S02 Justification and Approval.pdf

DEPARTMENT OF VETERANS AFFAIRS

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

1. Contracting Activity:

Department of Veterans Affairs (VA), Veterans Benefits Administration (VBA), Office of Mission Support (OMS), Acquisition Directorate, on behalf of the St. Petersburg, Florida, Veterans Affairs Regional Office (VARO), identified as Project Number 317VB3261/28. The Purchase Request (PR) number for this requirement is 3174-000104.

2. Nature and/or Description of the Action Being Processed:

This new requirement is being procured as construction-related services pursuant to Federal Acquisition Regulation (FAR) Part 14. In accordance with the Competition in Contracting Act (CICA), the Johnson Controls components listed below are identified as brand name; however, the overall procurement has been competed as a total Service-Disabled Veteran-Owned Small Business (SDVOSB) set aside.

A new Firm-Fixed-Price Contract will be awarded as described in FAR 16.202.

3. :

The St. Petersburg, Florida, VARO requests the replacement of the existing variable air volume (VAV) boxes with the installation of approximately one hundred seventy-eight (178) terminal units. Said quantity has been subsequently amended to one hundred sixty (160) terminal units. This requirement is necessary as the St. Petersburg, Florida, VARO has consistently experienced difficulty in maintaining the temperatures throughout Building 46. Said terminal unit replacements shall be connected to and compatible with the existing Johnson Controls Metasys. The existing thermostat must also be replaced. All ceiling grids and ceiling tiles must be returned to preexisting condition upon completion of the terminal unit installations.

This Justification is for other than full and open competition pertaining to the procurement of certain construction materials or construction-related services. The use of a particular brand for the items listed below is only a portion of the construction materials or construction-related services requested to accommodate standardization of these items throughout the facility.

Building Management System at the St. Petersburg, Florida, VARO is the Metasys system by Johnson Controls, Inc. for heating, ventilation, and air conditioning (HVAC). Components include the contollers for the VAV Boxes as well as the thermostats along with the programming of such equipment.

All work under this Contract shall be completed within one hundred eighty (180) calendar days upon the issuance of the Notice to Proceed (NTP).

4. Statutory Authority Permitting Other than Full and Open Competition:

(X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements per 41 United States Code (U.S.C.) §3304(a)(1) as implemented by FAR 6.302-1

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302-2 ( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3 ( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4 ( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302-5

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6 ( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7

5.

the Use of the Authority Cited Above (applicability of authority):

Building Management System of Metasys by Johnson Controls, Inc.

The Metasys system by Johnson Controls, Inc. is the existing HVAC building management control system installed. The entire facility, being the St. Petersburg, Florida, VARO, is currently operating on the Metasys system by Johnson Controls, Inc. for HVAC purposes. Any products to be used on the existing HVAC Building Management System must interface with the existing system. To minimize the technical risks of ensuring compatibility among the component parts and integration of the entire Metasys system with the campus-wide system, the controllers installed as well as the programming implemented must be provided by the same manufacturer as that of the campus-wide system. Other manufacturer components may not operate properly or operate at all on the existing Metasys system. VBA has contracts with Johnson Controls, Inc. for the HVAC Building Management System. Introducing other manufacturers products may void the existing warranty on the Metasys le; no substitution products shall be procured or installed.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

A Sources Sought Notice, associated with Solicitation Number 36C10D25B0001, was published to Contract Opportunities through the System for Award Management (SAM) on September 27, 2024 and closed as of October 8, 2024 at 3:00 pm Eastern Standard Time (EST). The applicable Sources Sought Notice requested that interested SDVOSBs, Veteran-Owned Small Businesses (VOSBs), or Small Businesses (SBs) submit the following five (5) components:

(1) Statement of Intent that a Bid will be submitted to the potential future Solicitation for this

Unique Entity Identifier (SAM UEI) Number;

(2) Verification through the SBA VetCert as a SDVOSB or VOSB under the North American Industry Classification System (NAICS) Code of 238220, if applicable;

(3) Verification through VETS-4212 for SDVOSBs or VOSBs that the current reporting requirements and confirmation of filing has been satisfied, if applicable;

(4) Statement with capabilities to satisfy the project objectives identified above; and

-five percent (25%) of this requirement in accordance with FAR 52.219-14: Limitations on Subcontracting.

10.001(a)(3)(i). Furthermore, in accordance with 38 U.S.C. §8127(d), the completed market research findings provided a reasonable expectation of receiving two (2) or more offers from eligible, capable, and verified SDVOSBs at a fair and reasonable price that offers the best value to the Government.

Thus, the VA Rule of Two will be satisfied, pursuant to Veterans Affairs Acquisition Regulation (VAAR) 819.7005, for a total SDVOSB set-aside.

7. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable:

Current pricing and market issues will be determined by using proposed bids received in response to the IFB solicitation affiliated with this VAV Box Replacements requirement, which should likely satisfy adequate price competition. Also, as another price analysis technique, proposed bid prices for this requirement may be compared to the Independent Government Estimate (IGE). Both of these preceding comparative methods comply with FAR 14.408-2(a) that permits the use of price analysis techniques from FAR 15.404.1(b) as guidelines.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

In accordance with FAR Part 10 and VAAR Part 810, market research has been conducted for this acquisition.

After conducting a nationwide search through the Veteran Small Business Certification (VetCert) database administered by the Small Business Administration (SBA) under the applicable NAICS Code of 238220 [Plumbing, Heating, and Air-Conditioning Contractors], one thousand nine hundred fifty-one (1,951) SDVOSBs or VOSBs were identified, as of October 3, 2024.

At this stage of market research, a Dynamic Small Business Search (DSBS), also administered by the SBA, was performed on October 3, 2024 under the applicable NAICS Code of 238220 [Plumbing, Heating, and Air-Conditioning Contractors] along with a limitation to self-certified SDVOSBs that ascertained two thousand four hundred fifteen (2,145) business entities. Another DSBS was conducted under the applicable NAICS Code of 238220 [Plumbing, Heating, and Air-Conditioning Contractors] along with a keyword search -certified SDVOSBs and VOSBs that ascertained four (4) business entities.

A Sources Sought Notice, associated with Solicitation Number 36C10D25B0001, was also posted.

Refer to Question 6 and corresponding analysis in this Justification.

Based upon the aforementioned research and information, this requirement will be a total set-aside for SDVOSBs. This overall requirement exceeds the Simplified Acquisition Threshold (SAT), and will be set-aside with (a) a reasonable expectation of receipt of offers from two (2) or more responsible SDVOSBs and (b) award will be made at a fair market price (FAR 19.502-2(b)). Under 38 U.S.C.

business concerns shall be applied by the following order of priority: (1) SDVOSBs, (2) VOSBs, (3) 8[a] and HUBZone firms, and (4) any other small business.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: .

Not applicable.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: