Attachment 2 -HVAC Chiller JA - AQ Signed 10 Sep 24_Redacted.pdf

This is a Justification and Approval (J&A) document for Other Than Full and Open Competition from the Department of the Air Force, Air Force Installation Contracting Center (AFICC). The acquisition covers HVAC chiller replacement standardization for Department of Air Force installations from October 1, 2024 through September 30, 2029. The estimated contract cost exceeds $100 million, and the authority cited is 10 USC 3204(a)(1) for "Only One Responsible Source - No Other Supplies or Services Will Satisfy Agency Requirements." This is a new Class J&A approval that supports the previously approved 2019 brand name class J&A.

The requirement addresses DAF's need to standardize HVAC chiller procurement across the enterprise to reduce total cost of ownership, training inefficiencies, and sustainment costs. Over the five-year period, approximately 300+ chiller purchases are expected, valued based on replacement costs of units in the government inventory. HVAC chillers are mission-critical equipment required for regular operations at every DAF installation. The acquisition will allow a limited number of HVAC chiller manufacturers at each installation based on standardization policy, with competition maintained at the local distributor level. The J&A demonstrates that only selected manufacturer brands satisfy the agency's needs due to existing inventory, Air Force Civil Engineer Center standardization compliance policies, and the requirement to support authorized distributors. Industry feedback from the RFI/Sources Sought posted December 12, 2023 supported standardization as an industry best practice. The document details tangible benefits achieved through standardization including training cost reductions, cybersecurity improvements, enhanced resilience, improved mission effectiveness, reduced parts inventory, and support for small business distributors (92% of chiller purchases have been with small businesses, an improvement from 73% prior to standardization).