SoleSourceJustification.pdf

ERDC 14-280

FOR OFFICIAL USE ONLY

Justification and Approval For Other Than Full and Open Competition

1. Contracting Activity: The U.S. Army Corps of Engineers (USACE) Engineer Research and Development Center (ERDC) Construction Engineering Research Laboratory (CERL) Contracting Office is located at 2902 Newmark Drive, Champaign, IL 61826-1076.

2. Description of Action: ERDC-CERL is seeking approval to award a sole-source, firm fixed price contract to Energy Storage Systems. CERL requires two (2) Battery Energy Storage Systems [(BESS) BESS-30 and BESS-60] which utilize a novel Redox flow battery system in lieu of conventional secondary batteries. The BESS-30 and BESS-60 will be used for research purposes including the evaluation of future use in contingency base operations. The systems will be installed and evaluated at Champaign, IL and Fort Leonard Wood, MO.

3. Description of Supplies: The systems include use of the only known electrolytes that can be safely transported and are environmentally friendly resulting in a rapid deployment capability and low environmental hazard for redeployment and base closure operations. CERL intends to use the acquired systems for evaluation purposes in order to determine feasibility for contingency operations. The Government’s specifications for safety, deployability, and temperature operating range are as follows:

Safety: electrolyte presents only minor health or toxilogical risks with a National Fire Protection Association (NFPA) of 3,0,0 or less and a pH > 1.5 with minimal risk of producing toxic off gases during operation.

Deployability: hazardous materials classification does not fall under miscellaneous dangerous goods (Class 9) and can be transported as a dry powder.

Temperature Operating Range: -20 to 50 C

While a variety of other flow cell battery chemistries exist, competing technologies are subject to safety concerns and increased environmental hazards:

Bromine/polysulfide systems (manufacturer: VRB Power Systems) are prone to crossover and mixing of the electrolytes, which can lead to precipitation of sulfur species and the formation of H2S and Br2, both of which are extremely toxic.

The solubility of vanadium in all-vanadium flow cells depends on the pH of the electrolyte. Since only low pH levels allow for practical energy densities, suitable all-vanadium flow cells require very acidic electrolyte solutions (pH << 0.1). Current all-vanadium systems have a temperature range limitation of less than 55 C due to

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solubility phenomena as well and current efforts to increase the temperature operating are still in the R&D phase of development.

Vanadium/bromine flow cells can emit toxic bromine-vapor during operation

Zinc/Bromine flow cells (manufacturer: RedFlow Ltd.) also suffer from formation of toxic Br2, but are also subject to extensive corrosion in the presence of concentrated HBr electrolyte.

4. Authority Cited: 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1(a)(2)(i) – Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

5. Reason for Authority Cited: The proposed procurement meets the criteria for exclusion from full and open competition under the authority cited above based on ESS being the only flow battery vendor capable of providing a safe, deployable electrolyte that can operate at higher temperatures.

Based on market research, the systems developed and manufactured by ESS are the only supplies that satisfy all of the Government’s specifications listed in Section 3, above. These are the only systems that currently use a hybrid flow battery approach with a salt based electrolyte and an all iron based chemistry as the active materials. The all iron based chemistry uses an electrolyte that can be safely transported and is environmentally friendly resulting in a rapid deployment capability and low environmental hazard for redeployment and base closure operations and is the only known chemistry containing non-hazardous active materials that use a salt based electrolyte in lieu of an acid based electrolyte.

Impact of Not Awarding to Energy Storage Systems , Inc (ESS): The inability to award this requirement to EES would result in the use of battery chemistries for the flow battery that do not meet the safety and high temperature operating requirements, which would render them unsafe and therefore not deployable and transportable due to hazmat classifications. Without further evaluation of the systems, no systems will be available for future use in contingency base operations.

6. Efforts to Obtain Competition: Based on information in paragraph 5, above, competition for this action is not feasible.

7. Actions to Increase Subsequent Competition: Being a research and development organization, ERDC-CERL continues and will continue to stay abreast of changing, technological developments, new products, equipment, materials, and supplies which may become available and can in the future be used to satisfy similar requirements. In the future, FOR OFFICIAL USE ONLY as additional technologies become available, full and open competition will be utilized to the maximum extent practicable.

8. Market Research: The project development team (PDT) conducted in-depth market research that included both technical research for identifying potential flow battery chemistries along with market research to determine which companies are using the identified chemistries.

Researchers and subject matter experts at the Naval Postgraduate School (NPS) were used to determine which flow battery chemistry would be feasible to meet the Government’s safety, deployability, and temperature operating range requirements. Only two known chemistries were identified that are currently available to meet the Government’s requirements: Fe/Cr in weak hydrochloric acid and “all-iron” in a salt based electrolyte.

For Fe/Cr chemistry, five companies were identified which had developed working Fe/Cr flow battery prototypes in the past with only two companies currently developing and manufacturing Fe/Cr flow batteries beyond the prototyping stage. The National Aeronautics and Space Administration (NASA) was the first to develop Fe/Cr flow battery technology in the 1970s. Japanese companies Sumitomo Electric Industries and Kamio conducted extensive research and development in the 1980s but transitioned their efforts to other battery chemistries. The PDT researched each company’s patents, conducted site visits and email correspondence. Only two companies were identified as recently developing and manufacturing Fe/Cr flow batteries: Imergy Power Systems (formerly Deeya) and Enervault Corporation. After multiple attempts to manufacture and test the Fe/Cr flow battery, Imergy Power Systems has changed from Fe/Cr system to a vanadium system due to hydrogen generation issues. Imergy Power Systems is no longer an active manufacturer of the Fe/Cr flow battery system. Enervault Corporation has recently proven success with their Fe/Cr flow battery and has become the only known vendor to be actively developing and manufacturing a Fe/Cr flow battery. Enervault Corporation completed a commercial 250 kW / 1 MW-hr Fe/Cr flow battery system in May of 2014, but has declined involvement in producing flow battery systems below 250 kW / 1MW-hr.

For “all-iron” in salt based electrolyte chemistry, ESS is the only known vendor that is actively manufacturing and producing an all-iron flow battery. The all-iron flow battery is a new technology which requires that evaluations be conducted by ERDC-CERL to assess the possibility for future use in contingency operations. As of July 2014, ESS has succeeded in reaching over 3000 cycles for a working system. This is an important milestone for proving the feasibility of this new chemistry.

9. Interested Sources: In accordance with FAR Part 5, a notice of intent to award a sole source contract was posted to the Government Point of Entry, FedBizOpps, on 22 July 2014.

Responses to the notice of intent were due by 6 August 2014. To date, no responses have

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been received. If any interested sources become available, each will be considered and this justification will be amended to reflect the evaluations.

If additional sources become available for future acquisitions, full and open competition will be utilized to the maximum extent practicable.

10. Other Facts:

a. Procurement History: This is a new requirement and has not been previously acquired.

b. Acquisition data availability: N/A

c. Unusual and compelling urgency: N/A

d. Subcontracting Opportunities: Energy Storage Systems (ESS) is a small business under North American Industry Classification System (NAICS) code 335911 – Storage Battery Manufacturing, with a size standard of 500 employees.

In accordance with FAR 19.702, any contractor receiving a contract for more than the simplified acquisition threshold must agree in the contract that small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns will have the maximum practicable opportunity to participate in contract performance consistent with its efficient performance.

A subcontracting plan is not required as Energy Storage Systems (ESS) is a small business.

e. Funding Information: Fiscal Year 2013 Army Research Development Test and Evaluation funds will be used.

11. Technical/Requirements Certification:

I certify that the supporting data under my cognizance, which are included in the justifications, are accurate and complete to the best of my knowledge and belief:

MAJ Andrew C. Johannes Signature: ____________________ Date: ______________25 July 2014

JOHANNES.ANDREW.

CARSON.1234013307

Digita ly signed by

JOHANNES ANDREW CARSON 1234013307

DN c US o U S Government ou DoD ou PKI ou USA cn JOHANNES ANDREW CARSON 1234013307 Date 2014 07 25 11 13 45 05'00'