KO Det - Limiting Competition under SAT.redacted.pdf

Control No: LRE-FY21-07

Contracting Officer’s Determination – Limiting Competition at or below the Simplified Acquisition Threshold

1. Contracting Activity: Soo Area Office, 119 E Water St., Sault Ste Marie, Michigan 49783-1880

2. Description of Action: Purchase three (3) additional Rockwell Automation Factory Talk SE Server licenses and twenty (20) additional Rockwell Automation Factory Talk SE Client licenses.

Nature: New Requirement Follow-on Requirement

Contract Vehicle: Purchase Order Blanket Purchase Agreement (BPA) Order/BPA against FSS Contract # Order against Multiple Award IDIQ Contract # Order against a single award IDC Contract

Modification to existing PO/TO/DO/Call Order

Pricing/Contract Type: Fixed Price Time & Materials/Labor Hours Cost Reimbursable Hybrid

Funds: Operations & Maintenance, Army (OMA) Other Funds:

FY: 2021

Name of Proposed Contractor(s) and Address:

Kendall Electric, 2458 North Aero-Park Court Traverse City, MI 49686

Brand Name Buy: Yes No

3. Description of Services or Supplies: The Soo Area Office has been updating the entire facility from electromechanical operations to the Rockwell Automation Allen Bradley PLC systems. The system has exceeded the available software licenses and additional licenses are needed to properly operate and maintain the system. Proper operation and maintenance of the entire facility SCADA system will require three (3) additional software licenses for Rockwell Factory Talk RS View SE (Site Edition) Server and twenty (20) additional licenses for Rockwell Factory Talk RS View SE (Site Edition) Client. No installation services are required. The estimated cost of these software licenses is $83,113.14.

Period of Performance: completion date – 15 April 2021.

Total Value: $ 83,113.14.

4. Authority:

FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization.

Or

FAR 8.405-6(a)(1)(i)(B) and 8.405-6(b)(1) Brand Name FAR 8.405-6(a)(1)(i)(A) Urgency FAR 8.405-6(a)(1)(i)(B) Only One Source is Capable FAR 8.405-6(a)(1)(i)(C) Logical Follow-on

Or

Capable

5. Reasons for Authority Cited:

The Soo Area Office (SAO) has a SCADA system comprised of Rockwell Automation’s Allen Bradley PLCs and associated hardware and software which was initially installed during the power plant automation project in 2002. This is part of the SAO hydroelectric generation equipment necessary to operate the plan. This SCADA system requires the referenced specific Rockwell Automation software packages to operate and maintain the system. Rockwell Automation, and its authorized distributors, are the only sources available to provide the licenses, updates, and technical support. Kendall Electric is the only Rockwell Automation authorized distributor in Michigan.

The continued operation of the SAO hydrogeneration equipment requires the requested Rockwell Automation software. Failure to acquire additional licenses will seriously impact the ability of the facility to continue to operate.

6. Publicizing Contract Actions: For FAR Part 13 actions, the public display and synopsis requirements of FAR 5.101 and FAR 5.203 do not apply due to the $ threshold, apply and will be followed, or do not apply due to an exception at 5.202.

Requirement to post justification in accordance with FAR 8.405-6(b)(3), FAR 13.105(c), or FAR 16.505(a)(4)(iii)(A)

FAR 16.505(b)(2)(i)(B) Only One Awardee is FAR 16.505(a)(4) Brand Name FAR 16.505(b)(2)(i)(A) Urgency FAR 16.505(b)(2)(i)(C) Logical Follow-on FAR 16.505(b)(2)(i)(D) Minimum Guarantee

Action is NOT a brand name restriction and is under SAT, no posting required Action is a brand name restriction, under $25K, no posting required Action is a brand name restriction, over $25K. It will be redacted and posted with the solicitation.

Action is a brand name restriction over $25K but will not be posted due to exception:

FAR 6.305(f) FAR 8.405-6(b)(3)(iii)(A) FAR 8.405-6(b)(3)(iii)(B) FAR 8.405-6(b)(3)(iii)(C) FAR 16.505(a)(4)(iii(C)

7. Market Research:

The software requirement is brand name specific. Only Rockwell Automation software can be used to operate the Rockwell Automation hardware in place at the Soo Area Office since 2002. Personnel at the Soo Area Office conducted market research in October 2020. They contacted SupplyCore and attempted to utilize the MRO program to purchase the required software licenses. DLA subsequently determined that the SCADA software is out-of-scope of the MRO program. Soo personnel also learned that Kendall Electric is the only manufacturer authorized distributor in Michigan and obtained a quote from that company.

In January, February, and March 2021, Contracting personnel reviewed CHESS DOD Enterprise License Agreements (ELAs), DOD Enterprise Software Initiatives (ESIs), and ITES-SW2 Catalogs – The required Rockwell Automation software was not listed in the available programs. No software for Rockwell Automation was listed. None of the Rockwell Automation authorized distributors were named as a participating reseller/distributor. We received confirmation from CHESS that the required software is not available through the program and CHESS provided a Statement of Non-Availability.

Upon receipt of the Statement of Non-Availability, we applied for and received an Army Deputy Chief of Staff (DCS), G-6 approved ITAS Waiver.

Personnel also conducted an internet search for the same or similar software. Staff reviewed sam.gov and sites of software providers including Rockwell Automation website to determine authorized distributors of the required software. The results of the market research confirm that a brand name software is required for proper operation of the hydropower equipment and the only Rockwell Automation authorized distributor in the State of Michigan is Kendall Electric.

8. Other Facts: The required software has been in use at this facility since the Rockwell Automation SCADA servers were installed in approximately 2002. Since that time, the Soo Area Office has renewed these licenses, obtained additional licenses, and purchased technical support for these licenses through Rockwell Automation, the manufacturer. Licenses may only be purchased through Rockwell Automation and its authorized distributors. There is only one authorized distributor in Michigan.

SAWRUK.ANDREI.E.150349

2021.03.22 14:13:14 -04_'00'

9. Technical/Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Andrei E. Sawruk, PE Date

10. Contracting Officer Certification/Approval:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable based upon price analysis based upon the independent government estimate and the prior quote received from the contractor.

I certify that this justification is accurate and complete to the best of my knowledge and belief, and that completing this purchase as a sole source is in the best interest of the Government. Additionally, I approve this justification to limit competition subject to the availability of funds and provided that the services or supplies herein described have otherwise been authorized for acquisition.

2021.03.22 14:53:20

_ -04'00' _ MORGAN K. STRONG, Contracting Officer Date