Air Handling Unit FAR 13.5 Sole Source Redacted.pdf

Services:

Description Part Number Brand Name Travel N/A Precision Environments Labor for Demolition of Existing AHUs

N/A Precision Environments

Labor for Construction and Initialization of new AHUs

N/A Precision Environments

Labor for Engineering and Fabrication of New AHUs and/or associated components

N/A Precision Environments

Labor for Demolition of old and Installation of new Humidifier, Reheats

N/A Precision Environments

Cleanroom Certification N/A Precision Environments

The table below provides estimated funding amount for support of AHU Replacement services by dollar value for FY25. The contract award will be in FY26, and all work is expected to be completed in FY26.

Funds Type Base FY25 Service Cost Center (SCC)

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

The Product Service Code (PSC) for this procurement will be J041, Maintenance, Repair, and Rebuilding of Equipment - Refrigeration, Air Conditioning, and Air Circulating Equipment.

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. §3205(d), “The head of an agency shall comply with the Federal Acquisition Regulation provisions referred to in section 1901(e) of title 41.”

5. Rationale Justifying Use of Cited Statutory Authority

Precision Environments is the original equipment manufacturer (OEM) of the Lab 150 Cleanrooms and customized the Air Handling Unit systems to meet the specifications of the cleanroom. The cleanrooms were constructed by Precision in 1995, and Precision has been contracted to recertify the cleanrooms to Internation Organization for Standardization (ISO) 17025 annually. The AHUs had a design life of 20 years, are now currently approaching 30 years months. Duplicate costs combining material and service components are plus equaling total added costs on top of the expected $340,000, a substantial increase of 64 percent for a total cost of .

Awarding to another contractor would result in additional unacceptable downtime of the AHUs due to the lack of familiarity with OEM AHU components which the Navy cannot afford.

Current workload can fit around a 3-week downtime, however a significantly longer downtime which is likely for another contractor would result in work stoppages of Noise Testing (NT) and Production Lot testing efforts, along with the halting of reconditioning NT bearings. All three of the prior consequences are why Code 617 cannot afford significant downtime as this would have direct fleet impacts resulting in Casualty Reports (CASREPs) and work stoppages in the fleet due to NT Bearing lots being delayed in testing and certification because of extended downtime for AHU replacement at NSWCCD. A CASREP outlines an equipment malfunction or deficiency in the fleet that cannot be corrected within 48 hours. Without such equipment functioning the ship is hindered partially or completely from executing the mission. NSWCCD holds a buffer stock of several NT Bearing National Item Identification Numbers (NIINs) for NAVSUP, but due to the unpredictable nature of CASREPs, for an extended downtime, a certain NIIN may run out of stock which would require additional certification for which AHU operation is critical to conducting said certification. NSWCCD regularly sees CASREPs for precision NT bearings at a rate of about 1-2 per month. Without any AHU capabilities for an extended period, there is a higher risk of such CASREPs being unable to be filled, meaning the ship must remain in a work stoppage until AHU restoration can allow for certifying and issuing material to fill the CASREP. Significant risks of not proceeding with the OEM include a competitor installing incompatible hardware and AHUs, extended downtime in troubleshooting out of tolerance environmental conditions post-install, and lack of support for AHU operations going forward. Precision has the expertise as demonstrated by 30 years of functional cleanroom operations under tight tolerances, continued support for any encountered issues and unparalleled knowledge with disposing of the hazardous R22 in the existing systems.

6. Description of Efforts Made to Solicit Offers from as Many Sources as Practicable

There has been no effort to solicit offers from other sources for the reasons described in Section 5 above. The NSWCCD Code has determined that only Precision can provide AHU Demolition and new AHU installation services that meet NSWCCD’s requirements. Contracting with any other company poses significant risk to ongoing cleanroom operations.

Pursuant to FAR 13.501(a)(1)(iii), the Government will make this justification available on the Government Point of Entry (SAM.gov). The Government will ensure that the contract file will be documented as to any responses received from making this justification available. This acquisition is determined to be sole source based on Precision’s singular ability to provide the required configured AHUs.

7. Determination of Fair and Reasonable Costs

In accordance with FAR 13.106-3(a), the Procuring Contracting Officer (PCO) shall ensure that all services provided under the anticipated contract are procured at a fair and reasonable price.

The Government will require the contractor to submit a formal price proposal and sufficient information to support the accuracy and reliability of the estimate. The PCO shall determine that the proposed order represents the best value (as defined in FAR 2.101) to meet the Government’s needs.

The NSWCCD Code has not procured similar AHU Replacement services from any company. However, for this purchase, they used information from internet research and prior HVAC work IGEs derived for cost estimating AHU Replacement. Approximate AHU materials cost is estimated, but information of the exact AHU model could not be found, thus an upper end commercial AHU was used as a basis. The PCO will rely on this pricing information as well as information from contract specialists, and historical procurements to form the basis for a fair and reasonable price.

8. Actions to Remove Barriers to Competition

At the end of life of the new AHUs, estimated to be about thirty years, the NSWCCD will conduct market research to determine if other manufacturers of metrology cleanrooms meet the Navy’s requirement. Precision will be scrutinized as we undergo the replacement process with the new systems, during which time the team will observe, and document key cleanroom features to undergo market research in the future. The Government will continue to stay current via symposiums and conferences, product tests reports, publications and advertisements, and vendor demonstrations. If other vendors are identified, and coupled with any deficiencies in existing contractor performance, they may be considered for future procurements. However, since the AHUs are currently being maintained by Precision, no other company is suitable to perform services for this contract. Therefore, the Government continues to operate in a sole source environment until replacement of the AHUs occurs at a future point in time.

CERTIFICATIONS AND APPROVAL

TECHNICAL AND REQUIREMENTS CERTIFICATION - (FAR 6.303-2(c))

I certify that the facts and representations under my cognizance that are included in this justification and its supporting data, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL AND REQUIREMENTS COGNIZANCE:

Date

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined that this justification is legally sufficient.

Signature Code Phone Date

CONTRACTING OFFICER CERTIFICATION FAR 13.501(a)(2)(i) I certify that this justification is accurate and complete to the best of my knowledge and belief.

Signature Code Phone Date

APPROVAL BLOCK (FAR 13.501(a)(2)(ii) for a proposed contract exceeding $750,000, the Advocate for Competition approval)

Upon the basis of the above justification, I hereby approve, as the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. §3205(d).

(TITLE OF APPROVING OFFICIAL)

Signature Name (Print) Date