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FBO DAILY ISSUE OF SEPTEMBER 30, 2011 FBO #3597
SPECIAL NOTICE

99 -- Hitachi Breaker Spare Parts for Hoover Dam, Justification for Other than Full and Open Competition

Notice Date
9/28/2011
 
Notice Type
Special Notice
 
Contracting Office
Bureau of Reclamation - LC - Lower Colorado Regional Office P.O. Box 61470 Boulder City NV 89006
 
ZIP Code
89006
 
Archive Date
9/27/2012
 
E-Mail Address
Point of Contact above, or if none listed, contact the IDEAS EC HELP DESK for assistance
(EC_helpdesk@NBC.GOV)
 
Small Business Set-Aside
N/A
 
Description
Contract No. R11PX30403 Justification for Other than Full and Open Competition - Sole Source Introduction: As required by FAR 13.501(a)(i) and RAR WBR 1413.501 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, Justification for other than Full and Open Competition for the purchase of Hitachi Breaker Spare Parts. 2. Nature and/or Description of Action Being Approved. The purchase of Hitachi spare parts from Hitachi's only authorized distributor HVB AE Power System Inc. (HVB.) 3. Description of the Supplies or Services Required to Meet Agency's Need The purchase of breaker spare parts from HVB AE POWER SYSTEM INC (HVB) for the following breakers: (1) SF6 Main Unit Breaker N724(2) SF6 Main Unit Breaker A424. 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 FAR Subpart 13.5 Test Programs for Commercial Items (section 4202 of the Clinger-Cohen Act of 1996). 5. Proposed Contractor's Unique Qualifications/Nature of Acquisition Requiring Use of Cited Authority. Hitachi is the original manufacturer of these breakers. No other vendor has the ability to manufacture these parts because the technology to manufacture these parts is proprietary to Hitachi. HVB is the only authorized distributor for Hitachi Breaker spare parts installed on all Hoover Dam's nineteen Generators. In addition, these breakers were custom designed for Hoover Dam and therefore, no other vendor can manufacture an equal product. Additionally, other vendors do not have access to the Hitachi proprietary drawings and technical data to allow them to reverse engineer the spare parts with a high degree of confidence that these spares will function consistently, reliably and at the same operational effectiveness as the original Hitachi parts. 6.Efforts Made to Ensure That Offers are Solicited From as Many Potential Sources as Possible. Pursuant to FAR 5.101(a), a synopsis notice of the contract action was posted on the FedBizOps website. The notice of intent to sole source was posted on 08/16/2011 and no responses were received. Hitachi is the original manufacturer of these breakers. HVB is the only authorized distributor for Hitachi Breaker spare parts\and installed on all nineteen Generators. Market research shows that companies such as GE were contacted to see if they can manufacture these breaker parts. GE confirmed that they used to manufacture these specific breaker parts, however, sold their breaker manufacturing company to HVB. Additionally, there are other companies such as Westinghouse, Siemens, ABB, Elimsan and Elcon International that can manufacture breakers, however, research show that these parts cannot be modified to ensure compatibility with Hoover Dam's existing breakers. 7. Determination of Fair and Reasonable Price. The estimated price for the purchase of spare parts for the SF6 breakers is $160,000. The price will be determined to be fair and reasonable based on comparison to similar items and information provided by the vendor, HVB. 8. Market Survey. See section 6. 9. Additional Supporting Facts for Use of Other Than Full and Open Competition.None. 10. Listing of Sources Expressing Interest in Acquisition. No sources expressed an interest in the acquisition as a result of the special notice of intent to sole source published in Federal Business Opportunities website (www.FBO.gov.) 11. Action Taken to Remove and Overcome Barriers to Competition. All breakers would need to be fully replaced at the same time with a commercially available product where spare parts are interchangeable amongst the products. It is highly unlikely that this would occur because these products are typically developed for each agency's need. Because the nature of power generating facilities, these products are usually custom designed in some manner to fit needs of that specific power plant. 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.
 
Web Link
FBO.gov Permalink
(https://www.fbo.gov/notices/3ab791d91ced4cbe64c3e72d11ec1e90)
 
Record
SN02595660-W 20110930/110928235431-3ab791d91ced4cbe64c3e72d11ec1e90 (fbodaily.com)
 
Source
FedBizOpps Link to This Notice
(may not be valid after Archive Date)

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