A16_SoleSource_Memo_Redacted_1.pdf

The Program Office confirmed that duplicating, testing, validating, or transitioning to alternative formulations would require unacceptable time and duplication of effort and would introduce operational risk to Yellowstone’s potable water and wastewater treatment systems.

Use of non-Hawkins formulations could result in:

• Inability to consistently meet potable water quality standards;

• Increased scaling, fouling, or corrosion within treatment and distribution systems;

• Reduced treatment effectiveness for gray and black water discharge;

• Potential violations of state and federal environmental discharge requirements;

• Increased operational downtime and costs associated with testing and requalification.

(6) A description of efforts made to ensure that offers are solicited from as many potential sources as possible, including whether a notice was or will be publicized as required by part 5 and, if not, which exception under part 5 applies.

This acquisition is a recompete of previous award No. 140P1421D0009, which was competed using full and open competition on a brand-name-or-equal basis for the required blended chemicals. In response to that prior competition, the Government received only one bid, which was submitted by Hawkins, Inc.

For this acquisition, the Contracting Officer conducted additional market research to determine whether other sources are capable of meeting the Government’s current requirement.

Market research was conducted to identify firms within a 250-mile radius of Yellowstone National Park capable of providing potable water and wastewater treatment chemicals, including blended coagulants and specialty polymers used for contaminant removal. A service or warehouse location within that radius is required to reduce outages and eliminate emergency situations.

Several regional chemical distributors and water treatment suppliers were identified. While these firms supply general treatment chemicals, polymers, coagulants, and technical support services, none were found to produce or distribute the proprietary formulations currently used in Yellowstone’s water systems.

As a result, the market research did not identify any additional sources capable of meeting the

Government’s requirement without changing the established chemical formulations currently used in the park’s treatment processes.

An Intent to Sole Source was posted on SAM.gov to publicize the Government’s intent to award the requirement to Hawkins, Inc. The notice invited all responsible sources to submit a capability statement, quotation, or other information demonstrating their ability to meet the Government’s requirement, including the ability to provide the same proprietary formulations currently used in Yellowstone National

Park’s potable water and wastewater treatment systems without substitution, reformulation, or operational reengineering.

Two responses were received in response to the notice. The Contracting Officer provided both respondents with a list of required chemicals/formulations to determine whether the vendors had the capability to provide the required proprietary Hawkins blended chemicals. The Contracting Officer and

Program Office reviewed the vendor submissions, qualifications, and any additional information provided. Based on the review of the capability statements, additional market research, vendor responses, and confirmation regarding availability of the required formulations, the Government determined that neither respondent demonstrated the ability to sell, obtain from Hawkins, or otherwise provide the required Hawkins proprietary chemical blends. Accordingly, the responses did not change the

Government’s determination that Hawkins, Inc. is the only known source capable of meeting the requirement.

The Contracting Officer contacted Hawkins, Inc. to confirm whether the required proprietary chemicals are available through authorized resellers or distributors, and Hawkins confirmed that the products must be purchased directly from Hawkins.

(7) A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer will determine that the anticipated cost to the Government is fair and reasonable prior to award. Price reasonableness will be evaluated using commercial item procedures under FAR Part

12 and appropriate price analysis techniques, such as comparison to prior prices paid, the Independent

Government Cost Estimate, and current catalog or published price lists, if available.

Because this requirement involves commercial water and wastewater treatment chemicals, the

Government may also consider market pricing, historical ordering data, and any discounts offered from commercial pricing. The final price reasonableness determination will be documented in the contract file prior to award.

(8) The market research conducted (see part 10) and the results or a statement of the reason market research was not conducted.

Market research was conducted in accordance with FAR Part 10 using several methods, including review of prior acquisition history, analysis of the commercial marketplace, and identification of potential regional sources capable of providing potable water and wastewater treatment chemicals, publicizing the

Intent to Sole Source on SAM.gov and directly engaging Hawkins and review of vendor responses received in response to the Notice.

The required blended coagulants and water/wastewater treatment chemicals supplied by Hawkins, Inc. are commercial products as defined by FAR 2.101. Water treatment chemicals, including blended coagulants, proprietary polymers, and related treatment products, are routinely sold in the commercial marketplace and purchased by public and private water utilities. Although the specific formulations used at

Yellowstone National Park are proprietary and uniquely blended for the park’s operational needs, they are derived from Hawkins’ commercially marketed product lines and do not require Government-unique modifications. Their use in Yellowstone’s water and wastewater treatment systems is consistent with normal commercial practice. Accordingly, this acquisition is appropriate for use of FAR Part 12 procedures for the acquisition of commercial products.

The Government also reviewed prior acquisition history. Yellowstone’s water systems have used

Hawkins, Inc. blended coagulants and other Hawkins water and wastewater treatment chemicals for approximately twenty years. Park operators rely on these chemical formulations to remove EPA-regulated arsenic from the Old Faithful water supply and to remove Total Organic Carbon from other park surface water systems. The previous requirement was awarded under Contract No. 140P01421D0009 to Hawkins, Inc. The contract was a firm-fixed-price, open-market IDIQ with a total value of $670,000.00, awarded under NAICS 424690 and PSC 6810, with a period of performance from July 6, 2021, through July 31, 2026. Individual delivery orders were placed against the IDIQ.

For the current acquisition, additional market research was conducted to identify firms within a 250-mile radius of Yellowstone National Park capable of providing potable water and wastewater treatment chemicals, including blended coagulants and specialty polymers used for contaminant removal. Several regional chemical distributors and water treatment suppliers were identified. While these firms appear capable of supplying general treatment chemicals, polymers, coagulants, and related technical support services, none were found to produce or distribute the proprietary Hawkins formulations currently used in

Yellowstone’s water systems. Additionally, it was confirmed these chemicals must be purchased directly from Hawkins.

The Notice of Intent to Sole Source on SAM.gov did not yield additional information that other vendors are capable of meeting the requirement to provide Hawkins blended chemicals.

The Contracting Officer confirmed with Hawkins that there are no distributors or resellers of the required proprietary chemical blends.

To assist with the acquisition strategy, the Contracting Officer reviewed several U.S. Government

Accountability Office (GAO) decisions addressing protests of sole source awards. GAO has recognized that a sole source award may be proper where the agency documents a reasonable basis that award to another source would likely result in substantial duplication of cost not expected to be recovered through competition, unacceptable delays in fulfilling the agency’s requirements, or where the agency lacks the proprietary information necessary to compete the requirement (FN America, LLC, B-415261; B-415261.2 and Atlantic Diving Supply, Inc., B-422759, B-422759.2.)

Based on the market research conducted, the Government did not identify any other source capable of meeting the requirement without changing the established chemical formulations currently used in the park’s treatment processes. The results support the conclusion that Hawkins, Inc. is the only known source capable of providing the required proprietary blended chemicals necessary to meet Yellowstone

National Park’s operational water and wastewater treatment needs.

(9) Any other facts supporting using other than full and open competition, such as:

(i) When 6.103-1 is cited for follow-on acquisitions as described in 6.103-1(c)(2), an estimate of the cost to the Government that would be duplicated and how the estimate was derived.

Not applicable.

(ii) When 6.103-2 is cited, data, estimated cost, or other rationale as to whether and how much the

Government would be harmed.

Not applicable.

(10) A listing of the sources, if any, that expressed an interest in the acquisition in writing.

Colonial Chemical Solutions, Inc.

C5 Technology, LLC.

(11) A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

The primary barrier to competition is Yellowstone National Park’s reliance on proprietary Hawkins blended chemical formulations that have been used in the park’s water and wastewater treatment systems for approximately twenty years.

Before any subsequent acquisition, the agency may conduct additional market research, issue a sources sought notice or RFI, and evaluate whether alternative chemicals or blended formulations could meet the park’s treatment requirements. Any alternative would need to be tested and approved to ensure it can meet water quality, regulatory, and operational requirements without unacceptable risk to park operations.

(12) Contracting officer certification that the justification is accurate and complete to the best of the contracting officer's knowledge and belief.