KO Determination to solicit from one source (BRAND NAME)_Redacted.pdf

CONTRACTING OFFICER’S DETERMINATION TO SOLICIT FROM ONE SOURCE

Pursuant to FAR 13.106-1(b)

1. CONTRACTING AGENCY: U.S. Army Corps of Engineers, Seattle District

2. DESCRIPTION OF ACTION: Approval is requested for a sole source justification to ABB to acquire original equipment manufacturer parts for the Transformer 3 Rehabilitation at Libby Dam. The requested products are critical to properly operate and maintain the transformer in a safe and reliable manner.

3. DESCRIPTION OF SUPPLIES: The portion of the acquisition requiring sole source products applies to ABB equipment. The products manufactured by the listed company is crucial for safe operation. The total equipment cost is

# Mfr. Part Number Description Unit QTY Cost/Unit Total

28 ABB TEXLIM Q-C Surge Arrester Each 3

29 ABB TS00054 Core Ground Kit LS 1

30 ABB

External Gasket Kit GE Transformer Serial Number M102119 - Low Side Bushing Mounting Gaskets and Turrets shall be made of high temperature fluorocarbon (FKM) all other gaskets shall be manufactured from Buna-N.

Each 1

31 ABB

Constant Oil Pressure System Expansion Tank Air Cell - Transformer Serial Number M102119

Each 3

Total Name Brand Components

Name Brand Components

4. AUTHORITY CITED: 10 USC 2304(c)(1) Contracts: competition requirements.

5. REASON FOR AUTHORITY CITED: 10 USC 2304(c) states “The head of an agency may use procedures other than competitive procedures only when -

(1) The property or services needed by the agency are available only from one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency;”

Further, FAR 13.106-1(b)(1)(i): “(b) Soliciting from a single source. (1) For purchases not exceeding the simplified acquisition threshold. (i) Contracting officers may solicit form one source if the contracting officer determines that the circumstances of the contract action deem only one source reasonable available (e.g., urgency, exclusive licensing agreements, brand-name or industrial mobilization).”

ABB owns the proprietary GE design of the Libby Dam transformers, which makes them an Original Equipment Manufacturer (OEM).

6. BASIS FOR RESTRICTING COMPETITION: In 2019 The U.S. Army Corps of Engineers (USACE) advertised a design for the refurbishment of Transformer T3 but were unable to award due to proposals exceeding statutory cost limitations. The inability to award this project to complete work during the work windows in FY19 has left the operating project in a difficult situation. This unit must be rehabbed during the 1 July 2020

– 30 Aug 2020 work window to prevent impact to future work at the facility including 6th Unit work and Generator Rewinds work.

Justification of Sole Source Components: ABB owns the proprietary GE design of the Libby Dam transformers, which makes them an Original Equipment Manufacturer (OEM). ABB products have been selected for efficiency and ease of transformer integration as the OEM.

Any proposed alternatives for the external gasket seals kit, core ground kit, surge arrester and constant oil pressure system expansion tank air cell would need to reverse engineer before they can be reproduced. ABB is the only company who can fabricate the equipment to be a direct fit to the transformer.

Impact: As previously stated, the window for work corresponds with a BPA approved outage from July 1, 2020 to August 30, 2020. Failure to provide the sole source OEM equipment as called for in the design would force an alternative procurement process that does not guarantee the selected equipment will be provided. For this time sensitive situation, there is a high risk associated with receiving “equivalent” products. Additional engineering will be required to ensure the products are transformer compatible and obtain the critical functions required. If products are not approved and received before the specified work window, there is a potential for project failure. The time saved by not reverse engineering and validating the proposed alternatives is approximately 2 weeks of effort from the lead designer (24 hours), project manager (16 hours) and contracting specialist (16 hours). This effort includes:

reviewing the proposed alternative, researching if it meets salient characteristics and specifications, then documenting the findings to either accept or deny the offered alternative.

If the parts are found to not meet, additional time could be lost allowing the low bidder to provide a new proposal which could add an additional week of time. If we lose 2-3 weeks of award time, this will have an impact on the winning bidder delivering the equipment in time to meet the 15 July 20 delivery date. If the long lead items cannot be delivered in time, it would have an impact on the economy act order USACE has with TVA to complete the install in the approved BPA outage window.

7. MARKET RESEARCH: Components selected are for standardizing U.S. Army Corps of Engineers Hydropower critical powertrain components to minimize costs to critical stakeholders, maximize value to the public, increase facility reliability and safety, and optimize component selection within the hydropower fleet for continued operation. Market research is continuously conducted over the course of procurements by the Hydroelectric Design Center and updated or modified specifications developed to continue meeting the needs of District hydropower Operations and Maintenance while maximizing value to preference customers.

FAIR AND REASONABLE DETERMINATION: Based on previous contracts, current price lists, published catalog pricing and a comparison of quotes received, the anticipated cost or price to the Government for this contract action will be fair and reasonable.

TECHNICAL/REQUIREMENTS (PREPARED BY): I hereby certify that the supporting data under my cognizance included in this limited source justification is accurate and complete to the best of my knowledge and belief.

NAME: DATE:

TITLE: Project Manager SIGNATURE:

CONTRACT SPECIALIST (REVIEWED BY): I hereby certify that the information supporting this limited source justification is accurate and complete to the best of my knowledge and belief based on the supporting data provided by technical/requirements personnel and my research of previous contracts.

NAME: DATE:

TITLE: Contract Specialist SIGNATURE:

CONTRACTING OFFICER CERTIFICATION: I hereby certify this justification is accurate and complete to the best of my knowledge and belief and determine that the anticipated cost or price to the Government will be fair and reasonable pursuant to FAR 13.106-3.

NAME: DATE:

TITLE: Contracting Officer SIGNATURE:

4/15/2020