A13_-_J A_-_Control_No_CECT-MVM-16-01.pdf

DEPARTMENT OF THE ARMY

MEMPHIS DISTRICT CORPS OF ENGINEERS

167 N. MAIN STREET

MEMPHIS, TENNESSEE 38103

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION:

SOLE SOURCE ACQUISITION OF GENERAL ELECTRIC INTERNATIONAL, INC (GE)

BANK GRADER AND MAT LOADING CRANE DRIVES UPGRADE

1. Contracting Activity: The contracting organization responsible for this action is the U.S.

Army Corps of Engineer (USACE), Memphis District Contracting Office. This document sets forth the justification and approval as required by FAR 13.501(a)

2. Description of Action: The U.S. Army Corps of Engineer (USACE), Memphis District Contracting Office intends to make contract award pursuant to the authority of FAR 13.501(a)(1)(ii), The Test Program for Certain Commercial , for the purposes of providing written consent and approval to award a Sole Source contract to General Electric International, Inc. (GE). This approval request is for a new firm fixed price (FFP) contract using OMA funds in the estimated amount of $569,015.00.

This procurement is proposed to provide The Memphis District Revetment Section Cranes (Crane 4919 and Whirley) with new digital front end drives. Because this is a proprietary system, parts and spares must be acquired from the original equipment manufacturer.

3. Description of Supply/Services: The purpose of this contract is to replace GE DC2000 drives, GE GF2000 and GE DC300 drives assemblies leaving the power converter section largely untouched. This is needed to replace obsolete parts and prevent critical failure of the current system.

These items are required in order to support the Revetment Cranes (4919 and Whirley) and ensure mission capability of Revetment equipment. The current drives are operational but have obsolete parts which in the event of failure would impact Revetment mission. The complete system (motors, power converters, drives, etc.) are manufactured by GE, who holds proprietary rights to their design and composition.

4. Authority Cited: The proposed action may be awarded on a sole source basis under the authority of FAR 13.501(a)(1) (ii); 10 USC 2304(c)(1) in accordance with the statutory authority of the test program for commercial items at 41 U.S.C. 1901.

5. Reason for Authority Cited: GE is the only qualified contractor in the United States of America that can meet the requirements outline in this justification. General Electric (GE) Company is the original manufacturer and builder of the GE DC2000, GE GF2000 and GE DC300 drives and has the proprietary rights for the design, including specifications and drawings for all components. Due to the cranes currently being equipped with GE equipment compatible with these new drives, it is impractical to try to change the entire system on these cranes. GE parts are required because of their compatibility with the existing system and because their parts

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Typewritten Text Control No: CECT-MVM-16-01 are proprietary. The cranes are currently configured for GE drive parts thus the purchase of other brands other than GE is impractical as well. If the drives are not procured, it will negatively affect the cranes mission capability, causing extended downtime or possibly even a catastrophic failure.

In the event of drive failure with the current obsolete parts accidental injury or death could possibly occur. The cranes currently load and transfer approximately 30,000 lbs of articulated concrete mattress (mat) at a time which could swing or hoist out of control if the drives failed or malfunctioned. Each day the cranes are down due to obsolete parts, could cost the Government up to $300,000 per day. In addition to this, the cranes are used to support the Corps’ river stabilization mission of armoring prevention which could lead to levee failure due to flooding if the cranes are not functional. The articulated concrete mat forms a protective overcoat to shield the Mississippi riverbank from erosion and sloughing to maintain the channel alignment and stability.

Alternative vendor/parts would require a complete overhaul of the drive system which would require a substantial increase in parts such as transformers, relays and SCRs, this would not only exponentially increase the price of this project, but also increase the downtime of the cranes.

GE is the only supplier and service provider of the drive Digital Front‐End (DFE) solution that is specifically designed and manufactured to upgrade the existing GE DC2000, GE GF2000 and DC300 drives. This DFE upgrade eliminates the need to replace/overhaul an entire drive instead replacing existing control and interface components that have been obsolete and/or now un-repairable due to replacement subcomponent non‐availability, while retaining much of the existing drives hardware having significant remaining service life. This DFE upgrade improves drive reliability, migrates to current and planned GE renewal parts availability, and incorporates current drive and control technology allowing the Army Corps of Engineers to extend the useful life of their previous investment. Additional drive upgrade versus replacement benefits are commonly; lower cost, shorter delivery, faster site implementation, and lower risk.

It is in the best interest of the Government that this contract be awarded to GE for the upgrade to the existing GE DC2000, GE GF2000 and DC300 drives.

6. Efforts To Obtain Competition: Efforts were made to successfully contact other sources (distributors) which are able to provide the GE products and services, however each distributor contacted advised that their company could not provide the requested upgrade to the crane drives due to it’s proprietary nature. Each distributor suggested that GE be contacted directly. At this time the cost for replacing the entire drive system is impractical for the Memphis District, the downtime in addition to the consideration of cost would not be feasible at this time. We will continue to survey the market to develop new sources as much as possible.

7. Actions to Increase Competition: The steps being taken on the part of the US Government to foster competition are to continue to survey the market for companies that are capable of providing the specified equipment with the required specifications, in addition to taking into consideration the replacement of the entire system.

8. Market Research: As stated in paragraph 5, GE is the only qualified contractor in the United States of America that can meet the requirements outline in this justification. GE is the original manufacturer and has the proprietary rights for the design, including specifications and drawings for all components. GE’s products and services are essential to the Government’s requirements and market research indicates other companies’ similar products lack the particular feature, do not meet or cannot be modified to meet the agency’s needs in addition to the possibility of warranty voidance. A sole source notice of intent was also issued on the Federal Business Opportunities (FBO) website under special notice number W912EQ-15-S-0010. The notice requested interested firms to submit a capability statement with cost/price information. The notice resulted in zero (0) responses from interested parties.

9. Interested Sources: There are various verified GE licensed/certified vendors (distributors), however GE is the only provider of this GE DFE drive upgrade hardware and software and only utilizes trained GE‐personnel to perform the upgrade including drive configuration, field hardware replacement, and start‐up services.

10. Other Facts: A review of the Memphis District’s Paperless Contracting File (PCF) database and US Army Corps of Engineers Financial Management System (CEFMS) resulted in the following:

a) Procurement History: Contract W912EQ-15-C-0004 for GE brand name upper head assemblies for existing GE 7FDM16 Marine Maine Propulsion Engines was awarded to National Maintenance and Repair Inc on 09-Jul-15. The competitive status of this action was other than full and open competition (brand name). The proposed action was awarded on a brand name basis under the authority of FAR 13.501(a)(1)(ii) the test program for commercial items at 41 U.S.C. 1901 or the authority of 41 U.S.C. 1903.

Efforts were made to successfully contact other sources which are able to provide the GE brand products. At the time, the cost for replacing the entire propulsion engine system was impractical for the Memphis District; the downtime in addition to the consideration of cost would not be feasible. The Government intends to continue surveying the market to develop new sources as much as possible for companies that are capable of providing the specified equipment with the required specifications. This requirement was advertised on the Federal Business Opportunities (FBO) website. There were three responsive offerors. The awarded contract amount was $248,311.07

b) Acquisition data availability: The statement of work for this effort is considered to be adequate. However only one responsible source can satisfy the requirement. Due to GE’s proprietary rights, many of their products and services have to be brand name or sole source procurements which is why full and open competition descriptions are not available.

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.

Typed Name: Matt Young Date:

Title: Supervisory Electrical Engineer, Revetment Signature: ___________

Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. Market research, pricing data, and the IGE indicates there is sufficient non-Government sales data for quantities comparable to those offered in this requirement and therefore would be considered fair and reasonable. Certified cost of pricing data will not be required.

Typed Name: _____________ Date: ____________

Title: ________________ Signature: ____________

Contracting Officer Certification:

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

Approval:

Based on the foregoing justification, I hereby approve the procurement of the Bank Grader and Mat Loading Crane Drives Upgrade on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1) subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

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Typewritten Text Monica Moody

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26 OCT 15

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Typewritten Text Monica Moody

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Typewritten Text Contracting Officer

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Typewritten Text Monica Moody

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21 OCT 15