36C261-26-AP-1750-FY26-1687 JOFOC NCO21 Cooling Tower Maint Las Vegas - HCA Approved.pdf

Attachment 1: Request for Sole Source Justification Format >SAT

VHAPG Part 806.3 OFOC Page 1 of 6 Revision: 04 Effective Date: 12/15/25 Acquisition ID#: 36C261-26-AP-1750

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C261-26-AP-1750 JOFOC Tracker: FY26 - NCO 21 - 605

1. Contracting Activity:

Department of Veterans Affairs (VA), Network Contracting Office 21; Veterans Integrated Services Network (VISN) 21, VA Southern Nevada Healthcare System (VASNHCS), 6900 North Pecos Rd, North Las Vegas NV 89086

PR# 593-26-2-577-0006

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

This procurement is for a Firm Fixed Price contract in accordance with FAR 12.102 Restricting Competition for the Acquisition of Commercial Products and Commercial Services, where acquisitions conducted are exempt from the requirements of FAR Part 6, but still requires a justification using the format of FAR 6.104-1.

VASNHCS proposes to enter a new contract on the basis of other than Full and Open Competition with Johnson Control Inc (JCI). The address for the vendor is 507 East Michigan St, Milwaukee, WI 53202. This procurement is to provide preventive maintenance, diagnostics, testing, and technical support for the entire chilled water plant system located at VASNHCS.

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

The requested annual service maintenance agreement includes preventive maintenance, diagnostics, testing, and technical support for the Metasys Building Automation System that has been integrated within the equipment listed below. The requested services include maintenance on the following equipment items:

• Five (5) 1300-ton centrifugal chillers

• Five (5) cooling towers

• Fifteen (15) Variable Frequency Drives (VFD)

• Frequency Drives (FD) for chilled water pumps

• Condenser water pumps

• Cooling tower fans

• Five (5) factory-installed Adaptive Frequency Drives (AFD) on the chillers.

This procurement will consist of a one (1) year base plus four (4) one year option year contract. The services will be performed from 3/26/2026 through 3/25/2031.

Base Year: March 26, 2026 – March 25, 2027

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Acquisition ID#: 36C261-26-AP-1750

Option Year 1: March 26, 2027 – March 25, 2028 Option Year 2: March 26, 2028 – March 25, 2029 Option Year 2: March 26, 2029 – March 25, 2030 Option Year 2: March 26, 2030 – March 25, 2031

The estimated value of proposed action is as follows:

Base Year: $2,800,633.00 Option Year 1: $455,414.00 Option Year 2: $480,185.00 Option Year 3: $506,394.00 Option Year 4: $534,134.00

Estimated Contract Total: $4,776,760.00.

The base year value is substantially higher as the cooling units will be refurbished and the chillers will be overhauled. The subsequent option years will only include the service maintenance agreement.

The Government will include the option to extend the effective period of performance utilizing FAR 52.217-8, Option to Extend Services under this contract for a period not to exceed six (6) months.

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 USC §3304(a)(1) as implemented by

RFO 6.103-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by RFO 6.103-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by RFO 6.103-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by RFO 6.103-4

( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by RFO 6.103-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by RFO 6.103-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by RFO 6.103-7;

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

The procurement is a sole source acquisition to JCI. There are no other sources of supply/service that will satisfy agency requirements. JCI is the Original Equipment Manufacturer (OEM) of the Metasys Building Automation System authorized to sell, distribute, and service the system.

VHAPG Part 806.3 OFOC Page 3 of 6

Acquisition ID#: 36C261-26-AP-1750

JCI holds proprietary rights to the software, diagnostic tools, and firmware updates required for proper operation of these systems to include access to encrypted chiller AFD configurations, proprietary firmware/software updates for the integrated drives, factory-authorized diagnostics and resets for Metasys integration and OEM warranty-preserving service of AFDs. All follow-on maintenance must be performed directly by the OEM and not outsourced to a third party to maintain the integrity of the equipment and to maintain required warranties on equipment and to avoid servicers not familiar with the products causing damage and system compability risks to the equipment. Risks incurred by a third party repairs include Joint Commission and Life-Safety code violations, chillers or tower failure which will impact clinics to include shutdowns, SPS processing disruption, and pharmacy storage non-compliance.

If damage is caused by a third party in the course of repairs or not awarded, then the Government could be held liable for additional costs that are upwards of 400% that are associated with emergency repairs or replacement of equipment that can only be provided by the OEM after damage has occurred. These costs are inclusive of cascading costs associated with the correction of the repair and the actual repair of equipment. As such, the work can only be completed by one source, which is the OEM of the equipment.

JCI has been providing these services to VASNHCS satisfactorily.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as possible (including whether a notice was or will be publicized as required by RFO Part 5 and, if not, which exception under RFO Part 5 applies):

A Notice of Intent (NOI) to sole source was posted to SAM.GOV from 01/05/2026 to 01/09/2026 under number 36C26126Q0313.

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

Fair and Reasonable:

To ensure the final contract price is fair and reasonable, an analysis will be conducted following the guidelines of FAR 12.201-1, comparison to the Independent Government Estimate. In addition, the Contracting Officer will review the awarded pricing that had been determined fair and reasonable for the necessary services, taking into account the escalation rates, in accordance with FAR 12.201-1, comparison of the proposed price with prices found reasonable on previous purchases.

The proposed contract action is a combination of two (2) standalone contract actions that only included the service maintenance agreements for the five (5) 1300-ton centrifugal chillers and the five (5) cooling towers. The proposed action is inclusive of the service maintenance agreements, overhauling of the units and replacement of internal parts during the monthly service. Current contract pricing for the service https://www.acquisition.gov/far-overhaul/far-part-deviation-guide/far-overhaul-part-5 https://www.acquisition.gov/far-overhaul/far-part-deviation-guide/far-overhaul-part-5 https://www.acquisition.gov/far-overhaul/far-part-deviation-guide/far-overhaul-part-5

VHAPG Part 806.3 OFOC Page 4 of 6

Acquisition ID#: 36C261-26-AP-1750 maintenance agreement were inclusive of a basic service. Additional repairs were not covered under the contract and required modifications to the contract.

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

Statement of the Reasons Market Research Was Not Conducted:

Extensive market research was conducted utilizing North American Industry Classification System (NAICS) code 238220, Plumbing, Heating, Air-Conditioners Contractors and keyword “Metasys Building System” in SAM.gov and General Services Administration (GSA) as well as the Small Business Administration (SBA) Dynamic Small Business Search. The purpose of these searches was to seek contractors that are able to provide maintenance of the Metasys Building Automation System equipment at fair and reasonable prices. The search was also to determine if there are contractors who obtained limited agreements with JCI to provide preventative maintenance to cooling towers that are utilizing the Metasys Building Automation System.

As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition, and soliciting inquiries from interested parties. Through market research, the CO has determined that JCI does not have any authorized third party service providers for preventative maintenance for the equipment listed that are integrated with the Metasys Building Automation System in Section 3. Utilizing SAM.gov and the keywords, Metasys Building Automation Systems maintenance, the results determined contracts for JCI Metasys Building Automation Systems integrated equipment services were only awarded to JCI. GSA Ebuy returned the Multiple Award Schedule (MAS), JCI is the only contractor. The SBA Small Business Dynamic Search database was searched using NAICS 238220 and keywords, Metasys Building Systems. The search resulted in three (3) Small Disabled Veteran Own Small Business/Veteran Own Small Business (SDVOSB/VOSB) vendors. Dorsun Global Inc provide services including consulting, design and troubleshooting for Johnson Controls Metasys. Kaze Properties does not have a website or a SAM.gov registration. Applied Controls & Contracting Services Inc website does not include Metasys Building Systems. However, due to the proprietary nature of this requirement, it must be awarded on a sole source basis to JCI.

Additional market research was conducted by the Contracting Officer by performing an analysis of historical pricing, which included services, training and incidental services related to the equipment purchases. The market research did not yield any vendors qualified or authorized by agreement with the OEM to provide preventative maintenance services for the equipment that utilize the Metasys Building System.

Historical pricing was based on the two (2) standalone contracts that are being performed to include the service maintenance agreement for the five (5) 1300-ton centrifugal chillers and five (5) cooling towers.

VHAPG Part 806.3 OFOC Page 5 of 6 Revision: 04 Effective Date: 12/15/25 Acquisition ID#: 36C261-26-AP-1750

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

There are no other supporting facts.

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

Johnson Controls, Inc

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:

JCI is the only source that can perform the maintenance on the Metasys Building Automation System that is integrated within the equipment listed above in Section 3 due to the proprietary nature of the equipment. JCI does not authorize any third party service providers to provide the requested services. The Department of Veterans Affairs will continue to monitor the commercial marketplace to determine if other sources are responsible and capable of providing this type of service that meets the needs of VISN 21.

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.

February 12, 2026 Date

Dwight Bryan Utilities System Supervisor

VASNHCS

VHAPG Part 806.3 OFOC Page 6 of 6

Acquisition ID#: 36C261-26-AP-1750

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

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

Cynthia Diezel Date Contracting Officer Network Contracting Officer (NCO) 21

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $900K): I certify the justification meets requirements for other than full and open competition.

Nicholas Kluch Date Network Contracting Office (NCO) 21 Director of Contracting

c. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and recommend approval (if over $90 million) or approve ($900K to $90 million) for other than full and open competition.

Curtis M. Jordan Date Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA) https://dvagov.sharepoint.com/sites/vhapromanual/SitePages/VHAPM-Part-806.3.aspx