Attachment 3 - Justification and Approval.pdf

This is a Justification and Approval (J&A) document for a sole-source, non-competitive federal contract action under FAA authority 10 USC 3204(a)(1).

The Department of the Air Force, through the Air Force Installation Contracting Center (AFICC) at Tyndall AFB, Florida, is establishing a Brand Name Class J&A for HVAC chiller replacement standardization spanning October 1, 2024, through September 30, 2029. The estimated contract value is $437.5 million for procuring approximately 1,654 HVAC chiller units across all Department of Air Force installations within CONUS and OCONUS locations. The justification cites 10 USC 3204(a)(1)—Only One Responsible Source—as the authority for non-competitive procurement. This is a new J&A document that is not a Bridge Action, with a dollar value exceeding $100 million, requiring approval from the Deputy Assistant Secretary (Contracting).

The requirement addresses the Air Force's strategic objective to standardize HVAC chiller procurement at individual installations to reduce total cost of ownership, improve maintainer training efficiency, enhance cybersecurity, and increase supply chain resilience. The document establishes that HVAC chillers are available only from limited responsible sources, with no alternative supplies satisfying agency requirements. Supporting analysis includes a 2018 Category Intelligence Report demonstrating that standardization to selected manufacturers per installation—rather than maintaining 127-142 different chiller manufacturers across the enterprise—will deliver substantial cost avoidance, estimated at $50 million in training costs alone over five years, and reduced parts inventory management across the 87 DAF installations. A Sources Sought notice was posted December 12, 2023, receiving two industry responses affirming standardization as best practice. The contracting officer certified fair and reasonable pricing determinations will be made prior to award at the installation level among authorized distributors supporting standardized manufacturers.