TITLE: Planned Sole Source Contract with VIGOR WORKS LLC for the Overhaul of 6 Hydraulic Cylinders in support of the CUP McCook Main Tunnel System Project In compliance with FAR Subpart 6.302-1 (d) (2), coupled with the provisions set forth by FAR Subpart 5.101(a) (1), this Notice is hereby published to inform of the following: The U.S. Army Corps of Engineers, Chicago District intends to award a sole source contract to its original service provider under its new corporate name "Vigor Works, LLC" for the overhaul of 6 Hydraulic Cylinders; these are major components of the McCook Main Tunnel System. The services described hereunder are deemed available only from the original source provider for the continued provision of highly specialized services. If awarded to any other source, a substantial duplication of cost that is not expected to be recovered through competition would result, and unacceptable delays in fulfilling the Chicago District's requirements would be encountered. (Re: FAR Subpart 6.302-1 (a)(2)(iii) (A) and (B)) By customization methods, the original service provider under its multi-million dollar Contract with the Chicago District (W912P6-08-C-0023), fabricated hydraulic cylinders that are now required for overhaul. The hydraulic cylinders are significant in price, size and weight. The intricacies of the design were implemented into the customization of the cylinders, wherein specifically designed and manufactured for the McCook project. If the cylinders aren't seamlessly overhauled, it would cause serious detriments to the McCook project, specifically to the ongoing construction contract wherein it requires the government to furnish the cylinders as government furnished items. Critical activities for the work entails, overhauling without compromising the functionality of the cylinders during the entire overhaul process; and eliminating any risk of damage while in transportation to the point where the overhaul is to take place. Another important factor relates to warranties of the cylinders. At present, an extended warranty on the wearable parts is still active; however, in order to maintain the validity of the extended warranty under the original provider's contract with its parts manufacturer, the departure of the original service provider would mean loss of coverage. Of major significance, the cylinders must undergo a thorough and extensive internal and external inspection to determine if items or conditions would compromise the functionality of the cylinders, in particular, if rust is on the inside surfaces. While the cylinders are filled with fluid to help mitigate this potential corrosion, it does not entirely remove the risk. As the original service provider, it has the necessary resources to determine the extent of any compromised surface and how it would need to be addressed. Furthermore, if rust is found on the surface, it must be removed, likely through a process called machining. Only the manufacturer would be able to determine the extent to which machining could be done to stay within the safety parameters, as too much machining would compromise the operation of the cylinder. Machining accomplished by a new source would void the existing parts warranty as well. At the end of the overhaul process, the wearable parts are replaced, machining is completed, and the cylinders are reassembled. This is followed by acceptance testing that is equivalent to the factory acceptance tests that the manufacturer performed prior to acceptance by the Government (under the previous Contract). The test must be performed to replicate the original factory acceptance test and demonstrate that the cylinders are in like-new condition. In consideration of the high risks and type of testing involved, the overhaul must be pursued with the right technical abilities, skill and care that can be provided by the original service provider. It requires a high level of expertise that only the original source provider can deliver as guarantor of the custom-made cylinders. With respect to mitigating risks, only the original source provider can produce such assurances. It has the technical resources necessary to soundly perform the overhaul, machining and testing along with an existing parts warranty, meaning the government would not need to duplicate costs for fabricating new cylinders or obtaining new warranties, as such costs have been incurred and already compensated via the previous contract with the original provider. In addition, the original service provider possesses the standard of care required to transport these units without damage, as demonstrated during its previous contract with the Chicago District. Any damages due to a mishap in handling or transporting these cylinders would have a significant cost and schedule impact to the overall McCook project. The timing of the overhaul is crucial. The overhaul activity must be performed before the construction contractor can accept them for installation in the Main Tunnel System. As mentioned above, they are considered government furnished items; therefore, they must be timely furnished to the construction contractor to avoid impacts to that particular contract and the overall project. All six cylinders must be completely overhauled and delivered to the McCook Reservoir site by June 1, 2016. Of major importance, there are no spares. For every day the cylinders are not delivered, the Government would incur a cost of $20,000 per day. These custom cylinders would take from two-three years to refabricate. If a cylinder(s) was inadvertently damaged during transportation or during overhaul, the Government would be incur a potential replacement cost of $7.3 - $21.9M. In addition to the aforementioned, as the installation of the cylinders is a milestone in the critical path of the CUP McCook Reservoir Final Preparation project, any delay of the installation would cause a significant delay in the completion of follow on milestones and ultimately severely compromise the completion of the project. Compromise of the completion of the project would pose a highly negative impact on the community, as the project's ultimate goal is to provide mitigation of flood water which would significantly reduce potential flood water damage. By contracting with the original source provider, it would allow the government to obtain the continued provision of highly specialized services; avoid unacceptable delays, and eliminate any substantial duplication of cost that is not expected to be recovered through competition. THIS NOTICE DOES NOT CONSTITUTE A SOLICITATION FOR OFFERS, PROPOSALS, ETC; however, interested firms may send a capabilities statement NO LATER THAN the close of business on February 15, 2016. Statements should be sent to the attention of Pamela Brown at pamela.j.brown@usace.army.mil ; ensure that the subject line of your email includes the title/description of this announcement. The government anticipates the award of a firm-fixed price services contract to Vigor Works, LLC by April 1, 2016.
