Updated_Sole_Source_5_12_2021_final_1.pdf

Solicitation: 140R4021Q0007/140R4021P0024 Hydro-Optic Device Ultraviolet Strainers

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WBR 1406.303-1 Template 1 (04/2021)

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

In accordance with FAR 6.302 or FAR 13.501(a), the proposed contractual action is pursuant to the statutory authority identified in paragraph 4. This template is required for actions over the Simplified Acquisition Threshold (unless the procurement is acquired as a limited source IAW FAR 8.405-6 or is an Exception to Fair Opportunity IAW FAR 16.505(b)(2)).

1. Agency and Contracting Activity (FAR 6.303-2(b)(1)).

U.S. Department of the Interior Bureau of Reclamation Upper Colorado Regional Office Acquisition Management Division

2. Nature/Description of Action (FAR 6.303-2(b)(2)).

This is a Sole Source requirement for a firm fixed-price contract, utilizing No Year Funds committed in FY 2021, for the supply and service of Hydro-Optic Device Ultraviolet Device (HOD UV) Strainers with intent to award to:

Atlantium Technologies LTD

POB 11071

Industrial Park Har Tuv 99100, Israel.

3. Description of Supplies/Services (FAR 6.303-2(b)(3)).

Reclamation intends to purchase 16 complete individual units of HOD UV Strainer Equipment for the purposes of treating water at the Glen Canyon Dam Power Plant. This equipment is required to mitigate biofouling of quagga/zebra mussel veligers and other biohazards within the powerplant generator cooling system and shall be Environmental Protection Agency (EPA) validated as per federal guidelines.

Reclamation intends to award a contract for the supply of each unit, as well as the oversight of the installation for the first unit, commissioning of each unit after installation, warranty of each unit for one full year after installation, base year of maintenance to occur after the warranty on each unit expires, and optional maintenance periods not to exceed the period of performance ending in 2026.

The total estimated amount of the award, including the optional maintenance periods is $1,912,894.08.

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WBR 1406.303-1 Template 1 (04/2021)

4. Statutory Authority Permitting Other than Full and Open Competition (FAR 6.303- 2(b)(4)). (Check one)

Authority FAR Coverage Application 41 U.S.C. 1901 FAR 13.501 Only one responsible source using Simplified

Acquisition Procedures (above SAT but below $7M) 41 U.S.C. 1903 FAR 13.501 Special emergency procurement authority

41 U.S.C. 3304(a)(1) FAR 6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements

41 U.S.C. 3304(a)(1) FAR 6.302-1(c) Application for brand-name descriptions

41 U.S.C. 3304(a)(2) FAR 6.302-2 Unusual and compelling urgency

41 U.S.C. 3304(a)(3) FAR 6.302-3 Industrial mobilization; engineering, developmental or research capability; or expert services

41 U.S.C. 3304(a)(4) FAR 6.302-4 International Agreement

41 U.S.C. 3304(a)(5) FAR 6.302-5 Authorized or required by statute

41 U.S.C. 3304(a)(6) FAR 6.302-6 National Security

41 U.S.C. 3304(a)(7) FAR 6.302-7 Public Interest

5. Demonstration of Contractor’s Unique Qualifications (FAR 6.303-2(b)(5)).

Quagga Mussels are an invasive species that threaten Reclamation dams and powerplants nationwide. Reclamation completed an 8-year study in the Lower Colorado Region on the most effective and innovative ways to combat the species to mitigate impacts to power generation. The study, conducted by RNT Consulting, posited a variety of methods, including treatment options, pipe coatings and sealants, fungicides, and UV Treatments. Based on the conclusions and data derived from the study Reclamation determined that Ultraviolet (UV) treatment was the most viable option, was environmentally preferable, and was cost-effective.

The study demonstrated that both traditional UV systems and HOD UV systems were able to reduce biofouling in Reclamation facilities; however, the HOD UV system was able to provide effective treatment using a much lower dose on dirtier water than the traditional UV Systems This made HOD UV the most preferred treatment for water systems inside of Reclamation facilities and power plants.

Based on the RNT Consulting study Reclamation noted that “the Hydro-Optic UV system was unique in its ability to consistently monitor water quality and UV intensity and to adjust the UV dose rate accordingly to meet application-specific needs. The technology can “recycle” a required dose throughout the reaction chamber using a patented internal reflection system similar to fiber optic technology. Proprietary software, logic, sensors and controls enable real-time, automatic dose adjustment according to changing water quality conditions, to consistently maintain the required dose.” This consistent

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WBR 1406.303-1 Template 1 (04/2021) monitoring of water quality and the ability to adjust the UV dose makes Atlantium’s system uniquely suited to application in Reclamation facilities and power plants.

6. Description of efforts made to maximize competition (FAR 6.303-2(b)(6)).

Reclamation conducted a thorough market analysis, looking for alternative options and providers. Reclamation issued a Request for Information (RFI) 140R4021Q0007, which was posted on beta.sam.gov on November 18, 2020, open through December 4, 2020.

No vendors, other than Atlantium, responded to the RFI. Based on the lack of responses to the RFI, and after evaluation of the information obtained about the study by RNT, it was determined that Reclamation would issue a Notice of Intent to Sole Source (NOI).

Reclamation published the Notice of Intent to Sole Source (NOI) to Atlantium on beta.sam.gov on January 21, 2021. The NOI remained posted through February 5, 2021;

however, Reclamation did not receive any responses to the NOI.

In each case the notice contained the statement that, “all responsible sources may submit a bid, proposal, or capability statement, which shall be considered by the agency”.

7. Determination of Fair and Reasonable Cost (FAR 6.303-2(b)(7)).

The Contract Specialist will review the proposed costs associated with this project in accordance with FAR 13.106-3. The analysis will determine if the proposed costs are fair and reasonable based on the following factors:

1. Comparison with the IGCE, which is based on known historical costs from other installations.

2. Side by Side comparison of the costs associated with other installations and any quotes received from the vendor.

3. Items quoted outside of the proprietary units (flanges for installation) will be reviewed with current commercial catalog prices for the same/similar items and the range of prices available for those items.

4. Travel costs for the installation oversight, commissioning, and maintenance will be assessed to ensure its compliant with applicable Federal Travel Regulations (FTR).

5. A cost realism analysis for the labor will be performed, and the CO will consider the average costs for similar projects, taking into consideration labor, materials, and travel.

8. Description of Market Research Conducted (FAR 6.303-2(b)(8)).

Reclamation issued a Request for Information (RFI) on November 18, 2020, which remained open for comment through December 4, 2020. Reclamation did not receive any responses, other than from Atlantium, to the RFI. Based on the lack of responses to the RFI and the RNT Study, Reclamation posted a Notice of Intent to Sole Source (NOI) on January 21, 2021. The NOI remained open until February 5, 2021; however, only Atlantium responded to the announcement.

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WBR 1406.303-1 Template 1 (04/2021)

This action will result in a turn-key solution, including both the supply and maintenance of HOD UV systems. Recent purchase history revealed that the Lower Colorado Region utilized 8(a) contractors for the HOD UV Systems, which were made by Atlantium systems, as supply only contracts. The 8(a) contractors directly subcontracted the purchase of the HOD UV units to Atlantium, who then provided them to Reclamation. After the purchase of the HOD UV Systems, the Lower Colorado Basin Region purchased long-term maintenance of the system through sole source contracts to Atlantium. Maintenance may only be performed by Atlantium, as the systems are proprietary, any maintenance performed by anyone other than Atlantium, or the use of any parts or supplies not proprietary to Atlantium, will negate any warranty of the systems.

9. Any Other Supporting Facts (FAR 6.303-2(b)(9)).

RNT Consulting’s study demonstrated that specific characteristics of the HOD UV system is the best treatment option to combat the mussels that are inundating Reclamation dams and powerplants. Atlantium has exclusive rights to the technology of their HOD UV, including over 60 patents on the technology; until those patents and rights expire and the technology becomes available through other firms, Atlantium is the only firm capable of providing the

HOD UV Strainers and maintenance to the Glen Canyon Dam. Extensive market research has proven through searches of the internet, prior purchases of these systems, and publications of the RFI and NOI, there is only one source that can provide the systems and the maintenance of these items. The Atlantium systems are expected to last 20 or more years and will provide an estimated $64,000 in savings each year.

10. Listing of Interested Sources (FAR 6.303-2(b)(10)).

Atlantium Technologies LTD

POB 11071, Industrial Park

Har Tuv 99100, Israel

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WBR 1406.303-1 Template 1 (04/2021)

11. Actions Taken to Remove Barriers to Competition (FAR 6.303-2(b)(11)).

As new requirements materialize the Government will conduct new and thorough market research to determine of new or additional sources exist within the market. Should the technology become more widely available, the Government will review all capable sources and utilize the most competitive procurement options.

SIGNATURES

PREPARED BY:

Name: Lori Sonny Greene

Date: 05/13/2021

CONTRACTING OFFICER (CO) (FAR 6.304(a)(1) or FAR 13.501(a)(2)(i)): (All Values)

Name: JoLyn M. Goss

Date: 05/13/2021

CHIEF of the CONTRACTING OFFICE (CCO) (DOI-AAAP-0024): (> $250K)

Name: James L. Durrant

Date:

BUREAU COMPETITION ADVOCATE (FAR 6.304(a)(2) or FAR 13.501(a)(2)(ii)):

(>$750K)

X

X

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WBR 1406.303-1 Template 1 (04/2021)

Name: Heather R. Hirshman

Date:

HEATHER

HIRSHMAN

Digitally signed by

HEATHER HIRSHMAN

Date: 2021.05.20 11:04:39 -06'00'