36C25220C0130-001.pdf

OFOC SOP Revision 08 Page 1 of 3

Original Date: 03/22/11

Revision 08 Date: 04/18/2018

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) for

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C252-20-AP-0679

Purchase Request Number: 556-20-2-5020-0290

Solicitation Number: 36C25220Q0368

1. Contracting Activity: Department of Veterans Affairs, Great Lakes Acquisition Center

(NCO 12), 115 South 84th Street, Suite 101, Milwaukee, Wisconsin 53214.

2. Nature and/or Description of the Action Being Processed: This procurement is for maintenance of a WebCTRL® Building Automation System located at the Lovell Federal

Health Care Center, Naval Station Great Lakes, 3001 Green Bay Road, North Chicago, Illinois 60064, in accordance with FAR 13.5 Simplified Procedures for Certain Commercial

Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of

FAR Part 6, but still require a justification using the format of FAR 6.303-2.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The Lovell

Federal Health Care Center (“FHCC”) utilizes the WebCTRL® Building Automation System

(“WebCTRL”), manufactured by Automated Logic Contracting Services, Inc. (“ALCS”), for its environmental control requirements. The purpose of this acquisition is to provide maintenance services for this critical function. The total value of this acquisition is expected to exceed the Simplified Acquisition Threshold, assuming all option years are exercised, as follows:

• Base Period: April 9, 2020 – March 31, 2021, $113,700.00;

• Option Year 1, April 1, 2021 – March 31, 2022, $113,700.00;

• Option Year 2, April 1, 2022 – March 31, 2023, $113,700.00;

• Option Year 3, April 1, 2023 – March 31, 2024, $113,700.00; and

• Option Year 4, April 1, 2024 – March 31, 2025, $113,700.00.

• Total contract value: $568,500.00.

4. Statutory Authority Permitting Other than Full and Open Competition: The authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C.

1901 and is implemented by for restricting competition on this procurement via FAR 13.106-

1(b)(2).

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the

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

As with many building automation systems, WebCTRL uses proprietary hardware and software to function. The threshold question for providing maintenance services to proprietary systems is whether anyone other than the Original Equipment Manufacturer

OFOC SOP Revision 08 Page 2 of 3

Revision 08 Date: 04/18/2018

(“OEM”), in this case ALCS, has authorized any other business to act as a WebCTRL service provider.

As detailed in the Market Research Memorandum for this acquisition, see Attachment 1 –

Market Research Memorandum, without Attachments, ALCS confirmed via telephonic consultation on March 11, 2020, that WebCTRL is a proprietary system. ALCS provided a follow-up letter on March 13, 2020, stating that no other company was authorized to service

WebCTRL in the Chicago area, which includes FHCC. In order to corroborate (or refute) this claim, a Notice of Intent to Sole Source was posted to Contract Opportunities on March

11, 2020, with the heading: “J041—Notice of Intent to Sole Source Acquisition:

WebCTRL® Building Automation System Maintenance Services Lovell FHCC, North

Chicago, Illinois,” with a response deadline of 5:00 p.m. local time on March 17, 2020.

Independent market research of Government databases was also conducted, including VIP, eCMS, GSA Advantage, Contract Opportunities, DSBS, and FPDS, which indicated that other companies have been awarded WebCTRL maintenance contracts. Given the apparent number of vendors associated with WebCTRL, ALCS was queried via e-mail on March 16, 2020, to confirm whether any these businesses were authorized service providers in the

Chicago area. ALCS’s response corroborated its sole source letter by stating that none of the businesses listed from the market research are authorized to provide WebCTRL service in the

Chicago area.

Final confirmation of ALCS’s claim that it had not authorized any other WebCTRL service providers in the Chicago area came in the form of a non-response to the Notice of Intent to

Sole Source Acquisition. Accordingly, based on ALCS’s representations coupled with the non-response to the Notice of Intent to Sole Source, it appears that ALCS is uniquely qualified to provide WebCTRL maintenance services at FHCC, and this acquisition should proceed on a sole source basis.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: As previously noted, a Notice of Intent to Sole Source

Acquisition was posted on Contract Opportunities on March 11, 2020, with an expiration of

5:00 p.m. local time on March 17, 2020. No responses were received.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and

Reasonable: The anticipated cost for this contract will be fair and reasonable because it is expected that the prices to be offered by ALCS will be in line with the prices previously found reasonable on the contract that is expiring on March 31, 2020, in accordance with FAR

13.106-3(a)(2)(ii).

8. Description of the Market Research Conducted and the Results, or a Statement of the

Reasons Market Research Was Not Conducted: Thorough market research was conducted using the following sources: VA Vendor Information Pages (“VIP”); eCMS; GSA

Advantage; Contract Opportunities; SBA Dynamic Small Business Search; FPDS; and

OFOC SOP Revision 08 Page 3 of 3

Revision 08 Date: 04/18/2018 information supplied by ALCS, as detailed in the Market Research Memorandum. See

Attachment 1 – Market Research Memorandum, without Attachments.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: None.

11. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any

Barriers to Competition before Making subsequent acquisitions for the supplies or services required: Given the proprietary nature of WebCTRL, it appears to be a business decision on the part of the OEM, ALCS, to choose which markets it will authorize other businesses to provide service and which markets it will keep to itself.

12. 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 and belief.

Title: _______________________________

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

Contracting Officer

Great Lakes Acquisition Center (NCO 12)

b. One Level Above the Contracting Officer (Required over SAT but not exceeding

$700K): I certify that the justification meets requirements for other than full and open competition.

Branch Chief, Services Team

Great Lakes Acquisition Center (NCO 12) http://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx