Attachment_1-Sole_Source_Justification_R10__Laboratory_Room___Fume_Hood_Controls_Installation_1.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Authority: GSAR 538.7104-3(b)(ii) (see FAR 8.4011)

1. Agency and the Contracting Activity:

Agency: U.S. Environmental Protection Agency (EPA) Contracting Activity: Region 10 Laboratory Item: Laboratory Room & Fume Hood Controls Installation Estimated Value: $1,154,200.00 Contractor: Siemens Industry

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

The purpose of this document is to justify an exception to the full and open competition process and to procure the Laboratory Room & Fume Hood Controls Installation service for the R10 Laboratory from Siemens Industry, Inc. via task order issuance under the General Services Administration’s (GSA) Federal Supply Schedule (FSS) for a performance period of a twelve-months.

3. A description of the supplies or services required to meet the agency's needs:

The U.S. Environmental Protection Agency (EPA) Manchester Environmental Laboratory operates mission-critical laboratory spaces supporting physical, chemical, biological, and microbiological analysis in support of regulatory enforcement, public health, and environmental protection programs.

The laboratory’s Building Automation System (BAS) includes integrated control of fume hoods, airflow tracking systems, pressure relationships, and ventilation sequences necessary to maintain compliance with laboratory safety standards and to ensure analyses proceed in the proper environment. These systems are currently implemented on a Siemens-based controls platform. In 2024–2025, the EPA executed a prototype modernization effort (BAS Phase 1) in select laboratory spaces, successfully deploying Siemens Direct Digital Control (DDC) systems, including DXR controllers, air flow sensors, and fume hood control devices.

This procurement (Phase 2) represents a continuation and expansion of this modernization effort across the Chemical, Biological, and Metals laboratory wings. The work includes retrofit and replacement of existing control hardware, integration with existing Siemens BAS infrastructure, and recommissioning of laboratory airflow control systems. The estimated value of this procurement is $1,154,200.00.

1 This reference is to a deviated Federal Acquisition Regulation (FAR) language for FAR Part 8, in support of Executive Order 14275 on Restoring Common Sense to Federal Procurement. FAR Section 8.401(b) states that when placing an order under the FSS, agencies must follow the ordering procedures established by GSA and found at GSAR Subpart

538.71 https://www.acquisition.gov/fss-ordering-procedures.

https://www.acquisition.gov/fss-ordering-procedures

4. Identification of the exception supporting the placement of an order that exceeds the simplified acquisition threshold (SAT) on a sole source basis.:

This acquisition is conducted under the authority of FAR 8.401(b), titled “Ordering under the Federal Supply Schedule,” “General,” referring the Contracting Officer to “the ordering procedures established by GSA and found at Subpart 538.71 Federal Supply Schedule Ordering Procedures

Specifically, per General Services Acquisition Regulation (GSAR) 538.7104-3(b)(1)(ii) Sole source justifications. Only one source is capable of providing the products, services, or solutions required at the level of quality required because the products, services, or solutions are unique or highly specialized.

5. A demonstration that the proposed contractor's unique qualifications or the nature of the acquisition requires using the authority cited:

The requirement involves the modification, expansion, and recommissioning of an existing Siemens laboratory controls system that manages fume hood controls, airflow tracking, and room pressurization within the facility. Because the installed system is a fully integrated Siemens platform comprised of proprietary controllers, firmware, embedded control logic, native programming tools, and proprietary communication protocols, performance of the work requires the Original Equipment Manufacturer (OEM) level access that cannot be delegated to third parties.

Continuity of operations is the key factor. The Phase 2 project builds directly on the Phase 1 prototype, which covered approximately 20% of the facility’s fume hoods and established a standardized framework for expansion. Continuing with Siemens allows the Government to reuse validated control logic and commissioning methods, reduce rework, and maintain consistency with site-specific knowledge gained during Phase 1. Use of an alternate vendor may limit/void the warranty for the work completed under Phase 1.

The project also depends on Siemens’ web-based fume hood testing and validation platform, which supports in-room airflow control, real-time visualization, compliance verification, and audit trails. This functionality cannot be replicated by non-OEM contractors due to licensing restrictions and the lack of access to Siemens-engineered controls software and validation tools.

Furthermore, alternative vendors would face significant technical and operational risks, including limited access to system databases and protocols, inability to modify existing control sequences, and increased likelihood of control instability or non-compliance. A non-OEM approach would likely require either full system replacement or partial integration, both of which would create substantial duplication of cost, extended schedule impacts, and increased risk to laboratory operations and compliance with agency mission parameters.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as possible, including whether a notice was or will be publicized as required by part 5 and, if not, which exception under part 5 applies.

This requirement will not be publicized as it is exempted from FAR Part 5 per GSAR Subpart 538.7102-1(b).

However, in accordance with GSAR Subpart 538.7104-3(b)(3)(i) this justification will be made publicly available within 14 days after award.

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

Siemen’s is an established U.S. General Services Adminstration (GSA) schedule contract holder under contract #GS-07F-217CA. Their contract rates have already been deemed fair and reasonable. However, negotiations will be conducted to ensure costs are appropriate.

8. The market research conducted (see part 10) and the results:

The Contracting Officer (CO) conducted comprehensive market research. The CO reviewed the market research efforts for historical purchases (GS-07F-217CA/68HE0721F0040; GS-07F-217CA / 68HE0722F0064, and GS-07F-217CA). All historical purchases contained sole source justifications from Siemen’s. Mandatory Government and EPA sources were searched, including the Personal Property Management System (PPMS), UNICOR, Ability One, and EPA Mandatory Common Contract Solutions and Strategic Sourcing. No mandatory source was able to satisfy the requirements for this procurement.

A Request for Information (RFI) was issued on May 7, 2026, via both FedConnect (68HE0726Q0010) and GSA’s e-Buy platform (RFI1810459). Both closed on May 21, 2026, without receiving any responses.

Siemens provided a justification letter on May 29, 2026, stating that only Siemens Seattle Area Field Office has access to proprietary software, databases, firmware-level programming, and OEM tools needed to perform the work, and third parties would be unable to complete the requirement without full system replacement.

To further test the market, the Statement of Work was revised and a second RFI was issued via FedConnect (68HE0726Q0022) and GSA e-Buy (RFI1816514) on June 8, 2026. Both RFIs closed on June 15, 2026, and received three responses: West Advanced Solutions LLC, Hirt Electric, and RV Global Solutions Inc.

After reviewing the RFI responses and discussing the requirement with the program office, EPA concluded that Siemens remains the only responsible source capable of meeting the requirement. On June 24, 2026, the program office confirmed that an alternate vendor would face significant integration barriers, including limited or no access to OEM communication protocols and system databases, and inability to directly modify existing control sequences. The program office further stated that Siemens should be treated as the only responsible source for Phase 2 of the BAS modernization at the EPA R10 Manchester Laboratory because using Siemens best protects the government’s financial interests and reduces safety risk.

9. Any other facts supporting using anything other than full and open competition:

Market research further confirmed that no viable alternative sources are available to perform the work without substantial duplication of cost and unacceptable delays. A full system replacement would require replacement of existing controllers and field devices, re-engineering of airflow control sequences, development and validation of new algorithms, and full test and balance of the laboratory spaces. Such an approach would increase construction and engineering costs by two to four times, with a projected schedule delay of 12 to 24 months.

10. A listing of the sources, if any, that expressed an interest in the acquisition in writing:

Three vendors responded to the second RFI, including West Advanced Solutions LLC, Hirt Electric, and RV Global Solutions Inc.

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

EPA will continue to monitor the market for emerging BAS technologies and evaluate alternative systems during future replacement cycles. The agency will also assess any expansion of authorized service networks or changes to OEM distribution policies that could enhance competition.

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Authority: GSAR 538.7104-3(b)(ii) (see FAR 8.4011)

12. Technical/Requirements Personnel Certification:

I hereby certify as accurate and complete to the best of my knowledge the data provided which supports the recommendation in this sole source justification.

13. Contracting Official Certification and Determination:

I certify that the supporting data under my cognizance which is included in this justification is accurate and complete to the best of my knowledge and belief.

Reviewed:

Concurred:

Celia Vaughn OFA-OCPO Senior Policy Advisor

Approved:

Joan B. Rogers OFA-OCPO Senior Policy Advisor