B.04.28_-_Qualitrol_Serveron_Limited_Source_FINAL.pdf

SINGLE SOURCE DETERMINATION PURSUANT TO FAR 13.106-1

1. CONTRACTING AGENCY: US Army Corps of Engineers (USACE), Seattle District, 4735 East Marginal Way South, Seattle WA 98134.

2. DESCRIPTION OF ACTION: Approval is requested for a single source award to Qualitrol Company LLC, 1385 Fairport Rd, Fairport NY 14450-1309 to install twelve (12) Serveron TM8 online dissolved gas monitors (DGAs) with accessories on twelve (12) generator step up transformers (GSUs) at Chief Joseph Dam (CJD). The install includes live commissioning and training for the DGA monitoring system. The total estimated cost is on file.

3. DESCRIPTION OF SERVICES: This is a civil works improvement contract to install twelve (12) Serveron TM8 DGA monitors with associated components and live commissioning on critical power delivery assets at the CJD. Specific tasks are as follows:

1. Install DGA monitoring unit at transformer.

2. Install Helium carrier gas system and leak check.

3. Install Calibration Gas cylinder and leak check.

4. Install valves and piping for oil intake and return and leak check.

5. Install applicable sensors, thermal, load CTs, etc.

6. Furnish and install power and annunciation wiring to the transformer control cabinet.

7. Programming of TM8 DGA monitors. To include limit setting, and full commissioning procedure per Serveron guidelines.

8. Functional testing and operational verification to include annunciation.

9. Provide as built wiring and installation drawings.

10. Provide classroom instruction on the proper use of monitors.

4. AUTHORITY CITED: FAR 13.106-1(b) Soliciting from a single source. (i) For purchases not exceeding the simplified acquisition threshold.

5. REASON FOR AUTHORITY CITED: Pursuant to FAR 13.106-1(b)(1)(i) “Contracting Officers may solicit from one source if the contracting officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand name or industrial mobilization.)”

The TM8 (Transformer Monitor 8 Gas System) manufactured by Serveron (a Qualitrol Company) has proprietary software and commissioning this product for the end user is a function which is provided exclusively by the Qualitrol company and performed by their specially trained Serveron field technicians. If for any reason the monitors are improperly configured or installed, their critical functions could be negated and could possibly result in costly equipment damage and hazards to personnel that would be considered avoidable.

6. BASIS FOR RESTRICTING COMPETITION: Any contractor can install the DGA monitors on the generators, but only Serveron field technicians are able to commission the monitors without de-energizing. It is imperative that commissioning is accomplished without de-energizing to ensure proper configuration of the DGA monitors and to avoid lost power generation. According to Project Engineers, at present the value of power is between $40- 50/MWH and with twelve (12) monitors that would equate to twenty-four (24) days of lost

SINGLE SOURCE DETERMINATION PURSUANT TO FAR 13.106-1

power generation. Each of these transformer banks is connected to four (4) generators rated at 85MW (340MW per bank) which would be taken down one bank at a time to facilitate installation. This equates to a revenue loss of $2.2 million for each transformer bank or $6.2 million in total of lost power generation for the Project.

7. MARKET RESEARCH:

According to Clark Beatty of Serveron, live commissioning of the Serveron DGA monitors is limited to three (3) groups: Serveron field service engineers who are trained to do the commissioning for the TM8 DGA monitors for customers who purchase the devices, the Original Equipment Manufacturer (OEM) for the transformer who is selling a transformer equipped with TM8 as original equipment and utility and other large entities who are installing a large number of monitors and request to receive training directly from Serveron to do the installation and commissioning themselves. In order to have a single contract that covers the installation and commissioning of the DGA monitors, Serveron is the only viable entity.

CONTRACTING OFFICER DETERMINATION: In accordance with the authority of 10 U.S.C.

2304(c)(1), as implemented by FAR13.106-1 (b) and based upon the foregoing, I have determined there is no other feasible alternative to meet the Government’s needs.

APPROVAL

NAME: Camilla (Cam) Allen DATE: _________________________

TITLE: Contracting Officer SIGNATURE: ___________________

04/15/2019