Redacted - Award Notice JnA applied.pdf

Control Number: Dal-21-6280

3.1. Ringold Springs Hatchery Release Group.

This group comprises fall Chinook received as eggs from Priest Rapids Hatchery (Mattawa, WA). ODFW will receive these eggs and rear the fish until they reach the size of approximately 100 fish per pound, then they will transfer these fish to Ringold Springs Hatchery (Eltopia, WA). The rearing period for this group of fish is approximately 6 months.

Before transferring the fish, ODFW will remove the adipose fin (fin-clip) and embed 400,000 juveniles with a coded wire tag. ODFW will fin-clip the remainder of the fish to be transferred, approximately 4,100,000 juveniles (total transfer is approximately 4,500,000).

3.2. Pendleton Acclimation Facility Release.

This group of fall Chinook are received as eggs at Bonneville Hatchery. These eggs may originate from several different sources. ODFW will receive and rear these fish until they reach the size of approximately 20 fish per pound, and then transfer these fish to the Pendleton Acclimation Facility (Pendleton, OR) on the Umatilla River. The rearing period for this group of fish is approximately 15 months. Before transferring the fish, ODFW will fin-clip and embed coded wire tags in approximately 240,000 juveniles.

3.3. Prosser Hatchery Release Group.

This group of fall Chinook, are received as eggs at Bonneville Hatchery, originating from a variety of sources. ODFW will rear these fish until they reach the size of approximately 12 fish per pound, and then transfer these fish to Prosser Hatchery (Prosser, WA). The rearing period for this group of fish is approximately 15 months. Before transferring the fish, ODFW will fin-clip and embed coded wire tags in approximately 210,000 smolts.

For all release groups, ODFW will utilize equipment that provides a fin-clipping rate of at least 99% and coded wire tag retention rate of at least 97% while maintaining a mortality rate of less than 1% for the tagging groups.

For all release groups, ODFW will collect a representative sample from each cohort for monthly examinations by a fish health specialist. Any abnormalities found will require further examination and monitoring, as seen fit by the fish health specialist. Prior to transfers to other facilities, the health status of the fish will be determined, as fish may not be released unless they are certified by the health specialist as healthy.

4. AUTHORITY CITED:

Pursuant to 10 U.S.C. § 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1 and Defense Federal Acquisition Regulation Supplement (DFARS) 206.302-1, only one responsible source and no other type of services will satisfy agency requirements.

5. REASON FOR AUTHORITY CITED:

5.1. Background:

5.1.1. Authorization and the Requirement to Mitigate

Congress authorized the construction of The Dalles and John Day projects as part of the comprehensive plan for the improvement of the Columbia River Basin in the Flood Control Act of 1950. The report of the Chief of Engineers dated June 28, 1949, also known as House Document 81-531 (“H.D. 531”), describes The Dalles dam project as consisting of, inter alia, “facilities for passing anadromous fish” and that “[f]acilities, including hatcheries, ladders and locks, will be provided in connection with the project for anadromous fish.” H.D.

531 similarly describes the John Day dam project as consisting of, inter alia, “facilities for passing anadromous fish,” and discusses hatcheries in Appendix L to H.D. 531. In describing The Dalles project in Appendix L, the plan expressly provides for the construction of hatcheries in the lower Deschutes River, a tributary of the Columbia River in Oregon that flows into the pool behind The Dalles dam, to artificially propagate salmon to compensate for losses associated with constructing and operating the project. In describing the John Day project in Appendix L, the plan also expressly provides for the construction of joint hatcheries in the lower Deschutes River for the same reasons. In large part due to adverse water quantity and water quality conditions in the lower Deschutes River, the USACE abandoned constructing the joint hatcheries described in H.D. 531 and, instead, looked to other Columbia River Basin hatchery facilities to compensate for losses in accordance with H.D. 531.

The USACE’s Design Memorandum No. 46 (1969) (“D.M. 46”) revised hatchery production specified in H.D. 531 upward, to support a return of 30,000 fall Chinook salmon. In order to meet a return of 30,000 adult fish, the USACE agreed to produce 17,150,000 juvenile fish.

Also, and instead of a joint hatchery facility as considered in H.D. 531, D.M. 46 proposed dividing production equally across the Bonneville and Spring Creek Hatcheries to compensate for losses associated with both projects. The USACE and ODFW solidified this agreed via a hatchery production plan in the Contract for Operation and Maintenance of the Bonneville Fish Hatchery between USACE and ODFW (1978).

5.1.2. Location and Hatchery

In the intervening years between the initial contract and present day, numerous efforts were undertaken to place the correct kind of fish (an early spawning type of fall Chinook) into the location most prominently affected by the construction of The Dalles and John Day projects (i.e., upstream of John Day dam). Most notably, USACE stopped releasing fall Chinook from Bonneville Hatchery, because those releases occurred below Bonneville dam, which is 70 miles downstream of John Day dam – a site well below the areas impacted by the construction and operation of The Dalles and John Day projects.

Although USACE no longer releases fish at the site, Bonneville Hatchery is still used to mitigate for the effects of The Dalles and John Day dams through the rearing of fish from the egg stage up to the final release stage. The fish are then released at other sites to compensate for losses of adult fish resulting from The Dalles and John Day projects.

Bonneville Hatchery is specifically used because of the cold-water source at the hatchery and the size of the hatchery, both of which are needed to sustain the type of fish that must be raised (fall Chinook) and the great number of fish that must be produced and later released (mitigation requirements include the release of 4,500,000 fall Chinook at Ringold Springs Hatchery, 900,000 fall Chinook at the Pendleton Acclimation Facility, and 210,000 fall Chinook at Prosser Hatchery). Although there are other hatcheries of similar large size that provide a cold-water source, all other potential hatcheries are currently in use to fulfill other mitigation requirements. Therefore, no other hatchery is currently available for use by the USACE to fulfill The Dalles and John Day dam mitigation requirements. Further, the

National Marine Fisheries Service (NMFS) has specifically approved USACE’s use of Bonneville Hatchery to raise the fall Chinook because of the hatchery’s location. Raising fish at another hatchery may adversely affect Endangered Species Act-listed wild salmon stocks (i.e., use of any other hatchery for the production of fall Chinook would introduce a new hatchery program into areas already sensitive to hatchery influences and would require initiating Section 7 consultation with NMFS that would likely not be approved).

In sum, only Bonneville Hatchery can be used to fulfill NWP’s mitigation needs. The hatchery contains the required space, possesses the necessary cold-water supply, and is currently approved by NMFS to produce fish of the type and amount required by NWP.

5.2. Justification:

Due to the unique conditions at Bonneville Hatchery, where, as discussed above, the fall Chinook must be produced, ODFW is the only contractor capable of satisfying USACE’s requirements. At Bonneville Hatchery, ODFW owns a real estate interest in an abatement pond at the hatchery that must be used to rear the required fish. ODFW’s ownership of this pond precludes using another contractor to perform the required work.

The majority of the land, facilities, and equipment on which Bonneville Hatchery is located is owned or managed by the USACE. However, as the hatchery updated infrastructure in the 1970s to meet water quality standards for hatchery effluent, ODFW was deeded a parcel land by the Oregon Department of Transportation for the “purpose of constructing and maintaining pollution abatement facilities for [ODFW’s] fish hatcher[y].” Soon after, ODFW constructed a pollution abatement pond on the parcel. Effluent from several large banks of fish rearing vessels was re-directed to flow into the abatement pond, so that excess fish food, fish excrement, and other organic matter could settle out of the water column to the floor of the pond, before the water was ultimately released into Tanner Creek. Specifically, the rearing ponds in bank “A” and bank “B” as well as the incubation building (“Hatchery Building”) all direct water into the pollution abatement pond. See Attachment 1.

The pollution abatement pond is critical to the hatchery activities contemplated in this contract. The banks of rearing ponds that discharge flow into the abatement pond must be utilized to rear the large amount of fish required. No other rearing ponds are available to meet the full amount of fish production required. If the rearing ponds were used, but the abatement pond was not utilized, with water discharged directly into Tanner Creek, it would constitute a violation of Section 402 of the Clean Water Act (1972). It follows that NWP’s required fish production needs cannot be completed without the use of this abatement pond, and ODFW is not willing to convey its interest in these facilities to the USACE.

Therefore, due to the mixed-ownership issues at Bonneville Hatchery, as explained above, ODFW is the only responsible source capable of fulfilling NWP’s requirements.

In addition to the mixed-ownership situation, ODFW is the only known, interested party that has the ability to provide the highly specialized equipment needed to mark and tag juvenile fish. In order to meet the specifications of the contract, automated marking and tagging equipment is required. This equipment costs approximately $1,000,000, takes up to a year to manufacture, and is not available for rent. Two automated fish-tagging units are needed in order to fulfill the marking and tagging requirements at Bonneville Hatchery. The USACE does not currently own the requisite automated fish-tagging equipment needed to perform this required work and instead relies on the contractor to supply the necessary fish-tagging equipment. Based on market research conducted, ODFW is the only known interested hatchery operator that can provide the necessary fish-tagging equipment during the time they are required.

5.3. Alternatives Considered and Negative Impact if this Requirement Is Not Fulfilled on a Sole Source Basis.

Forgoing the use of Bonneville Hatchery would entail more heavily relying on tule fall Chinook production in Zone 6, rather than URB fall Chinook production, as Bonneville Hatchery rears URBs that are all transferred for release into or above Zone 6. Further reliance on tule fall Chinook creates a disproportionate mix of tule and URB adult returns that does not reflect the historical abundance of both stocks prior to dam construction.

Consequently, discontinuing the use of Bonneville Hatchery would be counter to fulfilling the mitigation for The Dalles and John Day Dams, with considerable impact to tribal fisheries in Zone 6, compromising tribal trust responsibilities.

6. EFFORTS TO OBTAIN COMPETITION:

A notice of intent to sole source Bonneville fish production was posted to beta.SAM.gov on 29 May 2020 for 13 days. It was then re-posted from 25 September – 28 September 2020 to satisfy the requirement at FAR 5.203(a), which requires a minimum 15-day posting. One non- ODFW source expressed interest in this requirement, but USACE determined that it was not capable of fulfilling the contract requirements based on discussion of the abatement pond with the source, as well as the requirement to provide automated marking and tagging equipment.

Based on Section 5.2 above, competition for this requirement is not feasible due to exclusive rights ODFW enjoys at Bonneville Hatchery. ODFW’s existing and future interests at Bonneville Hatchery effectively bar a USACE contractor from using these facilities during the contract term.

7. ACTIONS TO INCREASE COMPETITION:

The USACE contracting office will re-assess the market environment for competition possibilities each time this requirement is due for renewal. Interested parties are aware of USACE’s abatement pond and marking and tagging requirements. The USACE contracting office will implement changes to ensure maximum competition of one or more parts of this requirement, if such a situation arises where increased competition is a possibility.

8. MARKET RESEARCH:

A notice of intent to sole source was initially posted on beta.SAM.gov on 29 May 2020 for a period of 13 days, then again on 25 September 2020 for two additional days. The notice indicated that all responsible sources could submit a capability statement. While one source responded, USACE determined that it was not capable of fulfilling the contract requirements as discussed above.

9. INTERESTED SOURCES:

As discussed above, one non-ODFW source expressed interest in this requirement, but

USACE determined that the source was not capable of fulfilling the contract. This source has also expressed continued interest in this project and is considered a possible source in the future.

The notices required by FAR 5.201 shall be or have been published, and any bids or proposals received shall be considered.

10. OTHER FACTS:

Fish production services at Bonneville Hatchery have been historically performed by ODFW under a cooperative agreement and, most recently, contract number W92127N18C0002 between NWP and ODFW. W92127N18C0002 was a 3-year sole source contract to ODFW for substantially the same requirement as is being justified here, and that sole source determination was based on the same market conditions that exist today.