DraftFindings_BABA_Class_Waiver_EcoStruxture_S-10700-00013396.pdf

DRAFT FINDINGS FOR A CLASS WAIVER OF

ORS 279C.303 BUY AMERICA REQUIREMENTS

OregonBuys # S-10700-00013396

Before the State Chief Procurement Officer of the

Department of Administrative Services of the State of Oregon

Request for Waiver of ORS 279C.303 ) Buy America Requirements for ) Draft Findings for A Class Waiver Procurement of building operation software.

Department of Administrative Services, State Procurement Services, is conducting a Public Works contract on behalf of DAS Enterprise Asset Management (EAM) Operations & Maintenance (O&M) Department. The waiver is not building specific, but applies to all current- and future-owned or maintained state facilities where the building operation software is being upgraded to Schneider Electric EcoStruxture. The product has a brand name exemption per OregonBuys

#REQ-1070000070749.

ORS 279C.303 requires, unless a waiver is granted, that the Department of Administrative Services (“DAS”) must:

1) Require in each Public Improvement Contract or Contract for Public Works with an estimated contract price of $250,000 or more that steel, iron, coatings for steel and iron and manufactured products that a contractor purchases for or uses in the Public Improvement or Public Works, and that become part of a permanent structure, must be produced in the United States;

2) Note clearly and conspicuously in all Solicitation documents for any Procurement related to the Public Improvement Contract or Contract for Public Works, that any Public Improvement Contract or Contract for Public Works that results from the Procurement will include the ORS 279C.303 Buy America requirement; and

3) Must reject any Bid or Proposal that does not affirmatively attest that the Bidder or Proposer read and understood the requirement.

ORS 279C.303 permits the Director of the Department of Administrative Services (“DAS”), as the primary public contract review authority for the State of Oregon, to grant a waiver from the ORS 279C.303 Buy America requirement if the Director finds in writing that:

• The requirement is inconsistent with the public interest;

• Steel, iron, coatings for steel and iron and manufactured products required for the Public

Improvement or Public Works are not produced in the United States in sufficient and reasonably available quantities and with satisfactory quality; or

• Using steel, iron, coatings for steel and iron or manufactured products produced in the United States for the Public Improvement, or the Public Works will increase the cost of the Public Improvement or Public Works by more than 25 percent.

Before making the finding, the Director must:

• Issue a draft finding that includes a detailed written explanation of the basis for waiving the requirement;

• Give public notice of the draft finding at the earliest practicable time, in a manner that the director determines will give adequate notice to the public and to Contractors that intend to submit, or have submitted, Bids for the Public Improvement or Public Works;

• Allow seven (7) calendar days for public comment on the draft finding; and

• If, after considering any public comment, the Director determines to waive the requirement set forth in the rule, the Director shall provide public notice of the Director’s finding using the same method the Director used to provide public notice of the draft finding.

The Director must:

• Indicate the duration and applicability of the finding in the document that waives the requirement; and

• Review any waiver, at least every five years.

The Director may

• make a finding under ORS 279C.303 and OAR 125-249-0170 that applies to a single Public Improvement Contract or Contract for Public Works, to a class of Public Improvement Contracts or Contracts for Public Works, or to a class of iron or steel products, coatings, or manufactured products; and

• review and continue, amend, or rescind the finding at any time.

Before continuing, amending, or rescinding a waiver, the Director must provide for public notice and comment using the same method used to provide public notice of the waiver.

Under OAR 125-246-0170(3)(a)(S) the Director has delegated the Direct’s authority under ORS 279C.303 to the State Chief Procurement Officer of DAS State Procurement Services (“DAS

SPS”).

Background The research previously conducted by DAS Operations and Maintenance (O&M) for the Brand Name Exception, and research done recently by DAS Planning and Construction Management (PCM) provides support for the use of one building operation software product, and the product which has been selected does not currently meet “… 55 percent of the total cost of all components of the product” as required by items Produced in the United States, as defined by ORS 279C.303 and OAR 125-249-0170 (1)(b), specifically (B)(ii).

(b) “Produced in the United States” means:

(A) For iron and steel products, other than manufactured products, that all manufacturing processes, from the initial melting stage through the application of coatings, occurred within the United States; and

(B) For manufactured products, that:

(i) The manufacture of the product occurred within the United States; and

(ii) The cost of the components of the product that are mined, produced or manufactured in the United States is more than 55 percent of the total cost of all components of the product. The Oregon Department of Administrative Services or the Oregon Department of Transportation may establish, by Rule, a different standard for determining the minimum amount of the product that must be manufactured within the United States.

Proposed Findings

The following findings support an ORS 279C.303 Buy America waiver for the use of a standardized building operation software, that has a Brand Name Exemption to be used in all Public Improvement or Public Works projects under DAS Procurement Authority for the next ten

(10) years.

• Schneider EcoStruxture systems are able to be updated to maintain network security requirements for DAS information technology and network security.

• Achieves continual consistency in Heating, Ventilating, and Air Conditioning (HVAC) controls and energy management system standards.

• DAS EAM has made the business decision to use Scheider Electric EcoStruxure for HVAC Controls for consistency in buildings’ systems as the current product, American Auto- Matrix parts are no longer being serviced, or manufactured.

• DAS EAM has a $10 million approved budget bill and a request for an additional $5 million to install Schneider Electric EcoStruxure HVAC controls in all buildings in the next four

(4) to eight (8) years.

• Currently three buildings in the state portfolio and a fourth in design use the Schneider Electric EcoStruxture system.

• The amount of time required for managers to train maintenance personnel, and the level of experience required for maintenance personnel will be reduced by specifying one brand name of HVAC controls and energy management equipment.

• Standardization under one (1) brand name reduces the opportunity for error that may result when maintaining the operation of systems provided by multiple manufacturers.

• The interconnection of control and energy management systems of multiple manufacturers is also difficult, time consuming, and costly for both installation and maintenance. Use of multiple manufacturers would impede the implementation of this Agency’s long-term goal of a centralized monitoring service.

• Standardization will eliminate the need for multiple spare parts inventories.

Standardization will also result in better control of maintenance and expansion of the system.

• To sum it up, acquiring Schneider EcoStruxture system will maximize the benefits of optimizing resource usage, reducing costs, and improving conditions for occupants while generating valuable data related to building operation by reducing time, labor and cost associated with implementation of the smart building system to integrate with the current and future-owned DAS EAM’s IoT (Internet of Things) devices used in DAS properties.

Proposed Findings and Waiver Procedure:

1) DAS PS will issue a public notice of these proposed findings on the OregonBuys eProcurement system for a period of at least seven (7) calendar days.

2) The public notice will include that any affected party may comment on the proposed findings by contacting Jay Jackson, Procurement Policy Officer at:

Jay.Jackson@das.oregon.gov.

3) After considering any public comment received, DAS PS will issue a public notice of any approved findings on the OregonBuys eProcurement system for a period of at least seven

(7) calendar days.

mailto:Jay.Jackson@das.oregon.gov