Eaton Sole Source Justification REDACTED.pdf

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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I. Contracting Activity.

6th Contracting Squadron/PKB 2610 Pink Flamingo Ave., Suite 300 MacDill AFB, FL 33621

II. Nature and/or description of the action being processed.

The 6th Contracting Squadron will use the procedures in FAR 13.5 to award a firm-fixed price, indefinite-delivery, indefinite-quantity contract to Florida Critical Power, 3016 3d Street, #202, Jacksonville, FL 32250, a small business.

The contract will have a one-year base period of performance beginning 1 June 2020 and four optional one-year periods of performance with a completion date of 31 May 2025. FAR 52.217-8 is included in the contract to provide a 6-month extension of service option, if required. The total period of performance will be 66 months.

III. Description of supplies/services required to meet agency needs.

The total estimated value of the acquisition is $1,928,087.31. The base period is $571,408.36; Option 1 - $292,237.10;

Option 2 - $296,395.66; Option 3 - $326,047.49; Option 4 - $294,557.85; and the 6-month extension of services rate would total - $147,440.85. The base period is higher than the option periods due to the scheduled lifecycle replacement of an Uninterruptible Power Supply (UPS) unit during the base period. Operations and Maintenance and OCO funds will be used for this procurement.

USCENTCOM requires the contractor to furnish all transportation, labor, tools, equipment, Original Equipment Manufacturer (OEM) parts, materials, supplies, technical data/manuals, checklists, written procedures, software and services necessary to perform Life-cycle Replacement, Preventative Maintenance (PM), Emergency Repair (ER), battery replacement, and testing on the Eaton UPS. USCENTCOM also requires the contractor to provide on-site support no later than two hours after notification that emergency repair is needed, 24 hours a day, 7 days per week, 365 days a year.

IV. Statutory authority permitting other than full and open competition.

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(iii)(A), as required by FAR 6.303-2(b)(4) - Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

USCENTCOM's mission requires that there is never a loss of power; that command, control, communications and computers (C4I) not be disrupted; and that the services provided from HQ to USCENTCOM's AOR not be interrupted for any period of time. The subject Eaton UPS are critical to USCENTCOM's mission because they provide and maintain instant, uninterrupted power to and protect over $200M worth of C4I mission critical equipment and $4M worth of Eaton UPS equipment when commercial power is lost. The system was installed when the building was built with MILCON funds. The UPS consists of everything from the switchgear to the UPS and distribution system throughout the USCENTCOM complex.

USCENTCOM requires the contractor to provide on-site support no later than two hours after notification that emergency repair is needed. Although there are many authorized Eaton service providers in the US, Eaton enters into strategic marketing and non-compete agreements that are based on location with service providers. For the Tampa Bay region, Florida Critical Power (FCP), as the sole authorized Eaton service provider, is the only source that can meet the two-hour response requirement and will perform the contract with Eaton-badged employees who are the only technicians authorized to service Eaton's three phase UPS equipment. Therefore, FCP is the only Tampa Bay region source with access to Eaton's proprietary software, parts and engineering support that is required when servicing USCENTCOM's complex system.

In letters from Eaton to 6 CONS dated 25 May 17 and 26 January 18, Eaton advised that Florida Critical Power, LLC (FCP) is the only Eaton Corporation factory authorized manufacturer's service representative for the Tampa Bay Area, North

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

18 Jun 2019 FOR OFFICIAL USE ONLY Page 4 of 6 and Central Florida area. Additionally, Eaton engineering and software-driven updates are proprietary and are not released to anyone but Eaton factory-trained engineers. Free firmware updates are included in this proprietary software and are downloaded to the equipment during PM visits. And lastly, due to the close coordination required between UPS and their batteries, Eaton cannot warranty the battery, the performance of the battery, or the effects to the UPS if not installed by a trained Eaton Powerware Battery Technician. This information was reiterated on 24 October 19 by Eaton. FCP is still the only Eaton-authorized service representative for this area. Eaton also emphasized that due to liability concerns, Eaton will only service an UPS via FCP and will not be a subcontractor to anyone else.

While a third party may be capable of providing some of the required services like replacing the batteries and doing some minor fixes, if a repair becomes complex and requires Eaton software, engineering, or technical support (preventative maintenance and emergency repairs often do), a separate purchase order would have to be established between USCENTCOM and FCP directly--which would result in an unacceptable delay in resolving technical issues leading to catastrophic degradation to the mission of USCENTCOM.

On 19 February 2020, Eaton confirmed that FCP is Eaton's sole authorized Agent for all UPS service in Central Florida, and that Eaton badged employees are the only technicians authorized to service Eaton three phase UPS equipment.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

It is anticipated that the cost to the Government will be determined to be fair and reasonable based on price analysis using the Comparison of the proposed price with prices found reasonable on previous purchases, Current Eaton price lists and Comparison to an independent Government estimate IAW FAR 13.106-3(a)(2)(ii),(iii) & (vi) and negotiations directly with the contractor.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

None

X. List of any sources that expressed, in writing, an interest in the acquisition.

Siemens Industry, Inc. and Victory Global Solutions responded to the Sources Sought synopsis. Eaton confirmed that both are Eaton resellers, but said they would have to partner with Eaton and use only Eaton-badged employees to do the work. A Siemens Industry representative confirmed that they would not use only Eaton-badged technicians for this service. A Victory Global representative also confirmed that they would not use only Eaton-badged technicians for this service. Eaton confirmed that Florida Critical Power is Eaton's sole authorized Agent for all UPS service in Central Florida and that Eaton badged employees are the only technicians authorized to service USCENTCOM's Eaton three phase UPS equipment.

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.