JA_for_Sole_Source_Eaton_Electrical_Services_and_System.pdf

CONTROL NUMBER: LRN-16-03

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SOLE SOURCE

1. Contracting Agency: U.S. Army Corps of Engineers (USACE)

Nashville District

110 9th Ave. South, Room A405

Nashville, TN 37203

2. Description of Action: This Justification and Approval (J&A) is for other than full and open competition for a new contract to Eaton Corporation (Eaton) for support services to install previously-purchased Eaton brand low voltage (LV) and medium voltage (MV) circuit breakers and switchgear assemblies (hereinafter, Government Furnished Equipment or GFE) at the Dale

Hollow and Cordell Hull Power Plants. The Contract will be a Commercial Firm Fixed-Price

Service type contract valued at approximately $180,000 using Operation and Maintenance funding.

3. Description of Services: The Contractor shall provide an on-site Field Service Specialist, who has been factory trained by Eaton’s Electrical Services & Systems (EESS) Group, to oversee basic installation activities performed by USACE personnel, which activities include site modifications to prepare for the GFE, disassembly and removal of the existing in-service equipment, placement, wiring, and installation of the GFE. Specifically, the Field Service

Specialist will be required to perform complex start-up and acceptance activities, to include:

analysis of existing in-service equipment and site conditions, system troubleshooting, relay and circuit breaker settings, measurements, testing and customer training. The total value of the required services is approximately $180,000.00.

4. Authority Cited: Acquisitions conducted under simplified acquisition procedures are exempt from the requirements in FAR part 6. This acquisition for other than full and open competition is authorized pursuant FAR subpart 13.5, in accordance with 41 U.S.C. 1901. This J&A was prepared in accordance with FAR 13.501(a)(2)(i).

5. Reason for Authority Cited: The GFE was manufactured by Eaton and the manufacturer’s warranty has expired. However, if the installation of such GFE is performed by USACE employees with installation support, by a Field Service Specialist from Eaton’s EESS Group, then Eaton will provide a two-year warranty for the GFE. Such warranty is critical to protect the Government’s investment in the GFE, which contains sensitive electronics. Product failure involving electronics typically follows a "bathtub curve" over time. When first commissioned, the failure rate is high and is usually caused by material defects, design blunders, errors in assembly, etc. Accordingly, a warranty during the first two-years of operation has significant value for the Government. Furthermore, utilizing Eaton’s Field Service Specialist will minimize the amount of time needed for USACE personnel to install this equipment, which will reduce the Government’s installation costs.

6. Efforts to Obtain Competition: LRN routinely seeks to obtain competition for all procurements, including procurements to fullfill LRN’s hydropower mission. Efforts were undertaken to seek out companies that could provide the required installation support services and accompanying two-year warranty. While there were companies that could provide the installation support services, only Eaton offers the additional warranty. Given the criticality of the warranty, competition for this procurement is not feasible because Eaton is the only company that will provide a warranty.

http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/06.htm#TopOfPage

7. Actions to Increase Competition: Efforts were undertaken to seek out companies that could provide the required installation support services and accompanying two-year warranty. While there were companies that could provide the installation support services, only Eaton offers factory-trained Field Service Specialists trained on the specific GFE to be installed and, more importantly, the additional warranty.

8. Market Research: Other than Eaton’s EESS Group, research did not reveal any contractors that offer factory-trained Field Service Specialists for equipment manufactured by Eaton.

9. Interested Sources: To date, no other sources have written to express an interest. All notices required by FAR 5.201 shall be published and any proposals received shall be considered.

10. Other Factors:

A. Procurement History: This is a new requirement for LRN. Therefore, there is no relevant procurement history.

B. Subcontracting Competition: Given that the Government intends to contract directly with Eaton for the services only available through Eaton, there are no known subcontracting opportunities.

11. Technical Certification: I certify that the supporting data under my cognizance which are included in this justification are accurate and complete to the best of my knowledge and belief.

NAME: John Ermer DATE:_____________________________________

TITLE: Maintenance Engineer SIGNATURE:_______________________________

12. Requirements Certification: I certify that the supporting data under my cognizance which are included in this justification are accurate and complete to the best of my knowledge and belief.

NAME: Jeffery K. Hitchcock DATE:_____________________________________

TITLE: Contracting Liaison SIGNATURE:_______________________________

13. 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. This determination shall be made by comparison to the Independent Government Estimate and by performing price analysis.

Certified cost or pricing data is not required for this action for commercial services are being acquired.

NAME: Stacy S. Wiggins DATE:_____________________________________

TITLE: Contracting Officer SIGNATURE:_______________________________

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

NAME: Stacy S. Wiggins DATE: ____________________________________

15. Legal Review: I certify that this justification has been reviewed and determined to be legally sufficient.

NAME: Bonnie B. Jagoditz DATE:___________________________________

TITLE: Deputy District Counsel SIGNATURE:_______________________________

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of the installation support services for previously-purchased Eaton brand LV and MV circuit breakers and switchgear assemblies by utilizing a Field Service Specialist from Eaton’s EESS group on an other than full and open competition basis pursuant to the authority of 41 U.S.C. 1901 as authorized by FAR subpart 13.5, subject to the availability of funds, and provided that the services and property herein described have otherwise been authorized for this acquisition.

NAME: Stacy S. Wiggins DATE: ____________________________________