Justification to Sole Source.pdf

Control Number: NWS-2026-332

1 SEP 2026

Justification Review Document

For Sole Source per RFO Part 6.103-1

Program/Equipment:

Authority: 41 United States Code (U.S.C.) 3304(a)(1) as implemented in Revolutionary Far Overhaul (RFO) 6.103-1 Only one responsible source and no other supplies or services will satisfy agency requirements

2 SEP 2026

Sole Source Justification and Approval Under RFO 6.103-1(a)

1. Contracting Activity:

Seattle District, U.S. Army Corps of Engineers, Contracting Division, 4735 East Marginal Way South, Seattle WA 98134-2388

2. Description of Action:

Approval is requested for a Sole Source Justification to support Chief Joseph Dam (CJD) in the direct acquisition of a precision lathe machine from Republic Machinery Co., Inc. (Republic Lagun). Direct procurement from the manufacturer is necessary to obtain equipment that satisfies required engineering specifications while maintaining full compliance with the Buy American Act (BAA).

3. Description of Supplies/Services:

Approval is requested to award a sole-source order to Republic Machinery Co., Inc. for one (1) Republic Lagun Machine Tool American Turnmaster Precision Engine Lathe (Model ML-1760), complete with standard and specialized accessories. The lathe is required for precision machining, fabrication, and repair of hydro turbine and generator components supporting the 29 hydroelectric generating units at Chief Joseph Dam, Bridgeport, Washington. Key salient characteristics include:

Tri-V Ways: Provides the necessary rigidity and alignment tolerances required for precision machining of heavy hydroelectric equipment.

3 SEP 2026

Spindle Bore Diameter: A bore exceeding 3.0 inches (>3”) to accommodate critical shaft, sleeve, and tooling dimensions.

Acquiring this machinery is vital to sustaining continuous operational readiness and preventing downtime across the generating units.

4. Authority Cited:

Authority: 41 U.S.C. 3304(a)(1) and soliciting from one source RFO 12.102(a) For acquisitions valued at or below the simplified acquisition threshold (SAT), document the decision that only one source is available and the basis for the decision.

5. Reason for Authority Cited:

a. Background: Domestic machine tool manufacturing has largely transitioned overseas, resulting in a significant reduction of available BAA-compliant engine lathes. The unique mechanical requirement for Tri-V bedway construction severely limits the number of commercially available systems.

b. Justification: Extensive market research confirms that Republic Machinery Co., Inc. is the sole manufacturer & distributor capable of delivering an engine lathe that meets all required technical specifications (notably Tri-V ways and >3” spindle bore) while maintaining certified BAA compliance.

c. Impact: This procurement directly compromises facility readiness and increases operational risk by leaving the facility without the in-house capacity or precision required to machine larger slip rings. The existing two smaller machines cannot handle these components, forcing reliance on external commercial contracting or inter-facility support.

Commercial contracting introduces a minimum six-month lead time for specifications, solicitation, and award, while incurring direct costs of $75,000 to $100,000 per slip ring set. More critically, the resulting extended downtime exposes the facility to potential lost generation valued at approximately $400,000 per week, assuming a conservative 50% run-time baseline driven by resource constraints and demand. Alternatively, attempting to offload machining to another USACE facility is not a viable mitigation due to extremely limited enterprise-wide capacity, unpredictable scheduling availability, and unverified machine precision and quality. Procuring the requested lathe mitigates these substantial financial and operational liabilities, prevents catastrophic downtime, and secures vital organic maintenance capability.

6. Efforts to Obtain Competition:

Efforts to identify potential competitors and maximize public visibility included issuing Requests for Information (RFIs) on both GSA eBuy and SAM.gov, providing the commercial market with comprehensive purchase descriptions and technical requirements.

4 SEP 2026

7. Market Research:

GSA eBuy (RFI 1809958, 11–18 May 2026): The complete purchase description was published for industry review. Responses overwhelmingly indicated that respondents either could not satisfy the salient technical characteristics or could not meet BAA compliance due to reliance on foreign manufacturing. Vendors noted that Tri-V way construction is a specialized feature offered by very few manufacturers.

SAM.gov (RFI W912DW26Q1BUF, 23 June – 07 July 2026): The public notice yielded no additional domestic sources capable of satisfying both the BAA mandate and the mandatory physical specifications.

8. Other Facts:

Republic Machinery Co., Inc. has filled out a Buy American Act Compliance Certification, verifying that the proposed equipment meets all statutory domestic manufacturing thresholds.

5 SEP 2026