HLDTainter_Valve_repair_W912EF18C0004.pdf

Justification and Approval For Other than Full and Open Competition

Control Number: 18-0018

1. Contracting Activity:

U.S. Army Corps of Engineers Walla Walla District 201 North Third Avenue Walla Walla, WA 99362 POC: Hillary Morgan, Phone Number (509) 527-7214

2. Description of Action: This is an emergency construction repair project to address damage sustained by Tainter valve #1. Approval is requested to procure the repair of one Tainter valve and associated operating assemblies at the Ice Harbor Navigation Lock. The resulting contract will be a time and materials contract with fixed-priced contracting line items being used to the maximum extent possible.

3. Description of Supplies/Services:

The total period of performance of this contract is 60 days after receipt of the notice to proceed.

No options will be included in the resulting contract.

4. Authority Cited:

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

5. Reason for Authority Cited:

a. Background: The Columbia-Snake River federal navigation system is vital to the economic health of the Pacific Northwest. As part of the Corp’s mission, the Walla Walla and Portland districts have been maintaining safe navigation through the system of locks and dams since their installation beginning in the 1930s. The Ice Harbor Navigation Lock is located on the Snake River in Washington. This navigation system is the top wheat-export gateway in the nation. It plays a major role in ensuring that our country’s farmers and manufacturers have the ability to economically export their goods into the competitive international marketplace. Inland commercial navigations helps generate jobs, facilitates imports and exports, and contributes to a stronger economy, environment and quality of life for the region.

The navigation lock at Ice Harbor Dam has two fill and two drain 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 for filling and draining the Navigation Lock serves two purposes.

Two Tainter valves can simply drain 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, thus avoiding an unplanned Navigation Lock outage.

b. Justification: Ice Harbor’s North drain valve ( Tainter valve #1) was taken out of service due to a trunnion pin keeper plate breaking, allowing the trunnion pin to fall out. When the Tainter valve loses a trunnion pin the water force causes the valve to skew to one side causing the operating equipment to overload and structural damage to the valve. The loss of the pin caused significant structural damage to the valve. Operation of the Tainter valve on one trunnion overstresses the Tainter valve causing permanent misalignment of the valve to Trunnion Yokes.

The visual inspection of the valve confirms the valve has sustained permanent deformation. 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 unplanned and lengthy navigation lock outage has significantly increased. An underwater camera inspection was performed on Tainter valve #2 (other drain valve). This inspection revealed that this valve also has a broken Trunnion pin keeper plate and the pin has rotated. A follow up camera inspection of valve #2 has shown no change in the status. Project crews have since performed a repair to rotate the pin back to the correct position and installed a new pin keeper. This repair has been completed in the past and will likely fail again in the future. Given the decreased reliability in Tainter Valve #2 having Tainter valve #1 out of service this project has reached an unusual and compelling level.

A 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, fuel barges, inland ports, tow boaters, cruise and recreational jet boats, and international grain customers. Approximately 45% of wheat moving by barge through the Columbia-Snake River System is sourced above the dam.

The economic impacts of an extended lock closure are valued at $3 billion annually. Should Tainter valve #1 become inoperable, the likelihood of a long term navigation outage up to nine months is high, which would potentially impact 1.3M tons of commerce requiring alternate transportation with little to no notice from current transportation plans. Further, the barges that transport fish for USACE mission requirements would be unable to pass which impacts fish survicval and significantly increases costs for fish transport.

c. Impacts:

a. Navigation lock closures result in stoppage to the supply chain and delivery commitments for stakeholders including agricultural growers (wheat, potatoes, peas, lentils), manufacturers, shippers, paper product manufacturers, inland ports, towboaters, cruise and recreational jet boats, and international grain customers. The economic impacts of an extended lock closure, should the Tainter valves fail and the lock be forced inoperable, are estimated in the tens of millions of dollars.

b. Having only one operable drain valve significantly increases risk to successfully meeting the District’s mission to operate the lock to ensure movement along the FCRPS. As stated above, the original design requires operation of both sets of valves.

c. If this lock were forced out of service due to the failure of the Tainter valves, the district would be in violation of the 2014 Federal Columbia River Power System Supplemental Biological Opinion (BiOp) in conjunction with the Endangered Species Act (ESA), which requires juvenile fish transportation downstream via barges, which is mandated to begin in April 2017.

d. The negative impact to the Government if the Walla Walla district were to procure this requirement using normal acquisition timelines would be significant if the Tainter valves were to fail before a contract could be awarded and completed. As stated above, the risk of extended operation of the lock using one set of valves is not in keeping with the original design of the system. The impacts to the Corps and the region would be far-reaching, including legal, economic and safety .

6. Efforts to Obtain Competition: The competition was limited to three small business firms with the ability to propose immediately, capacity to bond quickly, have successfully completed similar projects in the past and are able to mobilize quickly. These factors were considered critical as each day of delay results in increased risk of serious injury to the Government because of the increased risk of failure of the valves that would result in an extended lock outage. The firms identified are the following: Knight Construction & Supply, Inc., Deer Park, Washington, North Bank Civil and Marine, Vancouver, Washington, and Marine Industrial Construction, LLC, Wilsonville, Oregon. This limitation of competition is in line with the plain language found in the unusual and compelling urgency requirements as outlined in FAR 6.302-2. This reference states that “full and open competition need not be provided for when the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids”. Further, it states that “agencies shall request offers from as many potential sources as is practicable under the circumstances”.

7. Actions to Increase Competition: 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.

8. Fair and Reasonable Costs: The anticipated cost to the Government was considered fair and reasonable prior to award of a contract. As noted above, three firms were identified and had affirmed that they intended to propose on the project. This price competition established a fair and reasonable price and therefore certified cost and pricing data IAW FAR 15.403-3(b) was not required. Price analysis was conducted to compare proposed prices received to ensure that the final agreed-to price was fair and reasonable. Further, proposed prices were compared with the independent Government estimate to insure compliance with the statutory cost limitations –Civil Works contracts in accordance with U.S.C 624 as implemented by UAI 5136.205-100.

9. Market Research:

In accordance with FAR 10.002(b)(2), market research was conducted by contacting knowledgeable government personnel that have worked on navigation lock projects similar in scope to the immediate action. A team of District engineers was assembled to identify firms with the ability to bid this project immediately, capacity to bond quickly, have successfully completed similar projects in the past and are able to mobilize quickly. The three firms below were identified to meet the criteria. The past performance of these firms was discussed to ensure that all aspects of a contract of this nature could be completed successfully. Further, the firms identified were contacted to ensure that they had the ability and bonding capacity to successfully bid and complete the project. All three firms affirmed that they are able and interested to propose on this project. Based on this analysis, and the districts, as well as the region’s history of past contract awards for this type of work there is a high level of confidence that no other qualified sources existed.

The firms identified are as follows:

Northbank Civil and Marine, Inc. (Small Business) Marine Industrial Construction, LLC (Small Business) Knight Construction & Supply, Inc. (Small Business)

10. Other Factors: All four Tainter valves at Ice Harbor were replaced in 1989. Project crews over the years have had to reinstall broken keepers to keep the valves in operation. Because of the frequency of repairs to these valves repairing and returning Tainter valve #1 is a high priority.

Posting of the J&A will be made in accordance with FAR 6.305(b) in which the justification will be posted within 30 days after contract award and will remain posted for a minimum of 30 days.

The Walla Walla District Small Business Deputy was consulted on 02 November 2017 to discuss the strategy of this acquisition. On 28 November 2017 a DD2579 was approved by the Walla Walla District Small Business Deputy and Small Business Administration concurrence was received on the same day.

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.

Steve Thompson Project Manager

12. Office of Counsel: 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.

Theresa Hampson Deputy District Counsel

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable on the basis of adequate price competition as a result certified cost or price data will not be required. In addition, the price analysis will also be made by comparing the proposed price to the Independent Government Estimate.

Jani C. Long Contracting Officer

14. Contracting Officer: I hereby determine that that above-stated circumstances of this contract action deem limitation of competition in accordance with FAR 6.302-2(a)(2)(b)(2), Unusual and Compelling Urgency.

Jani C. Long Contracting Officer