1.5.1 20150753 - ESPC3 LSJ_06032025-s.pdf

U.S. Customs and Border Protection

Limited-Sources Justification (LSJ) - FAR 8.405-6 For orders or BPAs exceeding the Simplified Acquisition Threshold (SAT)

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Date: June 3, 2025 PR Number: 20150753

This acquisition is conducted under the authority of the Multiple-Award Schedule Program, 41 U.S.C.

152(3), Competitive Procedures, and 40 U.S.C. 501, Services for Executive Agencies.

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), U.S. Customs and Border Protection (CBP), Office of Acquisition, Administration and Facilities Contracting Division, Facilities Contracting Branch-West, on behalf of the Office of Facilities and Asset Management (OFAM), proposes to award a task order pursuant to FAR 8.405-6(a), Limiting Sources.

2. Nature and/or description of the action being approved. Describe the action being approved, and include the name and address of the proposed contractor(s).

This Justification and Approval (J&A) supports a programmatic request for US CBP, to execute an Energy Saving Performance Contract (ESPC) pursuant to FAR 8.405-6 on a Limited Source basis with The Brewer Garrett Company, 6800 Eastland Road, Middleburg Heights, Ohio 44130.

On November 16, 2022, US CBP issued a Notice of Opportunity inviting the Department of Energy Qualified ESCOs to submit proposals in accordance with the GSA SIN 334512 ESPC ENABLE-Hybrid Approach for the US CBP sites throughout the United States.

The purpose of the procurement was to use an ENABLE ESPC to complete energy conservation and resiliency measures to upgrade and install the most cost-effective systems and processes to improve energy efficiency, operational performance, and continuity of operations of CBP’s facility portfolio. The proposals focused on upgrading/installing equipment related to improving the efficiency and update the performance of outdated energy, water, electrical, plumbing and building envelope equipment. The ESPC will not use any appropriated funding. The project will be financed and energy savings guaranteed by the Energy Services Company (ESCO). Annual payments of principal and interest are made from the utility budget.

A competitive process was completed per FAR Part 8-405. The ESCO proposals were evaluated and based on the competitive process, US CBP selected The Brewer Garrett Company in April, 2023 as the best qualified ESCO to complete an energy savings performance contract (ESPC) for the US CBP facilities.

The Brewer Garrett Company was issued a Notice of Intent to Award for the Investment Grade Audit on April 12, 2023. Since then, The Brewer Garrett Company has completed site visits, meetings with US CBP facilities staff, utility analysis, and spent significant time and expertise developing the energy conservation measures that will be implemented to accomplish the efficiency and resiliency objectives of the ESPC.

http://uscode.house.gov/

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The original contract vehicle for the ESPC award is no longer available as the ENABLE ESPC was eliminated from Multiple Award Schedule “Total Solution Support Products for Facilities Management Systems (SIN 334512) on April 1, 2025. Conducting a new procurement would be cost prohibitive since US CBP would lose all the work completed over the past two years including market research, analysis of the marketplace/ESCOs, procurement activities, evaluation of proposals, and the significant amount of work already completed by The Brewer Garrett Company.

Since a competitive process has already been completed, and to continue with the already completed IGA and the investments that The Brewer Garrett Company has made for the ESPC, US CBP intends to sole source to The Brewer Garrett Company using a direct award.

3. Description of Supplies/Services. Describe the supplies or services to be acquired. Provide the estimated total value (including options, if any).

Since April 2023, The Brewer Garrett Company has engaged with US CBP to perform numerous site visits and an Investment Grade Audit (IGA) for the ESPC project which focuses on reducing energy consumption, increasing energy resiliency and reliability and addressing operations and maintenance. The implementation of the proposed measures will improve efficiency and update performance of outdated energy, water, electrical, plumbing and building envelope equipment.

Funding for this energy and resiliency project is derived not from new capital appropriations, but from current utility and operational dollars saved by the efficiency and operational improvements. The savings will be guaranteed by The Brewer Garrett Company. This project benefits the U.S. Government in multiple strategic and financial ways, aligning with broader national goals of fiscal responsibility, operational resiliency and efficiency and public service.

The guaranteed savings will fund the much-needed HVAC improvements and energy/operational resiliency. This ESPC delivers essential upgrades to US CBP, funded entirely through guaranteed energy savings without additional taxpayer funding. These upgrades ensure long-term operational stability, system resiliency, minimizing emergency repairs and maximizing resources.

4. Authority and supporting rationale. Select one of the circumstances justifying limiting sources pursuant to FAR 8.405-6(a)(1)(i) below and demonstrate the proposed contractor’s unique qualifications to provide the required supply or service.

• FAR 8.405-6(a)(1)(i)(B) Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

Having completed the competitive process using the GSA SIN procurement and having completed a significant portion of the IGA, The Brewer Garrett Company with its knowledge

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Since the selection of The Brewer Garrett Company in April 2023, they have engaged in multiple site visits, building drawing reviews, past studies reviews, weekly project meetings, reviews and analysis of electric, gas and water utility bills, corresponding with local utilities on their incentive and rebate programs, subcontractor pricing development for the associated improvements, several collaborative workshops, and multiple reporting requirements and administrative work throughout the IGA development process. Current market conditions are adversely affecting financing interest rates, therefore, any additional delays are likely to increase the financing costs and minimize the number of upgrades and improvements that can be accomplished. If the requirements for this ESPC project is re-solicited and a different contractor is selected, the Government estimates the total cost to duplicate the work that The Brewer Garrett Company has already performed would be approximately $397,800 to complete the IGA.

Therefore, issuing a limited source request for quote to The Brewer Garrett Company has been determined to be in the US CBP’s best interest. The solicitation will be issued to The Brewer Garrett Company as a Limited Source (Only One Source) RFQ, in accordance with FAR Part 8.405-6 (a) (1) (i) (B).

5. Determination by the ordering activity contracting officer that the anticipated order represents the best value consistent with FAR 8.404(d).

U.S. Customs and Border Protection is following the Department of Energy’s Federal Energy Management Program process for ensuring best value throughout the procurement, contract award and performance period to ensure price reasonableness per FAR 8.404(d) in all reviews and contract negotiation. Since the ENABLE program is no longer supported by GSA, subject matter experts from both GSA and DOE recommend a direct award to The Brewer Garrett Company to complete the ESPC.

After selecting The Brewer Garrett Company through a competitive process, a notice to proceed for IGA includes periodic reviews of the work being completed (such as utility analysis, energy conservation measure development, design, measurement and verification, construction schedule, etc.) for price reasonableness, alignment with project objectives, and enhancement of mission execution.

The savings that result from the elimination of energy waste are guaranteed by The Brewer Garrett Company, and they fund deferred operation & maintenance upgrades that dramatically improve the resiliency, efficiency, comfort and safety. Excess savings are reallocated to other critical functions without requiring additional taxpayer funding.

This project is self-funded through energy savings, delivering self-funding efficiency and resiliency improvements.

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Efficient US CBP facilities reduce overall energy demand, helping to stabilize the energy grid and lessen reliance on foreign energy supplies.

Upgraded infrastructure is more reliable and resilient during extreme weather events and national emergencies, ensuring US CBP operations remain functional when they are needed most.

Energy projects address these problems in a budget-neutral manner through savings-driven investments.

These projects include measurement, verification, reconciliation, and contractual performance guarantees, ensuring transparency and that taxpayer dollars are spent efficiently and effectively.

Due to past and ongoing budget constraints, addressing deferred maintenance and replacing aging facility systems has been challenging for US CBP. This asset renewal initiative utilizes contractually guaranteed annual savings on utility expenditures to finance upgrades for aging and end-of-life electrical, plumbing and HVAC systems. It enhances the efficiency, safety, and comfort of the US CBP sites while significantly reducing expensive, reactive maintenance and fostering a more proactive maintenance strategy. The period of performance will not exceed the statutory limit of 25 years. Project highlights will include:

Guaranteed utility and material savings and system performance through comprehensive commissioning, training, warranties and ongoing Measurement & Verification and periodic support through the project performance period.

Increased energy and water efficiency through a comprehensive package of improvements.

Increased operational resiliency in compliance with US CBP technical standards.

Leveraged utility rebates and incentives to reduce project costs and assist in meeting overall project goals.

Reduced reactive maintenance coupled with facilitating a more proactive maintenance and staffing approach.

6. A description of the market research conducted among schedule holders and the results, or a statement of the reason market research was not conducted.

CBP conducted detailed market research for information and planning purposes for the ESPC 3 project. It identified that there were ESCOs in the marketplace capable of meeting the Government’s requirements. Market research discussions were also used to better inform the NOO submitted to ESCOs. Market research included issuing requests for information, hosting industry days, and getting feedback on the NOO. These market research discussions helped to better clarify the ESPC 3 requirement and facilitated interest and competition among eligible DOE ENABLE contract vehicle ESCOs with GSA Special Item Number 334512 schedule holders.

An ENABLE competition for selection of an ESCO has already occurred, with the NOITA issued to Brewer-Garrett. However, the ENABLE program is no longer supported by the General

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Services Administration (GSA) and therefore the ESPC 3 project cannot be awarded under the original procurement process. Failure to issue a task order to Brewer-Garrett would jeopardize the entire ESPC 3 project, disrupting operations underway for completing the IGA and would place an undue financial burden on the selected ESCO. Brewer-Garrett has invested over two years of coordination with CBP. Under these unique circumstances, while other ESCOs are capable of providing the ESPC 3 services, no other ESCO can be considered to perform the work that Brewer-Garrett has already begun in accordance with its NOITA in preparation for award of the ESPC 3 Task Order.

7. Any other facts supporting the limited-sources justification. Additional facts may be stated in this section. If there are no additional facts, you must state that here.

N/A.

8. A statement of actions, if any, the agency may take to remove or overcome any barriers that led to restricted consideration (i.e., limited sources) before any subsequent acquisition for the supplies or services is made. Include a statement of actions taken or that will be taken to increase competition for future acquisitions of the same item/service (e.g., the government intends to revise overly restrictive technical specifications, acquire data rights, or pursue some other means to increase future competition). Posting requirements may also be addressed here or in #9 below.

This ESPC requirement was previously solicited in accordance with the Department of Energy Enable GSA SIN 334512-Hybrid Approach. The elimination of GSA SIN 334512 was unforeseeable by CBP as the IGA was finalized by The Brewer Garrett Company.

9. CBP intends to post this justification on SAM.gov pursuant to FAR 8.405-6(a)(2)(i).

10. Technical/Requirements Personnel Certification:

Pursuant to FAR 8.405-6(c)(2)(x), I certify that this requirement meets the Government’s minimum need and that the supporting data, which form a basis for the Limited-Sources Justification, are accurate and complete.

Technical Representative/COR Date

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11. Contracting Officer Certification and/or Approval: *

Pursuant to FAR 8.405-6(c)(2)(ix), I certify that the Limited-Sources Justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer Date

*Note: In accordance with FAR 8.405-6(d)(1) for proposed BPAs or orders with an estimated value exceeding the simplified acquisition threshold, but not exceeding $750,000, the ordering activity contracting officer’s certification that the justification is accurate and complete to the best of the ordering activity contracting officer’s knowledge and belief will serve as approval.