Final Signed Class JA Allen Bradley Sole Source Justification.pdf

Control No. 23-0004

$1.6M CLASS JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

NWW District Project Offices Rockwell Automation Allen

Bradley Products 4 January 2023

1. CONTRACTING AGENCY:

US Army Corps of Engineers, Directorate of Contracting, Walla Walla District (CECT-NWW), 201 North 3rd, Walla Walla, WA 99362.

2. DESCRIPTION OF ACTION:

This document requests a class justification and approval (J&A) to allow Contracting Officers to issue new firm fixed-price commercial single-source contracts for brand name and sole source of Rockwell automation Allen Bradley products in the Walla Walla District, U.S. Army Corps of Engineers, without the requirement to execute a J&A on a contract-by-contract basis. Anticipated funding will be from Operation and Maintenance (O&M) funds and will be for FY23-FY28. This J&A applies to the Walla Walla District and to acquisition of supply contracts. This J&A shall remain in effect until 1 November 2028. Delivery periods will be specified in each individual contract.

3. DESCRIPTION OF SERVICES:

This action is to procure Rockwell Automation Allen Bradley products for the Walla Walla District operating projects. These projects include, Millcreek, McNary, Ice Harbor, Lower Monumental, Little Goose, Lower Granite and Dworshak Dam. The total cost of these Allen Bradley contracts the prior fiscal year was approximately $835,672. The estimated five-year total value based on thirteen prior contract awards is $1,612,528, as demonstrated in table 1 below. See attached document for previous years cost analysis on the Rockwell Automation Allen Bradley contracts.

Table 1: Total Projected Five-Year Cost of Allen Bradley Products Operating Project Service FY23 FY24 FY25 FY26 FY27 FY28 McNary Supply $53,792 $55,406 $57,068 $58,780 $60,544 $62,360 Ice Harbor Supply $15,450 $15,914 $16,391 $16,883 $17,389 $17,911 Lower Monumental Supply $29,978 $30,877 $31,804 $32,758 $33,740 $34,753 Little Goose Supply $56,517 $58,212 $59,958 $61,757 $63,610 $65,518 Lower Granite Supply $33,816 $34,830 $35,875 $36,952 $38,060 $39,202 Dworshak Supply $59,740 $61,532 $63,378 $65,280 $67,238 $69,255 Total $249,293 $256,771 $264,474 $272,410 $280,581 $288,999

NWW Overall Total $1,612,528

The estimated labor cost for the completion of one J&A is approximately $2,228, as demonstrated in table 2 below. The total five-year J&A labor expense established from thirteen prior Allen Bradley contract awards is approximately $28,962. The trend in the past five years demonstrates increased procurement of Allen Bradley products. In addition, the increased need for replacement and repair of obsolete equipment at our hydroelectric projects suggests increased purchase of these products by the District. Thus, it is reasonable to expect the need for Allen Bradley contracts to continue in the future. This is verified by the Hydroelectric Design Center (HDC), Walla

Walla district engineers, and operating projects. The procurement of a class J&A will eliminate future labor expenses associated with the continued collective purchases of Allen Bradley products.

Table 2: Total Expended Labor Costs Per Completed J&A

Personnel Involved Labor Hours Labor Cost Total Project Engineer 2 $100 $200 Project Performance Contracting Specialist 2 $65 $130 Contracting Office - - $1298 Legal Office 3 $200 $600

NWW Total $2,228

4. AUTHORITY CITED:

10 U.S.C 3204(c)(1) ref policy alert 22-012 as implemented by FAR 6.302-1(c), When an acquisition or portion of an acquisition that uses a brand-name description or other purchase description to specify a particular brand-name, product, or feature of a product, peculiar to one manufacturer-(i) Does not provide for full and open competition, regardless of the number of sources solicited; and (ii) Shall be justified and approved in accordance with 6.303 and 6.304.

Class justification is authorized by FAR 6.303-1(d) “Justifications required by paragraph (a) of this section may be made on an individual or class basis”, and shall be approved in writing, FAR 6.304(c) and AFARS 5106-303-1(d).

5. REASON FOR AUTHORITY CITED:

a. BACKGROUND:

For over 10 years, the US Army Corps of Engineers have procured Allen Bradley products for the Walla Walla District operating projects. The projects include, Millcreek, McNary, Ice Harbor, Lower Monumental, Little Goose, Lower Granite, and Dworshak Dam. Although the Allen Bradley product contracts are for almost identical components with standard language, individual J&As have been issued for each separate Allen Bradley product contract executed every year. The Government desires to expedite these services by executing a class J&A and eliminating the need to prepare separate J&As and route for approval each time these Allen Bradley products are required

b. JUSTIFICATION:

Rockwell Automation Allen Bradley products are necessary for the control of and human interface with the current operating projects control systems. Both the software, and the programmed portion of the hardware, that the software communicates with (the firmware), are intellectual property protected by copyrights, patents, or similar laws. The hardware and software are functionally linked and legally protected from copying. In order to control life cycle and system sustainability costs, HDC and Walla Walla District have standardized Programmable Logic Controllers (PLC) with Allen Bradley products that are successfully utilized in the facility’s operations and maintenance programs and processes.

The standardization of PLCs, related products, and software ensures common operation and functionality among systems, ability to add new input/output devices to any of the PLC systems, allows the project to use common networking hardware for all PLC components and enables the project to use and maintain licensure on a single programming software suite. Additionally, the use of common hardware and software across multiple control systems will increase personnel efficiency due to familiarity with the software, reducing personnel training requirements and the need to be prepared for recurring and nonrecurring maintenance in the operation projects. Allen-Bradley controllers are the only devices that can communicate with their programming software, Studio5000. There are no other brands of components which will allow us to realize these efficiencies.

If the brand specific products are not purchased through Rockwell Automation Allen Bradley, significant negative risks would be introduced to the operation and maintenance of the projects control system. Increased complexity will be added to the system, thus decreasing the reliability and maintainability. Non-compatibility of new PLC products has potential for failures resulting in loss of power and/or control to critical powerhouse systems responsible for areas such as power generation, Juvenile Fish Facility operation, powerhouse unwatering pumps, crane controls, and potable water pumping systems. Using an alternate PLC and associated products would require a different program development software and would require manufacture-specific training and licenses at additional cost to the government. It would take at minimum 240 hours at the present burden rate of $128 per hour to complete this task alone. Along with a minimum power generation of 80MW, and an estimated $35 per MW-Hour, on main unit down costs $2,800 per hour in lost power generation.

Individual single source justifications for Rockwell Automation Allen Bradley products have been historically authorized for many years because there are no other available sources who can provide these products.

c. IMPACTS:

Not contracting for Rockwell Automation Allen Bradley products would result in the lack of reliability, maintainability, training, and preparedness for recurring and nonrecurring maintenance for critical control systems throughout the operating projects, thus, jeopardizing USACE assets and the USACE Walla Walla district mission.

d. ALTERNATIVES:

PLC software is the only one approved by our CIO/G6 department and there are no other alternatives for Allen Bradley products. HDC and Walla Walla District have standardized Programmable Logic Controllers with Allen Bradley products that are successfully utilized in the facility’s operations and maintenance programs and processes.

If this class J&A is not approved, the operating projects will continue to complete individual J&A’s for each Allen Bradley contract. The trend in the past five years demonstrates increased procurement of Allen Bradley products, leading to seven contracts awarded in FY22, with an expected annual cost of $15,595 in labor per year. The expected cost for the next five years using individual J&As is $77,975. A five-year class J&A would save the District over $60,000.

The Government could continue to issue individual J&As for each separate contract, but a Class J&A would substantially reduce time and effort and expedite all these contract awards for Rockwell Automation Allen Bradley products

6. EFFORTS TO OBTAIN COMPETITION:

The Contracting Officer published the notices required by FAR 5.201 on 1 December 2022. No inquires, bids, quotes or proposals were made. Historically, justifications for all Rockwell Automation Allen Bradley actions in the Walla Walla District have been published as a Notice of Intent to make a single source award on the SAM.gov website. No expression of interest has ever been received due to no other company carries these products or has the authority to produce.

Rockwell Automation follows a limited parts distribution model. As part of this model, Rockwell Automation authorizes specific distributors for each geographical region. Our region’s authorized geographical distributor is Columbia Electric Supply. Columbia Electric Supply is not registered in the System for Award Management (SAM) and is unwilling to register. FAR4.1201 requires all companies doing business with the government to register in SAM. Rockwell Automation is unwilling to provide a wavier to purchase Allen Bradley products from another authorized distributer outside our region.

In order to maintain the original manufacturer’s warranty and licensing for the Allen-Bradley parts, the District’s only option is to purchase the products from Rockwell Automation’s Government Business Division who is registered in SAM.

7. ACTIONS TO INCREASE COMPETITION:

Due to the single source resource available in each geographical area, there are no efforts that would increase competition for these contracts. See paragraph 6.

8. MARKET RESEARCH:

See paragraph 6.

9. INTERESTED SOURCES:

To date, there are no other authorized Allen Bradley distributers in our geographic region capable of submitting any bids, quotes, or proposals to be considered. See paragraph 6.

10. OTHER SUPPORTING FACT:

Procurement history is discussed in paragraph 6 above. HDC and Walla Walla District have standardized Programmable Logic Controllers with Allen Bradley products that are successfully utilized in the facility’s operations and maintenance programs and processes.

11. 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.

William “Bill” Dull Chief of Tech

12. 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.

William “Bill” Dull Chief of Tech

13. FAIR AND REASONABLE COST DETERMINATION:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. The prices quoted by Rockwell Automation Allen Bradley products will be evaluated based on historical pricing. IAW FAR 15.403-4(a)(1), certified cost or pricing data may be required dependent on pricing received.

Tracy Gluck Contracting Office

14. CONTRACTING OFFICER CERTIFICATION:

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

Tracy Gluck Contracting Office

Reviewed by:

Theresa Hampson Assistant District Counsel

CLASS JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

Rockwell Automation Allen Bradley Products

Walla Wall District

Based on the foregoing justification, I hereby approve the procurement of Allen Bradley product contracts, on an other than full and open competition basis pursuant to the authority of FAR 6.302-1(c), When an acquisition or portion of an acquisition that uses a brand-name description or other purchase description to specify a particular brand-name, product, or feature of a product, peculiar to one manufacturer-(i) Does not provide for full and open competition, regardless of the number of sources solicited; and (ii) Shall be justified and approved in accordance with 6.303 and 6.304.

CONCUR:

Thomas J. Warren Assistant Counsel, Procurement Law & Contract Disputes Office of Chief Counsel, CECC-C HQ, United States Army Corps of Engineers

APPROVAL:

Date

MICHAEL C. ORR

Alternate Advocate for Competition (AFC)

Date

Controlled Unclassified Information