P03 - AITC EATON MAINTENANCE SERVICES JA Capacitors and Fans _FINAL_Redacted.pdf

DEPARTMENT OF VETERANS AFFAIRS

Office of Procurement, Acquisition and Logistics (OPAL)

Strategic Acquisition Center (SAC) 5202 Presidents Ct, Suite 103

Frederick, MD 21703

LIMITED-SOURCES JUSTIFICATION

(1) Identification of the agency and the contracting activity , and specific identification of the document as a "Limited-Sources Justification."

This justification for limited sources is executed by the Strategic Acquisition Center – Frederick (SAC-F), on behalf of the Department of Veterans Affairs (VA), Office of Information Technology, Infrastructure Operations, Application Hosting, Cloud and Edge Solutions, National Data Center Operations and Logistics (NDCOL).

(2) Nature and/or description of the action being approved.

This is a request for limited - sources to modify the current delivery order (GS-06F- 0023R, 36C10X21F0010) to include two open market items for uninterruptible power supply (UPS) cooling fans and filtering capacitors in order to update the current UPS system to ensure its warranty status and its design reliability. The current delivery order was procured as a sole source firm-fixed priced GSA delivery order. The delivery order was awarded to Eaton Corporation on February 4, 2021 with the following period of performance:

Base: 02/04/2021 – 02/03/2022 Option Period 1: 02/04/2022 – 02/03/2023 Option Period 2: 02/04/2023 – 02/03/2024 Option Period 3: 02/04/2024 – 02/03/2025 Option Period 4: 02/04/2025 – 02/03/2026

(3) A description of the supplies or services required to meet the agency’s needs (including the estimated value).

In order to ensure the warranty status and design reliability of the UPS system located at the Austin Information Technology Center (AITC) the Government requires that four current UPS capacitors be upgraded to 9395 AC and DC Oil Filled Capacitors (P/N 103007102) and one UPS fan be upgraded to a 9395 1100-1100 CH FAN (P/N FP106000128). Currently, Eaton Corporation’s GSA schedule (GS-06F-0023R) does not list the 9395 AC and DC Oil Filled Capacitors or the 9395 1100-1100 CH FAN therefore, these items will need to be added to the Delivery Order as open market items. The capacitors and fan will be incorporated for only Option Period 2. The capacitors and fans need to be replaced on a five-year periodic basis because the capacitors wear out over time with usage and the fans, which are in constant operation, wear out over time.

The total estimated value of the proposed action is $70,029.40.

(4) The authority and supporting rationale (see 13.106-1(b)(1)(i)) and, if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

Federal Acquisition Regulation (FAR) Part 13.106-1(b)(1)(i), 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.

Additionally, FAR 8.402(f) permits and this action meets the addition of the open market items stating:

For administrative convenience, an ordering activity contracting officer may add items not on the Federal Supply Schedule (also referred to as open market items) to a Federal Supply Schedule blanket purchase agreement (BPA) or an individual task or delivery order only if-

(1) All applicable acquisition regulations pertaining to the purchase of the items not on the Federal Supply Schedule have been followed (e.g., publicizing (part 5), competition requirements (part 6), acquisition of commercial products or commercial services (part 12), contracting methods (parts 13, 14, and 15), and small business programs (part 19));

(2) The ordering activity contracting officer has determined the price for the items not on the Federal Supply Schedule is fair and reasonable;

(3) The items are clearly labeled on the order as items not on the Federal Supply Schedule and they conform to the rules for numbering line items at subpart 4.10; and

(4) All clauses applicable to items not on the Federal Supply Schedule are included in the order.

Eaton Corportation currently provides UPS System, Batteries, and PDU Maintenance for the AITC delivery order (36C10X21F0010 against GSA contract number GS-06F- 0023R) and has the experience and knowledge in providing support in specific tasks and deliverables to fully support the AITC. Overall, the contractor currently provides exceptional support needed to complete the requirements of this acquisition and is capable of providing support promptly to fulfill the critical need.

The Eaton UPS components are uniquely engineered to be integrated within the existing design of installed UPS equipment at the AITC. Additioanally, Eaton Corporation Technicians are the only certified maintenance source to perform warranty and regularly scheduled maintenance for the Eaton UPS equipment on the AITC’s unique power system design and architecture. Furthermore, another source would not be designed to be integrated and operate as specified by the original equipment manufacturer’s maintenance requirements.

(5) A determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 13.106-2.

This action is to add open market items to an existing GSA order via modification. No award shall be made until the Contracting Officer determines the price to the Government to be fair and reasonable.

(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.

No additional market research was conducted because Eaton Corporation is the only approved source of component parts to be installed in the system. Eaton Corporation is the Original Equipment Manufaturer (OEM) and is the design authority of their own product and is in control of all engineering design data related to the UPS system installed at the AITC facility. Therefore, Eaton Corporation is the selector of their components and they perform all of the inhouse qualification testing for selecting a particular component in their design. If non – OEM components are used, it removes any warranty provided by Eaton Corporation and VA would assume all risk and cost of equipment failure and part replacement. Eaton Corporation will not install non-approved components.

Eaton Corporation warranties all its systems and components and Eaton Corporation is the only approved maintenance service provider for all UPS system equipment installed at the AITC facility. There is no competition anticipated for this acquisition. In accordance with FAR 13.105 and FAR 5.301, this action will be synopsized at award on the System for Award Management (SAM), SAM.gov and the justification will be made publicly available.

(7) Any other facts supporting the justification.

NONE

(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.

No barriers to future competition are anticipated since Eaton Corporation is the only approved source of repair and replacement components. Market research will continue to be conducted to identify potential sources on future requirements.