JA Marquette Charter Vessel_Redacted.pdf

LRL-FY25-29

Justification Review Document for Other than Full and Open Competition - FAR Part 6

Program/Equipment: Secure a charter of a 2000 HP Z-Drive Towboat from Marquette Transportation Company, LLC (Unique Entity Identifier: EYETNRAE5LV9, CAGE Code

1FEC3).

Authority: 10 United States Code (U.S.C.) 3204(a)(2), as implemented by Federal Acquisition Regulation (FAR) 6.302-2(a)(2) “Unusual and compelling urgency.”

Amount: $1,280,000.00

Prepared by:

Contracting Officer:

Technical Representative:

CONTROLLED BY: USACE

CONTROLLED BY: USACE Great Lakes and Ohio River Division

CUI CATEGORY:

DISTRIBUTION/DISSEMINATION CONTROL: FED ONLY

POC:

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

1. Contracting Agency: U.S. Army Corps of Engineers (USACE), Louisville District, Post Office Box 59, Louisville, Kentucky 40201-0059.

2. Description of Action: This Justification and Approval follows verbal approval provided by the Command Advocate for Competition on 2 July 2025 for a sole source, firm-fixed-price contract to secure a charter of a 2000 HP Azimuth Drive (Z-Drive) Towboat from Marquette Transportation Company, LLC, (Unique Entity Identifier: EYETNRAE5LV9, CAGE Code 1FEC3) for Olmsted Locks and Dam under conditions of unusual and compelling urgency. This action is funded by Operations and Maintenance Funds. The Contracting Officer provided verbal authorization to proceed to Marquette Transportation LLC on 3 July 2025, which allowed the Government to secure the rental and start mobilization of the charter.

3. Description of Supplies/Services: At the Olmsted Locks and Dams, a towboat plays a crucial role in precisely positioning a special barge used to raise and lower the dam's wickets (the movable parts of the dam). This is a tricky process. The barge uses winches anchored to the Kentucky side of the river to keep it in place, while the towboat, with its powerful engine, pushes and pulls the barge from the other side. The towboat's job is to keep the barge perfectly aligned with the wickets and prevent it from drifting or being swept over the dam during the lifting and lowering process.

Since April 2023, a government-owned 2000 HP Z-Drive towboat, the Motor Vessel (MV) Jackie Lee Anderson, has been in service at Olmsted Locks and Dam. This vessel sank in an accident on 1 July 2025, which necessitated an emergency procurement to secure a leased vessel while efforts are underway to assess the damage to the MV Jackie Lee Anderson and determine whether it can be repaired or whether a different long-term solution will be required. Prior to launching the MV Jackie Lee Anderson, the government utilized a leased 2000 HP Z-Drive towboat, the MV St. James owned by Marquette Transportation Company, LLC, for a number of years, as further discussed in paragraph 5. In response to the accident that occurred on 1 July 2025, it was determined that leasing an available sister boat– meaning a very similar vessel built around the same time with the same design and controls – the MV St. James from Marquette Transportation Company, LLC for a short period was the most expeditious solution to securing a tow boat to continue lock and dam operations. The leased Z-drive towboat is operated by Government personnel and therefore acquiring a vessel with familiar operating characteristics is essential to allow the crew to safely and efficiently operate the vessel in the challenging conditions at Olmsted. It was confirmed that a sister boat, the MV Kieffer Bailey, was available and could be quickly routed to Olmsted. The MV

Kieffer Bailey is identical to the MV St. James, therefore no training will be required by the USACE Crew once the MV Kieffer Bailey arrives on site.

Following verbal approval provided by the Command Advocate for Competition, the Contracting Officer initiated a charter for the MV with a 6-month period of performance at a price of $1,280,000. It is now expected that repair of the government-owned MV Jackie Lee Anderson will exceed one year and a competitive procurement for a Z-drive towboat is underway to provide service beyond this emergency 6-month contract.

The USACE crew at Olmsted has extensive experience on the functionality and understanding of the Z-Drive engines licenses issued by the US Coast Guard to operate the vessels large enough to execute the Olmsted mission. Therefore, for safety and familiarization of the vessel the follow-on solicitation shall require the contractor to provide a licensed pilot and engineer or mechanic familiar with the vessel to turn the vessel over to the government and answer questions about operations and maintenance of the vessel. Pilot shall be available for a minimum of 24 hours over a two-week period;

this could best set up as a 10-hour workday. Delivery of the vessel isn’t included in the time; however, Government crew shall accompany the vessel while being delivered to the site. Contractor engineer or mechanic shall be available for a minimum of 40 hours over a two-week period. This could be scheduled in as a 10-hour workday as well.

4. Authority Cited: 10 United States Code (U.S.C.) 3204(a)(2), as implemented by Federal Acquisition Regulation (FAR) 6.302-2(a)(2) – Unusual and compelling urgency.

5. Reason for Authority Cited:

a. Background:

From May 2018 to May 2023, USACE needed a special towboat to help operate the Olmsted Dam. Purchase order W912QR18P0056 was a five-year lease for a 2000 HP Z- Drive towboat, MV St. James, from Marquette Transportation. USACE crews operated the MV St. James. While leasing the MV St. James, USACE was also building its own towboat, the MV Jackie Lee Anderson, but construction took longer than expected.

Because the MV Jackie Lee Anderson wasn't ready on time, USACE had to extend the rental of the MV St. James for a five more months under purchase order W912QR23P0042. This allowed us time to finish building our own boat and conducted final trials, commissioning, and warranty repairs of the MV Jackie Lee Anderson, and to ensure proper turnover and training for the crew on the new USACE vessel. At that time, it was determined that a two-month training and familiarization period is needed for crews to acclimate to a new vessel.

In April 2023, USACE launched the government-owned MV Jackie Lee Anderson 2000 HP Z-Drive towboat, with the intent of utilizing the government vessel from that point forward in support of operations at the Olmsted Locks and Dam. USACE stopped the lease on the MV St. James.

On 1 July 2025, a critical incident occurred at the Olmsted Locks and Dam, highlighting the inherent risks of operating in the challenging environment of the Ohio River. The workboat MV Jackie Lee Anderson was in operation near the structure when it experienced a catastrophic and complete loss of power. This rendered the vessel unable to maneuver and left it adrift, heading directly towards Tainter Gate 1, one of the dam's primary spillway gates. Recognizing the imminent danger to the MV Jackie Lee and the potential for further damage to the dam itself, the tugboat MV 775, which was operating in the vicinity, responded immediately. The captain of the MV 775 skillfully maneuvered his vessel to push the powerless MV Jackie Lee against the concrete wall adjacent to the dam, attempting to secure it with mooring cables to prevent it from being swept through Tainter Gate 1. While the MV 775 crew successfully tied off the MV Jackie Lee, the MV 775 was unfortunately caught in the powerful turbulent wash created by the water flowing over the dam. This force overwhelmed the MV 775, causing it to be pulled through Tainter Gate 1, where it subsequently capsized in the middle of the Ohio River.

Fortunately, all personnel aboard both vessels were safely evacuated before the capsizing occurred. However, the mooring cable securing the MV Jackie Lee to the dam wall then snapped, and the MV Jackie Lee itself was swept through Tainter Gate 1. The Jackie Lee listed heavily to its side and was approximately two-thirds submerged in the river, posing a potential hazard to navigation. Commercial vessels operating in the area have carefully moved both the MV Jackie Lee and the capsized MV 775 to a safer location away from the main shipping channel and secured them to the riverbank and available moorings, where they are currently located.

The incident created an immediate need to get a replacement tugboat to Olmsted Locks and Dam, as this vessel is integral to the wicket lifting operations at the dam. Because of the lease history, USACE pilots at Olmsted Locks and Dam have extensive operating experience with the Z-drive towboats available from Marquette Transportation Company, LLC. Due to the immediate need for a vessel and the fact the USACE crew is trained in operating a Z-drive already, there was no need for pilots competent in operating a Z-drive vessel; we only needed the vessel, not a crew to operate the vessel. There is a limited market of Z-drive vessels of this size. The Contracting Officer quickly conducted market research and confirmed that Marquette’s MV Kieffer Bailey, a sister boat to the previously leased MV St. James used at Olmsted Locks and Dams, was available and could be moved to the site by 09 July 2025.

b. Justification: Entering into a 6-month lease with Marquette Transportation LLC for the MV Kieffer Bailey 2000 HP Z-drive towboat is the only viable means of providing a vessel that can rapidly be moved to the site and operated by the USACE crew without delays associated with training and acclimation. When the original Z-drive charter vessel, the MV St. James, was first leased from Marquette Transportation LLC, the USACE crew underwent an extensive training period to become familiar with the operation of this vessel. It is essential that a towboat be immediately put into service as this vessel is needed to push the wicket lifter barges to raise the dam at Olmsted Locks and Dam. Moving the wicket lifter barges is a unique operation to the towing industry.

The vessel must operate in close proximately to the wicket dam at Olmsted without damaging the dam or floating plant equipment. The unique challenges of this operation include: (1) Precise Maneuvering in Confined Space: The towboat must operate within a narrow channel, often within meters of the dam structure and the wicket lifter barge, requiring exceptional maneuverability and control. (2) Counteracting Strong Currents:

The Ohio River current at Olmsted is particularly strong and turbulent, demanding a vessel with sufficient thrust and responsiveness to maintain position. (3) Shallow Draft Operation: The shallow draft requirements necessitate a vessel design that can operate effectively with minimal water depth, impacting propulsion efficiency and stability. (4) Synchronized Winch Operation: The towboat's movements must be precisely synchronized with the operation of the winches on the wicket lifter barge to ensure proper alignment and prevent damage to the wickets. The Z-drive propulsion system offered by Marquette provides superior maneuverability and responsiveness compared to traditional towboat designs, making it uniquely suited for these demanding conditions. The close proximity to the dam and the need for immediate response necessitate a vessel familiar to the operators to prevent accidents. Because each towing vessel operates uniquely, procuring a sister ship to the MV St. James is the only reasonable solution to the unusual and compelling urgency. The urgency stems from the critical need to maintain navigational pool levels on the Ohio River at Olmsted Locks and Dam. Based on historical data from the past five years, the need to raise or lower the dam due to fluctuating water levels occurs, on average, every 21 days. These fluctuations are driven by rainfall patterns across the Ohio River watershed, making precise prediction beyond a 5-day window unreliable. Failure to have a functioning towboat in place within this 5-day window to respond to these fluctuations presents a significant risk of either a loss of navigational pool (due to a falling river) or structural damage to the wickets (due to a rising river exceeding the wickets' design capacity).

c. Impact: Failure to have a vessel do this work will result in USACE being unable to support the wicket lifter with raising or lowering the dam at Olmsted. This operation is necessary to hold or release the navigational pool at Olmsted depending on water levels. This frequently occurs with an approximately 5-day or less notice and is dependent on the rainfall levels in the Ohio river watershed. Failure to raise the dam during a falling river would cause a loss of navigational pool. This would stop all the navigational traffic through Olmsted, which is the last lock on the Ohio river before it opens into the Mississippi. Loss of pool could also impact several water municipal and commercial water intakes which directly affect the drinking water for homes and power to homes and businesses. Failure to lower the dam during a rising river would also stop navigational traffic. This would also potentially cause structural damage to the wickets which are not designed to be overtopped. Specifically, a delay in lowering the dam by even 24 hours during a rapid rise in river levels could result in overtopping of the wickets, leading to potential structural damage. Furthermore, the disruption to commercial navigation would result in estimated economic losses, based on average daily tonnage and cargo value passing through Olmsted Locks and Dam.

The absence of a reliable vessel at the Olmsted Locks and Dam presents a multifaceted threat to life, health, and safety. Directly, personnel engaged in the wicket lifting operation face heightened risks due to the demanding conditions and the potential for accidents arising from the use of an unfamiliar vessel. These risks include serious injuries from equipment malfunctions, falls, or entanglement in lines. The demanding conditions, including strong currents, confined spaces, and the need for precise maneuvering in close proximity to the dam structure, create a high-risk environment. A lack of operator proficiency due to using an unfamiliar vessel significantly increases the likelihood of accidents, potentially resulting in serious injuries to deckhands, winch operators, and other personnel. These injuries could range from crush injuries and broken bones to drowning, should personnel be thrown overboard. Furthermore, damage to the vessel itself, resulting from improper operation, could create an unstable and hazardous work environment, further endangering the crew.

Indirectly, the disruption to navigation and water management caused by the lack of a vessel could have far-reaching consequences for public safety. Failure to maintain the navigational pool could impede the transport of essential goods and services, including fuel, food, and medical supplies, potentially leading to shortages and delayed access to critical resources for communities along the Ohio River. Moreover, the loss of pool could impact municipal water intakes, affecting the availability of potable water for homes and businesses, creating a public health crisis. In the event of a structural failure of the dam, uncontrolled flooding could occur, posing a significant threat to life and property in downstream communities. Impediments to the transport of essential goods, potential disruptions to municipal water supplies, and the risk of structural damage to the dam, leading to uncontrolled flooding, all pose significant threats to the health and well-being of communities reliant on the Olmsted Locks and Dam.

Even assuming it would be possible to procure a different charter with the proper specification within the unanticipated time constraints for this procurement, it is unreasonable for the crew to have a different vessel than what they were trained on and operated will result in having to relearn the controls and operations of the vessel in a short time. Failure to have a comfort level while operating the vessel can cause significant injuries to the deck crew, as well as damage to this vessel and others. Not only is this a threat to public safety, but it could potentially cause one of the vessels used to raise and lower the dam to be out of service when needed.

d. Alternatives: The following alternatives were considered but deemed unsuitable:

(1) Using a Traditional Towboat: While traditional towboats are more readily available, they lack the maneuverability and responsiveness required for precise positioning of the wicket lifter barge in the confined space and strong currents at Olmsted. Using a traditional towboat would significantly increase the risk of damage to the dam structure and the wicket lifter barge, as well as potentially delaying the operation and increasing the risk of pool loss or structural damage to the wickets.

(2) Delaying the Wicket Lifting Operation: Delaying the wicket lifting operation is not a viable option due to the potential for significant negative impacts on navigation, water intake, and dam structure, as outlined in Section 4.c. The need to respond to fluctuating water levels is unpredictable and often requires immediate action.

(3) Temporarily Reassigning a Z-drive Towboat from Another USACE Location: An internal assessment determined that no other USACE locations had a Z-drive towboat available for temporary reassignment without significantly impacting their own operational requirements. The cost and logistical challenges of transporting a Z-drive towboat from a distant location would also be prohibitive, given the urgent need to restore capability at Olmsted.

(4) Utilizing a Tugboat: A tugboat was determined to be insufficient due to the size and weight of the wicket lifter barge and the water current. The tugboat would not be able to hold the wicket lifter in place.

Therefore, based on the operational requirements, time constraints, and potential risks, chartering a sister ship to the MV St. James from Marquette Transportation Company, LLC is the only feasible solution.

6. Efforts to Obtain Competition: Based upon the information presented in Paragraph 5, competition for this action was not feasible. In accordance with the exception allowed by FAR 5.202(a)(2), the synopsis notice required by FAR 5.201 was not posted due to the unusual and compelling urgency of this requirement. Contracting, in unison with Operations, are developing a procurement packet to have in place at the completion of this 6-month emergency contract. The follow-on contract will be competitive solicitation for award.

7. Actions to Increase Competition: Due to the reasons discussed above, Olmsted Z-drive workboat charter for a sister ship to the MV St. James is deemed to be only available from the original source of the workboat charter from Marquette Transportation LLC., due to the unique environment at Olmsted and the MV Kieffer Bailey is the only vessel available within the urgent timeframe. The Government recognizes the importance of fostering competition for the long-term towboat requirement at Olmsted Locks and Dam.

While this J&A addresses the immediate, urgent need for a replacement vessel, we are actively planning for a competitive procurement to cover the period beyond the initial six-month lease. The previous two-month training period referenced in this J&A was primarily focused on training the USACE crew on the fundamental operation of Z-drive propulsion systems and the specific techniques for maneuvering a vessel of this size in the challenging conditions at Olmsted. This training is no longer necessary because all

USACE operators assigned to this mission are now fully trained and licensed in Z-drive operation and have extensive experience in raising and lowering the wickets at Olmsted.

The follow-on solicitation will not include a requirement for comprehensive Z-drive operational training. Instead, the follow-on contractor will only be required to provide a period of vessel familiarization to the USACE crew. This familiarization will focus on the specific layout, controls, safety features, and maintenance procedures of the selected vessel. Eliminating the requirement for comprehensive Z-drive operational training in the follow-on solicitation may increase competition by expanding the pool of potential contractors. Qualified contractors may possess suitable vessels but lack the in-house capability to provide extensive Z-drive training. By focusing solely on the requirement for vessel, the solicitation becomes accessible to a wider range of contractors who can provide a suitable vessel and qualified personnel to assist with a smooth handover. This approach avoids unnecessarily restricting competition based on a training capability that is not required, ensuring that the Government receives competitive offers

8. Market Research: Market research was conducted to identify potential sources for a 2000 HP Z-drive towboat charter. This research included: (1) A review of past procurement records, including contract W912QR18P0056, which was solicited competitively, but resulted in a single offer from Marquette Transportation Company, LLC. (2) An online search of maritime industry directories and vessel databases, identifying a limited number of Z-drive towboats of comparable size and horsepower operating in the inland waterways. (3) Direct outreach to one potential vendor identified in the online search, American Commercial Lines (ACL), to inquire about their availability and interest in providing a charter. ACL indicated that their Z-drive vessel was currently committed to long-term contracts and unavailable for charter within the required timeframe. While other companies may possess comparable Z-drive vessels, none were identified as being available for charter within the required timeframe and possessing the specific characteristics needed for the Olmsted operation.

9. Interested Sources: N/A

10. Other Factors: None

Approval

Based on the foregoing justification, I hereby approve the procurement of a sole source contract action to Marquette Transportation Company, LLC for the six-month charter of the 2000HP Z- Drive workboat in the amount of $1,280,000.00 on an other than full and open competition basis pursuant to the authority of 10 United States Code 3204(a)(2) as implemented in Federal Acquisition Regulation (FAR) 6.302-2(a)(2) – Unusual and compelling urgency subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for this acquisition.