W912ES-15-JA-0008_Generator_for_Goetz_J A_Final_Signed_DCC.pdf

Control No. W912ES-15-JA-0008

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. CONTRACTING AGENCY:

U.S. Army Corps of Engineers - St. Paul District Contracting Division 180 5th Street E., Suite 700 St. Paul, MN 55101-1678

2. DESCRIPTION OF ACTION: Procurement of a brand name specific synchronous brushless revolving field generator

3. DESCRIPTION OF SUPPLIES/SERVICES OR NATURE OF CONSTRUCTION:

Kato synchronous brushless revolving field generator, serial number 16881, model number AA27336001, estimated value $135,000.

a. Briefly describe the supplies and/or services and/or construction: If the generator purchased is not a direct bolt-in replacement, the installation will require extensive modifications to the existing equipment, as well as extensive time to make the changes and accomplish the installation. The generator foundation would have to be modified to accommodate a different generator, as well as modifications to the existing engine, such as changes to the bell housing, and modification of all wiring connections, before a different Generator could be connected to the engine. A change to a different generator will result in additional time and expense and require additional follow-on contracts in order to attempt to obtain equipment compatibility. The additional time, expense and uncertainty of success will result in unacceptable delays to the Dredge’s mission and a substantial duplication of costs which are not recoverable through competition.

b. Is this a modification: This is not a modification to an existing contract.

c. Requiring Activity: Dredge Goetz

d. Option quantities and/or performance periods: No options

4. AUTHORITY CITED: The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only One Responsible Source," which states, “When the supplies or services required by the agency are available from only one responsible source…and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for.” specifically paragraph 6.302- 1(c) Application for brand name descriptions, subparagraphs 6.302-1(c)(1)(i) and (ii) which state, “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 – Does not provide for full and open competition regardless of the sources solicited…and Shall be justified and approved in accordance with FAR 6.303 and 6.304.

5. REASON FOR AUTHORITY CITED: If the generator purchased is not a direct bolt-in replacement, the installation will require extensive modifications to the existing equipment, as well as extensive time to make the changes and accomplish the installation. The generator foundation would have to be modified to accommodate a different generator, as well as modifications to the existing engine, such as changes to the bell housing, and modification of all wiring connections, before a different Generator could be connected to the engine. A change to a different generator will result in additional time and expense and require additional follow-on contracts in order to attempt to obtain equipment compatibility. The additional time, expense and uncertainty of success will result in unacceptable delays to the Dredge’s mission and a substantial duplication of costs which are not recoverable through competition.

6. EFFORTS TO OBTAIN COMPETITION: The solicitation for the generator will be advertised on FedBizOpps. Manufacturers and suppliers will have the opportunity to bid on this solicitation.

7. ACTIONS TO INCREASE COMPETITION: When the system ages and the District considers replacement of the entire system, a full and open competition shall be considered.

8. MARKET RESEARCH: Market Research was conducted for three separate purposes; (1) to determine the number of potential manufacturers whose products were similar to the one sought; (2) to determine the potential number of suppliers within the region which would be interested in and qualified to respond to the solicitation with brand-name stipulated; (3) to determine a range for fair and reasonable pricing for the generator. The Market Research was conducted between 4 May 2015 and 12 May 2015 by Virginia Regorrah, PE, Procurement Analyst. Each specific type of research is addressed in the paragraphs below.

a. Similar Products: Research determined that there are a sufficient number of suppliers within the region to ensure competition among suppliers. Additionally, experience demonstrates that we can expect bidders from around the nation.

b. Potential Suppliers: With respect to other manufacturers, an internet search for manufacturers of “synchronous brushless revolving generators” returned less than a half dozen manufacturers, and only Kato Engineering had a product meeting the other required specifications, such as size, voltage, number of poles and power supply.

c. Fair and Reasonable Pricing: The Government has received a quote for $125K from the manufacturer, which was used as the basis for the IGE. The Kato Engineering synchronous brushless revolving field generator, serial number 16881 specifications indicate that it is a 1325 kW generator. Market research into pricing for generators sized from approximately 1000 kW to 1500 kW indicates pricing from $92.5K to $150K for used generators, depending on manufacturer and power source. Simply purchasing a new alternator for a 1300 kW generator cost over $50K. Smaller 600 kW generators, were priced between $80K to $170K for new generators. Therefore, it appears that the quoted price of $125K is very reasonable for the type of generator.

9. INTERESTED SOURCES: Include a listing of the sources that expressed written interest in the acquisition.

Kato Engineering PO Box 8447 North Mankato, MN 56002

10. OTHER FACTORS: Because this generator operates within a system, changes to the generator result in changes to the entire system. It is also one of a pair of systems, and therefore, from an economic and maintenance perspective, keeping the same components is the best use, maintenance and management for the dredge.

11. TECHNICAL CERTIFICATION: "I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief."

NAME: _____________________________DATE: __________________________

TITLE: ____________________________SIGNATURE: ____________________

12. REQUIREMENTS CERTIFICATION: "I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief."

NAME: _____________________________DATE: __________________________

TITLE: _____________________________SIGNATURE: ____________________

13. FAIR AND REASONABLE COST DETERMINATION: "I hereby determine that the anticipated cost for this contract action will be fair and reasonable." Or, for those J&As citing Exception 2 (Urgency), submitted after award: "... that the cost for this contract action was fair and reasonable." Provide the basis for this determination (e.g., describe techniques used or to be used to determine fair and reasonable price, such as cost analysis, price analysis, audit, should cost, independent government estimate, etc.).

NAME: _____________________________DATE: ____________________________

TITLE: Contracting Officer SIGNATURE: ______________________

14. CONTRACTING OFFICER CERTIFICATION: "I certify that this J&A is accurate and complete to the best of my knowledge and belief."

NAME: ____________________________DATE: ______________________________

TITLE: Contracting Officer SIGNATURE: ________________________

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of the Generator for the Goetz on an other than full and open competition basis pursuant to the authority of 10 U.S.C.

2304(c)(1), as implemented by FAR 6.302-1, subject to the availability of funds, and provided the property herein described has otherwise been authorized for acquisition.

DATE: ___________________________SIGNATURE: ________________________