JA Control 24-0042 Voith_Redacted.pdf

CUI

FAR Part 13 J&A Control # 24-0042

4. Authority Cited: The statutory authority permitting the acquisition of this requirement by other than full and open competition is 41 U.S.C. 1901(a)(2), as implemented by FAR 13.501(a) sole source (including brand name) acquisitions.

5. Reason for Authority Cited:

a. Background: This service contract is part of ongoing modernization efforts in preparation for the SAD Supervisory Control and Data Acquisition (SCADA) upgrade project. The purpose of the SCADA upgrade effort is to modernize the SCADA and control systems currently in use at 13 hydropower plants across the USACE SAD to a common design, specifically the USACE-developed solution called Generic Data Acquisition & Control

System (GDACS). This contract will permit the supply of compatible components that interface the plant governor to the plant control remote terminal unit, which in turn, interfaces the other powertrain components of the power plant control systems.

The brand and products identified in Para. 3 are necessary for the following reasons: to ensure compatibility with the GDACS architecture as designed for the USACE Savannah

District Hydropower plants; to minimize software configuration costs that would be significantly higher with other brands or products; to capitalize on the experience and familiarity that SAD maintenance staff already possess with the brands and products identified; and to ensure that the entire district (SAS) receives a consistent product for the legacy governor systems at each powerhouse.

The Voith Hydro Inc. governor supplies and services required for this project are for updates to turbine and auxiliary control systems. These products are used to regulate the rotational speed of the generator turbine to facilitate control of auxiliary systems for the generating unit startup process, reliably synchronize the unit to the grid, generate power with compliant frequency control, and ensure a smooth shutdown process. They utilize high speed calculation to detect disturbances in the electrical system and act rapidly in order to protect equipment from damage and ensure compliant operation as part of the broader national electrical grid.

b. Justification: As the OEM, the proposed contractor is the only entity able to provide comprehensive support for the systems they designed and constructed. The OEM offers a robust network of support technicians. The training infrastructure for these support technicians was created and has been maintained by the same entity that designed, developed, manufactures, and provides warranty support for the equipment.

The SAD has manufacturer-specific software to support the operation and maintenance of existing equipment. Adding additional devices from other manufacturers to the inventory would require the procurement and maintenance of additional manufacturer-specific support for every new manufacturer brought onto the facility, and thus continually add to the indirect overhead costs of maintaining the facility.

The SAD has a substantial investment in training employees through manufacturer-specific courses. The level of sophistication of PLC-related devices requires employees servicing these devices to be manufacturer-trained. Tuition costs per course range from per employee. A one-week course per employee easily exceeds for tuition, airfare, per diem, and lodging, and does not include labor costs.

There are a minimum of 10 employees that work with governor and turbine control systems at each plant.

The existing governors utilize proprietary Voith software, which USACE holds multiple licenses for at the local district level, as well as within the Hydroelectric Design Center

(HDC). The proprietary Voith PLC architecture that Savannah District Hydro personnel and HDC have learned would have to be relearned with other manufacturers leading to an extended design timelines for a more substantial modification, which will result in additional labor costs and delays to service. In addition, there is an increased likelihood of delays when troubleshooting equipment while also extending return to service time.

In summary, using equipment from alternative manufacturers would lead to significantly higher costs, both for the initial implementation as well as long-term maintenance, while also compromising the compatibility and reliability of the existing systems. An OEM retrofit for the existing Voith Hydro Inc. governor would require only a 4-hour outage for each unit install that may be adapted to meet the weekly schedule established with our power marketing authority, the Southeastern Power Administration (SEPA). In contrast, an alternative manufacturer would necessitate a full conversion for the governor systems with equipment provided by that manufacturer. This would necessitate at minimum a two-week outage for both installation and commissioning of the new systems, at a cost of no less than $ at , totaling in lost availability and/or generation revenue due to the extended outage times required for the conversion of all seven units. For these reasons, none of the alternatives are deemed acceptable.

Voith Hydro Inc., as the OEM, is the only source capable of meeting the technical, operational, cost, and schedule requirements of this project.

c. Alternatives: There are alternative governor systems available from other manufacturers, such as , that could be considered for the project. Each of these manufacturers offers a competing turbine governor control system solution that could perform the same roles and requirements that the governors installed currently fulfill.

However, transitioning to solutions developed by another OEM would require duplicative investments in spare parts, training, and software support. The proprietary Voith components already installed at J. Strom Thurmond are incompatible with systems from other manufacturers, resulting in prohibitive redesign, replacement, and additional lifecycle costs.

In addition, introducing equipment from another OEM at the J. Strom Thurmond

Powerhouse would require reprogramming of the supporting control systems to integrate a governor from another manufacturer, as well as adaptations to the digital logic within the governor itself to ensure compatibility and operability with the existing SCADA system and associated hydraulic subsystems.

In 2015, a conversion with similar scope to what would be necessary if awarding to a non-OEM governor manufacturer, was performed under contract at a cost of approximately $ per unit. Adjusted for inflation, the same contract today would total $ for all seven generating units at the J. Strom Thurmond Powerhouse per the most recent data as of September 2024 from the U.S. Bureau of Labor Statistics.

These OEMs were evaluated but not pursued further due to the integration and compatibility concerns identified as well as the costs associated with them.

While these manufacturers ) could potentially provide turbine governor solutions, they were not pursued as viable options because of the reasons outlined above, which would result in both substantial duplication of cost to the

Government that is not expected to be recovered through competition as well as unacceptable delays in fulfilling the SAD’s requirements. The primary considerations include the proprietary nature of the existing Voith systems, the cost and complexity of integration with legacy plant systems, as well as the additional challenges and expense of training and spare parts management.

d. Impact: Without these products and services from Voith, the introduction of solutions from another governor manufacturer would significantly increase both initial and long-term costs in addition to the execution timeframe. The need to establish a new spare parts inventory for these alternative products would duplicate the existing inventory of Voith components, resulting in unnecessary expenditure. Additional costs would also be incurred for frequent and specialized training of maintenance staff to handle new products, which could exceed per employee, per training session, for a minimum of 10 employees at the J. Strom Thurmond Powerhouse alone. In addition, the technical expertise possessed by the two neighboring Savannah plants, both with governors of the same vintage from Voith, will no longer be completely transferrable. Furthermore, the extended outage time required for retrofitting with alternative equipment—at least two additional weeks per unit at a cost of —would add a minimum of per unit in lost revenue for a total of adds additional risk that generator reliability will be compromised due to the bathtub curve normally present when integrating a new primary powertrain system, increasing the probability of unplanned outages. Therefore, the approval of this J&A is essential to avoid these substantial additional costs as well as maintain system compatibility and reliability.

6. Efforts to Obtain Competition:

a. Effective competition: In accordance with DFARS PGI 206-302-1(d) sources sought W91278214L0031 was published on SAM.gov website (SAM.gov) on July 19, 2024 with a response date of August 2, 2024 for interested parties to respond. No responses were received.

b. Subcontracting competition: A Small Business Subcontracting Plan is not required for contract in accordance with FAR 19.705-2(c) and FAR 19.702(a)(1)(i).

7. Actions to Increase Competition: There are no known actions to be taken to increase competition for similar future procurements based on the reasons cited above.

8. Market Research: A sources sought number W9127824L0031 was posted to sam.gov (www sam.gov) to determine if any interested parties were available to perform the requirements of this

J&A. There were no responses to this sources sought. In addition, market research was conducted by the Technical Engineer, but no other vendors could be located due to the proprietary nature of the Voith equipment.

9. Interested Sources: To date, no other sources have written to express an interest.

10. Other Facts:

a. Procurement history: NA – New Procurement

b. Acquisition Data Available: NA – Technical data packages, specifications, engineering descriptions, statement of work, or purchase descriptions are not available and cannot be developed to allow full and open competition under the circumstances specific to this procurement.

c. Unusual and Compelling Urgency: NA – FAR 6.302-2 is not the authority cited for this justification.

Approval

Based on the foregoing justification, I hereby approve the procurement for J. Strom Thurmond

Units 1-7 Governor Service & Update to Voith Hydro Inc. on an other than full and open competition basis pursuant to the authority of FAR 13.501(a) and 41 U.S.C. 1901(a)(2), estimated in the amount of . The approval is subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Approved By:

Date:

Contracting Officer U.S. Army Corps of Engineers, Mobile District