Tab 4 - Sole Source Justification - FAR PART 13.5 DL YDB JH.pdf

Sole Source Justification

Nix Condenser Water System Study Robert N.C. Nix Sr Federal Building and Courthouse

900 Market Street, Philadelphia, PA 19106

1. Identification of the agency and the contracting activity:

This document constitutes a justification and approval for the sole source use for the acquisition described herein. It is executed on behalf of the General Services Administration, Mid-Atlantic Region, Public Buildings Service, Acquisition Management Division.

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

GSA is in need of a Mechanical, Electrical, and Plumbing (MEP) architect engineering (A/E) firm to provide the necessary study of the existing site conditions pertaining to the Condenser Water System at the Robert N.C. Nix Sr Federal Building and Courthouse (Nix). The water system includes the chillers, condenser water pumps, piping, and cooling towers. GSA installed the new chillers in 2019 and new cooling towers, along with a new water treatment system in 2024. Although the systems work, GSA feels there is value in studying the condenser water system to make recommendations on how to further optimize the systems performance. GSA is looking to award this as new firm fixed price A/E service contract to Henry Adams (HA), LLC.

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

It is intended that HA would provide A/E services to study the Nix’s condenser water system and make recommendations on how to further optimize the system’s performance. The Independent Government Estimate (IGE) for the study is $84,400.48 and was completed by Contracting Officer Representative (COR) Joseph Horton on July 19, 2024.

4. Identification of the statutory authority permitting other than full and open competition:

41 USC 253 (c)(1) as implemented by FAR 6.302-1, only one responsible source and no other services will satisfy agency requirements.

41 U.S.C. 1901 utilizing the procedures in FAR Subpart 13.5, Simplified Procedures for Certain Commercial Items – Sole source (including brand name) acquisitions

• In 2016 GSA, Region 3, Indefinite Delivery Indefinite Quantity (IDIQ) MEP, A/E firm

Greenman-Pedersen, Inc. (GPI), designed the chillers, the ac components in the basement, and supporting pumps for the Nix Building water system (#GS-P-03-16-AZ- 7088). It was realized during construction that GPI’s design was not sound and was failing on many levels. There were major design flaws.

• GSA had to hired Henry Adams (HA) (a new MEP, IDIQ holder), in the middle of construction, to remedy the failed design from GPI. HA not only provided a new design to correct GPI’s failed design for the water system. GSA also awarded a task order to HA for Construction Administrative (CA) Services to support the remainder of the initial project construction.

• As a result of HA’s success in assisting GSA in correcting design failures in the middle of construction from GPI’s original design, GSA followed up by having HA design and provide CA services for the 2nd phase of the Nix Building’s water system which consisted of adding/incorporating in new cooling towers and replacing the condenser water pump in 2021 (47PD0121F0007).

• HA has successfully partnered with GSA for the installation and execution of both projects related to the new water system and pump replacement within the Nix Building. Based on these experiences, HA has a thorough understanding of the entire water system and has proven they can effectively troubleshoot any problem related to

it. Having HA conduct an additional study for their system would keep continuity on the project with the designer.

• Also, historically it has always in the best interest of the Government to keep sensitive and complex systems, such as the new one installed in the Nix Building, with one designer so they may maintain ownership and responsible for the entire system. It is extremely difficult to bring in new A/E firms to support designs, drawings, and specifications completed by another firm for a project. Most firms won’t accept or do it.

They will want to start the process from scratch. They don’t trust another firm’s documentation and measurements.

5. Demonstration that the proposed contractor’s unique qualifications or nature of the acquisition requires use of the authority cited:

As previously referenced, HA corrected a materially failed design in the middle of construction.

They not only corrected the design but worked with GSA providing CA services to support the 1st phase of construction of the new water system, as well as designed and provided CA services for other parts of the system. HA is viewed as the subject matter experts (SME) of the new water system within the Nix Building.

6. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable:

• Based on HA’s extensive history with the new water system within the Nix Building, (correcting GPI’s material design failures during 1st phase of the project, designing the 2nd phases, and providing CA services for both phases of construction), GSA strongly believes HA has demonstrated that they possess a solid level of expertise and first-hand knowledge of the current water system.

• GSA has determined that continuing to have HA as the sole-source MEP, A/E responsible for the entire water system within the Nix Building solidifies the system’s design continuity and helps minimize future system risks, like correcting or optimizing the system between multiple contractor's designs. The selection of another A/E firm with less historical knowledge of the system could result in significant additional costs to GSA and long ramp up periods.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

Per FAR 36.605 the Contracting Officer Representative (COR), Joseph Horton, provided an Independent Government Estimate (IGE) to the Contracting Officer (CO) prior to the receipt of a proposal or any negotiations taking place with HA. The IGE for the study of $84,400.48 was completed July 19, 2024.

8. Description of the market research conducted:

Market research was not performed because HA had demonstrated in the past that they were capable of successfully completing the contract objectives. As previously stated, GSA and the project team are confident that no other MEP, A/E firm possesses the level of first-hand expertise or extensive knowledge of the Nix water condenser system. HA helped GSA remedy a failed design during construction from another A/E firm and flawlessly completed design work on other facets of the condenser system. Other A/E firms were discussed and the reduced knowledge, duplication of effort and costs, and increased risk would not justify pursuing a market survey.

Selecting HA for this study maintains continuity so the same designer will be responsible for the entire system, and overall saves the Government time and effort.

9. Other facts supporting the use of other than full and open competition:

The Government would recognize savings associated with timing and level of effort because HA has a history and solid knowledge of the condenser system within the Nix Building. They are the most familiar with the site, as well as the Government requirements associated with the reporting process of the site. Due to the complex technical requirements of the condenser system, HA could immediately start this project since they possess all system designs and supported all phases of the system’s construction with CA services

10. List of any sources that expressed, in writing, an interest in the acquisition:

No firms have been contacted nor have any expressed an interest in writing.

11. Statement of the actions, if any, the agency may take to remove or overcome any barriers to competition:

For future procurements of architect engineering services, GSA will attempt to procure multiple award schedules or available IDIQ contracts.

12. Contracting Officer Certification:

I hereby certify that the above information is accurate and complete to the best of my knowledge.

Prepared By:

Douglass Lang Date: September 3, 2024 Contract Specialist

Approved By:

Yvonne D. Baines Date: September 3, 2024 Contracting Officer

13. Technical/Requirements Certification:

I certify that the facts and representations under my cognizance which are included in this justification and which form a basis for this justification are complete and accurate.

Joseph Horton Date: September 3, 2024 General Engineer