E01.06.01_Sole_Source_JA_FINAL.pdf

ERDC Control Log # 19-1439

Justification Review Document for Other than Full and Open Competition

For a Scope Change Modification on Contract W9132T18C0001

Requirement: Scope increase for a Broad Agency Announcement (BAA) contract with Eaton

Corporation due to Government delays and issues discovered about the worksite once the work began.

Authority: 6.302-1(a)(2)(iii)(A)- Only One Responsible Source and No Other Suppliers or

Services Will Satisfy Agency Requirements

Amount: $406,532.00

Prepared by:

Typed Name: Angela Holcomb Signature & Date

Title: Contract Specialist

Phone: 217-373-3372

Email: angela.d.holcomb@usace.army.mil _____________________________

Contracting Officer’s Representative (COR):

Typed Name: James Miller Signature & Date

Title: COR, Mechanical Engineer

Phone: 217-373-4566

Email: james.m.miller@usace.army.mil _____________________________

Contracting Officer:

Typed Name: Andrea Thomas Signature & Date

Title: Contracting Officer

Phone: 217-373-6746

Email: andrea.j.thomas@usace.army.mil _____________________________ mailto:angela.d.holcomb@usace.army.mil mailto:james.m.miller@usace.army.mil mailto:andrea.j.thomas@usace.army.mil

ERDC Control Log # 19-439

For a Modification Contract for Cooperative Der Control and Protection for Improved Micro grid Efficiency and Resiliency (C-DERMS)

FOR OFFICIAL USE ONLY

1. Contracting Activity: The U.S. Army Engineer Research and Development Center (ERDC), Construction Engineering Research Laboratory (CERL), 2902 Newmark, Dr. Champaign, IL .61822.

2. Description of Action: Contract W9132T-18-C-0001 was awarded to Eaton Corporation on October

25, 2017 with a seventeen month period of performance. The contract was awarded on a BAA proposal submission under W912HZ-17-BAA-01.

The current Army mission involves addressing the impact of a potential natural disaster disrupting power delivery to Army forts and posts, addressing the risk of a deliberate attack on power infrastructure, and addressing the concern that commercial power transmission and substation infrastructure could experience widespread and prolonged power outages and intermittent services due to overload and equipment failures. Eaton has proposed to research a unique microgrid solution that aims to secure critical missions at Army installations and reduce risk to those missions by being capable of providing necessary energy and water for a minimum of 14 days. Fort Hood, Texas was chosen as the Army installation for this project. Eaton’s original objectives include identifying microgrid opportunities at Fort

Hood for energy security and sustainability, demonstrating energy security with islanding at a project site, and addressing cyber security in the lab for the selected microgrid.

More specifically, the research objectives stated in the BAA proposal are to address control issues for medium voltage (MV) distribution systems and microgrids with highly-dispersed distributed energy resources (DER) and high penetration renewables, especially in islanding and reconnection. The performance objectives for the research are: 1) Minimizing of diesel generator size while maximizing renewable hosting capability; 2) Improved energy surety and resiliency for mission critical loads; 3)

Improved power quality for islanded microgrids with high penetration renewables; 4) Seamless transitions during network reconfiguration and resynchronization for microgrids with highly-dispersed DER. The technologies demonstrated through this project will deliver an effective control and protection solution by providing integrated management of the existing DER and critical infrastructure.

During the initial stages of execution the project experienced delays due to reconciliation of the site conditions and differing interpretations of the specifics of the efforts described in the original BAA proposal. The differing interpretations of the contract requirements and scope led to delays in finalizing which facilities would be included in this microgrid (islanding) demonstration at Fort Hood. Following these initial efforts on the project, a modification proposal was submitted by Eaton Corporation to address

Fort Hood recommendations and outstanding issues, and ensure that the project results in an islandable microgrid at Fort Hood at the finalized location selections. Because one of the selected demonstration locations has higher occupation, and therefore higher energy and water usage than the one originally proposed, there are different needs in regards to what microgrid equipment is necessary to support it and keep it secure. This modification will enable the project to install the necessary switchgear, perform the necessary modeling, and complete the necessary integration to completely isolate the agreed upon facilities at Fort Hood's airfield and demonstrate improved energy resilience for these facilities. The primary change is that the virtual microgrids will be installed at a different Fort Hood location than originally proposed.

The overall objective of this research remains to demonstrate improved energy security and resiliency at

Ft. Hood Airfield. This overall objective will be achieved through the installation of a microgrid at the

Facilities.

Approval is being requested for a Contract Modification; anticipated to be funded with Secure

Management of Energy (appropriation: 21-2040) Army RDT&E funds. A modification of $406,532.00 with an extension of ten months after date of modification award is estimated at a total contract value of

$1,906,532.00

3. Description of Supplies/Services: Eaton’s team will put together solutions for sustainable energy security at Fort Hood while minimizing the effort and risk to critical facilities. Services will provide options with virtual demonstrations ahead of implementation. The scope of work was revised from the original proposal to include cybersecurity for the finalized location selections.

The contractor proposed a novel path forward for this project. First, they will perform auditing analysis and design of a microgrid for the main site on Fort Hood. They will also audit, model and develop virtual microgrids for both of the two additional sites on Fort Hood. They will then develop, implement and demonstrate the necessary cybersecurity add-ons for the main site on Fort Hood.

The contractor will also install, commission and demonstrate the operation of a microgrid at two building locations. They will evaluate the energy security benefits of photovoltaics at these two buildings. Based on their findings, they will install a 30kW photovoltaics plant to serve these buildings. They will also select, procure, install and integrate a recloser for the main site microgrid system and will integrate the photovoltaics system into the microgrid.

The contractor will integrate the microgrid into Ft. Hood’s enterprise communications network, train Ft.

Hood personnel in the operation of the network and conduct an energy security demonstration. The results of all of their activities will be documented. All of these efforts will support the originally proposed objectives.

4. Authority Cited: 10 United States Code 2304(c)(1) as implemented in Federal Acquisition Regulation

6.302-1(a)(2)(iii)(A), only one responsible source and no other suppliers or services will satisfy agency requirements.

5. Reason for Authority Cited: Eaton Corporation, located at W126N7250 Flint Dr, Menominee Falls, WI, is the only responsible source and no other services will satisfy the Government’s requirements. This effort represents services that are deemed to be available only from the original source since this is a scope modification for the continued provision of highly specialized services, and it is likely that award to any other source would result in unacceptable delays and substantial duplication of costs to the

Government that is not expected to be recovered through competition. Eaton Corporation is the original source of “Cooperative DER Control and Protection for Improved Microgrid Efficiency and Resiliency

(C-DERMS)”, and provides unique and novel services.

6. Efforts to Obtain Competition: In accordance with FAR 6.102(d)(2) competitive selection of basic and applied research and that part of development not related to the development of a specific system or hardware procurement is a competitive procedure if award results from a broad agency announcement that is general in nature identifying areas of research interest, including criteria for selecting proposals, and soliciting the participation of all offers capable of satisfying the Government’s needs; and a peer or scientific review. The original contract was based on a successful BAA proposal.

7. Actions to Increase Competition: Synopses of individual contract actions based upon proposals received under the BAA is not required. The availability of the BAA must be publicized through the

Government wide point of entry (GPE) and, if authorized pursuant to FAR Subpart 5.5, may also be published in noted scientific, technical, or engineering periodicals. The notice must be published no less frequently than annually.

8. Market Research: The Government is aware that there are other contractors doing microgrid-related

R&D. However, this effort is based on Eaton’s unique and novel concept and work has already begun at

Ft. Hood. These facts limit any other vendor from being able to complete the services for proprietary reasons. Eaton’s preexisting research under this contract is for unique and novel research for C-DERMS, a concept no other contractor can fulfill.

EATON CORPORATION: Menominee Falls, WI – CAGE Code 4AGL7 – Corporate Entity (Not Tax

Exempt)

9. Interested Sources: Since Eaton possesses the unique intellectual capital that is required to meet the needs of this solicitation, no other vendors will be sought.

10. Technical Certification: Include the following statement:

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.

Name: James Miller

Title: Project Manager

Signature & Date: ________________________________________________

12. Requirements Certification: Include the following statement:

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.

Name: Jedediah B. Alvey

Title: Acting Chief, Energy Branch

Signature & Date: ________________________________________________

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. Price and Cost analysis techniques shall be used in accordance with FAR 15.404. Certified costs shall not be obtained IAW DoD Deviation 2018-O0015, as this acquisition is less than the threshold of $2 million.

Name: Andrea Thomas http://farsite.hill.af.mil/reghtml/regs/FAR2AFMCFARS/FARDFARS/FAR/05.htm#P264_42554

Title: Procurement Contracting Officer

Signature & Date: ________________________________________________

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Andrea Thomas

Title: Procurement Contracting Officer

Signature & Date: ________________________________________________