C01 Justification Approval 36C262-21-AP-5614 Absorption Chiller Replacement Redacted.pdf

Attachment 1: Request for SDVOSB/VOSB Sole Source Justification Format >SAT

VHAPM Part 819.7007/7008 Page 1 of 4 Original Date: 08/30/2017 Revision 03 Eff Date: 04/03/2020

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C262-21-AP-5614

1. Contracting Activity: Department of Veterans Affairs (VA), VISN 22, Network Contracting

Office 22, located at 4811 Airport Plaza Drive, Suite 600, Long Beach, CA 90815. The VA 2237 funding document for this action is 664-22-1-5154-0001.

2. Nature and/or Description of the Action Being Approved: Proposed sole source award to Strategic Industry, Inc., a service-disabled veteran-owned small business (SDVOSB). This is a firm-fixed price construction effort for the replacement of a new Absorption Chiller located at the VA San Diego Healthcare System, Building 2, 3350 La Jolla Village Drive, San Diego, CA 92161.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: This requirement is for construction services to replace the existing 15 year old obsolete 500 ton absorption chiller located in Building 2 Central Plant with a new appropriately sized replacement chiller in accordance with design documents and specifications provided by VA San Diego Engineering. The installation is at the VA San Diego Healthcare System, Building 2, 3350 La Jolla Village Drive, San Diego, CA 92161. This requirement is classified under construction as it calls for the alteration of real property. The total estimated value of the proposed action is . The period of performance is 365 calendar days.

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S. Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 or 819.7008 up to $5,000,000. Check the specific VAAR clause used below:

( X ) 819.7007 Sole source awards to a verified service-disabled veteran-owned small business; or

( ) 819.7008 Sole source awards to a verified veteran-owned small business

5. Demonstration that the Contractor’s Unique Qualifications and/or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): The contracting officer’s determination to make a sole source award is a business decision wholly within the discretion of the contracting officer. The statutory authority 38 U.S.C.

8127(c), provides the authority to directly contract with a SDVOSB. A determination that only one SDVOSB can meet the requirement is not required. Strategic Industry, Inc. has been determined to be an eligible SDVOSB concern in accordance with VAAR 819.7003 and a responsible source with respect to performance. Strategic Industry, Inc. has completed

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Revision 03 Eff Date: 04/03/2020 construction projects of similar size, scope, and complexity, and has intimate knowledge of the facility having completed construction projects for VA San Diego Healthcare System.

Strategic Industry, Inc. is onsite and has available resources to provide the construction services in the exceptionally short time period needed for the replacement of a new Absorption Chiller.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under 5.202 applies: Market research was conducted, details of which are in the market research section of this document. The statutory authority 38 U.S.C. 8127(c), provides the authority to directly contract with a SDVOSB. To ensure that opportunities are available to the broadest number of verified SDVOSBs, this authority will be used judiciously and only when in the best interest of the Government. In accordance with FAR 5.2 and FAR 6.305(a), a notice of the justification shall be made publicly available within 14 days of award.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The method that will be used to determine price reasonableness is a comparison of the Independent Government Cost Estimate (IGCE) to the proposed cost. An IGCE was prepared by the project COR in the amount of . The CO anticipates the cost will be considered fair and reasonable based on a comparison to the Independent Government Estimate.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Per Federal Acquisition Regulation (FAR) 10.001(a)(2), this report is in support of a new requirement with an estimated value in excess of the Simplified Acquisition Threshold (SAT). For this procurement, Market research was conducted using two Government databases, the Federal Procurement Data System (FPDS) and Vendor Information Pages (VIP). An initial search conducted of the VIP database to identified 1,825 verified SDVOSBs in the United under NAICS Code 236220. A query search of the FPDS database located two contracts awarded to Strategic Industry, Inc.

of similar size and complexity to the current project. A determination that only one SDVOSB can meet the requirement is not required. The business decision to make a sole source is based upon the following reasons: (1) the contractor has completed similar size and complexity requirements; and (2) the contractor has necessary expertise based upon completed projects. Based on the procedures authorized in VAAR 819.7007, the contracting officer has determined to make a sole source award to Strategic Industry, Inc.

The vendor has met the eligibility criteria outlined in VAAR 819.7003, they are verified in VIP, and the action is below the $5M threshold.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None. The statutory authority 38 U.S.C. 8127(c), provides the authority to directly contract with a

SDVOSB.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Strategic Industry, Inc., DUNS number 071646156, expressed interest in the acquisition.

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Revision 03 Eff Date: 04/03/2020

11. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to Competition before Making subsequent acquisitions for the supplies or services required: The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be competed.

12. Requirements Certification: I certify that the requirement outlined in this justification is a Bona Fide Need of the Department of Veterans Affairs and that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Ismaila Ndiaye Date Supervisory General Engineer, Activation Section VA San Diego Healthcare System

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer or Designee’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Prepared By:

Harry Seballos Date Contracting Officer Network Contracting Office 22

Francisco Celis Date Chief, Construction Branch 3

ISMAILA

NDIAYE 712503

Digitally signed by

ISMAILA NDIAYE 712503

Date: 2021.12.09 12:27:59 -08'00'

Harry B. Seballos 511027

Digitally signed by Harry B.

Seballos 511027 Date: 2021.12.09 12:56:34 -08'00'

FRANCISCO

CELIS

127076

Digitally signed by

FRANCISCO CELIS

127076 Date: 2021.12.09 13:00:34 -08'00'

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Revision 03 Eff Date: 04/03/2020

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Sabrina Smith Date Director of Contracting

c. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and recommend approval (if over $75 million) or approve ($750K to $75 million) for other than full and open competition.

Curtis M. Jordan Date Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA)

Sabrina J.

Smith 405687

Digitally signed by Sabrina J. Smith 405687 Date: 2021.12.13 21:54:38 -07'00'

Jordan, Curtis M. (RPO) Digitally signed by Jordan, Curtis M.

(RPO)

Date: 2021.12.22 18:07:41 -07'00'