Description
JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION Introduction: As required by Federal Acquisition Regulation 6.303-2, this Justification for Other Than Full and Open Competition (JOTFOC) is prepared to document the facts and rationale justifying the authority cited in Paragraph 4 to negotiate with a sole offeror for the above requirement. This JOTFOC follows the format and contains all the information required under FAR 6.303-2. 1. Identification of Agency, Contracting Activity and Document. Bureau of Reclamation, Lower Colorado Regional Office, Acquisitions and Assistance Management Office, LC-10000.Justification for Other Than Full and Open Competition.Justification for Use of Existing IDIQ Contract as Acquisition Vehicle. 2. Nature and/or Description of Action Being Approved. The requirement involves the complete rehabilitation of the existing spare turbine guide bearing (TGB) located at Parker Powerplant - Parker-Davis Project, Arizona-California. Due to the unusual and compelling urgency of this requirement, competition will be limited to the Bearing IDIQ Contract holders, all of which have already been determined to be capable and qualified under the Bearing IDIQ solicitation: Contract No. 07-CP-30-8081 - PME Babbitt Bearing, Minden, NV; Contract No. 07-CP-30-8095 - Precision Machine and Supply, Lewiston, ID;Contract No. 07-CP-30-8096 - Pioneer Motor Bearing, Kings Mountain, NC;Contract No. 07-CC-30-8097 - Kingsbury, Inc., Hatboro, PA The CO will transmit an Request for Quote (RFQ) to each IDIQ contractor requesting response including firm fixed lump sum price and delivery schedule in one (1) business day. 3. Description of the Supplies or Services Required to Meet Agency's Need The Government requires that the Parker Powerplant spare turbine guide bearing be shipped to the bearing shop, inspected, prepared, re-babbitted, final-machined, and delivered back to Parker Powerplant as soon as practicable and in accordance with the Statement of Work and S. Morgan Smith (original equipment manufacturer) drawings Nos. 1123-GN-1 and 1123-GW-1, attached to the RFQ. 4. Statutory Authority Permitting Other Than Full and Open Competition. The statutory authority for use of other than full and open competition for this transaction is as follows: .[check the applicable FAR 6.302 authority.] [ ] FAR 6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements (10 U.S.C 2304(c)(1) or 41 U.S.C 253(c)(1)). [X] FAR 6.302-2 Unusual and compelling urgency (10 U.S.C 2304(c)(2) or 41 U.S.C 253(c)(2)). (This justification may be made and approved after contract award when preparation and approval prior to award would unreasonably delay the acquisition.) [ ] FAR 6.302-3 Industrial mobilization; engineering, developmental, or research capability; or expert services (10 U.S.C 2304(c)(3) or 41 U.S.C 253(c)(3)). [ ] FAR 6.302-4 International agreement (10 U.S.C 2304(c)(4) or 41 U.S.C 253(c)(4)). [ ] FAR 6.302-6 National security (10 U.S.C 2304(c)(6) or 41 U.S.C 253(c)(6)). [ ] FAR 6.302-7 Public interest (10 U.S.C 2304(c)(7) or 41 U.S.C 253(c)(7)). (Requires approval of head of the executive agency.) 5. Background of Requirement and Justification for Use of "Unusual and Compelling Urgency" Authority. After the rehabilitation of the final turbine-geneator unit (Unit No. 4) under Schedule E of contract No. 04-CC-30-0107, Unit No. 4 was re-commissioned and returned to commercial service on May 6, 2010. Just after midnight on the morning of September 14, 2010, as the Hoover control center was transitioning the operation of the unit from generation mode to synchronous condense mode, the turbine guide bearing (TGB) temperature alarm activated, the TGB temperature continued to rise, the geneator field breaker tripped, and the unit shut down and locked out automatically. Parker personnel tested the oil in the TGB oil sump, and found bearing babbitt in the oil, indicating that the bearing had been "wiped". The contractor, American Hydro Corporation, was notified of the TGB failure on September 14, 2010. The contractor's superintendent arrived at the job site on September 20, 2010; and the subcontractor millwright crew arrived at the plant on September 21, 2010. The contractor dis-assembled the TGB on September 21-22, and advised the Government that the bearing was salvageable and could be repaired by hand-scraping at the plant. The contractor then began cleaning and scraping the wiped babbitt in the TGB on or about September 22, 2010. The scraping work continued on September 23-24 with results that were apparently satisfactory to the contractor. However, on Saturday, September 25, 2010, the contractor's efforts to salvage the TGB failed when a large flake (about 2.5 inches square and about -inch thick) was dislodged from the surrounding and underlying babbitt. Based on the contractor's assessment, this rendered the bearing unsalvageable. Accordingly, on September 26, 2010, the contractor, using equipment borrowed from the Government with the approval of the Parker Dam Manager and the COR, removed the failed TGB from the turbine pit for shipment to its shop in York, PA, and presumably on to its bearing shop, American Babbitt Bearing in Huntington, WV. The contractor's transportation company picked up the failed TGB from the plant on the afternoon of September 27, 2010. The Government has requested from the contractor, but has not yet received, information regarding the contractor's plan and schedule for evaluation, appropriate repair or re-babbitting of the bearing, and delivery of the bearing back to the powerplant for re-installation in the machine. Therefore, the timeframe required for the contractor to repair the TGB and to then prepare Unit No. 4 for return to commercial operation is completely unknown at this time. Due to the failure of the Parker Unit No. 4 TGB on September 14, 2010; the resulting forced outage of Parker Unit No. 4; the failure on Saturday, September 25, 2010, of American Hydro Corp.'s efforts to salvage the bearing; and the indeterminate and possibly lengthy timeframe involved in American Hydro's repairs to the failed bearing; it is considered to the in the best interest of the Government to proceed, in parallel with American Hydro's work, with the rehabilitation of the Parker Powerplant spare TGB. Even though the Bearing IDIQ contracts are limited to Hoover, the unusual and compelling urgency of the requirement justifies the use of the exising IDIQ contract(s) and the limitation of competition to the existing Bearing IDIQ contract holders. The unusual and compelling urgency of the requirement to rehabilitate the spare TGB arises from the forced outage resulting from the failure of the Unit No. 4 TGB; the associated negative effect upon the GPRA performance of Parker Powerplant and the Lower Colorado Dams Office; the resulting loss of unit availability revenue; the resulting loss of power generation revenue; and the additional loss of power generation revenue caused by the re-scheduling of water deliveries downstream. These contractor-caused negative effects can potentially be mitigated by the timely rehabilitation and return to the powerplant of the spare turbine guide bearing. 6. Proposed Contractor's Unique Qualifications/Nature of Acquisition Requiring Use of Cited Authority. Due to the unusual and compelling urgency of this requirement, competition will only be limited to the four (4) Bearing IDIQ Contract holders listed in item No. 2 above, all of which have already been determined to be capable and qualified under the Bearing IDIQ solicitation. 7. Efforts Made to Ensure That Offers are Solicited From as Many Potential Sources as Possible. See item No. 6 above. Pursuant to FAR 5.101(a), a synopsis notice of the contract action will be posted on the Federal Business Opportunities (FedBizOps) website within 30 days of contract award per 6.305 (b). 7. Determination of Fair and Reasonable Price. Fair and reasonable price will be determined by price analysis based on the IGCE. 8. Market Survey. Not applicable due to unusual and compelling urgency of the requirement and the fact that each of the four (4) Bearing IDIQ Contract holders listed in item No. 2 above has already been determined to be capable and qualified under the Bearing IDIQ solicitation. 9. Additional Supporting Facts for Use of Other Than Full and Open Competition. Supporting facts are outlined in item No. 5 above. 10. Listing of Sources Expressing Interest in Acquisition. See item numbers 2,5 and 6 above. RFQ's will be sent to the Bearing IDIQ holders as noted above. 11. Action Taken to Remove and Overcome Barriers to Competition. Competition is anticipated to be adequate even considering the unusual and compelling urgency of this requirement. Competition will only be limited to the four (4) Bearing IDIQ Contract holders listed in item No. 2 above, all of which have already been determined to be capable and qualified under the Bearing IDIQ solicitation. 12. Approvals. The supporting data, which is the responsibility of the Bureau of Reclamation technical personnel and forms basis for this justification, have been certified as complete and accurate by means of the below signature on this document. As required by FAR 6.303-2(a)(12) and 6.304(1), (a) the contracting officer certifies that the justification is accurate and complete to the best of her knowledge and belief and (b) the signatures demonstrate the certifications and approvals necessary for this Justification for Other Than Full and Open Competition.