A.02.05 Justification for Sole Source.pdf

Control Number: NWW-20-0006

SOLE SOURCE/BRAND NAME

JUSTIFICATION & APPROVAL

Dworshak National Fish Hatchery

Square D Custom Breaker Cradles / Cradle & Breaker Install

1. CONTRACTING AGENCY: U.S. Army Corps of Engineers, (USACE), Walla Walla

District (CENWW-CT), 201 North 3rd, Walla Walla, WA 99362.

2. DESCRIPTION OF THE ACTION: The Walla Walla District, Dworshak Project, is requesting approval for a new sole source contract for the purchase of 12 custom retrofill materials kits (cradles) to mate existing SquareD-style breakers with existing non-SquareD-style switchgear at Dworshak National Fish Hatchery. In addition, the Project will purchase four maintenance mode energy reduction units designed specifically for the SquareD-style breakers to further reduce arc fault risk and severity. Additionally, an authorized Schneider

Electric Field Services representative will pull and replace, with in-kind items, the most critical breakers and cradles, while Project personnel will install all others with Schneider

Electric field representative guidance. The Government estimate for this action is $300,000, with installation and testing being only 20% of the anticipated contract cost.

3. AUTHORITY CITED: FAR 11.105(a)(1) The particular brand name, product, or feature is essential to the Government’s requirements, and market research indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet the agency’s needs.

4. REASON FOR AUTHORITY CITED:

a. BACKGROUND: The existing main breakers at Dworshak National Fish Hatchery (DNFH) are over 40 years old and in need of replacement. DNFH operation limits available equipment down time to 1–2 weeks once a year. Replacing the existing switchgear in full would require a month or more of down time; therefore, it is necessary to retrofit new breakers into the exiting switchgear. New SquareD-style breakers were procured for this purpose in FY2016. The Square D-style breakers selected match those installed in the

Dworshak Powerhouse to ensure consistency of operation and maintenance, as well as availability of spare parts.

Retrofitting the SquareD-style breakers into non-SquareD-style switchgear compartments requires manufacturer design and installation of adapter cradles to ensure safe and proper function of each breaker. During equipment outages in FY2019, DNFH arranged for

Schneider Electric Field Services personnel to measure and document function of the existing switchgear. Based on these measurements, Schneider Electric is able to design adapter cradles for the 12 individual breakers. Dworshak Project intends to contract with Schneider

Electric Field Services for the manufacture and installation of the adapter cradles, to include new draw-out mechanisms, cubicle compartment doors, and compatible reduced fault current maintenance mode equipment.

b. JUSTIFICATION: Retrofitting the breakers requires OEM manufacturer expertise for design, installation, and testing, and troubleshooting, to ensure complete, safe, and proper function of the new breakers in conjunction with the existing switchgear, bus work, and control schemes. Schneider Electric is the manufacturer of the SquareD-style breakers and the only entity with rights to the proprietary information needed to complete this work;

henceforth the breakers and retrofit installation are only subject to warranty coverage if the work is performed by, or under the supervision of, Schneider Electric Field Services. In addition, the measurements of the cradles were completed as another effort and these measurements may only be completed during equipment outages. An alternative manufacturer would need to make their own measurements as it unreasonable to expect another contractor to rely on the current measurements; this would require the Government to wait until the outage in April for the measurements to be redone which would delay the installation of the new breakers and cradles until the following equipment outage to allow for the fabrication of the new cradles.

c. IMPACTS: Contracting with other than Schneider Electric may results in improperly installed and/or improperly functioning breakers. In addition, the Government would forfeit manufacturer warranty on the OEM parts if installed by another vendor without Schneider

Electric oversight. A duplication of costs would occur as Schneider Electric was already contracted to perform the measurements required to fabricate the new breaker cradles during the equipment outage in FY2019. This consultation/design measurement effort was completed under a U.S. Fish & Wildlife Service contract, 140F0118P0326, for a total of

$41,600. Competition is not expected to decrease costs sufficiently to cover the duplicated costs associated with the measurement tasks.

d. ALTERNATIVES: The Government has considered competitively sourcing this requirement but has determined that loss of manufacturer’s warranty would place the

Government under undue risk of increase in costs and delay.

5. EFFORTS TO OBTAIN COMPETITION: See item 7.

6. ACTION TO INCREASE COMPETITION: See item 7.

7. MARKET RESEARCH: Market research indicates that Schneider Electric is the parent company for SquareD Electrical. Schneider Electric acquired SquareD Electrical in 1991 and is considered a global large business. This requirement is subject to the non-manufacturers rule and as a result this requirement must comply with 13 CFR 121.406(b). As the non-manufacturers rule applies, competition for this requirement shall not be restricted. While

Schneider Electric has several small business suppliers who may be able to supply the

Cradles requested, this requirement may not be set-aside for small business, therefore, Schneider Electric will not be restricted from competition.

8. DETERMINATION OF FAIR AND REASONABLE COSTS: The Project will prepare an independent government cost estimate based on the complexity of the materials to be manufactured, as well as training, mobilization/demobilization costs, and installation labor.

Fair and Reasonable price shall be determined at time of award.

9. OTHER FACTS: None

10. EFFORTS TO OBTAIN AND INCREASE COMPETITION: See item 7.

11. DETERMINATION: I certify that this Sole Source Justification and Approval is accurate and complete to the best of my knowledge based on the supporting data provided by technical or requirements personnel.

Prepared by: Chandra Crow

Title: Contract Specialist Signature: _________________________

12. DETERMINATION: I certify that this Sole Source Justification and Approval is accurate and complete to the best of my knowledge and belief.

Approved by: Hillary Morgan

Title: Contracting Officer Signature: _________________________

Reviewed by: Theresa Hampson

Title: Attorney Signature: ________________________