A.03.09_JD_500kV_Disconnect_Switch_Replacement_J A.pdf

JUSTIFICATION REVIEW DOCUMENT FOR OTHER THAN FULL AND OPEN COMPETITION

CONTROL #: 16-056

PROJECT: 500 kV Disconnect Switches and Surge-Suppression Resistors, John Day Lock and Dam Powerhouse AUTHORITY: FAR 6.302-1, Only One Responsible Source AMOUNT: $189,600

Prepared By

NAME (Type or Print) TELEPHONE NO.

Ryan Shoemaker 503-808-4628

TITLE DATE

Contract Specialist

Contracting Officer

NAME (Type or Print) TELEPHONE NO.

Barbara Byam 503-808-4606

Construction / A-E Contracting Branch Chief

Technical

Daniel Trowbridge 503-808-4920

Electrical Engineer, CENWP-HDC-E

Requirements

John Pospishil 503-808-4920

Electrical Engineer Tech Lead, CENWP-EC-DE

SIGNATURES ARE REQUIRED

BELOW:

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

Project Manager (If no PM, use N/A)

SIGNATURE DATE

NAME (Type or Print) TELEPHONE NO.

James Adams, CENWP-PM-F 503-808-4742

Deputy for Small Business

SIGNATURE DATE

NAME (Type or Print) TELEPHONE NO.

Carol McIntyre, CENWP-SB 503-808-4602

Office of Counsel SIGNATURE DATE

NAME (Type or Print) TELEPHONE NO.

Jeffrey Matson, CENWP-OC 503-808-4524

District Contracting Chief

SIGNATURE DATE

NAME (Type or Print) TELEPHONE NO.

Tracy Wickham, CECT-NWP 503-808-4600

Local Competition Advocate

SIGNATURE DATE

LTC Cullen Jones, CENWP-DD 503-808-4501

“Source Selection Information -- See FAR 2.101 and 3.104.”

JUSTIFICATION AND APPROVAL (J&A)

FOR OTHER THAN FULL AND OPEN COMPETITION

500 kV Surge-Suppression Resistors, John Day Lock and Dam

Powerhouse, Rufus, OR

Control # 16-056

1. CONTRACTING ACTIVITY:

U.S. Army Corps of Engineers (USACE), Portland District (CECT-NWP-C), Construction Branch, 333 SW First Ave, Portland Oregon, 97208

2. DESCRIPTION OF ACTION:

Approval is requested for Other Than Full and Open Competition for procuring brand name products under a new Firm-Fixed-Price (FFP) Construction contract using Bonneville Power Administration (BPA), revolving funds, Appropriation Symbol 4045.

These funds do not expire. The total estimated cost of the construction project is $3,400,000 and the estimated total of the required brand name products is $189,600.

3. DESCRIPTION OF SUPPLIES/SERVICES OR NATURE OF CONSTRUCTION:

The requirement is for the replacement of four sets of Gang-Operated 500 kV disconnect switches at the John Day Lock and Dam Powerhouse located in John Day Dam in Rufus, Oregon. The estimated total value for this construction project is $3,400,000. The period of performance is from date the contractor receives the Notice to Proceed to 31 May 2019.There are no options for this requirement. Each existing gang-operated disconnect switch consists of three individual switches operated simultaneously via mechanical linkage driven by motor operators. The existing disconnect switches are hydraulically operated and prone to seal failure and oil leaks, which increase the likelihood of a failure such as the one at Lower Monumental Dam.

The failure of the closing cylinder’s hydraulic seals caused the disconnect switch to open while energized, thereby causing extensive damage to one phase of the disconnect switch, resulting in a forced transmission line outage for several months until it was replaced.

In order to significantly reduce the likelihood of future disconnect switch failures, new disconnect switches will replace the existing switches, with a necessary component of surge-suppression resistors being added. The only U.S. manufacturer of surge-suppressions resistor is Pascor.

The portion of the acquisition requiring brand-name applies to Pascor’s SR-500 surge-suppression resistors. The Pascor SR-500 Surge-Suppression Resistors have an estimated cost of $189,600. These components are required for successful completion of the construction project. The total estimated cost of the name-brand components is

$189,600. Use of these products in the acquisition is essential to the government’s requirements, thereby precluding consideration of a product manufactured by another company as it would not meet the Government’s requirement.

4. AUTHORITY CITED:

10 U.S.C. § 2304(c) (1), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This justification is for the use of a brand name description under FAR 6.302-1(c).

5. REASON FOR AUTHORITY CITED:

The motor-operated high-voltage disconnect switches will replace the existing Allis Chalmers TA-4 hydraulically operated switches. The new disconnect switches will include switches, operators, linkages and Pascor’s SR-500 Surge-Suppression Resistors. Each of the three switches per gang is required to have surge-suppression resistors which, during the closing process, reduce inrush current dramatically and, during the opening process, minimize high over-voltage conditions which can occur when the deenergization takes place. With these resistors, the opening and closing processes are dampened, which studies have shown can prolong transformer life and reduce risk of failures.

a. Background:

Four 500 kV transmission lines are connected to the John Day Lock and Dam’s powerhouse from the BPA transmission infrastructure. These transmission lines are terminated at disconnect switches mounted to the downstream face of the powerhouse’s upstream wall. The original switches installed are hydraulically operated.

A recent failure at the Lower Monumental Dam (Walla-Walla District) of hydraulic seal in an actuator caused a single phase, one of the three, to drift open during normal operations. This caused significant damage to the switch generation capacity was lost until the switches were replaced. The switches were replaced with the addition of surge-suppression resistors to minimize any overvoltage or current transients caused by normal operation of the switch, which could cause harm to the closely coupled Generator Step-up Transformers.

b. Justification:

Based on market research and manufacturer conversations, there is currently only one surge-suppression resistor capable of meeting the Portland District’s requirements.

There is no other manufacturer of this type of surge-suppression resistor.

c. Impact:

If no surge-suppression resistors are included on the new disconnect switches, the generator step-up transformers will be exposed to current and voltage transients occurring during normal operating conditions. Several studies have shown these transients can lead to premature failure of large oil-filled transformers similar to the transformers at John Day Lock and Dam. Premature failure of this equipment represents a significant cost, as replacement transformer cost is typically $10 million per transformer bank for supply and an additional cost of $1 million for installation. There is also a significant amount of money lost in power generation.

d. Alternatives:

Currently there are no alternatives to the Pascor SR-500 Surge-Suppression Resistors which provide the necessary protection to the generator step-up transformers at the John Day Lock and Dam.

6. EFFORTS TO OBTAIN COMPETITION

A request for proposals (RFP) for the John Day 500kV disconnect replacement project was posted to Federal Business Opportunities (FBO) on 14 June 2016. The solicitation contained a requirement for “brand name or equal” products for the Pascor SR-500 Surge-Suppression Resistors. The solicitation contained the appropriate salient characteristics to achieve a true “or equal” product, however, a bidder inquiry received on 6 July 2016 alerted the Government to the sole source/brand name limitation. The RFP’s specifications containing the “or equal” salient characteristics was the Government’s attempt to obtain competition.

7. ACTIONS TO INCREASE COMPETITION:

While we now know that there is no alternative to the brand name for high voltage surge-suppression resistors at John Day Lock and Dam, the Portland District posted a Request for Information (RFI) to the FBO website on 28 July 2016 to determine if industry knew of another high voltage disconnect switch that could satisfy the salient characteristics described in the specifications of the RFP. The following questions were asked:

1) Is there a manufacturer of a 500 kV surge-suppression resistor, to be mounted on a disconnect switch, with similar physical and electrical characteristics to the Pascor SR500 surge-suppression resistor to reduce voltage transients during switching to protect transformers?

2) Is there a 500 kV Vertical Break disconnect switch that can be fitted by the switch manufacturer with a Pascor SR500 surge-suppression resistor or another surge-suppression resistor that has similar physical and electrical characteristics to reduce voltage transients during switching to protect transformers?

No responses were received from industry in response to the Government’s RFI, which closed on 1 August 2016. With no response from industry, the Government’s market research revealed that there is no other company that manufactures the required surge-suppression resistor.

The typical expected life for disconnect switches is 30–50 years, with many switches expected to have an even longer serviceable life based on limited usage, when manufactured using modern technology, and when composed of modern components that require no or very little maintenance beyond occasional cleaning of insulators.

These switches are anticipated to last between 30-50 years, therefore, another procurement of this type will likely not occur for many decades.

8. MARKET RESEARCH:

This requirement was initially solicited as a total small business set-aside under solicitation number W9127N-16-R-0003 dated 23 March 2016, however, no proposals were received in response to the solicitation. Additionally, during the solicitation period, multiple bidder inquiries were received in regard to requests for drawings, however, no inquiries were received in reference to the unavailability of Pascor surge-suppression resistors from other manufacturers.

After the initial solicitation was issued, a GE & Alstom Grid Solutions representative, who provided budgetary information during the design efforts, was contacted to verify the availability of the Pascor surge-suppression resistor and responded that their request for quotes from Pascor was refused. They were unable to provide a quote as a switch supplier to a small business interested in submitting a proposal in response to the original solicitation (W9127N-16-R-0003) without the surge-suppression resistor required in the specifications

RFP W9127N-16-R-0072 was issued on 14 June 2016 as an unrestricted procurement with a closing date of 3 October 2016. Olsson Electric, an interested offeror, informed the Government on 6 July 2016 that after contacting several vendors for the surge-suppression resistors, the vendors reported that Pascor claimed it would not provide them a quote.

In light of these conversations and inquires, there is no evidence to support that any other switch manufacturing companies can supply any other surge-suppression resistor capable of satisfying the Government’s requirement. at this time as part of their proposal.

9. INTERESTED SOURCES:

To date, no other sources have written to express an interest.

10. OTHER FACTS:

None Relevant

11. TECHNICAL CERTIFICATION:

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

NAME: John Pospishil TITLE: Mechanical Technical Lead

CAC SIGNATURE:

12. REQUIREMENTS CERTIFICATION:

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

NAME: John Pospishil TITLE: Mechanical Technical Lead

13. FAIR AND REASONABLE COST DETERMINATION:

I hereby determine that the anticipated cost or price to the Government for the Pascor SR-500 surge-suppression resistors, the portion of the acquisition using a brand-name description, will be fair and reasonable based on comparison of proposed prices with the Independent Government Estimate in accordance with FAR 15.404-1(b)(2)(v). Certified Cost or Pricing Data will not be required, as the total estimated cost of that portion of the acquisition using a brand-name description is less than the $750,000 threshold described at FAR 15.403-4(a)(1).

NAME: Barbara V. Byam TITLE: Contracting Officer

14. CONTRACTING OFFICER CERTIFICATION:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

NAME: Barbara V. Byam TITLE: Contracting Officer

JUSTIFICATION AND APPROVAL (J&A)

FOR OTHER THAN FULL AND OPEN COMPETITION

500 Surge-Suppression Resistors, John Day Lock and Dam

Powerhouse, Rufus, OR

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of surge-suppression resistors at John Day Lock and Dam’s Powerhouse 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 6.302-1(c), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements,” subject to the availability of funds, and provided the property herein described has otherwise been authorized for acquisition.

(Date) Barbara V. Byam Contracting Officer