B02_04_WBR_1413_106-1_Template_1_Determination_to_solicit_from_a_single_source_under_SAT__FAR_13_1.pdf
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- Solicitation number
- 140R6020R0027
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This document is a determination to solicit from a single source under FAR 13.1 for a contract modification. The Bureau of Reclamation uses Industrial Chemicals Corporation as the single source to provide approximately 450 wet tons of sulfuric acid and 315 wet tons of sodium hydroxide for the Leadville Mine Drainage Tunnel Water Treatment Plant. The modification is necessary to adjust pricing to current market rates due to supply chain issues exacerbated by the COVID-19 pandemic, as continuing performance at the original rates would cause the contractor financial harm and inability to deliver chemicals. The contractor's requested prices fall within market rates according to catalog prices and research. The modification reallocates previously obligated funds and does not increase obligation, allowing gap coverage until a new contract can be competitively awarded with an economic price adjustment clause.
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140R6020P0074 Page 1 of 2
WBR 1413.106-1 Template 1
(11/2020)
DETERMINATION TO SOLICIT FROM A SINGLE SOURCE
Pursuant to Federal Acquisition Regulation (FAR) 13.106-1(b)(1)(i), for purchases not exceeding the Simplified Acquisition Threshold (SAT) Contracting Officers may solicit from only one source if the circumstances of the contract action deem only one source is reasonably available (e.g., urgency, exclusive licensing agreements, brand name, or industrial mobilization).
Pursuant to FAR 13.106-1(b)(1)(ii), when a single source is identified to provide a portion of the purchase as a Brand-Name, the documentation in paragraph 3 must state that this determination is only for a portion of the requirement.
1. Agency and Contracting Activity. U.S. Department of the Interior, Bureau of Reclamation
2. Name and Address of Single Source. INDUSTRIAL CHEMICALS CORPORATION
4631 W 58TH AVE
ARVADA, CO
80002-7004
3. Description of Supplies/Services and Estimated Cost. The Bureau of Reclamation (BOR) uses Sulfuric Acid (H2SO4) and Sodium Hydroxide (NaOH) for the Leadville Mine Drainage Tunnel (LMDT) Water Treatment Plant. The Contractor shall furnish approximately 450 wet tons of Sulfuric Acid (H2SO4) and 315 wet tons of Sodium Hydroxide (NaOH) and deliver the chemicals to BOR located at 749 Highway 91 N. Leadville, CO 80461.
4. Description of Circumstances, including why only one source is reasonably available.
This contract was awarded erroneously without an Economic Price Adjustment (EPA) clause.
Historically, this requirement has been issued as a base + 1 option year contract with an EPA clause. The contractor requested a price adjustment due to the volatility and fluctuating market and prices on the chemical supply chain compounded by the COVID-19 Pandemic.
The contractor was denied and Option Year 1 was exercised. The option should not have been exercised since the government did not consider the impact on the business and current market conditions.
The contractor has expressed that continuing to perform under the current rates is causing great harm and they will be unable to continue delivery. This is a highly critical requirement that is necessary to meet mission requirements to adequately treat the water at the plant. A gap in coverage is not acceptable and would make the plant non-compliant with Federal environmental law.
This modification will adjust the pricing to ensure that the contractor can continue to deliver at current market prices. This modification is outside the original scope of the contract and is therefore being treated as a sole source award. Rather than terminating the current contract and issuing a sole-source stand alone award, the existing contract will be modified.
140R6020P0074 Page 2 of 2
WBR 1413.106-1 Template 1
(11/2020)
The modification will not add work, value, or obligate additional funds. It will re-allocate obligated funds and allow the contractor to bill at a higher rate. The number of total units procured will be reduced, resulting in a net zero change.
There is sufficient funding remaining on Option Year One of this contract to cover the additional expenses through May 31, 2022. This award will provide gap coverage until a new contract can be solicited and awarded. The new award will include the Economic Price Adjustment clause.
5. Determination of Fair and Reasonable Price. Performing market research, the prices for the Economic Price Adjustment are fair and reasonable. Current prices on these chemicals are higher than they were at the time of award. Due to the covid19 pandemic, supply chain issues have made prices for these chemicals rise and the market fluctuate. The current market prices for both Sodium Hydroxide and Sulfuric Acid have increased. The prices requested by the contractor fall within the range of the Sodium Hydroxide and are below for the Sulfuric
Acid.
6. Description of Market Research. Current market prices were validated using catalog pricing. Additionally, this requirement has been historically solicited as full and open competition, with only one responsible source responding. This vendor has historically provided these supplies and awarding a sole-source modification to their contract will have limited impact on competition and the market.
SIGNATURES
PREPARED BY:
Name: Russell Oaks
Date: 2/18/2022
CONTRACTING OFFICER (CO) (FAR 13.106-1(b)):(All Values)
Name: Sarah Weippert
Date: 2/18/2022
3/1/2022
X
Signed by: RUSSELL OAKS
3/1/2022
X
Signed by: Bureau of Reclamation
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