Sole Source Determination_Redacted.pdf

- 1 -

Control Number

SOLE SOURCE DETERMINATION

1.0 CONTRACTING AGENCY: US Army Corps of Engineers (USACE), Walla Walla District (CENWW- CT) 201 North 3rd, Walla Walla, WA 99362.

2.0 DESCRIPTION OF THE ACTION: The Walla Walla District, Dworshak Project, is requesting approval for a sole source contract through Schneider Electric Inc. for the procurement and installation of one (1) Schneider Electric custom Retrofill Materials Kit (cradle, bus, connections, door, and hardware) to mate an existing custom Square D breaker with an existing non-Square D switchboard at Dworshak National Fish Hatchery.

Project personnel will install the kit and the breaker with Schneider Electric field representative guidance. This is a service contract including supply purchase; installation oversight and testing account for ~50% of the anticipated contract cost.

3.0 DESCRIPTION OF SERVICES/SUPPLIES: All services and supplies required are to be sole sourced from Schneider Electric. Approval is requested to procure and install one

(1) Schneider Electric custom Retrofill Materials Kit (cradle, bus, connections, door, and hardware) to retrofit an existing Square D breaker with an existing non-Square D switchboard.

4.0 AUTHORITY CITED:

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

b. FAR 11.105(a)(1), Items Particular to One Manufacturer. The particular brand name, product, or feature is essential to the Government’s requirements, and market research indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the agency’s needs.

5.0 REASON FOR AUTHORITY CITED:

a. JUSTIFICATION: The existing GCQ3 breaker at Dworshak National Fish

Hatchery (DNFH) is over 40 years old and in need of replacement. DNFH operation limits available equipment downtime to 1–2 weeks once a year. Replacing the existing switchboard, in full, would require a month or more of down time;

therefore, it is necessary to retrofit new breakers into the existing switchboard. A new Square D breaker was procured for this purpose in FY 2016 (W912EF16Q0153). The Square D breaker selected matches those installed in the

- 2 -

Dworshak Powerhouse to ensure consistency of operation and maintenance, as well as availability of spare parts. Retrofitting a breaker requires OEM manufacturer expertise for design, installation, testing, and troubleshooting, to ensure complete, safe, and proper function of the new breakers in conjunction with the existing switchgear, bus work, and control schemes. Schneider Electric is the manufacturer of the Square D breakers and the only entity with rights to the proprietary information needed to complete this work; henceforth, the breakers and retrofit installation are only subject to warranty coverage if the work is performed by, or under the supervision of, Schneider Electric Field Services. In addition, the measurements of the cradle were completed as another effort and these measurements may only be completed during equipment outages. An alternative manufacturer would need to make their own measurements as it is not reasonable to expect another contractor to rely on the current measurements.

b. IMPACT: Contracting with other than Schneider Electric may result in improperly installed and/or improperly functioning breakers. In addition, the Government would forfeit manufacturer warranty on the OEM parts if installed by another vendor without Schneider Electric oversight. A duplication of costs would occur as Schneider Electric was already contracted to perform the measurements required to fabricate the new breaker cradles during the equipment outage in FY 2019. This consultation/design measurement effort was completed under a U.S. Fish & Wildlife Service contract, 140F0118P0326, for a total of . Competition is not expected to decrease costs sufficiently to cover the duplicated costs associated with the measurement tasks.

c. ALTERNATIVES: No reasonable alternatives exist for this action. The Government has considered competitively sourcing this requirement but has determined that loss of manufacturer’s warranty would place the Government under undue risk of increase in costs and delay. It is also not in the Government’s best interest to allow competition among manufacturers because there would be a duplication of costs and efforts already accomplished through previous acquisitions with Schneider Electric. As this is a custom solution, with Square D products requiring engineering, testing, and commissioning services, the certification of the equipment must come directly from the manufacturer, Schneider Electric.

6.0 EFFORTS TO OBTAIN COMPETITION: According to market research, Schneider Electric is the sole facility that can install, commission, and test the Schneider Electric custom Retrofill Materials Kit. The installation and testing services described in the Performance Work Statement are essential to the Government’s requirements, and market research indicates other companies’ similar services do not meet, or cannot be modified to meet, the agency’s needs.

7.0 MARKET RESEARCH: Market research indicates that Schneider Electric is the parent company for Square D Electrical. Schneider Electric acquired Square D Electrical in 1991 and is considered a global large business. This requirement is subject to the non-manufacturers rule and as a result this requirement must comply with 13 CFR 121.406(b).

As the non-manufacturers rule applies, competition for this requirement shall not be

- 3 -restricted. While Schneider Electric has several small business suppliers who may be able to supply the cradle itself as requested, this requirement may not be set-aside for small business; therefore, Schneider Electric will not be restricted from competition. The Government has considered competitively sourcing this requirement but has determined that loss of manufacturer’s warranty would place the Government under undue risk of increase in costs and delay. Schneider Electric does have many authorized distributors of their Square D products, however the custom product along with installation, testing, and commissioning services would solely be designed and performed by Schneider Electric Field Services for their Square D products.

8.0 DETERMINATION OF FAIR AND REASONABLE COSTS: Identical equipment for the DNFH Square D Custom Breaker Cradle was purchased under contract W912EF20P0003. The Project will prepare an independent government cost estimate based on the complexity of the materials to be manufactured, as well as training, mobilization/demobilization costs, and oversight/testing labor. No award will be made unless prices may be determined fair and reasonable after receipt of quotation on the basis of historical pricing and the IGE.

TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance, which is included in the justification, is accurate and complete to the best of my knowledge and belief.

Name:

Title: Electrical Engineer Signature:

I certify that the information supporting this sole source determination is accurate and complete to the best of my knowledge, based on the supporting data provided by technical or requirements personnel.

Prepared by:

Title: Contract Specialist Signature:

DETERMINATION: In accordance with the authority of 10 U.S.C. 3204(e), as implemented by FAR 13.106-1 (b) and based upon the foregoing, I hereby determine that a sole source procurement is authorized and is in the best interest of the Government.

Reviewed for legal sufficiency:

Title: District Counsel Signature:

Approved by:

Title: Contracting Officer Signature: