Attachment 4 - 2024 HVAC Chiller JA - AQ Signed 10 Sep 24.pdf

This is a Justification and Approval (J&A) document for a sole-source, non-competitive acquisition of HVAC chiller procurement and related services for the Department of the Air Force (DAF).

The Air Force Installation Contracting Center (AFICC) is procuring HVAC chillers and associated services for multiple DAF installations across the continental United States and overseas locations through a Brand Name Class J&A. The estimated contract cost is $437.5 million, covering the period from October 1, 2024, through September 30, 2029. The acquisition is justified under FAR 6.302-1 (Only One Responsible Source) because HVAC chillers are available from a limited number of responsible sources, and no other supplies will satisfy agency requirements. The DAF expects to purchase approximately 1,654 HVAC chiller units during the five-year period, replacing units at least 17 years old. The purchase is classified as a commercial item procurement, with the government ordering only technical data for operation and maintenance. The authority for this sole-source award is based on the DAF's HVAC chiller standardization policy, which identifies approved manufacturers at each installation to reduce overall total cost of ownership, training inefficiencies, and sustainability costs. Since implementation of the original Brand Name Class J&A in August 2019, standardization has reduced the number of HVAC manufacturers in the DAF inventory from 142 to 127, with twelve Air Force bases achieving at least 80% standardization. The strategy has generated an estimated $50 million in cost avoidance for training, reduced cybersecurity vulnerabilities, improved mission effectiveness and reliability, and enhanced support for small business distributors, which now represent 92% of chiller purchases compared to 73% prior to standardization. The document was approved on July 23, 2024, by the Deputy Assistant Secretary (Contracting) and by the Assistant Secretary of the Air Force for Acquisition, Technology, and Logistics.