LSJ Redacted Post.pdf

Effective Date: 02/01/2022 Page 1 of 5

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C244-24-AP-2656

(1) Contracting Activity: Department of Veterans Affairs, NCO4 Services 2, in support of VISN 04 Wilkes-Barre VA Medical Center at 1111 East End Blvd, Wilkes Barre, PA 18711-0026.

Request for Service, maintenance, and repair of the government owned Building Automation System (METASYS). 2237: 693-24-3-539-0041

(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 contract for the monthly service and maintenance of the facilities existing building management system, the Johnson Controls METASYS.

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

Name of Proposed Contractor: Johnson Controls Inc.

Street Address: 5 Pethick Drive, Suite 5

City, State, Zip: Wilkes Barre, PA 18702

Phone: 570-200-2000

(3) Description of Supplies or Services:

The estimated value of the proposed action is .

This requirement is for the contractor to provide all parts, labor, and supervision needed to provide regular maintenance to Johnson Controls METASYS equipment and control systems at the Wilkes-Barre VA Medical Center, Community Living Center, and five associated VA Outpatient clinics. The METASYS Building Automation System is proprietary to Johnson Controls Inc, no other vendor is capable of servicing the system or any of it’s components.

The Period of Performance is for one year with four additional one-year option periods. Period of Performance dates will be determined at award.

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The equipment requiring regular maintenance is:

• METASYS ADX Server

• Network Automation Engines

• Network Control Engines

• DX 9100 Digital Controllers

• Unitary Controllers

• Variable Air Volume Box Controllers

• Field Equipment Controllers

• Temperature Sensors in Nutrition/Pharmacy areas

• Temperature and Humidity Sensors for Steile Supply/RME rooms

• Temperature Sensors for Critical Equipment

(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;

The building management system is the Johnson Controls Inc METASYS operating system, a proprietary system of the listed contractor. All maintenance, repairs, system updates, and calibration services must be compatible with the METASYS operating system. Johnson Controls Inc. is the only vendor capable of servicing, updating, and maintaining the METASYS system.

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:

A patent, copyright or proprietary data limits competition. The proprietary data is:

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

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The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing.

(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:

The required services are offered on an existing GSA schedule. GSA has already determined the rates for services under schedule contracts to be fair and reasonable. The ordering activity has requested additional discounts.

The alternative to purchasing these services is purchasing a new building management system to monitor multiple facilities including the Wilkes-Barre VAMC. Due to the size and complexity of the existing building management system, changing to a different vendor would be of great expense, and likely result in the same need to sole-source any maintenance and calibration services.

Since it is unreasonable to change the existing building management system, ordering these services for the METASYS operating system from Johnson Controls Inc remains the best value to the government. Price will be reviewed prior to award and price fair and reasonableness determination will be documented.

(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 was conducted using available resources. A search of GSA eLibrary was conducted using they keyword “METASYS”, which identified Johnson Controls Inc as the manufacturer of the METASYS operating system. MAS 334512 was identified as most relevant, and using the keyword Metasys provided 8 results, only one of which appeared capable:

Johnson Controls Inc.

A search of FPDS with the keyword “Metasys” resulted in many contracts similar in scope to this requirement, and most awards were made to Johnson Controls. Awards made to other contractors did not appear to include maintaining the Johnson Controls Metasys system and software.

AddsUp was used to identify additional VA contracts for regular calibration and maintenance of the Metasys building management system, and two contracts were identified as extremely similar in scope: 36C24421F0384 and 36C24421F0176. Both requirements were sole sourced to Johnson Controls due to the proprietary nature of the system and required services.

Other market research efforts and results are documented in the Market Research Report, and all searches indicate that Johnson Controls Inc is the only capable vendor. It is recommended this requirement be sole sourced to Johnson Controls Inc, a large business.

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(7) Any Other Facts Supporting the Justification:

Johnson Controls Inc has all proprietary rights to maintain and service the METASYS operating system, which was confirmed using internet searches and examining warranty information by the customer, Henry O’Hop.

(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: If replacement of the entire METASYS building management system is needed, the requirement will be solicited to provide opportunity for multiple vendors through competition. If repairs or additional maintenance are required for the existing METASYS operating system, it will be evaluated whether competition is feasible.

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

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

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

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $750K):

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

HIGHER LEVEL APPROVAL (Required for orders over $750,000):

c. VHA RPO HCA Review and Approval (over $750,000 to $75 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.