Umatilla Hatchery Well 4 Replacement - Sole Source Determination V2 KL FE.pdf

SOLE-SOURCE DETERMINATION & JUSTIFICATION

FOR SUPPLIES AND SERVICES

To: Contract Services

From: Andrew Gibbs, East Region Hatchery Coordinator Date: June 17, 2022

Sole Source Determination pursuant to Oregon Revised Statute (ORS) 279B.075 and Oregon Administrative Rule (OAR) 125-247-0275 for:

Description of Goods or Services:

Drill a new well to produce 2000 gpm, with 24 inch diameter hole and 20 inch diameter casing, install a stainless steel screen, install a filter pack, water flow testing, install new pump or reuse existing pump if applicable, decommission existing well #4, connect piping and electrical services, and install new concrete building, or pitless system at wellhead.

Reason for Need:

Umatilla Hatchery is experiencing difficulties in getting adequate water supply to operate at optimum levels.

Historically wells in the area encounter problems with sand and materials backfilling the well casing and severely decreasing well production capacity. Well #4 had degraded to the point it produces less than 1000 gpm.

Single or Multiple Purchases:

This is a single purchase approval request that will be implemented in phases as BPA and ODFW obtain funding sources to implement the entire project. The first phase will cover drilling and testing of the new well.

Estimated Cost:

The total estimated cost including alternates, excluding the alternate for a proof/second well drill attempt totals $557,612.00. Funding from BPA in the amount of $240,000 has been approved to cover Phase 1 – drilling and testing of the well contracting for $239,337.00.

Research Leading to Determination:

Oregon Department of Fish and Wildlife Contract Services section has performed two competitive formal public works/public improvement procurements in an attempt to contract the services needed at Umatilla Fish Hatchery.

• ITB ODFW-1963-21 Umatilla Well#4 Replacement was issued via the State of Oregon ORPIN procurement system in May 2021, with an amended closing date of June 9, 2021 for the procurement of drilling the well, flow testing, installation of a building at new well site, connecting of pipe to the existing system, installation and connection of electrical services, and abandonment of the existing Well #4.

o The mandatory prebid meeting was held May 11, 2021 at Umatilla Hatchery, including Well Site #4. Three contractors attended the meeting consisting of two drilling companies and one electrical company.

o No Bids were received.

o The ITB was cancelled in ORPIN.

• Inquiries to the two well drilling companies were made to determine the reason for their decision to not submit a bid to ITB ODFW-1963-21. The following reasons were received:

o Drilling contractors are not equipped to perform the excavation and construction services needed to complete the attachment of the new well to the existing system and installation of the building. They suggested breaking the bid into two portions – well drilling and pump;

connection and installation of building.

o The performance timeline was not possible as they are all booked out several months to more than a year into the future.

o The specifications were too general in many areas, and bidding in lump sum quantities would necessitate the need to increase bid amounts to account for variables and leave them with bids they felt were not competitive.

• ITB S-63500-00000826 Umatilla Well #4 Replacement Phase 1 – Well and Pump was issued via the State of Oregon OregonBuys public procurement system in September 2021, with an amended closing date of October 26, 2021 for the procurement of well drilling services, flow testing, pump installation, and well abandonment.

o The mandatory prebid meeting was held October 7, 2021 at Umatilla Hatchery, including Well Site #4. Two well drilling contractors attended the meeting.

o No Bids were received.

o The ITB was cancelled in OregonBuys.

• ITB S-63500-00000827 Umatilla Well #4 Replacement Phase 2 – Piping, Electrical, and Building was issued via the State of Oregon OregonBuys public procurement system in September 2021, with a closing date of October 21, 2021 for the procurement of excavation/trenching/grading services, piping, electrical, surface restoration, and installation of precast concrete building.

o The mandatory prebid meeting was held October 7, 2021 at Umatilla Hatchery, including Well Site #4. No contractors attended the meeting.

o The ITB was cancelled in OregonBuys.

• Sole Source Bid Attempt ITB S-63500-00001132 Umatilla Hatchery Well #4 – Phase 1 Sole Source.

ODFW contacted five vendors in an attempt to get bids for a sole source award of Phase 1, with a closing date of December 14, 2021. Three contractors received the bid document via email on November 23, 2021, one on November 29, 2021, and one declined to participate on November 29, 2021. On December 21, 2021 Addendum 1 was issued via email to four vendors amending information and extending closing to January 4, 2022.

o One bid was received in the amount of $616,385.00, which exceeded the budget amount available and only covered Phase 1 of construction.

• Sole Source Bid Attempt ITB S-63500-00001134 Umatilla Hatchery Well #4 – Phase 2 Sole Source.

ODFW contacted five vendors in an attempt to get bids for a sole source award of Phase 2, with a closing date of December 14, 2021. Four contractors received the bid document via email on November 24, 2021. One contractor declined to participate on November 29, 2021.

o No bids were received.

• ODFW searched and located another vendor to attempt a direct bid for both Phase 1 and Phase 2 for the Replacement of Well #4 at Umatilla Hatchery. February 2, 2022 two emails were sent to the contractor.

o Initial Bid was received February 25, 2022.

o Bid did not contain costs for Performance and Payment Bonds. The Bid had other items that made it inconsistent with the needs of the hatchery, such as being too shallow and screens not being deep enough, nor did it address several of the needed bid items.

o Second Bid to include Performance and Payment Bonds, and abandonment of the existing well was received on March 8, 2022.

o ODFW responded to Contractor on March 4, 2022 asking for revised and additional information.

o March 25, 2022 Contractor sent revised Bid information and a second email addressing some questions ODFW had with the Bids.

o ODFW concluded on March 28, 2022 that Contractor’s Bid seemed high and process did not meet the needs of the Hatchery.

• Discussions with the Contractor submitting a bid on January 4, 2022 to ITB S-63500-00001132 were reinitiated to discuss the ability to negotiate his price to one that was agreeable to ODFW and BPA. A conference call with the Contractor was scheduled for April 5, 2022.

o Participants in the April 5 meeting were the contractor and representatives of contract services, engineering, hatchery staff, and a representative from the Umatilla Tribe.

o Participants, less the contractor, discussed the conference call.

o Contract Services staff had a follow up call with contractor after the participant’s meeting to clarify items before refining the specifications to request a new Bid. Contractor was able to offer additional items that could be used for cost savings, up to and including the possibility of performing the excavation, and piping and conduit hook up.

o On April 29, 2022 a revised Exhibit 1 Bid Submittal form was emailed to Contractor to receive a revised Bid.

o May 13, 2022 Contractor submitted a revised bid with alternated included that would cover the project from drilling to completion.

o On June 3, 2022 hatchery coordinator gave the approval to continue with the Sole Source award to Contractor. BPA has $240,000.00 that will cover the drilling of the well and flow testing. They have agreed to starting the drilling process without having funding finalized.

They will be looking for additional funding to cover the pump, decommissioning of the well, the pitless well head system, and connecting the piping and electrical.

o Documentation has been obtained from OWRD that the well decommission can be delayed up to one year. ODFW understands the risks in proceeding in this manner.

Analysis of Research / Findings of Fact:

Pursuant to OAR 125-247-0275(2)(a): Compatibility.

Pursuant to ORS 279B.075 (2)(b): Exchange of Software or Data.

Pursuant to ORS 279B.075 (2)(c): Pilot or Experimental Project.

Pursuant to ORS 279B.075 (2)(d): Other findings that support the conclusion that Supplies and Services are available from only one source may include but are not limited to considerations of: unique design, availability, geographic location, exclusive authorized representative, cost of conversion, and warranty services.

Through an extensive process, ODFW has determined there is one contractor that can provide the drilling and implementation of the Replacement Well #4 for Umatilla Hatchery. ODFW encountered lack of interest to respond to solicitations, a market that could not accommodate our drilling schedule, and pricing that was prohibitive.

Schneider Equipment, Inc. dba Schneider Water Services attended both mandatory prebid meetings for the solicitations, was willing to look at the Direct Bid process for Sole Source contracting, as well as be available to negotiate the final project scope and bid. Schneider has committed to drilling the well during the summer of 2022. In addition, Schneider Equipment, Inc. dba Schneider Water Services has a valuable history of the wells and drilling for the Umatilla Hatchery.

APPROVED BY:

Ken Loffink Administrative Services Division Administrator Date

6/21/22