TAB 22- Redacted J&A 13.501.pdf

JUSTIFICATION & APPROVAL (J&A) FOR

SOLE SOURCE BRIDGE CONTRACT TO JOHNSON CONTROLS INC.

December 19, 2019

Subject: General Services Administration, Region 9, Acquisition Management Division, Sole Source Justification and Approval, pursuant to the Simplified Acquisition Procedures at FAR 13.501(a).

Background:

An Energy Savings Performance Contract (ESPC) was awarded on 4/14/1997 at the Evo A. DeConcini US Courthouse (USCH) in Tucson, Arizona, with a period of performance ending 12/31/2019. In addition to the Energy Savings measures installed as part of the ESPC and energy savings requirements for the ESPC, Operation and Maintenance (O&M) Service requirements were also included specifically to support the energy savings measures installed under the ESPC. The energy savings measures for this building included a building automation system (including lighting), chillers, and variable air volume terminals with controllers. When the ESPC contract ends on 12/31/19, GSA will need to ensure continuity of O&M services for these measures at the DeConcini USCH in Tucson Arizona.

Over recent months, GSA considered two paths to ensure continuity of services; 1) Extending the ESPC contract, and 2) Adding the services to an existing O&M contract currently providing similar O&M services in the DeConcini building. Both of these options initially seemed to be the best path forward and in the Government’s best interest.

In the interim, and it was determined that the ESPC contract could not legally be extended solely for the O&M work.

At present, there is insufficient time to allow for a competitive award to be made, or even a sole source award to a new contractor, due to the acquisition process and transition time needed to on-board a new contractor and ensure they are cleared appropriately. As discussed below, the incumbent, Johnson Controls Inc (JCI) is the only responsible source and no other services will satisfy agency requirements.

Facts:

1. A Sole Source Firm-Fixed Price IDIQ interim “bridge” contract will be awarded to JCI (the incumbent contractor) to ensure continuity of services as of January 1, 2020 for specific operational and maintenance services at the DeConcini USCH in Tucson, Arizona. The interim contract will be for a twelve- month period, in order to provide services at the DeConcini USCH while allowing time for a new 8(a) re-compete contract to be placed for O&M services for the entire building. A six-month extension clause under 52.217-8, will also be included. The total cost associated for this interim contract is valued at $594,300, for the base period. This is broken out into a recurring monthly service price of $37,025 for 12 month total of $444,300, and a maximum ordering limit amount of $150,000. If the 6 month extension is exercised, the price will be $37,765.5/ month, totaling $226,593.

2. Contract award must be made immediately since services end December 31, 2019, and GSA has a bona-fide need for the O&M services described above. Without O&M services providing for the operation and maintenance of specialized equipment and major utility systems to include HVAC, plumbing and electrical systems in the building, tenants will be left without a properly functioning space to conduct business. Without a properly functioning building to offer its tenants, GSA would be in violation of its tenant lease agreements. This would also have an adverse effect on the missions of GSA and its tenants at the DeConcini USCH. Award of an interim contract will fulfill a critical need. Not awarding this interim bridge contract would result in unacceptable delays in fulfilling the agency’s requirements.

3. JCI’s ESPC expires on 12/31/19. While the ESPC authority (42 U.S.C. 8287(a)(2)(A)) permits O&M work ancillary to the energy savings measures installed (as described above), it does not provide authority for O&M work to continue after the expiration of the ESPC. As such, the O&M work that was previously performed by JCI for the energy savings measures installed under the ESPC must be authorized under a different statutory authority. Due to the urgency for continued services there is no time to compete an interim contract as a new contractor would be required to obtain background checks and clearances for employees to work in a Federal building/location, which can take up to 30 days. The incumbent contractor already has the required clearances, knowledge and expertise to perform the services, thus a Sole Source interim contract will be awarded to JCI for continuity of services.

4. Market research was conducted for this interim requirement pursuant to FAR Part 10 using past prices and current industry pricing data. The anticipated cost to the Government for this interim contract is considered Fair & Reasonable as the incumbent JCI has agreed to use the previous pricing and escalation rate in accordance with the current ESPC contract. These prices were previously deemed fair and reasonable, and are lower than the average reported industry prices for this region. This information is supported by the technical subject matter expert, Peter McKissick, based on his evaluation of the proposal in accordance with the SOW. The services to be provided are a continuity of the same services that JCI has provided under the ESPC contract.

5. The interim Sole Source contract will be procured under FAR Part 13.501(a) Sole Source Acquisition. FAR Part 13 is exempt from the requirements under FAR Part 6; however, the Contracting Officer must prepare a Sole Source Justification using the format of FAR Part 6.303-2. The Sole Source Justification will be publicly available (after redactions) as required by FAR 6.305(a) within 14 days after contract award (per instructions under FAR Part 13.501(a)(1)(i)-(iv)).

6. JCI, the incumbent contractor, expressed interest in fulfilling this need and provided a scope of work and cost proposal that was fair and reasonable.

7. Per the requirements in GSAM 519.502-70, it was determined that a GSA form 2689, Small Business Analysis Record, was not required for this action. Discussions were had with the SBA, and no concerns were voiced, as it is clear that the follow-on action to this bridge contract will be procured under the small business program. This interim bridge contract will allow for more time to ensure adequate competition for any subsequent acquisition for the O&M services described above.

8. Contract award is expected to occur by December 20, 2019, which is 12 days before the current contract expires.

Based upon the above facts, a sole source award is justified. The facts and justification is accurate and complete to the best of my knowledge and belief.

Approved by: Contracting Officer