A.03.10 JA for sole-brand disconnect switches (1) (1).pdf

Control Number: 21-0044

JUSTIFICATION AND APPROVAL SOLE SOURCE (Brand Name)

McNary Disconnect Switches for Intake Gate and Isophase Bus Systems

1. CONTRACTING AGENCY: US Army Corps of Engineers (USACE), Walla Walla District (CENWW-CT) 201 North 3rd, Walla Walla, WA 99362.

2. DESCRIPTION OF ACTION: The McNary Intake Gates and Isophase Bus

Systems acquisition includes the installation of seven PASCOR SR-500 Surge-suppression resistors switches. These are Gang-Operated 230kV and 115kV disconnect switches with surge-suppression resistors. The seven existing high voltage disconnect switches (six of which have grounding switches) at the McNary Powerhouse are vertical-break type. They are roughly 60 years old and are beyond their expected life span.

These brand name switches comprise only a portion of the acquisition. Accordingly, this justification and approval is limited to these components only. The estimated price of the components is $389,740.

3. DESCRIPTION OF ITEMS: In order to significantly reduce the likelihood of future disconnect switch failures as outlined above, new switches with suppression resistors will be installed. The only U.S. manufacturer of surge-suppressions resistor is PASCOR SR-500 surge-suppression resistors.

4. AUTHORITY CITED: FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

c) Application for brand-name descriptions.

(1) An acquisition or portion of an acquisition that uses a brand-name description or other purchase description to specify a particular brand-name, product, or feature of a product, peculiar to one manufacturer-

(i) Does not provide for full and open competition, regardless of the number of sources solicited; and

(ii) Shall be justified and approved in accordance with 6.303 and 6.304.

(A) If only a portion of the acquisition is for a brand-name product or item peculiar to one manufacturer, the justification and approval is to cover only the portion of the acquisition which is brand-name or peculiar to one manufacturer. The justification should state it is covering only the portion of the acquisition which is brand-name or peculiar to one manufacturer, and the approval level requirements will then only apply to that portion;

(B) The justification should indicate that the use of such descriptions https://www.acquisition.gov/far/part-6#FAR_6_303 https://www.acquisition.gov/far/part-6#FAR_6_304 in the acquisition or portion of an acquisition is essential to the Government’s requirements, thereby precluding consideration of a product manufactured by another company; and

(C) The justification shall be posted with the solicitation (see 5.102(a)(6)).

5. REASON FOR AUTHORITY CITED:

a. BACKGROUND:

A failure at McNary for which the causes have been outlined above highlighted the need to replace these switches and add surge-suppression resistors to minimize any overvoltage or current transients caused by normal operation of the switch, which could cause harm to the Transformers.

b. JUSTIFICATION: Based on market research and industry input, there is currently only one surge-suppression resistor capable of meeting the Government’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 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 McNary Lock and Dam. Premature failure of this equipment represents a significant cost, 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 for lost time during repair.

d. ALTERNATIVES:

i. 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 McNary Lock and Dam.

6. EFFORTS TO OBTAIN AND INCREASE COMPETITION: USACE Walla Walla District posted a Request for Information (RFI) to the Beta.Sam.Gov website on December 17, 2019 to determine if industry knew of another high voltage disconnect switch that could satisfy the salient characteristics described in the specifications in their solicitation. Several questions were asked of industry.

No responses were received indicating it is unlikely that there is another company capable of manufacturing the required surge-suppression resistor.

7. FAIR AND REASONABLE COST DETERMINATION: The anticipated 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.

https://www.acquisition.gov/far/part-5#FAR_5_102

8. MARKET RESEARCH: The items listed above are essential in order ensure generator step-up transformers will not be exposed to current and voltage transients occurring during normal operating conditions. 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.

9. OTHER FACTS: None

10. INTERESTED SOURCES: None

11. DETERMINATION: I certify that this J&A is accurate and complete to the best of my knowledge and belief.

RECOMMEDED BY: Abdul Sawab

TITLE: Design Lead SIGNATURE

PREPARED BY: Hillary Morgan

TITLE: Contract Specialist SIGNATURE

APPROVED BY: Jani Long SIGNATURE

TITLE:

LEGAL

SUFFICIENCY

Contracting Officer

Theresa Hampson Deputy District Counsel

SIGNATURE