Justification - Sole Source L H Prop Hub Pressure Shrunk Coupling (1) (003).pdf

JUSTIFICATION AND APPROVAL FOR

OTHER THAN FULL AND OPEN COMPETITION

SUBJECT: JUSTIFICATION and APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION: Repair of Government Furnished Propulsion Hubs & Pressure Shrunk Coupling

1. CONTRACTING AGENCY:

U.S. Army Corps of Engineers, New Orleans District P.O. Box 60267 New Orleans, LA 70160-0267

2. DESCRIPTION OF ACTION: Sole Source to Propulsion Systems Inc. (PSI) of Seattle, Washington.

a. This procurement will be a Firm-Fixed Price Contract.

b. Estimated contract value: $178,630.00. The contract duration requested is for twelve (12) months following receipt of Notice To Proceed.

3. DESCRIPTION OF SUPPLIES/SERVICES: This requirement is to provide the service of a machine shop, Propulsion Systems Inc. (PSI), to inspect, provide a report, with the option to repair one Government Furnished propulsion hub, and one pressure shrunk coupling.

4. AUTHORITY CITED: Authority permitting other than full and open competition for procurement of these services is 10. U.S.C. §2304 (c) (1) as implemented by FAR 6.302-1 (a)

(2) (iii).

5. REASON FOR AUTHORITY CITED: Propulsion Systems Inc. (PSI) of Seattle, Washington, is the sole manufacturer of the propulsion hub, pressure shrunk coupling, and other associated components used aboard the Dredge Wheeler. The service and parts required are protected under proprietary agreement and must be obtained from Propulsion Systems Inc. (PSI).

The Government does not possess the detailed drawings for the components required for fabrication of new parts or repair of existing parts. Use of any other parts would be impractical requiring extensive modification of the vessel. Based on research, a comparable contracting actions for the Navy had a cost of $10.9M. Consequently, without access or rights to this technical data by the Government or others, substitute sources for replacement parts do not exist.

However, by utilizing PSI to rebuild both the hub and coupling will be a substantial saving to the Government and prevent unacceptable delays.

6. EFFORTS TO OBTAIN COMPETITION: In accordance with FAR 6.302-2(b)(ii), the services needed are available only from the original source. A notice will be posted on the (Beta.Sam.Gov) site stating the Government’s intention to make a sole source award for the required services. The Government will review and consider any and all responses received from interested sources in consideration of future requirements.

7. DETERMINATION OF FAIR AND REASONABLE COST (FAR 6.303-2(a)(7)):

While this is proprietary in nature and difficult to determine price reasonableness, a technical analysis shall be done on the cost proposal submitted by the contractor prior to any repairs.

Marine Management Section personnel will determine if the cost proposal accurately represented the total man-hours, expertise, and parts to perform the scope of work. The government will use historical data and current rates to evaluate the proposed quote to determine if it is reasonable and sufficient to accomplish the required work. Afterwards, a determination will be made to ensure that prices will be fair and reasonable. Prices will be compared with historical data available from previously provided services. Historical data was used to prepare the IGE; ref.

contract W912P8-15-C-0061. An escalation rate of 2.0% per year was applied.

8. MARKET RESEARCH: Market research was conducted, but due to the proprietary nature of the services required, there is no other source available.

9. INTERESTED SOURCES: As stated in paragraph 6 above, the Government will review any and all responses received from interested sources in consideration of future requirements. However, it’s in the best interest of the Government to continue pursuit of Sole Sourcing this requirement with PSI.

10. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION: N/A.

11. ACTIONS IF ANY, THAT ARE BEING TAKEN TO REMOVE AND

OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT

ACQUISITIONS FOR THE SUPPLIES OR SERVICES REQUIRED (FAR 6.303-2(a)(11):

Due to the proprietary nature of the services required, no actions are being taken to remove and overcome any barriers to competition before any subsequent acquisition.

12. TECHNICAL CERTIFICATION:

I hereby certify that the supporting data under my cognizance, which are included in the J&A, are accurate and complete to the best of my knowledge and belief.

Name: Noelle Belhumeur

Title: Mechanical Engineer

Signature:

13. REQUIREMENTS CERTIFICATION:

I hereby certify that the supporting data under my cognizance, which are included in the J&A, are accurate and complete to the best of my knowledge and belief.

Name: Bethany Walker

Title: Chief, Marine Management Section Signature:

14. FAIR AND REASONABLE COST DETERMINATION:

I hereby determine that the anticipated cost for this contract action is fair and reasonable due to historical data coupled with current rates for related work of this sort. Cost and Pricing data will not be needed.

Name:

Title: Contracting Officer Signature:

15. PROCURING CONTRACTING OFFICER CERTIFICATION:

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

Name:

Title: Contracting Officer Signature:

BELHUMEUR. Digitally signed by

NOELLE.1546 546623005

BELHUMEUR.NOELLE.1

623005 Date: 2020.11.10 13:38:37 -06'00'

WALKER.BETHANY. Digitally signed by

CHIASSON.123082 230826893

WALKER.BETHANY.CHIASSON.1

6893 Date: 2020.11.10 13:48:10 -06'00'