Exception Domestic Piping Purchase

FAR 52.225.9(b)(3)(i) Exception Request Per a direct quote for this project effort provided by Heating and Plumbing Engineers Inc. Currently, two hundred feet of domestic XTRU-THERM Perma-Pipe costs $9,538.00. And currently, two hundred feet of not 100% American Made XTRU-THERM Perma-Pipe costs $8,521.00.This equates to a $1,017.00 cost savings when purchasing the product which is not %100 American Made. The product which is not 100% American Made contains 100% American Made foam insulation and pipe jacket material. As a percentage, the foam insulation and pipe jacket material appear to be approximately 25% of the overall product value. Currently, the total percentage cost increase when purchasing the not %100 American Made product over the %100 American Made product is 11%. Non-availability: Not mined produced or manufactured in the U.S. in sufficient or reasonable available commercial quantities. The 100% domestic version of this pre-insulated black steel pipe product is not available "off the shelf", and results in an additional approximate one month or more of production time before being able to have it shipped versus the "off the shelf version" which is available at eighty three locations in the U.S. to be shipped the day that it is ordered. Unreasonable Cost: When using an import company you have to add 6% to their cost. In this case the request is not to allow for the direct purchase from an import company. It is to allow for a purchase of a less than 100% Made in America product from an American retailer. The product which this request is being made for becomes 5% less expensive than the 100% American Made product when including the 6% advantage for %100 American Made. This product is a commercially available item "off of the shelf". It is sold in substantial quantities in the commercial marketplace. The domestic production plant for this product is located in Tennessee. Currently the 100% American Made product version is only produced at a steel plant when a specific order is placed. Therefore this product is no longer domestically available "off the shelf". The pre-insulation and HDPE pipe jacket which are components of this product, are produced in America when buying the "off the shelf version" of this product. However, the black steel pipe portion of this product is made of import material when the product is purchased "off the shelf". The black steel pipe is a more expensive component than the insulation and HDPE jacket material, therefore the final product contains a higher percentage of import material, than domestic. Kenko Company Inc., our local wholesale distributor of this product stated that the stock program which Perma Pipe instituted several years ago utilizes carrier pipes from the Federal Trade Agreement Partnered Countries which the US Government recognizes and approves. This may include but is not limited to Canada. Kenko Company Inc. also stated that NONE of the black steel in the "off the shelf" version of this product is produced in North Korea or a similar location of high concern regarding US foreign relations. Construction firms are buying this "off the shelf" product because it is less expensive and more readily available. It is construction industry practice to use similar piping product materials along a consistent stretch of piping. Dissimilar piping product materials potentially lessen the strength and integrity of a stretch of pipeline. Our construction contractor currently anticipates the need to acquire 4 approximately fifty lineal feet sections of this product due to unforeseen underground site conditions. This total project was initially awarded for $153.836.01 utilizing 100% American Made pipe product materials. The total dollar material cost amount for the purchase of this additional pipe product material will be $8,521.00. And result in a savings to the tax payer of $1,017 versus the cost of the 100% Made in America product. This is a time and operation essential repair now that the weather conditions are amenable. It has been calculated by our metering experts that we are losing over two thousand gallons of water each day along the hot and chilled water lines between Building 40 and Building 41. Each day the leaking underground hot and chilled water line distribution system between Building 40 and Building 41 is becoming weaker and more susceptible to catastrophic failure which could result in business interruption and tens of thousands of dollars in repair costs. Additional Notes and Market Research We have researched Google, Thomas.net, GSA Advantage, and called local and national companies as a part of our market research. There is only one production plant located near Lebanon Tennessee where the black steel for this product is domestically produced for custom orders. At 83 locations in the US listed at http://www.permapipe.com/maps/locator.aspx, this product is retailed as a commercially available "off the shelf" product which contains import black steel. Companies which we contacted as a part of our market research include: Perma-Pipe Inc. http://www.permapipe.com/web/products.aspx?ProductID=151 7720 North Lehigh Avenue Niles, Illinois 60714 U.S.A Phone 847-966-2235 Thompson Pipe and Steel 6030 Washington St. Denver, CO 80216-1120 303-289-4080 Northwest Pipe Company 6030 North Washington Street Denver, Colorado 80216 303-289-4080 Kenko Company Inc. 15552 E Fremont Dr. Unit A 105 Centennial, Colorado 80112 phone 303-751-4100 Ferguson 3625 48th Ave Denver, CO 80216 Phone: (303)-320-4833 Braconier 2626 South Raritan Circle Englewood, CO 303-777-3037 Grainger Industrial Supply 1-800-Grainger