Attachment 1 FAR 13.5 Sole Source Justification - Over SAT complete_Redacted.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-$7.5M under FAR13.5

Effective Date: 02/01/2022 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID:_36C255-223-AP-2313___________

Contracting Activity: Department of Veterans Affairs, VISN 15, John Cochran Medical Center 915 N.

grand Blvd, St. Louis MO 63106, Purchase Request 657-23-3-1528-0121.

Nature and/or Description of the Action Being Processed: This procurement is for continued support agreement which provides for all major software version upgrades in accordance with FAR

13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2. The proposed action is for a Firm-Fixed Price purchase order to provide for all major software version upgrades, service packs, patches, hardware drivers and any other updates required to keep Automatic Logic system software and hardware up to date and current. This action will be solicited Only One Responsible Source to facilitate system maintenance and upgrades with proprietary restrictions.

Description of Supplies/Services Required to Meet the Agency’s Needs: This support agreement provides for all major software version upgrades, service packs, patches, hardware drivers and any other updates required to keep your Automatic Logic system software and hardware up to date and current. The maintenance support services include the provision of all labor and ancillary hardware necessary to perform all program modifications for all critical control systems, valves, flow zone controls, LCM's (local control modular), GCM's (global control modular), computers and fiber optic networks. Monitoring of all systems in the Building Automation Systems (BAS) at the St Louis MO VAMC, on a 24 hour, 7 days a week, 365 days per year basis is required. Programming of all control check points, set points and software is necessary as part of this requirement to ensure proper functioning of the BAS. The estimated period of performance will be 11 Jun 2023 thru 10 June 2024 with four( ) one(1) year option periods. The acquisition value is $593,048.00. Through market which was also documented in previous contract, it has been determined that the following contractor is the only authorized representative of Automatic Logi for St. Louis Missouri area and they are capable of furnishing the required services:

Automatic Controls Equipment Systems Inc.

1585 Fencorp Drive Fenton, MO 63026

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement. Competition is restricted on this procurement for the reason below:

(X) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) Unusual and Compelling Urgency

Effective Date: 02/01/2022 Page 2 of 4

( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services

( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

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 Contractor has unique qualifications that requires use of the authority cited above. The services required were previously provided by a maintenance service contract with Automatic Controls Equipment Systems Inc. (ACES) ACES is the original Automatic Logic BAS developer and installer at the St. Louis VA Medical Center.ACES has provided a letter which states they are the only authorized dealer for Missouri(excluding the Greater Kansas City Market) for installation, warranty support, and service of Automated Logic building automation products. ACES has access to the latest software updates including WebCTRL service packs and hardware driver updates.

No other source was found that could: (1). Provide unlimited on-site service/corrective maintenance and repair; unlimited telephone technical support; and all required labor, travel and parts required for the system to perform in accordance with manufacturer recommendations and Joint Commissions requirements. (2) Provide Original Equipment Manufacturer(OEM) factory trained and authorized/certified technicians to accomplish the required services. (3) Have access to and furnish new OEM or OEM approved parts and supplies. (4) Have access to and furnish updates to the United Technologies proprietary hardware, software upgrades and field change orders. (5) provide response on-site within 1 hour of notification, and provide 24/7/365 coverage.

Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A survey of the market place confirms our assumption regarding the capability of industry and A , Inc. is the only supplier that meets the needs of our medical facility.

A synopsis is not by exception at FAR 5.20

Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer will determine price reasonableness IAW FAR Part 13.106-3.

The anticipated five-year price (base and four option year extensions) for the services is $593,048.00. The Contracting Officer will determine that anticipated price(s) will be fair and reasonable by requiring the contractor to provide written quote and additional information (other than certified cost or pricing data), which may include commercial price list and prices for similar or the same services. Prices will also be compared to the Independent Government Cost Estimate(IGCE) and to cumulative price increase for inflation.

Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Based on the market research conducted, no two or more VIP verified and capable SDVOSBs or VOSBs were identified and appeared capable of performing the requirement. In addition, no small business in any of the other targeted socioeconomic groups appeared to qualify for a set-aside or sole source procurement. Due to the proprietary limitations, ACES is only authorized vendor in this region authorized to install and service the requirements in this acquisition. As described in Section 6 above, market research, in accordance with FAR Part 10, Effective Date: 02/01/2022 Page 3 of 4 was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.

Any Other Facts Supporting the Use of Other than Full and Open Competition: Based on market research, this acquisition cannot be set aside for SDVOSB/VOSB or any other small business categories. ACES exercises proprietary controls over equipment installation and services. They are the only authorized dealer for Missouri(excluding the Greater Kansas City Market) for installation, warranty support, and service of Automated Logic building automation products.

This requirement is not eligible for any set-aside and the VA Rule of Two cannot be fulfilled.

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

Automatic Controls Equipment Systems Inc.

1585 Fencorp Drive Fenton, MO 63026

722-2975

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:

There are currently no planned actions to foster competition at this time. Preservation of existing warranties are crucially important in preventing any in the efficiencies of Veterans care.

The critical life support services connected to this requirement is supported by the need for the most qualified provider. ACES provides the most current softwares and responsive service and is the only vendor authorized in this region.

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.

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

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

_ 04/26/2023

Effective Date: 02/01/2022 Page 4 of 4

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.