36E77619C0002-025.pdf

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) for

Other Than Full and Open Competition (>$150K)

Acquisition Plan Action ID: VA701-17-AP-0050

1. Contracting Activity:

The contracting activity for this requirement is the Department of Veterans Affairs, Program Contracting Activity Central (PCAC).

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

This justification is in support of a new, single award, Firm-Fixed-Price (FFP) contract for an Energy Savings Performance Contract (ESPC) at the VISN 1 White River Junction Veterans Affairs Medical Center (VAMC), CT. Establishment of the contract will follow the procedures in FAR Part 15.

The Department of Veterans Affairs Program Contracting Activity Central (VA-PCAC) intends to execute a Service Disabled Veteran Owned Small Business (SDVOSB) direct award in accordance with VAAR 819.7007 to TL Services, Inc. (TLS) for the procurement of an ESPC at VISN 1 White River Junction VAMC, CT.

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

The purpose of this contract is to procure energy savings and facility improvements with no up-front capital costs or special appropriations from Congress to the VISN 1 White River Junction VAMC, CT.

The scope of work includes design, construction, and installation of all ECMs as well as implementing capital improvements that reduce the consumption, energy usage intensity and other related costs from using energy. The Contractor will design, install, maintain, monitor, and arrange financing of a comprehensive utility and energy services conservation program.

In accordance with 42 U.S.C. 8287, ESPCs may not exceed a maximum Period of Performance (PoP) term of 25 years. The performance period is determined by the ECM portfolio agreed upon between the Government and the ESCO in the final Investment Grade Audit (IGA); therefore, the period of performance will remain unknown until prior to a contract award.

The however after several months of an Investment Grade Audit (IGA), the final proposal cost submitted by TLS was $3,914,172.00.

Throughout the IGA process additional requirements regarding the dual fuel boiler ECM by the Office of Capital Asset Management Engineering and Support (OCAMES) and physical security requirements within the White River Junction VAMC caused these significant increases in costs.

Price negotiations were held with TLS and are documents in the S24 document within the Contract File.

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

This procurement is being conducted in accordance with the Veterans First Contracting Program and the Authority under FAR Part 6.302-5(b)(6), Title 38 U.S.C. 8127 (b), and VAAR 819.7007. TL Services, Inc. is verified as a Service Disabled Veteran Owned Small Business in the Vendor Information Pages.

For this action, 38 U.S.C. 8127(c), known as the Veterans First Contracting Program, provides the authority to directly contract with an SDVOSB or a VOSB.

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

38 U.S.C. 8127(c) states, in part, “…a contracting officer at the Department may award a contract to a small business concern owned and controlled by veterans using procedures other than competitive procedures if –

(1) Such concern is determined to be a responsible source with respect to performance of such contract opportunity;

(2) The anticipated award price of the contract (including options) will exceed the simplified acquisition threshold (as defined in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403)) but will not exceed $5,000,000; and

(3) In the estimation of the contracting officer, the contract award can be made at a fair and reasonable price that offers best value to the United States.

The implementing regulations at VAAR 819.7007 (b) & (c) [DEVIATION] state in part:

(b) “The contracting officer’s determination whether to make a sole source award is a business decision wholly within the discretion of the contracting officer...”

(c) “A determination that only one SDVOSB can meet the requirement is not required…”

The proposed source for this acquisition is TL Services, Inc. (TLS), 4733 Kibler Road, Van Buren, AR 72956; a registered and verified SDVOSB by VA Center for Verification and Evaluation (CVE). TLS is technically qualified through its experience providing construction projects for the VA that are similar to the Energy Conservation Measures included in the VISN 1 ESPC White River Junction VAMC scope of work. TLS performed work as a subcontractor for the construction portion of ESPC projects in the past; this gives them the necessary capabilities to meet the Government’s needs for this requirement. Additionally, TLS is listed on the Department of Energy list of qualified ESCOs.

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

In accordance with the Class Deviation from the VAAR 819.7007(b), Sole Source Awards to Service- Disabled Veteran-Owned Small Business Concerns, the Contracting Officer’s determination whether to make a sole source award is a business decision. For the reasons stated herein, and specifically, in response to Paragraph 5, the undersigned Contracting Officer, has determined TLS is a qualified, responsible SDVOSB ESCO and that an award can be made at a fair and reasonable price.

A Notice of Intent to Sole Source announcing the contract action was posted to www.fbo.gov, the government’s point of entry, on January 24, 2018. PCAC did not receive any responses as a result of the posting. The Justification and Approval (J&A) document will be posted within 14 days after award in accordance with FAR Subpart 6.305. The award synopsis will be posted to FEDBIZOPPs in accordance with FAR Subpart 5.301(a)(2).

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

Based on the authorities cited in this justification, a sole source award to TLS is proposed and the final proposal submitted was at a fair and reasonable price for the work to be performed.

Negotiations were conducted between VA and TLS with support from the Energy Management Program (EMP), the Contracting Officer Representative, and OCAMES.

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

In addition to the Notice of Intent to Sole Source published to FBO.gov, searches were completed querying Vetbiz.gov and the DOE Qualified Vendor List to find potential SDVOSB sources. Several conference calls were held with TLS, and other possible SDVOSB DOE Qualified ESCOs, regarding their ESPC experience and background, prior to commencing the IGA. The Contracting Officer determined that TLS can perform the VISN 1 ESPC White River Junction VAMC, CT Project and at a fair and reasonable price.

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:

There were no other sources that expressed in writing an interest in the acquisition.

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:

The agency will continually search VIP and the DOE qualified list for any new SDVOSB concerns that are considered qualified for ESPC projects of similar size, scope, and complexity of the VISN 1 ESPC White River Junction VAMC, CT.

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.

BESSIE (BAYLA) GEWIRTZ Date Program Manager Office of Asset and Enterprise Management

13. Approvals in accordance with the VHAPM, Volume 6, Chapter VI: OFOC SOP.

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

KATHLEEN KLOTZBACH Date Contracting Officer Program Contracting Activity Central

b. Director of Contracting /Designee: I certify the justification meets requirements for other than full and open competition.

RICHARD DAHMEN Date Director of Contracting

Program Contracting Activity Central

BESSIE GEWIRTZ 108176 Digitally signed by BESSIE GEWIRTZ 108176 Date: 2019.07.01 12:47:39 -04'00'

Kathleen D. Klotzbach 325427

Digitally signed by Kathleen D. Klotzbach 325427 Date: 2019.07.01 12:27:41 -04'00'

Richard C. Dahmen 199197 Digitally signed by Richard C. Dahmen 199197 Date: 2019.07.02 06:40:24 -04'00'

c. SAO Director/HCA: I certify the justification meets requirements for other than full and open competition.

RANDY HAYES Date

Acting Executive Director Regional Procurement Office Central

Randy L. Hays 534204

Digitally signed by Randy L.

Hays 534204 Date: 2019.07.02 08:32:44 -07'00'