Boiler Burners Replacement - Sole Source Justification.pdf

PM Part 813.5 SAP for Certain Commercial Items Page 2 of 6 Original Date: 08/30/17 Revision 03 Date: 02/11/2021

( ) 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):

a. Only One Responsible Source Boilers and boiler plants are essential to the operation of a VA medical facility by providing steam, hot water (for sanitation, food production and preparation, infection control), and space heating for the delivery of healthcare.

The Sepulveda Ambulatory Care Center currently has three (3) boilers that can meet the campus’s requirements however, the boilers are unreliable and unsafe. Per VHA Directive, the campus is required to maintain an N plus one boiler, meaning they must have enough boilers to meet their requirements (N) plus an additional backup boiler (plus one) which are capable of meeting the total requirement should the primary boiler(s) become inoperable. This is intended to prevent the facility from falling into a situation where there is no operating boiler, and the campus is forced to shut down. All three (3) boilers burners at The Sepulveda Ambulatory Care Center’s boiler plant are currently experiencing issues.

Steam boilers have a unique design and are mainly used by the VA. Most local contractors in the Greater Los Angeles area have no experience working with steam, as hot water is predominantly used in other commercial and hospital operations. Additionally, most other Federal Buildings do not use steam boilers, making it problematic to find contractors that have experience working with steam boilers. During the last project, worked on a boiler replacement project at the VA West Los Angeles Medical Center however, the contractor was unable to complete the project due to their lack of experience working with steam boilers. This project is currently in litigation.

The also replaced the boiler burners at The Sepulveda Ambulatory Care Center however, the boiler staff continue to have multiple issues with the boilers. The boiler burners continue to be problematic, unsafe, and unreliable, even after the installed the new burners. Moreover, the boiler staff and contractors continuously struggle to meet the South Coast AQMD requirements.

The Sepulveda Ambulatory Care Center was inspected by The Boiler Efficiency Institute, LLC (BEI) in June 2021 to verify that the boilers are properly maintained, and testing results are properly completed and documented. Blueridge Technology Inc. has worked on campus for three (3) years to install safety devices on the boiler burners to bring the plant in compliance with the testing requirements. The BEI inspectors complemented Blueridge Technology Inc. on its ability to build custom-fit safety devices for the burners. With the help of Blueridge Technology Inc., the plant passed all inspection tests.

One cannot simply purchase the required burners and affix them to the boilers as a highly specialized contractor must build and install custom-fit safety devices for the burners. Due to the critical function of the steam boilers, the safety of the boiler operator, strict requirements of the South Coast AQMD and, the VA Central Office guidelines, it is very hard to locate and find an experienced steam boiler contractor who can perform this replacement project. The VA in the

PM Part 813.5 SAP for Certain Commercial Items Page 3 of 6

Revision 03 Date: 02/11/2021

Greater Los Angeles area has had a history of contractors who have worked on the steam boilers but failed to deliver a proper quality product that meets all the safety requirements.

Accordingly, Blueridge Technology Inc. is the only firm capable of providing the supplies and services described in Section III above without the Veteran’s Health Administration experiencing unacceptable delays in fulfilling its requirements. Blueridge Technology Inc., an SDVOSB, is well trained with the steam boilers at The Sepulveda Ambulatory Care Center since the contractor also provides the annual and semi-annual maintenance at the boiler plant.

Furthermore, this requirement is urgent to preclude adverse impact to the safety of personnel and Veteran care. The burners that are currently installed are unreliable and it is essential that the burners are replaced at once to preclude impairment of healthcare delivery capabilities. Blueridge Technology Inc. has spent an exhausting amount of time tuning the burners. Unfortunately, there have been instances when the boiler burners fail minutes after being serviced before the contractor even leaves the campus.

While boiler explosions are rare today, a boiler on The Sepulveda Ambulatory Care Center has had a minor explosion in the past. A boiler explosion carries dirt, debris, ceiling, pipe, darkness, and burning temperatures in all directions with tremendous force. An explosion can result in devastating damage to anything in the vicinity. The issue with the burners at the Sepulveda Ambulatory Care Center has been identified and the burners are “panting.” This occurs because the controls, or some other parts of the burner, cause “excess air” to let into the burner. The Sepulveda Ambulatory Care Center has also seen instances in which the boiler doors are blown open. To be near a panting boiler is a scary occasion, and dangerous to say the least. The boilers are each filled with 2000-degree gases and an explosion potential is ever-present. The campus is spending a significant amount of money on constantly tuning the boilers. Proper maintenance, periodic operational assessment, and replacement of the three (3) boiler burners will ensure continued safety and optimal efficiency of operations.

A delay of six to eight weeks for competitively soliciting this requirement will result in VA staff working in hazardous and unsafe conditions for even longer. Veteran care and safety are a primary concern at the VA medical centers, and it is our duty to keep our employees and patients safe.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

Based on the design, there are only two (2) burners on the market that can meet the South Coast AQMD requirements and fit in the existing steam boilers. Webster Combustion and Power Flame are the only two (2) manufacturers of non-element burners that advertise that they can meet the VA’s 7ppm NOx requirement. Other boiler burner manufacturers, such as ST Johnson, only have burners that are element burners and thus do not meet the VA’s requirement.

Webster Combustion was contacted during the market research stage however, the manufacturer is not willing to guarantee that they will be able to custom fit all the required safety devices on their burners. The burner will not pass any safety inspection without these custom-fit safety devices.

Power Flame’s California representative, California Boiler, is working with Blueridge Technology Inc.

to customize their non-element burners to meet most of the required custom fit safety devices.

Blueridge Technology Inc. will build the additional custom fit safety devices to meet all the safety

PM Part 813.5 SAP for Certain Commercial Items Page 4 of 6

Revision 03 Date: 02/11/2021 requirements as stated in the South Coast AQMD requirements and the VHA Boiler Plant Safety Device Testing Manual, Latest Edition (currently 5th Edition).

A sources sought synopsis was not issued due to the highly specialized nature of this requirement and the urgency to complete this project. An intent to award to a sole source will be posted to SAM.gov.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable:

The Contracting Officer will determine fair and reasonableness of the proposed prices through a comparison of the historical pricing under contract , as well as the Independent Government Estimate (IGE), and market research in accordance with FAR 13.106- 3(a)(2). Furthermore, the Contracting Officer shall request, and obtain, a cost breakdown of the contractor’s proposed cost and evaluate its labor categories, labor hours, labor rates, material items, and quantities. The anticipated cost will be considered fair and reasonable before contract award.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by the end-users by contacting the two (2) manufacturers of non-element burners that advertise that they can meet the VA’s 7ppm NOx requirement in September 2021. The burner manufacturers and SDVOSB were advised of the pending acquisition and inquiries were solicited from the interested parties. The end-user’s technical expertise and market research indicate that there is only one manufacturer capable and willing to manufacture a non-element burner that meets most of the VA’s strict safety requirements. Furthermore, only one (1) SDVOSB was identified to have the experience and willingness to customize the safety devices to affix to the boiler burners.

Market research also included an examination of the acquisition history of boiler replacement, maintenance, and repair services at the VA healthcare systems in southern California. The acquisition history reviewed included an examination of the following contracts:

- SACC LAACC Boiler Services Boiler Maintenance

– Semi-Annual Boiler Plant Safety Device Testing – Semi-Annual Boiler

Plant Safety Device Testing -VAGLAHS

- Emergency Boiler Propane Valve Repair -VAGLAHS -Emergency Boiler Pressure Safety Valves Repair – VAGLAHS

A review of the acquisition history shows that the VA Greater Los Angeles Healthcare System has a history of failed attempts to repair and replace boiler equipment within the different facilities. The current condition of the boiler plant at The Sepulveda Ambulatory Care Center is hazardous for all individuals who are within close vicinity of the boilers. The boilers require custom-fit safety devices that only a specialized contractor can affix to the boiler burners. The Vendor Information Pages (VIP) database was reviewed on 12/9/2021 and Blueridge Technology Inc. is listed in the appropriate NAICS code as a verified VIP. Based on the marker research, the Contracting Office intends to award a firm-fixed-price sole-source contract to Blueridge Technology Inc., an SDVOSB.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

As stated above, the Sepulveda Ambulatory Care Center has an immediate need to replace the boiler burners. The current boiler burners are unstable and constantly pose a threat to the facility’s