Generator Repair at San Clemente Island

As required by FAR 13.106-3(b)(3)(i), this memorandum explains the absence of competition for this acquisition, as only one source was solicited for this requirement (or for a portion of the requirement) and the requirement is not expected to exceed the Simplified Acquisition Threshold (SAT).

FEAD Coronado requires the contractor to repair the 750 kW (Generator# 4) at San Clemente Island (SCI).

The SCI Power Plant has a current capacity of 3 MW of power with all four units online. Generator 1 and 2 are 500 kW each, Unit 3 is 1.2 MW, and Unit 4 is 750 kW. Typical loads onboard SCI range from 1.0-1.5 MW, with traditional peak loads exceeding 1.5 MW this means that no one generator can handle the loads 100% of the time. With Generator #3 29,000 hours past manufacturer's recommended rebuild and Generator #4 out of commission, SCI is at severe risk of power failure affecting its population and operational requirements. Without a sufficient power supply, significant difficulties arise for all actions and personnel who reside on the island. The substantial operational risk to the mission is significant as well as the health and safety risk to personnel.

UNUSUAL AND COMPELLING URGENCY. The supplies or services are of such unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals. Urgent requirements are supplies or services that will result in a work stoppage, or are mission critical and the routine processing time would result in injury to the Government.

SCI is a remote island off the coast of California. There is no civilian infrastructure; only Navy infrastructure and the SCI Power Plant is the only source of power for the entire installation. SCI is operationally significant to the Navy. The SCI facilities are necessary to conduct readiness training, research, development, and test and evaluation activities.

These services provide power to the island and is the critical to meeting mission needs. Not meeting the need by date will jeopardize the health, welfare and safety of all the occupants of SCI. Therefore, oral solicitation procedures were used to solicit a quote in accordance with FAR 13.106-1(c) and 5.202(a)(2).

A competitive acquisition of the requirement was considered. However, the extensive delay resulting from a solicitation is unacceptable due to a single point of failure for Power Plant Operations. Should failure occur, SCI is severely limited in power savings opportunities, which creates substantial operational risks and health/safety risks to the mission and Navy and contractor personnel stationed on SCI.