2021-0053 LSJ PMIR for Metasys BMAS and Integrated Centrifugal York Chillers 36C262-21-AP-0364_APPROVED.pdf

VHAPM Part 808.405-6 Limiting Sources Attachment 2: Request for Limited Sources Justification Format >SAT

VHAPM Part 808.405-6 Limiting Sources Page 1 of 6 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

DEPARTMENT OF VETERANS AFFAIRS

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C262-21-AP-0364

(1) Contracting Activity: The Department of Veterans Affairs, VISN 22, Network Contracting Office 22 (NCO 22) in Long Beach, CA, seeks to procure the services listed in purchase request 600-21-1-5665-0010 for the VA Long Beach Healthcare System (VALBHCS) in Long Beach, CA.

(2) Description of Action: This acquisition is conducted under the authority of the Multiple- Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501). This is a new requirement that will be limited sources in accordance with FAR Part 8, specifically FAR 8.405-6. This determination satisfies the requirements of FAR 8.405-6.

Johnson Controls Inc. (JCI) will provide Preventive Maintenance Inspection & Repair (PMIR) of the proprietary Metasys Building Management & Automation System (BMAS) environmental controls energy management system & integrated centrifugal York chillers. JCI is the Original Equipment Manufacturer (OEM), copyrighted software developer of the proprietary Metasys BMAS, and sole authorized service provider for VALBHCS. Johnson Controls sole source justification letter dated 11/4/2020 is in the eCMS briefcase). The proprietary Metasys BMAS monitors and controls the critical and non-critical mechanical HVAC equipment throughout the VA Medical Centers. The York chillers are integrated and controlled by the JCI proprietary Metasys BMAS. This is a new requirement to replace the current expiring base plus options contract under Federal Supply Schedule (FSS) order number GS-06F-0060P with GS-07F-190CA.

Order against: FSS Contract Number: GS-07F-190CA

Name of Proposed Contractor: JOHNSON CONTROLS, INC.

Street Address: 5770 Warland Drive, Suite A

City, State, Zip: Cypress, CA 90630

Phone: (562) 760-1914

(3) Description of Supplies or Services: Contractor shall provide all equipment, expertise, incidentals, labor, materials, parts, services, supervision, supplies, tools, transportation, travel, qualified personnel, and other non-personal services necessary to provide monthly PMIR for the proprietary Metasys BMAS and integrated centrifugal York chillers, including but not limited to on-site maintenance, calibration, performance verification, quality assurance and maintain the entire automation system including operator workstations, controllers, printers and all end devices to keep all covered equipment in optimum operating condition including software http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3 https://www.gpo.gov/fdsys/pkg/USCODE-2011-title40/pdf/USCODE-2011-title40-subtitleI-chap5-subchapI-sec501.pdf

VHAPM Part 808.405-6 Limiting Sources Page 2 of 6 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020 updates as stated in the statement of work (SOW) and manufacturer recommendations to ensure fully functional HVAC systems and prevent interruption of services to hospital operations in accordance / compliance with current code(s), directives, regulations, industry guidelines / standards, manufacturer recommendations, and The Joint Commission (TJC) at/for the VALBHCS.

The list of covered York chillers located at VALBHCS are as follows:

(1) One (1) York Chiller YKPSPQK2CBG / SN# SHXM054420 (R134A)

(2) One (1) York Chiller YKR1Q2H2CBB / SN# SBYM-224010 (R134A)

(3) One (1) York Chiller YKR1Q2H2CBB / SN# SAYM-206520 (134A)

(4) One (1) York Chiller YKR1Q2H2CBB / SN# SLBM9216182205 (R22)

The estimated value of the proposed action is $337,164.00 Base with the Government’s option to extend up to four (4) years is $1,790,064.00. The estimated cost is below:

Line Item: Period of Performance: Amount:

0001 Base Year (BY) $337,164.00

1001 Option Year One (OY1) $347,280.00

2001 Option Year Two (OY2) $357,696.00

3001 Option Year Three (OY3) $368,436.00

4001 Option Year Four (OY4) $379,488.00

Total Amount: $1,790,064.00

(4) Identify the Authority and Supporting Rationale (see below and if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

FAR 8.405-6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

FAR 8.405-6(a)(1)(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.

A. JCI is the OEM and maintains exclusive rights for/of the proprietary Metasys BMAS environmental controls energy management system and integrated centrifugal York high-efficiency chillers in use at VALBHCS.

B. The proprietary Metasys BMAS functions as a complete family of systems and servers designed to work together as one cohesive unit and has been installed at/in the VALBHCS to monitor and control all critical and non-critical mechanical HVAC equipment throughout the facility. The proprietary Metasys BMAS is currently monitoring and controlling the temperature, humidity, and pressures required by The Joint Commission (TJC). The proprietary Metasys

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BMAS also monitors the critical alarms and provides notifications to facility staff to provide timely response to emergencies.

C. The proprietary Metasys BAS was originally installed in the 1990’s by JCI, the OEM, who maintains exclusive rights to proprietary Metasys BMAS products listed on GSA contract.

VALBHCS has several versions of older Metasys controllers, sensors, and devices that are not available from any other source. As such, JCI is the only source capable of providing the supplies or services required for this unique and highly specialized service. It is important to retain JCI and the proprietary Metasys BMAS to ensure hospital services remain operational, uninterrupted, and in compliance with TJC.

D. If a vendor other than JCI performs needed services, the cost to replace the existing HVAC Metasys BMAS environmental controls energy management system will have to be added to this requirement as current systems warranties will be voided. Doing so will place patient care at great risk of airborne hazards due to the absence of mandated HVAC systems temperatures, humidity, and air exchanges and make VALBHCS non-compliant with TJC. Furthermore, additional training for the facility staff and cost of extended service agreements will also have to be considered.

E. Portions of the proprietary Metasys BMAS remain under warranty. System adjustments and changes by any third-party vendor will void system warranty.

F. JCI maintains exclusive rights to the proprietary Metasys BMAS software security patches so that the VA Medical IT network remains current and is not compromised or exposed to cyber risk.

FAR 8.405-6(a)(1)(C): In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures.

FAR 8.405-6(b): Items peculiar to one manufacturer:

Metasys servers, DDC controllers, and software

A patent, copyright or proprietary data limits competition. The proprietary data is: Metasys servers, DDC controllers, and software

These are “direct replacements” parts/components for existing equipment.

Metasys servers, DDC controllers, and software

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing. System is for network maintained and operated BMAS environmental controls that connect remotely to integrate and interface system-wide York chillers and HVAC demand.

(5) Describe Why You Believe the Order Represents the Best Value consistent with FAR 8.404(d) to aid the contracting officer in making this best value determination:

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JCI is OEM and sole authorized service provider who maintains exclusive rights to the proprietor Metasys BMAS with established fair and reasonable GSA FSS pricing and provides the best value and terms to the Government (VA) for service of the proprietary Metasys BAS environmental control energy management system and York high efficiency chillers currently in use at VALBHCS. JCI is the only vendor with Metasys BMAS, York equipment and labor under GSA contract.

(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted. Market Research (MR) was performed and resulted in the following: Three (3) Request for Information (RFI) / Seeking Sources were posted to Contract Opportunity – Open Market 36C26221Q0094, Contract Opportunity – VHA FSS 36C26221Q0095, and GSA eBuy MAS – 334512 Schedule Holders (total of 202 vendors) RFQ1466681. MR yielded only one (1) respondent other than JCI. Respondent could not provide the requested authorized service provider documentation from JCI. This respondent has other broader scope HVAC systems PMIR contracts with the VA but all work related to the proprietary Metasys BMAS is directly subcontracted to JCI. Of the 202 vendors listed under the GSA MAS 334512 Schedule, eight (8) provided response and all stated they do not provide the Metasys BMAS products or services listed. As a result of MR and based on past procurements of this type, JCI, as the OEM is the only vendor who can provide or authorize others to perform any requirements related to the proprietary Metasys BMAS without incurring significant cost to replace the entire Metasys BMAS and/or void all warranties at the VALBHCS.

JCI provides dedicated and qualified service team engineers / technicians, 24/7 priority response time, are TJC compliant, and ensures all PMIR services are performed monthly and to OEM specifications.

(7) Any Other Facts Supporting the Justification:

The exclusive proprietary Metasys BMAS is a integrative software platform that’s specialized and unique to JCI as OEM. Metasys BMAS is a remotely managed network application software that has been vetted through VA IT for use.

(8) A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made: At present, there is very little the VA can do to remove or overcome barriers that restrict competition to exclusive or proprietary acquisitions without incurring significant cost in development of a separate non-proprietary BMAS system, void in-place warranties and service agreements, or make use of more VA and/or contracted labor to maintain existing HVAC systems throughout VALBHCS. The only flawed alternative to meet socioeconomic classification priority of preferences is to contract with a SDVOSB, VOSB or Small Business who in-turn subcontracts entire requirement to JCI; the true definition of a pass-through.

(9) Requirements Certification: I certify that the requirement outlined in this justification is a Bona Fide Need of the Department of Veterans Affairs and that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by

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FAR Subpart 8.4. (This signature is the requestor’s supervisor, fund control point official, chief of service or someone with responsibility and accountability.)

SIGNATURE: DATE:

Mauricio Ruiz Project Manager Engineering / MSU Section Long Beach VA Medical Center

(10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

PREPARED BY:

Cecil S. Nichols Contracting Officer Network 22 Contracting Office Long Beach

a. Contracting Officer’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

CONTRACTING OFFICER SIGNATURE: DATE:

Omar Majette Contracting Officer https://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx https://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx

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b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $700K):

I certify the justification meets requirements for other than full and open competition.

Chelsea Black Division Chief Network 22 Contracting Office Long Beach

c. Director of Contracting Review (over $700,000 to $68 million): I approve / disapprove and have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

Kevin Blanchard Director of Contracting

HIGHER LEVEL APPROVAL (Required for orders over $700,000):

d. VHA RPO HCA Review and Approval (over $700,000 to $68 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

NAME: DATE:

Curtis M. Jordan Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA)