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COMMERCE BUSINESS DAILY ISSUE OF APRIL 8,1998 PSA#2069

Bureau of Reclamation, Contracts Group, 1150 N. Curtis Road, Suite 100, Boise, Idaho 83706-1234

61 -- GENERATOR FIELD WINDING REINSULATION SOL 1425-98-SQ-00950 POC Terry Ford (contracting) 208-378-5100; Terrald Kent (technical) 208-378-5290 E-MAIL: click here to contact the contracting officer via e-mail, tford@pn.usbr.gov. The Bureau of Reclamation's Pacific Northwest Regional Office (Reclamation) proposes to make a sole-source award (using Federal Acquisition Regulation [FAR] Part 12 commercial item procedures) to the General Electric Company's Salt Lake City, Utah, component for the following remanufactured items: removal, re-insulation, and reinstallation of field windings from the Green Springs Powerplant (fifteen miles southeast of Ashland, Oregon) generator's field pole pieces. The insulation on the windings has deteriorated to the point that the windings must be reinsulated to obtain the necessary resistance readings required for operation. Reclamation will remove the pole pieces and field windings from the generator rotor for shipment to the contractor's facility approximately April 27, 1998. The reinsulated windings must be returned and ready for re-installation by the Government no later than May 15, 1998. Evaluation factors for award will be performance time, technical capability, and price. Reclamation is preparing specifications and expects to issue the solicitation, including more detailed information about the evaluation for award process, around April 10, 1998. Unless the solicitation includes drawings, it will be available electronically as well as in written form. While all responsible sources may submit a quotation which will be considered, at present the only known source capable of meeting the Government's needs and returning the re-insulated field windings in the shortest possible time is the General Electric Company's Salt Lake City, Utah component. The proposed lack of competition is justified, pursuant to 41 U.S.C. 253(c)(2), ["unusual and compelling urgency"] for the following reasons: First, to move water from the high storage reservoirs down to the irrigation distribution system, Reclamation must either operate the Greensprings Powerplant or run water down a wasteway channel into Tyler Creek. However, due to the severely deteriorated condition of the insulation on the field windings, operation of the Greensprings Powerplant in its existing condition creates an unacceptable risk of catastrophic destruction of the generator if the insulation should fail during operation. Therefore, our only alternative is to operate the wasteway. Second, however, operation of the wasteway is quite costly, as it results in damage to Tyler Creek for as long as the wasteway continues to operate. The damages from a past extended operation have generated claims which are not yet all settled. Reclamation has not yet been able to perform wasteway channel improvement activities to prevent additional damage from occurring in future wasteway operations. The costs of the damage to the wasteway channel can be broadly estimated from claims that resulted from its last prolonged operation. These claims were for loss of land (areas which were made unusable due to erosion of the channel banks), loss of timber (trees which were destroyed due to erosion and sloughing of the channel banks), and loss of value of land (due to access difficulties resulting from the newly eroded channel). These claims were initially for millions of dollars. While a settlement is near, it has not been finalized, and therefore amounts cannot be specified exactly. It appears that the final cost to the Goverment will be in the range of $100,000 to $150,000. Any new costs attributable to additional loss of land and timber will probably increase in direct proportion to the duration of wasteway operation, while the loss of land value may not be as directly related to duration. In any case, extended operation will increase costs. Third, the Government will suffer further injury from operating the wasteway arising from the loss of water storage capacity in Emigrant Reservoir, due to material eroding from the wasteway and coming to rest in the reservoir. The costs of lost storage in Emigrant Reservoir are difficult to quantify, but it is certain that the useful life of Emigrant Dam has been shortened, and would be further shortened by unneccessary operation of the spillway WASTEWAY?. Fourth, there will be a loss of revenue from foregone power generation. That revenue can be estimated fairly precisely from past operation, and will be about $11,000 a week. Requests for solicitation may be made to: Terry K. Ford, Jr., by mail at the above listed address, by e-mail at tford@pn.usbr.gov, and by fax at (208)-378-5108. (0094)

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