W91278-15-C-0010_J A_signed.pdf

JUSTIFICATION REVIEW DOCUMENT FOR OTHER THAN FULL AND OPEN COMPETITION

(1)Control No: SAM 20150012

PROJECT /EQUIPMENT (2 ) Carters U2 Exciter

AUTHORITY: (3 ) 10 U.S.C. 2304(c)(2) FAR 6.302-2 AMOUNT: (4 ) $320,000.00 NAME (Type or Print) Telephone No

Prepared BY: Sophia M. Chin 251-690-3349 TITLE Date Contract Specialist NAME (Type or Print) Telephone No

Contracting Officer Shamekia M. Chapman 251-694-3868 TITLE Date

Same as 13 & 14 in J&A (5 ) Contracting Officer, Section Chief Supplies and Services NAME (Type or Print) Telephone No

Technical (6) Bobby L. Earley 251-690-2643 TITLE Date Chief, Hydropower Technical Services NAME (Type or Print) Telephone No

Requirements (6) William W. Fuller 251-690-2576 TITLE Date Chief, Operations Division

SIGNATURE ARE REQUIRED BELOW:

I have reviewed this J&A and find the justification adequate to support other than full and open competition.

SIGNATURE DATE

Deputy for Small business (7 ) NAME (Type or Print) TELEPHONE NO Linda L. Spadaro, Deputy for Small Business 251-690-3597

SIGNATURE DATE

Project Manager (8 ) NAME (Type or Print) TELEPHONE NO

If no PM, use N/A N/A

SIGNATURE DATE

Office of Counsel NAME (Type or Print) TELEPHONE NO Office of Counsel

SIGNATURE DATE

Business Oversight Branch Chief NAME (Type or Print) TELEPHONE NO

Charlotte G. Hofstetter, Business Oversight Branch Chief 251-690-3420

SIGNATURE DATE

DCC/CCC Contracting Chief NAME (Type or Print) TELEPHONE NO Jeffery D. Burgess, District Contracting Division Chief 251-441-6501

SIGNATURE DATE

CESAM-DM

NAME (Type or Print) TELEPHONE NO LTC Landon M. Raby, Deputy Commander 251-690-2511

SPADARO.LINDA.L.123075

Digitally signed by SPADARO.LINDA.L.1230756470 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=SPADARO.LINDA.L.1230756470 Date: 2015.05.01 07:28:43 -05'00'

Date: 2015.05.01 10:39:25 -05'00'

HOFSTETTER.CHARL

OTTE.G.1230090137

Digitally signed by

HOFSTETTER.CHARLOTTE.G.1230090137

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=HOFSTETTER.CHARLOTTE.G.1230090137 Date: 2015.05.18 09:44:51 -05'00'

Digitally signed by BURGESS.JEFFERY.D.1264843584 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=BURGESS.JEFFERY.D.1264843584 Date: 2015.05.18 11:08:36 -05'00'

Control # SAM 20150012

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: U.S. Army Corps of Engineer (USACE), Mobile District, 109 St. Joseph Street, Mobile, Alabama 36604-0001.

2. Description of Action: A new firm-fixed price (FFP) contract is contemplated for the purchase and installation of one (1) excitation system for Unit-2 at Carters Pump Storage Facility. The contract will be fully funded using O&M funds. The estimated contract value is $320,000.00.

3. Description of Supplies/Services: New ABB Unitrol 5000 static excitation systems, which are used to produce the required magnetic field in the generators, were purchased for Units 1&2 in 2009. On 03 April 2015, Unit-2 exciter failed due to an electrical fault in the system and is not repairable. The contractor shall supply and install one ABB Unitrol 6000 Static Excitation System to include labor, material, and equipment to replace the failed exciter at Carters Pump Storage Facility. The scope will include design, manufacture, factory testing, installation, field testing, and commissioning to make operational the one digital excitation systems. The scope will also include providing detailed engineering design and as-built documents for the new excitation system and for the installation and interfacing, with the plant control and annunciation systems. The cost is estimated to be $320,000. Proposed contractor is: ABB Inc., 10300 Boul Henri-Bourassa O, Saint- Laurent Canada, H4S IN6.

4. Authority Cited: The statutory authority permitting acquisition of the requirement by other than full and open competition is 10 U.S.C. 2304 (c)(2) as implemented by FAR 6.302-2, Unusual and Compelling Urgency.

5. Reason for Authority Cited: This is an urgent requirement due to failure of the existing exciter at Carters Pump Storage Facility which provides 50% of the hydropower generating capacity of the Mobile District and is a major contributor of energy and capacity to our customers. With Unit-2 being out of service due to the Exciter Failure, the District’s overall generating capacity is reduced by approximately 12.5%. This reduction is compounded by the fact that our Allatoona plant (82 MW) is out of service indefinitely due to a plant fire, and our West Point plant currently has an extended outage on one of its units (42 MW) due to a main power transformer failure. When considering the current District Outages and resulting reduced capacity, replacement of Unit 2 exciter is considered urgent and compelling to meet the contractual obligations of our Marketing Agency (SEPA). Without replacement of this exciter, we risk not meeting our obligations to SEPA or having to purchase power on the open market, at a higher rate, to meet those obligations. Furthermore, it is anticipated that Unit 2 may still be non-operational during the summer months, when there is a peak demand for energy. As a result, it is highly probable that replacement energy will have to be purchased from an outside source to make up for the reduced generation at Carters. At the current rate of energy, the loss of revenue is estimated to be approximately $200,000.00 per month, and replacement energy during the summer months could be 3-4 times the cost of producing the energy with in-house units. In 2009, the Government procured Unitrol 5000 Static Excitation Systems from ABB Inc. for Units 1&2. Units 1&2 are used as starting units for Units 3&4 when starting in pump mode and, as such, the exciters have to be compatible and able to communicate with Units 3&4 exciters. Therefore, replacing the failed exciter with a non-ABB exciter will result in additional design and manufacturing costs to ensure complete compatibility of the units. Furthermore, there are risks associated with using a non-ABB exciter, in that the lead time to manufacture the exciter is typically 5-7 months, and some of the compatibility issues may not be recognized until after installation. These issues could drastically increase the outage time of the unit and drive the costs higher. For these reasons, it is necessary to replace the failed exciter with an identical exciter to ensure compatibility. ABB is the manufacturer of the exciters, has installation capabilities, and has the ability to respond to this urgent need rapidly. The use of this contractor with abundant experience with the supply and installation of the exciter will allow the Corps to fulfill the missions of the plant, avoid lost revenue, and fulfill our contractual obligations to SEPA.

6. Efforts to Obtain Competition: No effort to obtain competition was conducted due to the Unusual and Compelling Urgency of this requirement. As indicated in paragraph 5, above, Units 1&2 are used as starting units for Units 3&4 when starting in pump mode. As such, the exciters must be compatible with those used on the pump units. The Unitrol 6000 meets this requirement, and since ABB is the manufacturer of these exciters, they have the experience and technical expertise to execute expeditiously.

7. Actions to Increase Competition: For future requirements and to ensure compatibility between units, exciter supply and installation will be advertised on a full and open competition where the scope of work includes replacement of all of the exciters. To maintain operability of the pump units, sole sourcing to ABB may be required, when not replacing all the exciters.

8. Market Survey: Market research was not conducted due to the Unusual and Compelling Urgency of this requirement under FAR 6.302-2. See also paragraph 6.

9. Interested Sources: The solicitation was not issued in FedBizOpps due to the Unusual and Compelling Urgency of the requirement under FAR 6.302-2.

10. Other Facts: Discuss any other facts supporting the use of other than full and open competition, such as the following:

a. Procurement history.

(1) Contract number and date of the last several awards. N/A

(2) Competitive status of these actions. N/A

(3) Authority previously used for less than full and open competition. N/A

(4) If a justification was prepared to support the procurement made before this one, a summary of the contents of paragraph 7 of the justification for that procurement and an explanation of the results. N/A

(5) If any prior award was accomplished by full and open competition, a detailed explanation of the changed circumstances. N/A

(6) An explanation of any unusual patterns which may be revealed by the history, e.g., several consecutive, urgent buys. N/A

(7) If a justification was prepared to support the procurement made before this one, briefly describe the circumstances justifying the buy and whether there have been any significant changes. N/A

b. Acquisition data availability. N/A

c. Subcontracting competition. N/A

April 30, 2015

April 30, 2015

APPROVAL

Based on the foregoing justification, I hereby approve the above stated procurement on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-2, subject to availability of funds and provided that the services and property herein described have otherwise been authorized for acquisition.

JEFFERY D. BURGESS Date District Contracting Division Chief Mobile District, Directorate of Contracting

Digitally signed by

BURGESS.JEFFERY.D.1264843584

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=BURGESS.JEFFERY.D.1264843584 Date: 2015.05.18 11:08:51 -05'00'