K--Justificaiton and Authorization

USACE, MED, Winchester, VA proposes to negotiate a firm-fixed price contract with Bauer Compressors of Norfolk. VA. in accordance with the follwoing J&A: Control N0. 09-018 Limited Source Justification and Approval (LSJ&A) 1. CONTRACTING AGENCY: Transatlantic Programs Center, U.S. Army Corps of Engineers, Winchester, VA. 2. DESCRIPTION OF ACTION: Procure additional equipment from Bauer Compressors to resolve an air quality problem existing in the Chaparral Missile Maintenance Facility in Cairo, Egypt built under contract W912ER-06-C-0016. This facility was completed and turned over to the Egyptian Ministry of Defense in July 2008. The facility has a 3200 psi compressed air system used to test the missiles. During construction the high pressure compressed air system was procured from Bauer Compressors Inc. Bauer also provided installation of several pieces of the High Pressure compressed air system. Additionally Bauer provided technical assistance to the construction contractor during installation of the complete system. Following turnover of the facility the Egyptian Ministry of Defense contracted Madison Research Corporation (MRC) to operate the facility. During the activation of the facility it was identified that the high pressure compressed air system did not produce the extremely pure air necessary for the missile maintenance procedure. Many efforts were made to adjust the system to get the desired output to no avail. After several months of investigation the most economical correction of the problem would be to add the CPF 900 filter assembly manufactured by Bauer Compressor Inc. Bauer Compressor Inc is the only source capable of responding due to the changes required in the compressor manufactured and installed by Bauer to meet the critical air quality required. 3. DESCRIPTION OF SUPPLIES: CPF900 filter with new receiver and accessories. Estimated Cost: $150,000. 4. AUTHORITY CITED: 10 U.S.C. 2304(c) (1), as implemented by FAR 6.302-1 (iii) and DFARS 206.302-1, Only One responsible source and no other supplies or services will satisfy agency requirement.. 5. REASON FOR AUTHORITY CITED: Per FAR 6.302 (iii) allows for use of one responsible source. If any other source was used there would be a duplication of costs as well as a delay in fulfilling agency requirements and no other suppliers will satisfy mission requirements. 6. EFFORTS TO OBTAIN COMPETITION: During the efforts to resolve the situation other vendors were contacted to resolve the situation. They refused to participate due to their equipment being installed on competitors High Pressure Compressed Air System. The other issue identified during the search was the potential for failure resulting in property damage and serious bodily injury from a hybrid system (Bauer + other vendors equipment). 7. ACTIONS TO INCREASE COMPETITION: Future acquisitions will follow DFARS Subpart 225.73 Acquisitions for Foreign Military Sales. 8. MARKET RESEARCH: The Armed Forces Export Act (AECA), section 42(c) prohibits using FMS non-repayable funds made available under this Act for procurement outside the United States without presidential approval. No other sources were found for the Bauer CPF 900 filter assembly. 9. INTERESTED SOURCES: A notice of proposed contract action will be published IAW FAR 5.201. 10. OTHER FACTORS: None.