JA_Other_than_Full_and_Open.pdf

Justification and Approval For Other than Full and Open Competition

15-0105 J&A Number

1. Contracting Activity:

U.S. Army Corps of Engineers Walla Walla District 201 North Third Avenue Walla Walla, WA 99362 POC: Jani Long, Phone Number (509) 527-7209

2. Description of Action:

This justification is for a new construction contract to repair both the #3 and #4 tainter valves and associated operating assemblies at Lower Monumental Lock and Dam. This contract will be a Time and Materials-type contract that includes firm fixed priced items as well.

3. Description of Supplies/Services:

Below is the work required for this contract:

1. Replacing the existing push rod guide with a new fabricated guide and bushing

2. Replace crosshead bushings, seals, retainer rings and hardware

3. Replace the two existing #4 tainter valve lifting eyes

4. Installing new lower connecting rod bushings

5. Installing new lower connecting rod pins and keeper plates

6. Replace trunion pins and bushings

7. Repair concrete spalling

8. Reset tainter valve operating limit switches

9. Post repair non-destructive testing (NDT) of welds and critical steel components

10. Utilize existing grease line system to deliver lubricant to all pins/bushings

The estimated contract price is not to exceed $450,000.

4. Authority Cited:

10 U.S.C.2304(c)(2) as implemented by FAR 6.302-2 -- Unusual and Compelling Urgency.

5. Reason for Authority Cited:

The navigation lock at Lower Monumental Lock and Dam has two filling valves. Each of these valves utilizes a hydraulic cylinder to extend or retract a push rod that operates the tainter valves. Having two tainter valves serve two purposes. The first is to sustain a normal lock cycle to fill the lock for up bound traffic. Two tainter valves can simply fill the lock faster than one. Secondly, and more importantly, having two tainter valves provides redundancy in case of the loss of one valve, which allows the lock to remain operational and avoid a navigation outage.

Lower Monumental’s north filling valve (#4 tainter valve) was taken out of service due to a crack in one of the two lifting eyes. Further inspection of the #4 tainter valve has identified a number of other items which have been damaged or require replacement. Since taking #4 out of service, the #3 tainter valve has been used exclusively for all navigation lockages. Recently, the #3 tainter valve has begun demonstrating irregular and excessive noise and vibration during operations. The noise and vibration is to an extent that the project has modified the standard operating procedure. Instead of opening the valve completely, the project now operates the valve to a 30% opening. At this opening, the operators wait for the lock chamber water elevation to rise until the noise and vibration lessen. Then the valve is operated to full open. This operation has increased the time to lock traffic. This interim operation was put into place to mitigate any damage to the system caused by the excessive vibration. Both Operations Division staff and Design Branch engineers believe the vibration and noise is caused by some malfunction or damage to the system; however, the extent is unknown until an inspection can be completed. The PDT anticipates finding damage to the #3 tainter valve system during the pending inspection similar to those confirmed with #4.

The risk to the overall reliability of the system is of significant concern which is driving the urgency of this requirement, as the likelihood of a system wide navigation outage has significantly increased. With tainter valve #4 inoperable, the consistently observed vibration and noise from tainter valve #3, paired with the anticipated but yet to be confirmed damages to tainter valve #3 has brought this requirement to an unusual and compelling level. .

Lower Monumental Lock and Dam does not have an auxiliary navigation lock, therefore, at a minimum, one of the two filling tainter valves must be operational. With #4 currently out of service, and #3 demonstrating concerns on operational reliability, the risk of losing Lower Monumental’s lock capability is rapidly growing. The interruption of river traffic involves impacts to the district’s mission for commercial and recreational navigation services.

The navigation lock closure results in significant impacts to the supply chain and delivery commitments for stakeholders including growers (wheat, rye, barley, potatoes, oilseeds), manufacturers, shippers, paper product manufacturers, inland ports, tow boaters, cruise and recreational jet boats, and international grain customers. Over 2.61M tons of cargo was transported through Lower Monumental Lock and Dam in 2014. Approximately 45% of wheat moving by barge through the Columbia-Snake River System is sourced above Lower Monumental. The economic impacts of an extended lock closure are estimated in the tens of millions of dollars. The Columbia-Snake River system cargo is valued at $3 billion annually.

Should tainter valve #3 become inoperable, the likelihood of a long term navigation outage up to six months is high, which would potentially impact 1.3M tons of commerce requiring alternate transportation with little to no notice from current transportation plans.

The authority at FAR 6.302-2, Unusual and Compelling Urgency, permits the Government to waive the required 15-day synopsis period and allow an advertising period of less than 30 days. This allows the commencement of onsite repair work within days after issuance of the solicitation. The solicitation will be issued as a request for proposals, awarded on the basis of price and price-related factors, limited to three local firms with known successful past performance in heavy civil construction on navigation lock structures of this magnitude.: Advanced American Construction, Portland, Oregon; Marine Industrial Construction, Wilsonville, Oregon; and Knight Construction & Supply, Inc., Deer Park, Washington.

6. Efforts to Obtain Competition:

As stated in paragraph 5 above, the Walla Walla District Corps of Engineers had previously worked with three firms who had proven themselves qualified in heavy civil construction on navigation lock structures of this type and size. All three were contacted by phone on Friday, 21 August 2015, and all agreed to attend a site visit on Monday, 24 August 2015 at 10:00 am.

7. Actions to Increase Competition:

FAR 6.302-2(c)(2) requires that agencies “…shall request offers from as many potential sources as is practicable under the circumstances.” Due to the urgent nature of this acquisition, there was insufficient time to do more than identify the three firms known to be capable of successfully performing this type of work and arrange for them to attend a site visit on the next work day.

8. Market Research:

Market research consisted of contacting firms known to be capable of successfully performing work of this type and that were available to attend a site visit on Monday, August 24, 2015 after being notified on Friday, August 21, 2015.

9. Interested Sources:

a. Advanced American Construction

b. Marine Industrial Construction

c. Knight Construction & Supply, Inc.

A synopsis of the proposed acquisition will not be published on the Government-wide Point of Entry pursuant to FAR 5.202(a)(2), which states “…the contracting officer need not submit the notice required by FAR 5.201 when the contracting officer determines that…the proposed contract action is made under the conditions described in 6.302-2…and the Government would be seriously injured if the agency complies with the time periods specified in 5.203.”

10. Other Factors:

Repair of these tainter valves and associated operational assemblies is a first time acquisition. These are the original tainter valves and assemblies from when the project was constructed approximately 50 years ago.

a. Procurement History

(1) Contract numbers and dates of the last several awards: N/A, first time acquisition.

(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.

This contract includes both firm fixed priced items and time and materials. The firm fixed price items include the major components that contractor will be fabricate and supply for installation. These include pins, bushings, keeper plates, push rod guides and trunion hubs.

The full extent of the work associated with the removal of existing operating assemblies, concrete repairs and installation of new equipment is unknown at this time and cannot be specifically described in the solicitation. The Government cannot reasonably determine how much effort will be required to remove the existing assemblies, pins, and bushings. Previous experiences with similar pin removal efforts at other Corps of Engineer navigation locks indicate trends of very complex and site specific extraction requirements that are dependent upon weather conditions, physical constraints and custom made equipment. One specific constraint is that all contract employees must exit the tainter valve pits during lockages. The number and times of these lockages is unknown and cannot be planned. Plans and specifications cannot be developed for the onsite effort in time to acquire the construction services other than by use of a time and materials contract.

c. Unusual and Compelling Urgency.

See Paragraph 5 above.

d. Subcontracting Competition

Award will be made to a small business concern. Based on the type of work, the assumption is that the prime contractor will self-perform the majority of the work.

11. Technical Certification:

I justify 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.

Signature: __________________________________________________________ Typed Name: T.J. Fichera Title: Project Manager

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.

Signature: ________________________________________________________________ Typed Name: T.J. Fichera Title: Project Manager

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action (ceiling price not to exceed $430,000) will be fair and reasonable.

The Request for Proposals was issued to three business concerns deemed capable of doing the work. All three firms responded with price proposals, which had technical analysis performed by the cost estimator and all three were compared to the independent Government estimate. In addition, adequate price competition was obtained in accordance with FAR 15.404-1(b)(2). Further, appropriate Government surveillance of contractor performance will be maintained throughout the performance period to ensure that efficient methods and effective cost controls are being used. Contract work performed under the time and materials elements of the contract will be monitored by the Contracting Officer’s Representative and Government quality assurance inspectors to verify and ensure hours, equipment, and materials billed are properly accounted for and determined accurate, and to ensure the contractor proceeds at a reasonable and acceptable rate of production.

Signature: __________________________________________________________ Typed Name: Ruthann Haider Title: Contracting Officer

14. Contracting Officer Certification:

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

Signature: ______________________________________________________________ Typed Name: Ruthann Haider Title: Contracting Officer

15. Legal Sufficiency Review:

I have reviewed the foregoing justification and approval and deem it legally sufficient.

Signature: ______________________________________________________________ Typed Name: Theresa Hampson Title: Legal Counsel

J&A Approval for contracts not exceeding $650,000.

Pursuant to FAR 6.304(a)(1) for proposed contracts not exceeding $650,000, the contracting officer’s certification above, required by FAR 6.303-2(b)(12), serves as approval of the justification.