A.02.05 KO Determination - DCS Gearbox Supply_(redacted)_Redacted.pdf

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Attached to
W91237-24-P-0038 Deer Creek Lake Gearbox
Solicitation number
W9123724P0038
Issued by

About this file

This document is a Contracting Officer's Determination for limiting competition on a purchase order for a new gearbox at the Deer Creek Dam. The Contracting Officer is sole-sourcing the contract to Philadelphia Gear, the incumbent contractor, to fabricate a new non-driven side gearbox for the Tainter Gate at Deer Creek Dam. The new gearbox must be compatible with the recently purchased driven-side gearbox from the same contractor. The estimated value is CUI//SP-PROCURE/FED ONLY, with a period of performance of 26 weeks after award. The justification cites the urgency of the requirement, the need for the gearbox to be compatible with the existing driven-side gearbox, and the efficiency of sole-sourcing to the incumbent. The related federal contract opportunity is a new purchase order (W9123724P0038) awarded to an unknown vendor on 2024-04-17 for the new gearbox.

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CUI//SP-PROCURE/FED ONLY

Control No: LRH-FY24-18

Contracting Officer’s Determination – Limiting Competition at or below the

Simplified Acquisition Threshold

1. Contracting Activity: USACE, Huntington District, 502 8th Street, Huntington, WV 25701

2. Description of Action:

Nature: ☒ New Requirement ☐ Follow-on Requirement

Contract Vehicle: ☒ Purchase Order ☐ Blanket Purchase Agreement (BPA) ☐ Order/BPA against FSS Contract:

☐ Order against Multiple Award IDIQ Contract:

☐ Order against a single award IDC Contract:

☐ Modification to existing PO/TO/DO/Call Order

Pricing/Contract Type: ☒ Fixed Price ☐ Time & Materials/Labor Hours ☐ Cost Reimbursable ☐ Hybrid

Funds: ☒ Operations & Maintenance ☐ Army (OMA) ☐ CG funds ☐ Other Funds:

FY: 24

Name of Proposed Contractor(s) and Address:

Philadelphia Gear 8529 West 192nd Street Mokena, IL 60448

Brand Name Buy: ☒ Yes ☐ No

3. Description of Services or Supplies: A spare gearbox for the non-driven side at Deer Creek needs purchased. The estimated dollar value for repairing the gearbox is

Period of Performance: 26 weeks after award

Total Value: $

4. Authority:

☒ FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization.

Or

☐ FAR 8.405-6(a)(1)(i)(B) and 8.405-6(b)(1) Brand Name ☐ FAR 8.405-6(a)(1)(i)(A) Urgency ☐ FAR 8.405-6(a)(1)(i)(B) Only One Source is Capable ☐ FAR 8.405-6(a)(1)(i)(C) Logical Follow-on

Or

☐ FAR 16.505(b)(2)(i)(B) Only One Awardee is Capable ☐ FAR 16.505(a)(4) Brand Name ☐ FAR 16.505(b)(2)(i)(A) Urgency ☐ FAR 16.505(b)(2)(i)(C) Logical Follow-on ☐ FAR 16.505(b)(2)(i)(D) Minimum Guarantee

5. Reasons for Authority Cited:

Deer Creek Dam’s Tainter Gate gearbox for the non-driven side is needed to match the exact characteristics and type as the new drive side gearbox that was just purchased from the aforementioned Contractor. The Contractor who previously fabricated the driven-side is needed to fabricate a new gearbox for the non-drive side to ensure the gate does not bind up when operated.

As set forth above, this is for the non-drive side of the Tainter Gate. There is one spare gearbox for the drive side of the gate. Philadelphia Gear fabricated the gearbox for the drive side and it is on site. A non-drive side gearbox is needed to run in conjunction with the newly purchased drive side gearbox. These gearboxes must be in sync or there is a possibility that the gearboxes could bind the gate up causing the gate to be inoperable. No other gearbox manufacturer can guarantee this because Philadelphia Gear has the drawings and specifications for the drive side gearbox that would exactly match the non-drive side gearbox. There would be too much time, effort and cost incurred if this went out for quote as the next vendor would have to reverse engineer everything to determine what it is. Because of this, additional time would be needed in order for the vendor to become familiar with the operational components. Also, there is no guarantee that another vendor could actually produce the exact new gearbox to be “in-sync” with the other gearbox. It is in the best interest of the Government to get this made by the original Contractor (Philadelphia Gear), because the Contractor is already familiar with the gearbox that is needed. The Contractor will not need additional time to identify what components are needed for the new gearbox.

This purchase order will be issued on a sole-source basis in the interest of economy and efficiency, as it is the only way to guarantee the gearbox operates as needed.

Restricting competition for this purchase order will avoid duplicative and unnecessary costs that the Government would otherwise incur. In addition, time is of the upmost importance because other gearboxes are in need of being rebuilt. There is the only one spare large gearbox at this time and that is for the drive side of the gate. This spare non drive side gearbox is needed to work in conjunction with the other new one that was just purchased.

6. Publicizing Contract Actions: For FAR Part 13 actions, the public display and synopsis requirements of FAR 5.101 and FAR 5.203 ☐ do not apply due to the dollar threshold, ☒ apply and will be followed, or ☐ do not apply due to an exception at 5.202

Requirement to post justification in accordance with FAR 8.405-6(b)(3), FAR 13.105(c), or FAR 16.505(a)(4)(iii)(A)

☒ Action is NOT a brand name restriction and is under SAT, no posting required ☐ Action is a brand name restriction, under $25K, no posting required ☐ Action is a brand name restriction, over $25K. It will be redacted and posted with the solicitation.

☐ Action is a brand name restriction over $25K but will not be posted due to exception:

☐ FAR 6.305(f) ☐ FAR 8.405-6(b)(3)(iii)(A) ☐ FAR 8.405-6(b)(3)(iii)(B) ☐ FAR 8.405-6(b)(3)(iii)(C) ☐ FAR 16.505(a)(4)(iii(C)

7. Market Research: Per FAR Part 10, market research was conducted by OR-TM’s Project Engineer in the first quarter of the FY24 to determine fair estimates for the parts and labor required for work to replace/rehabilitate components. The Project Engineer had spoken to multiple gearbox manufacturers to discuss options for fabricating a new gearbox for the non-drive side. Numerous parts and materials were researched online also during this timeframe to check for the most recent prices and availability. The Project Engineer also has experience with several gearbox manufacturers such as: Atlanta Gear Works, Brad Foote Gearing., and is familiar with their companies’ policies and procedures for gearbox fabrication.

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