WBR_1413_106-1_Determ_to_solicit_from_a_single_source_under_SAT__FAR_13_1.pdf

Solicitation # 140R4021Q0074 Page 1 of 4

WBR 1413.106-1 Template 1 (11/2020)

DETERMINATION TO SOLICIT FROM A SINGLE SOURCE

Pursuant to Federal Acquisition Regulation (FAR) 13.106-1(b)(1)(i), for purchases not exceeding the Simplified Acquisition Threshold (SAT) Contracting Officers may solicit from only one source if the circumstances of the contract action deem only one source is reasonably available (e.g., urgency, exclusive licensing agreements, brand name, or industrial mobilization).

Pursuant to FAR 13.106-1(b)(1)(ii), when a single source is identified to provide a portion of the purchase as a Brand-Name, the documentation in paragraph 3 must state that this determination is only for a portion of the requirement.

1. Agency and Contracting Activity.

U.S. Department of the Interior, Bureau of Reclamation, Albuquerque Area Office, Acquisition Management Division

2. Name and Address of Single Source.

Wetland Equipment Company, Inc.

118 West Main Street Thibodaux, LA 70301

3. Description of Supplies/Services and Estimated Cost.

The Bureau of Reclamation Socorro Field Division requires two replacement track sets for the Wetland Equipment Company Amphibious Pontoons installed on Amphibious 330CL Caterpillar excavators. The two track assemblies will consist of four equal rolls of track systems. There are two track systems per amphibious excavator (one on each side of the excavator).

Reclamation purchased three Caterpillar excavators which did not include pontoons in 2003.

Reclamation then purchased three pontoons for these excavators from Wetland Equipment Company on 8/15/2003 for $595,410.00. The pontoons were constructed with patented technology that only Wetland Equipment Company is able to provide for the type of pontoons purchased.

The track chain shall be a five inch heavy duty track chain with K3 attachments on every other link. The five inch track chain shall have alloy heat treated rollers, alloy heat treated pins, and a 70,000 pound minimum breaking load.

Each track system (4 total) shall include the installation of special extreme duty aluminum cleats and Ultra High Molecular Weight (UHMW) wiper pads and wear pads. Each track system will include a minimum of 97 aluminum cleats mounted to K3 attachments, a minimum of 8 wiper pads equally spaced in pairs, and a minimum of 194 wear pads equally spaced in pairs.

Solicitation # 140R4021Q0074 Page 2 of 4

The replacement track sets are needed by mid-October to replace the existing tracks on the pontoons installed on the Amphibious 330CL Caterpillar excavators. The excavators are performing work on the Delta Channel within the Rio Grande River system.

4. Description of Circumstances, including why only one source is reasonably available.

In accordance with FAR 13.106-1(b)(1)(i), Wetland Equipment Company is the only company able to supply amphibious excavator track assemblies for the Wetland Equipment Company pontoons installed on Reclamation’s Amphibious 330CL Caterpillar excavators.

The Wetland Equipment Company custom made the pontoon swamp tracks that are on the Caterpillar 330CL excavators owned by Reclamation. The Wetland Equipment Company uses patented technology to create their pontoons. Also, the parts for the track assemblies cannot be produced by any other company since the Wetland parts are proprietary because Wetland owns the castings at the mill to produce the cleats, pads, and chain. As such, other companies are not able to provide the proper replacement track sets.

5. Determination of Fair and Reasonable Price.

The Contracting Officer has determined the price of the replacement track sets to be fair and reasonable in accordance with FAR 13.106-3(a)(2)(ii) and (vi). Reclamation previously purchased the same track sets as follows:

Purchase Date

Contract No. Contract Amount

Competed/# of Offers Received

Contractor

4/20/2005 R05PG430069 $48,000.00 3 Wetland Equipment Co.

8/20/2009 R09PG400149 $99,000.00 2 Wetland Equipment Co.

9/01/2010 R10PX43065 $64,500.00 4 Wetland Equipment Co.

3/21/2012 R12PX43013 $69,525.00 2 Wetland Equipment Co.

3/13/2017 R17PX00220 $142,900.00 1 Wetland Equipment Co.

12/6/2019 140R4020P0009 $144,350.00 1 Wetland Equipment Co.

Due to the level of staffing at the Socorro Field Division, prior to 2017 the track chain was ordered unassembled and the staff at the Socorro Field Division would assemble for the excavators. Starting with the purchase in 2017, the track chain came fully assembled which is indicative of the price change from the unassembled track chain to the fully assembled track chain.

The unit price for each track set purchased in FY2020 was $46,450.00 and the current unit price is $49,550.00 which calculates to only a 6.4% increase to purchase currently. The Independent Government Estimate also reflects the appropriate per unit cost; however, the delivery fee is not known.

6. Description of Market Research.

The market research performed by the Government’s technical expert, Brian Skornia, indicates that only Wetland Equipment Company can supply the amphibious excavator track assemblies for the Wetland Equipment Company pontoons installed on Reclamation’s Amphibious 330CL Caterpillar excavators.

Solicitation # 140R4021Q0074 Page 3 of 4

Additional market research performed by the Contract Specialist indicates that Wetland Equipment Company is the sole provider of the amphibious excavator track assemblies for the Wetland Equipment Company pontoons installed on Reclamation’s Amphibious 330CL Caterpillar excavators.

Wilco Manufacturing had previously responded to a solicitation for these track sets in 2017 but indicated they would not be able to provide the proper chain without the actual specifications/drawings for the chain. Wetland Equipment Company indicated they could not supply drawings of the chain due to their proprietary nature. Without the proper drawings and specifications no other company would be able to reproduce the chain needed for the track sets.

Another company which makes the chain for the tracks sets only provided Tsubaki chain which is not acceptable as per the Statement of Work. Tsubaki domestic or foreign chain is not acceptable because the chain does not have alloy heat treated rollers and only has a 45,000 lb. average braking load instead of the 70,000 lb. minimum braking load required by the Statement of Work. Another company could only provide four (4) inch chain and not the five (5) inch chain needed for this requirement.

5M2 is a company who quoted in 2012; however, they were deemed technically insufficient because they could only provide land equipment tracks instead of the needed amphibious equipment tracks.

Other market research indicates that it remains economical to purchase replacement track sets for the Reclamation owned pontoons instead of purchasing a new excavator fitted with pontoons. Amphibious excavators from other companies range in price from $107,138.00 for a used 2013 amphibious excavator to $423,057.00 for a used 2016 amphibious excavator.

Depending on the care of the equipment an amphibious excavator can last from 15-20 years.

A 2021 Caterpillar excavator ranges from $230,000 - $270,000 for only the excavator and another $285,000.00 for the pontoons. Most companies sell the excavator fitted with the pontoons rather than just the pontoons which results in a lower overall cost.

It is estimated that the Reclamation amphibious excavator will need to be replaced in 2023.

This is after the life of the tracks being purchased now. It is likely that a new excavator fitted with pontoons would be purchased in the future and this item would be competed.

Replacement tracks would eventually need to be purchased and depending on where the new amphibious excavator is purchased from, Reclamation may run into another sole source requirement to purchase replacement tracks.

Solicitation # 140R4021Q0074 Page 4 of 4

Based on the market research, it is determined that Wetland Equipment Company is the only supplier of the amphibious excavator track assemblies needed for this requirement.

SIGNATURES

PREPARED BY:

Name: Tina M. Villegas

Date: August 4, 2021

CONTRACTING OFFICER (CO) (FAR 13.106-1(b)):(All Values)

Name: Tina M. Villegas

Date: August 4, 2021

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