JA Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

SOURCE SELECTION SENSITIVE

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I. Contracting Activity.

AFTC/PZI (Arnold), Installation Contracting Division, 100 Kindel Drive, Suite A-332, Arnold AFB, TN 37389.

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

This justification is for a re-acquisition of the 2017 sole source indefinite-delivery/indefinite-quantity (IDIQ) awarded to Siemens AG for the design, supply, installation, and checkout of Type 8DA10 medium-voltage gas-insulated switchgear (GIS). The current sole source IDIQ will run out of capacity in 2020. Multiple projects are planned over the next five years with a total expected cost of $54M.

This individual justification is requested to support an IDIQ contract that will be used for multiple programmed projects. Projects will be solicited and awarded as funds become available. Based on the nature of the expected projects and the acquisition history of the first IDIQ contract, firm-fixed price contracts have been deemed in the best interest of the Government.

The Switchgear Replacement Effort period of performance (PoP) is defined as five years from date of award. The intent of using five years is to align the Switchgear Replacement Effort requirements with the funding profile and expected projects. The term of this contract will be 5 years without any options.

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

Arnold Engineering Development Complex (AEDC) and related Geographical Separated Units (GSUs) need to procure medium voltage switchgear that are both reliable and safe. AEDC is comprised of multiple GSUs, and is considered one and the same organization under this justification.

The projects are planned and programmed to 1) replace existing switchgear exceeding life expectancy which are unreliable and showing signs of deterioration and 2) provide power to support future test capabilities. The type of appropriation used will be 3600 funds or other funds as applicable. GIS is the latest technology that provides power without requiring personnel to be equipped with arc flash personal protective equipment (PPE) while operating or maintaining the GIS equipment. AEDC industrial areas typically have the switchgear located next to the equipment it supplies. The proximity of one-of-a-kind equipment to the switchgear means there is risk of arc flash to the critical equipment and personnel. Hours of industry wide research, competitive bidding, accepted maintenance and reliability practice have resulted in the conclusion that Siemens Type 8DA10 GIS is the only switchgear that confines each of the three phases of power in three separate compartments. This is a critical requirement from a safety standpoint and mitigates electrical fault severity to avoid costly shutdowns of the entire system. Competitors' designs have all three phases in a single compartment.

With the isolation of the phases, a factory-trained Siemens employee can remove the damaged phase, replace it with the identical part from a spare cubicle, and return the cubicle to service in a short amount of time. In most cases, this work can be completed with the remainder of the switchgear lineup still in service. In these situations, competitors' GIS require that the entire switchgear lineup be de-energized while the entire enclosure is removed (all three phases) and sent to the factory for repair.

Once spares are available, a new enclosure is installed from the spare cubicle; however, the entire lineup is unavailable throughout the duration of the repair. The competitors also have sections of conductors that are not housed in gas compartments; if the failure occurs at these points in the circuit, it will result in much more severe damage to the overall power system. The estimated value of this

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

10 USC 2304(c)(1), as implemented by FAR 6.302-(1), required by FAR 6.303-2(b)(4).

FAR 6.302-1(a)(2): When the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for.

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

This acquisition falls within the constraints of FAR 6.302-1(b)(1)(ii). Standardization of equipment for personnel safety and cost reasons are needed for future AEDC acquisitions of GIS equipment.

Minimum Requirements:

It is widely known in industry that a single phase to ground fault predictably or characteristically involves less energy than that of a three phase to ground fault and the majority of single phase to ground faults propagate into a three phase to ground fault [1]. High energy faults not only increase the resulting damage for the equipment in which the fault occurred, but also pose a risk to other equipment in the same circuit. AEDC requires a power distribution system that is safe, reliable, and efficient. Isolating the phases in medium-voltage switchgear minimizes the severity of an arc fault inside the switchgear. Low energy faults reduce equipment damage, repair costs, and downtime. These are all key to reliably supporting AEDC's mission. AEDC requires that medium voltage switchgear shall be designed to have each phase isolated from the other phases in the three phase power system.

Reference [1]: Institute of Electrical and Electronics Engineers (IEEE) Standard - The Escalating Arcing Ground-Fault Phenomenon. Volume: IA-22 , Issue: 6 , Nov. 1986, Pages 1156 - 1161

Basic design comparison:

Documentation in the lab and test results revealed that in air insulated equipment, a single phase arc fault always becomes a three-phase arc fault[2]. If the system is solidly grounded, the arc always involves ground and has appreciable ground current. In comparison, if the system is resistance grounded or ungrounded and the arc involves ground, the current to ground is much less significant.

Three-phase arcing produces much more released energy than single-phase arcing.

The design characteristic of Siemens iso-phase gas-filled equipment is a superior design in that low level arcs (phase to ground faults) inside the enclosure are typically self-extinguishing. If the system is resistance grounded, the ground current is significantly limited (usually to 400A or less, as a 400A 10-second ground resistor is most common) and thus single-phase arcing to ground is likely to be self-extinguishing. The iso-phase gas-filled equipment's ability to limit any faults to low level single phase to ground arcs results in less equipment damage as a result of the arc fault inside the GIS.

In comparison, a phase to ground arc that starts in a multi-phase GIS enclosure may perhaps begin as single phase to ground but will quickly become (in milliseconds) a multiphase arc, and will not benefit from the self-extinguishing characteristic, as the current immediately escalates beyond the "low level

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This contract vehicle allows AEDC to respond rapidly to emergency situations when switchgear fails.

AEDC still has original 1950's installed equipment that is critical to Flight and Hypersonic test missions.

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

Full and open competition was used as a strategy in years past for GIS requirements. In each of these instances, contracts were awarded to Siemens. The first contract, awarded in FY07, included 24 medium voltage breakers for theASTF air-side area at a cost of $6.4M. The contract included design, demolition, installation, and checkout. The second contract, awarded in FY09, included seven medium voltage breakers for the Variable Frequency Starter System (VFSS) in the Von Karman Facility (VKF) at a cost of $750,000. The contract included design, installation, and checkout. In 2015, a supply and install contract was awarded directly to Siemens for the execution tasks for Advanced Large Military Engine Capability (ALMEC) at a cost of $5.6M per spare. The installation of in-service Siemens GIS lineups has enabled AEDC technical personnel to validate that the unique Siemens design provides safety and operational considerations not available from any other single bus style gas insulated switchgear manufacturer. In 2016, the A3B Switchgear and Unit Substation 9 were awarded to Siemens Industry for $5.7M. Additionally in 2016, ETF-B Exhaust Switchgear was awarded for $2.9M and PWT building 780 switchgear was awarded for $5.4M. In FY17, HTL was the last individual switchgear sole source awarded for $3.7M. In FY16 and FY17, the HTL received awards that were individually approved sole source awards with market research and sources sought conducted for each procurement. The installation of in-service Siemens GIS lineups has enabled AEDC technical personnel to validate that the unique Siemens design provides safety and operational considerations not available from any other single bus style gas insulated switchgear manufacturer.

The FY17 IDIQ awarded to Siemens for $48M capacity will reach its maximum award amount in early FY20.

Sources Sought Synopsis:

A sources sought synopsis was posted on December 19, 2018 to Federal Business Opportunities (FBO) (see Para VIII and X for further details) with market research results in January 2019.

A sources sought synopsis was posted on December 9, 2016 to FBO (see Para VIII for further details) for the 2017 Siemens IDIQ.

Other Actions:

Internet Research performed December 2019 and validated that the other GIS manufacturers have all three phases in one compartment and Siemens is the only Iso - Phase Medium Voltage GIS manufacturer.

Qualifying Country Sources:

None.

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

This requirement meets the definition of a commercial item and is exempt from certified cost and pricing data. Price analysis techniques and procedures will be utilized to determine that the anticipated cost will be considered fair and reasonable. In accordance with FAR 15.404-1(b)(2)(ii), the Government will compare proposed prices to historical prices paid. At a minimum, the Government shall obtain appropriate data, without certification, on the prices in which the items have previously been sold. Siemens costs have been shown to be fair and reasonable based on previous acquisitions at AEDC. Also, in accordance with FAR 15.404-1(b)(2)(v), the Government will compare the proposed prices with our independent Government cost estimate. If comparison to previous contracts is insufficient to determine the price is fair and reasonable and comparison of the proposed prices to the independent Government estimate cannot determine the proposed prices are fair and reasonable, the Government will use any of the remaining price analysis techniques as appropriate to the circumstances applicable to this acquisition.

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

Market research indicates there are five manufacturers of GIS equipment: Siemens, ABB, AREVA, Hyundai and Schneider. ABB, AREVA, Hyundai and Schneider GIS equipment designs are “multi-phase”, with all three phases of the switches, breakers, and bus sections combined. Siemens GIS equipment design is “iso-phase”, with each phase of the switches, breakers, and bus sections segregated. During the 2016 market research for those projects listed in Para. VI, AEDC met with each manufacturer to discuss their capability in meeting AEDC's "iso-phase" requirement. As a result of meetings with manufacturers, AEDC concluded that Siemens is the only vendor capable of meeting the "iso-phase" requirement. In 2019, AEDC verified the capabilities had not changed by performing company capability research utilizing the product data available on the Internet. A sources sought synopsis was posted onto FBO December 9, 2016 for the first Iso-Phase GIS IDIQ and again on December 19, 2018. Both times interested vendors had the opportunity to provide capability statements and demonstrate their ability to meet AEDC specific requirements. No responses were received from companies that manufacture "isophase" GIS. The market research has shown the supplies sought are available from only one source and no other supplies will satisfy the Government requirement.

Based on the market research results from previous award of same requirement in January 2017 and market research results from January 2019 where Siemens was found both times to be the only available market source to fulfill the Government's requirements with these findings and the low risk of market change, the January 2019 market research is considered to be still current, accurate, and relevant through July 2020 (Ref: FAR 10.002(b)(1)).

In order to justify sole source, findings of market research and supply market with opportunity to respond to sole source set-aside, a notice with the intent to sole source will be posted a minimum of 15 days prior to release of solicitation.

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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.

A Sources Sought notice was posted to FBO on 19 December 2018 with responses due 4 January 2019. AEDC received three responses. The three interested vendors are Sayers Construction, Strata Infrastructure, and Tamsah Enterprises. AFTC/PZ and AEDC/TSDC called all three interested vendors. All three vendors stated they could not meet the requirement of this acquisition. All three vendors perform construction only and do not manufacture GIS.

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.

AEDC will continue to monitor and conduct market research for new GIS designs that will provide the same safety and reliability features of Siemens equipment as required by the former J&A. Extensive market research is performed during the development of each requirement to determine if there is a suitable equal allowing for competition. The market is routinely monitored by project management to determine if the market has changed and additional vendors become available. As of the date of this report, only one vendor is capable of meeting the iso-phase requirement.

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.