SSJ for beta.SAM.pdf

ERDC Control No. 20-2007

SOLE SOURCE JUSTIFICATION

1. Agency/Contracting Activity: Engineer Research and Development Center – Construction and Engineering Research Laboratory (EDRC – CERL)

2. Description of Action:

Nature: New Requirement Follow-On Requirement Mod to Existing Purchase Order/Contract Number

Pricing: Firm-Fixed Price Time and Materials

Funds: OMA Other Funds:_ RDT&E funds________

3. Description of Supplies/Services:

a. The total estimated dollar value of the proposed action is $550k. The base contract is expected to be $400k. An option period for an additional $150k will be included

b. The government has a requirement to procure components for a Distributed Low-Energy Wastewater Treatment system demonstration project, the DLEWT 2.0. The unit will include an anaerobic membrane bioreactor, ion exchange media, and ammonia electrolysis cells. Autonomous controls to enable operation in remote locations are to be included. Incidental labor is required for assembly, installation, and project review meetings.

c. (Option) The government has a requirement to procure a generator capable of processing mixed methane and hydrogen fuels produced by the DLEWT 2.0 system. The generator should provide power to the DLEWT system to supplement grid power. Additionally, labor and supplies to provide ongoing maintenance and support of the system are required.

4. Authority: FAR 13.106-1(b)(2) and 13.501(a)

5. Reason for Authority Cited: Highland Engineering Inc is the only company able to meet the design specification within the 6 month acquisition period required for the DLEWT 2.0 project.

Under a contract issued in FY17 Highland Engineering Inc designed the ion exchange and ammonia electrolysis portion in the first of its kind DLEWT system. Highland Engineering’s expertise regarding the operation and integration of all system components (AnMBR, ion exchange, electrolysis) is invaluable to the construction of a second DLEWT unit. Further, Highland Engineering’s programming of the system controls and understanding of the complex requirements for autonomous operation will be critical in construction of a second unit. There were many lessons learned from the FY17 contract that will be leveraged for the DLEWT 2.0 system design. Since DLEWT is truly first of its kind of technology, Highland Engineering is the only company capable of meeting CERL’s requirements for DLEWT 2.0.

6. Actions to Increase Competition: The contract for the original DLEWT system was competitively bid in FY17. Five potential sources were identified by the government technical team during the market research for that procurement, although the competition was done as a small business set-aside which eliminated two of those sources. The solicitation was posted on the Government Point of Entry (GPE) website and the three small businesses were all notified and encouraged to submit official offers. The solicitation was even extended for an additional 2 weeks beyond the original closing date in attempt to increase competition. But ultimately Highland was the only company to submit and offer.

For this procurement a notice of intent to sole source to Highland was posted to the Beta.SAM website open from July 22, 2020 through July 29, 2020. Two capabilities statements were received (AVANTech and Salt-Free Water Systems) but were found to be unacceptable.

The capability statement from Salt-Free is asking for CERL to consider using their VULCAN system in the research project of scaling up the DLEWT system. CERL has already put a significant amount of time, effort, and resources into developing this system. Switching gears to utilizing another commercially available system is not within the intent of the stated notice of intent to sole source, or the overall program.

Avant’s capability statement demonstrates related experience in designing, fabricating, and operating water and wastewater treatment equipment for DoD and commercial organizations. However, the statement does not contain any mention of experience with systems that use anaerobic membranes or ammonia electrolysis. Without such experience, no other organization could do this work without unacceptable delays in fulfilling our requirement and substantial duplication of cost in this follow-on effort.

7. Market Research:

Internet searches and monitoring of the wastewater treatment industry with the original DLEWT system have identified no companies other than Highland offering the combination of technologies required for DLEWT 2.0.

8. Procurement History:

Previous Purchase Orders(s) or Contract(s): Yes No

Purchase order or contract number:_ W9l32Tl7C0013_____

Was action competed? Yes No

If action was not competed, state the cited authority, summarize rationale:

9. Additional information to support the justification: Goals of the overall project that funds the DLEWT 2.0 are to design a system that is portable, modular, and capable of parallel configuration for use in multiple decentralized applications such as fixed installations, emergency response, or contingency basing. The DLEWT 2.0 is an energy efficient wastewater treatment system which produces useful fuels, such as methane and hydrogen, and reusable quality water is needed to meet DoD sustainability goals.

10. Technical/Requirements Certification: I certify that the supporting data under my cognizance which is included in the abbreviated J&A is accurate and complete to the best of my knowledge and belief.

Submitted By:

Position Title:

Email Address:

Signature:

Date:

11. Fair and Reasonable Price Determination: As Contracting Officer, I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

Basis for the determination: price analysis techniques.

12. Contracting Officer’s Approval:

I hereby certify that this Justification is accurate and complete to the best of my knowledge and belief. Based on the foregoing, I approve this sole source justification subject to availability of funds, and provided that the services and supplies herein described have otherwise been authorized for acquisition

Signature:

Typed Name:

Title:

Date:

Mariangelica Carrasquillo-Mangual

Acting Chief, Energy Branch mariangelica.carrasquillo@usace.army.mil

11 AUG 2020