable delays in fulfilling the ERDC’s installation energy program.

In attempt to conceptualize the additional costs and delays that would result from using any source other than SEL ES, the following background information from the Independent Government Estimate (IGE) applies: This scope of work is anticipated to be about two Full-Time Equivalent (FTE) effort for six months. Due to the significant effort already performed by SEL ES under the two awards mentioned in Section 2 above (about ten FTE over six years), we estimate it would take a replacement contractor approximately 2,400 hours to learn the background knowledge already acquired and have the expertise necessary to begin work under the current requirement. Also, because SEL ES is the only vendor able provide the necessary TMS devices, the replacement would have to procure them from SEL ES and learn how to use them. We estimate it would take another 400 hours to acquire a level of competence necessary to use these devices in a safe and effective manner. Finally, the BAA effort established detailed knowledge of to replicate the TMOA in simulation. It would likely require an additional 600 hours to learn how to do this. In summary, selecting another vendor represents an additional cost of and a twelve-month delay. There are no funds available to pay for these additional costs. If an alternate provider was to be utilized, this body of work would not be possible. We estimate that this would invalidate approximate $400,000 of past work done under the previous BAA, and a significant loss for future implementation of the TMOA at military installations. The duplicative costs and lost deliverables equate to 200% of the Independent Government Estimate (IGE) for the follow-on effort.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable:

A Pre-solicitation Request for Information Posting, summarizing our reasoning for intending to sole source to SEL ES, was publicized to the Government Point of Entry, via the SAM.gov website, as required by FAR Part 5.2 and DFARS PGI 206.302-1. The notice was posted on June 23, 2021 with a response date of July 7, 2021. There was one capability statement received which was reviewed by the requirements holder and is discussed in Section 10 below.

7. Determination of Fair and Reasonable Cost:

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this justification and approval will be fair and reasonable. A full review of the proposal budget will be performed in accordance with FAR Part 15.404.

8. Market Research:

Based on market research conducted in accordance with FAR Part 10, these services are not available through a mandatory source, there are no commercial items available to meet the requirements, and there is not reasonable expectation that offers will be obtained from at least two (2) responsible small business concerns. There are companies currently specializing in providing microgrid solutions to military installations, but they all use proprietary equipment that is costly to implement and maintain. These companies include Eaton Corporation, Burns & McDonnell, Advanced Microgrid Systems, and Deifm Inc. Avoiding these proprietary solutions and resultant vendor lock on future expansions is precisely why the TMOA was developed by the seven-year, $11.2M, CERL-led Tactical Microgrid Standards Consortium. None of the other companies identified have expertise or have conducted research that examines the use of TMS or TMOA. No other company has developed TMS-based products or services. The market research supports sole sourcing this requirement to SEL ES.

9. Other Facts: Not Applicable

10. Listing of Interested Sources:

One response to the notice of intent to sole source request for information posting on the SAM.gov website was received expressing an interest to provide the services required under this procurement. The interested party, Stell Environmental Enterprises. provided a capability statement that was reviewed by the program manager. The assessment is that Stells’s capabilities are tailored to the Siemens Microgrid Control platform environment where the TMS/TMOA infrastructure is not available. Stell does not have the needed qualifications listed in the notice of intent to sole source nor do they have the required experience, knowledge, and equipment. The proposed capabilities listed completely contradict the Government’s intent to test and validate the TMS/TMOA for use at Army Installations. Complete details of the evaluation of the capability statement submitted by Stell are available in PCF. Use of Stell for this work would also require substantial duplication of cost and delay of the project which would be unacceptable and destructive to the government’s mission.

Since SEL ES possesses unique skills and qualifications to meet the needs of the Government’s requirement, no other vendors will be sought.

11. Actions to Remove Barriers to Future Competition:

ERDC-CERL has no known future requirements for the type services with SEL ES covered by this justification and approval. If future requirements do emerge, ERDC-CERL will strive to shape future procurements in a manner that would allow for other sources to participate in competition.

Technical Certification:

I certify that the supporting data under my cognizance, which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name: Thomas A. Bozada Title: Program Manager

Signature & Date: ________________________________________________

BOZADA.THOMAS.ALLE

N.1133058547

Digitally signed by

BOZADA.THOMAS.ALLEN.1133058547

Date: 2021.07.22 10:37:05 -05'00'

Requirements Certification:

I certify that the supporting data under my cognizance, which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name: Ellen Hartman Title: Chief, CNC Branch

Signature & Date: ________________________________________________

Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. Price and Cost analysis techniques shall be used in accordance with FAR 15.404.

Name: Andrea Thomas Title: Procurement Contracting Officer

Signature & Date: ________________________________________________

Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Andrea Thomas Title: Procurement Contracting Officer

Signature & Date: ________________________________________________

Approval

Based on the foregoing justification, I hereby approve this procurement on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c) FAR 6.302-1(a)(2)(iii), Only one responsible source and no other supplies or services will satisfy agency requirements.

This approval is limited to the estimated amount of $323,570.00, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Date: ___________________ Signature: ___________________

Name: Andrea Thomas Title: Procurement Contracting Officer

7/22/2021 Andrea Thomas

Digita ly signed by Andrea Thomas Date: 2021.07 22 1 : 7:05 -05 00'

HARTMAN.ELLEN.REBE

CCA.1390761232

Digitally signed by

HARTMAN.ELLEN.REBECCA.1390761232

Date: 2021.07.22 11:48:28 -05'00'

Andrea Thomas Digitally signed by Andrea Thomas Date: 2021.07.22 14:44:49 -05'00'

Andrea Thomas Digitally signed by Andrea Thomas Date: 2021.07.22 14:45:41 -05'00'