26C0003 SSJA_Signed.pdf

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Heat Plant Boiler and Pump Repair
Solicitation number
FA462626C0003
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This is a Justification and Approval (J&A) document for a sole-source construction contract awarded by the 341st Contracting Squadron at Malmstrom Air Force Base, Montana. The acquisition authorizes a firm-fixed-price contract valued at $630,000 to Mid Mountain Boiler & Steam, Inc. (MMB&S) of Nine Mile Falls, Washington, for repair services on the installation's degraded boiler and High-Temperature Hot Water (HTHW) system. The contract was justified under Federal Acquisition Regulation (FAR) 6.302-1, citing only one responsible source capable of meeting the agency's requirements. The work includes project management, supervision, labor, materials, tools, and equipment to perform diagnostics, testing, and repairs on the primary heating system, with the objective of restoring full operational capability and preventing catastrophic failure of the installation's heating infrastructure.

The justification emphasizes that MMB&S is the sole qualified contractor in the Northern Rockies region due to its unique, site-specific institutional knowledge gained from performing approximately 90 percent of all contractor-provided services on the Malmstrom AFB boiler and HTHW systems through prior contracts (FA4626-23-C-0007, FA4626-23-C-0003, FA4626-22-P-0050, and FA4626-22-P-0060). Awarding to any other source would result in substantial duplication of costs and unacceptable delays due to the contractor's required ramp-up period on the complex, degraded system. The Contracting Officer determined the anticipated cost would be fair and reasonable through detailed cost and price analysis, including comparison with an independent government cost estimate and historical pricing. A notice of intent to award was published on SAM.gov for a minimum 15-day period in accordance with FAR Subpart 5.2. The contract includes requirements for comprehensive documentation of all work performed, including updated as-built drawings, maintenance logs, diagnostic procedures, and post-repair condition reports to establish baseline information for future competitive procurements.

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Justification and Approval (J&A) for Other Than Full and Open Competition

CONTROLLED UNCLASSIFIED INFORMATION

August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 1 of 5

Was a J&A approved for the preceding acquisition where that acquisition required a J&A? Yes No

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined at DAFFARS 5302.101? Yes No

Dollar Value of this Acquisition: < $750K > $750K and < $15M > $15M and < $100M > $100M

Contracting Activity: 341st Contracting Squadron, PKA

Purchase Request (if available) / Local ID Number: F2W3D25335AW01

Program / Project (and PE, if applicable): Heat Plant Boiler and Pump Repair

Program Type (PEO, Enterprise, of Operational): Operational

Authority:

6.302-1 – 10 USC 3204(a)(1), Only One Responsible Source - No Other Supplies or Services Will Satisfy Agency Requirements Estimated Contract Cost (including options): $ 630,000.00 J&A Type: Class Individual

COORDINATION ( DAFFARS 5306.304(a))

Date

24 Feb 2026

Project Lead / Program Mgr / Requiring Activity Joseph S. Beard

341 CES / 406-731-7648

Signature

Date

24 Feb 2026

Contracting Officer Branden E. Lawson

341 CONS PKA, 406-731-4353

Signature

APPROVAL ( DAFFARS 5306.304(a))

Date

24 Feb 2026

Construction Flight Chief (Chief of Contracting Office, Delegated Authority) Colleen T. Goad

341 CONS PKA / 406-731-3473

Signature

BEARD.JOSEPH.SIMMO

NS.1101965941

Digitally signed by

BEARD.JOSEPH.SIMMONS.1101965941

Date: 2026.02.24 12:46:23 -07'00'

LAWSON.BRANDEN.ED

WARD PAT.1083596917

Digitally signed by

LAWSON.BRANDEN.EDWARD

PAT.1083596917

GOAD.COLLEEN.T

ARA.1040834490

Digitally signed by

GOAD.COLLEEN.TARA.10408344

Date: 2026.02.25 08:01:18 -07'00'

August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 2 of 5

I. Agency and Contracting Activity.

341st Contracting Squadron, Base Infrastructure Flight

II. Nature and/or description of the action being approved.

The proposed action is to award a firm-fixed-price construction contract on a sole-source basis to Mid Mountain Boiler & Steam, Inc. (MMB&S) of Nine Mile Falls, Washington.

This justification authorizes the award of a contract for the repair of the degraded boiler and High-Temperature Hot Water (HTHW) system at Malmstrom Air Force Base, Montana, utilizing the authority of Federal Acquisition Regulation (FAR) 6.302-1, "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements."

III. Description of supplies/services required to meet agency needs.

This action is to procure non-personal construction services required to repair the degraded boiler circulation pump and High-Temperature Hot Water (HTHW) system located at Malmstrom Air Force Base.

The contractor shall provide all necessary project management, supervision, labor, materials, tools, and equipment to perform diagnostics, testing, and repairs on the installation's primary heating system. The scope of these services includes, but is not limited to, addressing known deficiencies in the boiler, ensuring the integrity of the HTHW distribution network, and restoring the entire system to full and reliable operational capability. These services are critical to ensuring mission continuity and preventing a catastrophic failure of the installation's heating infrastructure.

The total estimated value for these required services is $630,000.

IV. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above.

The statutory authority at Federal Acquisition Regulation (FAR) 6.302-1, "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements," is applicable to this acquisition. The proposed contractor, Mid Mountain Boiler & Steam, Inc. (MMB&S), is the only responsible source capable of performing the required services on the degraded boiler system and High-Temperature Hot Water (HTHW) system at Malmstrom Air Force Base. This is due to their unique, extensive, and site-specific experience, which no other contractor possesses.

Mid Mountain Boiler & Steam (Mid Mountain) previously completed repair services for the heat plant on a sole source basis for contract nos. FA4626-23-C-0007, FA4626-23-C-0003, FA4626-22-P-0050, and FA4626-22-P-0060. As a result, Mid Mountain has a unique familiarity with the degraded boiler system and Malmstrom AFB's High Temp Hot Water (HTHW) system. They are also only known qualified contractor in the Northern Rockies region with the technical capabilities to address the requirement in a expeditious fashion. Therefore, it would be cost prohibitive to have another company perform this requirement in a short period of time as costs would not be recovered through competition. Consequently, the generator #1 heat tube repair must be awarded IAW FAR Part 6.302-1 in order to avoid duplication of costs.

1. Unique and Unparalleled Familiarity with the System MMB&S has an unparalleled and intimate knowledge of the specific boiler and HTHW systems at Malmstrom AFB. They have performed approximately 90% of all contractor-provided services on this equipment, either as the prime contractor or as the key subcontractor. This long-term, consistent involvement has provided MMB&S with a unique familiarity with the system's degraded condition, its operational peculiarities, and its specific maintenance history. This is not knowledge that can be gleaned from technical manuals; it is institutional knowledge gained through years of hands-on experience with this exact system. As a result, MMB&S can diagnose issues and perform repairs in an expeditious fashion that would be impossible for any other contractor.

2. Avoidance of Unacceptable Delays and Duplication of Costs Awarding this contract to any other source would result in substantial duplication of costs and unacceptable delays in

August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 5 fulfilling the agency's requirements.

A new contractor, regardless of their general experience, would need a significant ramp-up period to familiarize themselves with the unique complexities of Malmstrom AFB's degraded system. This would involve a costly and time-consuming process of system analysis, trial-and-error, and reverse engineering of past repairs, leading to significant delays and mission disruption. MMB&S's existing knowledge eliminates these risks and costs.

3. Only Known Qualified Contractor in the Region Market research confirms that MMB&S is the only known qualified contractor in the Northern Rockies region with the specific technical capabilities and specialized experience required to address this requirement.

While other firms may have general boiler and steam system experience, none have the specific, demonstrated expertise with Malmstrom AFB's HTHW system. Mobilizing a qualified contractor from outside the region would incur significant additional costs and would not meet the urgent need for these services.

MMB&S's unique and extensive experience with the specific systems at Malmstrom AFB, combined with their position as the sole qualified technical expert in the geographic region, makes them the only source capable of meeting the Government's requirements in an expeditious and cost-effective manner.

V. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under

FAR 5.202 applies.

In accordance with Federal Acquisition Regulation (FAR) Subpart 5.2, a notice of intent to award a sole-source contract to Mid Mountain Boiler & Steam, Inc. will be published on the System for Award Management (SAM.gov).

This notice will provide a description of the Government's requirements and state the intention to award on a non-competitive basis. The publication of this notice serves to ensure that offers are solicited from as many potential sources as is practicable by providing an opportunity for any interested parties to identify their interest and capability to respond to the requirement.

The notice will be posted for a minimum of 15 days prior to the proposed contract award, as required by FAR 5.203. Any responses received from this synopsis will be reviewed by the Contracting Officer and technical personnel to determine if the responding source is, in fact, capable of meeting the Government’s needs as described in Section V of this justification.

Based on the market research conducted to date, which confirms that MMB&S is the only source with the unique familiarity and technical capability to perform this work without causing unacceptable delays and duplication of costs, it is anticipated that no other responsible sources will be identified.

VI. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The CO has determined that the anticipated cost to the Government for this acquisition will be fair and reasonable.

Since this contract is being awarded on a sole-source basis, a determination of price reasonableness cannot be based on adequate price competition. Therefore, in accordance with Federal Acquisition Regulation (FAR) 15.4, a combination of cost and price analysis techniques will be utilized to ensure a fair and reasonable price.

The contractor, Mid Mountain Boiler & Steam, Inc., will be required to submit a detailed cost proposal and certified cost or pricing data. The Government will perform a thorough analysis of this proposal, which will include, at a minimum:

Cost Analysis: A comprehensive review of the individual elements of cost, including direct labor hours, labor rates, material costs, subcontractor costs, other direct costs, and indirect rates. The proposed profit/fee will also be evaluated for reasonableness based on the complexity and risk of the work.

Technical Evaluation: A technical analysis of the proposed labor hours and material types will be conducted by qualified

August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 4 of 5

Government technical personnel to ensure they are realistic and necessary for the work required.

Comparison with Independent Government Cost Estimate (IGCE): The contractor's final proposed price will be compared with the IGCE to identify and analyze any significant variances.

Comparison with Historical Prices: The proposed costs will be compared to historical prices paid for similar services performed by the same contractor on the same systems, with adjustments made for any differences in the scope of work and for inflation.

Through negotiation and the application of these analysis techniques, I will ensure that the final agreed-upon price is fair and reasonable prior to the award of the contract.

VII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

Market research was conducted to confirm that only one source is available to meet the Government's needs. This research included:

Review of Acquisition History: A review of the contracting history for the boiler and HTHW systems at Malmstrom AFB confirmed that Mid Mountain Boiler & Steam, Inc. has been the primary provider of services for this equipment.

Industry Knowledge: Based on the knowledge of technical personnel and contracting officers familiar with this requirement, MMB&S is the only known contractor in the Northern Rockies region with the unique capabilities to perform this work.

A sources sought synopsis was not issued because, for the reasons discussed in Section V, it is not practicable for any company other than MMB&S to provide the required services without causing unacceptable delays and a substantial duplication of costs.

VIII. Any other facts supporting the use of Other Than Full and Open Competition.

In addition to the facts presented in Section V demonstrating that Mid Mountain Boiler & Steam, Inc. (MMB&S) is the only responsible source, the following facts further support this justification:

Awarding to MMB&S substantially mitigates performance, schedule, and financial risk to the Government. As the incumbent contractor with a 90% involvement rate on the specific HTHW system at Malmstrom AFB, MMB&S represents a known and proven entity. Using any other contractor would introduce significant unknown performance risks associated with a steep learning curve on a complex and degraded system. The potential for errors, incorrect diagnostics, and project delays is unacceptably high with an unfamiliar contractor.

This acquisition strategy will ensure mission and resource continuity. The High-Temperature Hot Water (HTHW) system is a critical component of the installation's infrastructure, essential for maintaining mission-critical operations and ensuring the quality of life for base personnel. An extended outage caused by a new contractor's need to diagnose and learn the system would have a direct negative impact on the mission. MMB&S's ability to perform the work in an "expeditious fashion" is crucial for preventing such disruptions.

The boiler system is already in a "degraded" state. Prompt, precise, and correct intervention is required to prevent further deterioration, which could lead to a catastrophic failure and significantly more complex and costly future repairs. MMB&S's unique institutional knowledge of the system's weaknesses and operational history is key to ensuring the repairs are done correctly the first time.

Streamlined Site Access and Security: MMB&S personnel are familiar with Malmstrom Air Force Base's access procedures, security protocols, and safety requirements. This familiarity eliminates the administrative delays and security burdens associated with vetting, escorting, and supervising a new contractor team, allowing work to commence more quickly and with less impact on Government security and administrative personnel.

These factors, when combined, demonstrate that the use of Other Than Full and Open Competition is not merely for

August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 5 of 5 convenience, but is essential to ensure the work is performed safely, efficiently, and without posing an unacceptable risk to the Government's mission and resources.

IX. List of any sources that expressed, in writing, an interest in the acquisition.

As of the date of this justification, no other sources have expressed an interest, in writing, in this acquisition.

A notice of intent to award on a sole-source basis will be publicized in accordance with the procedures outlined in Section VII. Should any sources express a written interest in response to this notice, their capabilities will be evaluated. If it is determined that another source is capable of meeting the Government's requirements, this justification will be cancelled, and the requirement will be procured via competitive methods.

X. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required.

The primary barrier to competition for this requirement is the unique, site-specific institutional knowledge possessed by the incumbent contractor, Mid Mountain Boiler & Steam, Inc. (MMB&S), regarding the degraded boiler and High-Temperature Hot Water (HTHW) systems at Malmstrom Air Force Base. The contract resulting from this sole-source action will include a specific line item (CLIN) and a Statement of Work (SOW) requirement for the contractor to provide comprehensive, detailed documentation of all work performed. This will include, but is not limited to, updated "as-built" drawings, detailed maintenance and repair logs, diagnostic procedures developed, and a final report detailing the system's post-repair condition and configuration.

XI. Certification by the Contracting Officer.

As evidenced by my signature above, I certify that this justification is accurate and complete to the best of my knowledge and belief.

XII. Certification by the technical/requirements personnel.

As evidenced by my signature above, I certify that any supporting data contained herein, which is my responsibility, is both accurate and complete.

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