Cummins Gen Mx JOFOC.pdf

AOP No. 5, J&A-Other Than Full & Open Competition- Attachment 6 (Feb. 26, 2020)

Justification for Other than Full and Open Competition United States Department of Agriculture

FAR 13.5 – Simplified Procedures for Certain Commercial Items

1. Identification of the agency and the contracting activity.

United States Department of Agriculture, Departmental Administration, Office of Contracting and Procurement, Procurement Operations Division, 301 S. Howes Street, Suite 321, Fort Collins, CO 80521.

2. The nature and/or description of the action being approved.

The USDA proposes to enter into a sole source brand-name, firm fixed-price contract with Cummins Inc, using the simplified procedures for certain commercial items under Federal Acquisition Regulation (FAR) Part 13.5.

3. A description of the supplies or services required to meet the agency’s needs (including the estimated value).

Digital Infrastructure Services Center (DISC) currently utilizes Cummins Generator and Fuel Systems for operations at both the Kansas City, MO and St. Louis, MO locations. DISC requires the maintenance and technical support of this equipment for the on-going support of DISC’s mission of providing services to its customer agencies. It is necessary to continue this generator maintenance and fuel systems technical support of Cummins Generator and Fuel Systems in order to maintain continuity of existing systems and operate with immediate access to technical support, if required.

DISC requires generator and fuel system maintenance service for the following generators:

Three (3), QSK50 Series 1250KW Cummins Generators (Kansas City, Missouri) Six (6), QST30 Series 1000KW Cummins Generators (Kansas City, Missouri) Three (3), 3500 Series 1250KW Baldor Generators (St. Louis, Missouri) One (1) QST30 Series 1000KW Cummins Generator (St. Louis, Missouri)

DISC also requires the service provider to perform annual fuel tank cleaning and fuel reconditioning for all generator bulk fuel storage and day tanks located at the DISC facilities located in Kansas City, MO and St. Louis, MO.

These consist of:

One (1), 10,000-gallon underground bulk fuel storage tank (Kansas City, Missouri) One (1), 5,000 gallon above ground bulk fuel storage tank (Kansas City, Missouri) Three (3), 500-gallon sub‐base day tanks (Units 1-3, Kansas City, Missouri) Three (3), 1,750-gallon sub‐base day tanks (Units 4-6, Kansas City, Missouri) Three (3), 2,300 gallon sub‐base day tanks (Units 7-9, Kansas City, Missouri) One (1), 5,000 gallon above ground bulk fuel storage tank (St. Louis, Missouri) Three (3), 1,000-gallon sub‐base day tanks (St. Louis, Missouri)

Period of performance is estimated to be a base period plus up to four (4) option periods, not to exceed five (5) years.

Total estimated dollar value: $622,686 Base year: $112,691 Option Year 1: $118,325 Option Year 2: $124,241 Option Year 3: $130,453 Option Year 4: $136,976

4. The statutory authority permitting other than full and open competition.

41 U.S.C § 1901 - Simplified Acquisition Procedures up to $7 million, as authorized by FAR 13.500(a) and implemented by FAR 13.501(a).

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority.

The Cummins generator sets support mission critical power circuits for both our primary and alternate data centers. These diesel engines are equipped with motor alarm and control systems which direct the engine and alternator’s performance. In addition to the unit’s control the units are connected electronically to Cummins’s proprietary peer-to-peer systems management and control network. Only Cummins licensed/authorized service providers can maintain and repair such units.

Allowing service organizations which are not specifically trained or authorized to work on these complex standby power systems will jeopardize our ability to provide needed power to IT systems during utility power failure events. Without the renewal of these maintenance services, DISC and our customers will no longer have access to updated versions of Cummins equipment upgrades and fuel system services causing the DISC generators and fuel systems maintenance to be vulnerable to unacceptable wear.

Cummins generator sets are equipped with Cummins “Power Command” intelligence system(s).

This proprietary system allows for the direct connect of one unit to another Cummins unit with no other control vendor necessary to ensure the units can “talk” to each other. This allows the Cummins generators to share and act upon digital information as captured by one and be acted upon by all. For example, when we have a power out situation all nine (9) of our Cummins generators will start and come online. Then, after the power command control system captures the actual power needed, the other units will either shut down or remain on but in an idled state. This feature saves run time on our units as well as fuel as these units burn 30-50 gallons per hour.

Cummins generators (QSK50 Series & QST30 Series) allow for a complete “info sharing” with our overall Data Center Information Management (DCIM) system. This feature allows for a complete “plug and play” integration solution and thereby saves us the expense of installing a third-party bridge solution.

Market research indicated that there are alternate solutions that could provide similar functionalities of the Cummins generator sets but failed to demonstrate all required performance features necessary to meet or exceed the current maintenance and technical services provided by Cummins. For example, market research determined that Caterpillar has a version of generator peer-to-peer communications and control systems, but the Caterpillar system is not compatible with our Cummins equipment. Currently, it is not fiscally responsible nor within the best interest of the

Government to move forward with a decision to select another vendor, overhaul the existing system and move forward with a different product offering.

A substantial duplication of cost to the Government would be required to implement a system other than the Cummins brand and the cost of the effort would not be expected to be recovered through competition with non-Cummins equipment or maintenance services.

6. A description of efforts made to ensure offers are solicited from as many potential sources as is practicable.

In accordance with FAR 12.603 streamlined acquisition procedures will be used for this requirement by posting a combined synopsis/solicitation to FBO. This is an on-going requirement and will be resolicited at the end of the performance period.

7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

In accordance with FAR 13.106-3 the costs are determined to be fair and reasonable through market research and historical pricing for this service.

8. A description of the market research conducted and the results or a statement of the reason Market Research was not conducted.

The current contract for this service used streamlined acquisition procedures by posting an unrestricted combined synopsis/solicitation to FBO. I contacted Cummins Inc. and verified that they do not authorize third-party vendors to perform services on their equipment. This information was used to determine if this requirement could be a small business set-aside. Since Cummins Inc. does not authorize other vendors to perform service on their equipment, I researched whether or not they had a GSA contract in place that I may be able to use. Cummins Power Generation Inc. has a GSA contract; however, it is only for products.

9. Any other facts supporting the use of other than full and open competition.

This is a requirement to maintain existing Cummins equipment. Since only Cummins authorized/licensed service providers can maintain the equipment there is no opportunity to open this requirement to full and open competition.

10. A listing of the sources, if any, that expressed a written interest in the acquisition.

N/A

11. A statement of actions, if any, the agency may take to remove or overcome any barriers to competition if subsequent acquisitions are anticipated.

Cummins Inc. is the sole manufacturer able to perform these maintenance and fuel systems support services. Competition appears to be limited through the life of the current generators and fuel system services, but when equipment reaches end of life, DISC will conduct market research and review the costs (Certification & Accreditation, Configuration, Implementation, and Training) for changing brands and will maximize competition as much as possible.

Certifications & Approvals

Supporting data which form the basis for and included in this justification are certified accurate and complete.

Dustin Franklin Program Management Analyst Digital Infrastructure Services Center (DISC)

The information contained in this Justification for Other Than Full and Open Competition is certified accurate and complete to the best of my knowledge and belief.

Jason Kuhl Contracting Officer

Additional Reviews & Approvals

Signatures are required at each threshold up to the total estimated dollar value of the acquisition

Procurement Operations Division (POD) Branch Chief (if not the Contracting Officer) (if over $700,000). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief.

Jason Kuhl Branch Chief, Procurement Operations Division