Limited_Sources_Justification_(LSJ)-_Trane_Chiller.pdf

Limited Sources Justification and Approval (J&A)

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 1 of 5

Contracting Activity: 21 CONS/PKAB

Purchase Request / Local ID Number: F3L3509112A001

Program / Project (and PE, if applicable): CMAFS Trane Chiller #4

Program Type (PEO or Other Contracting): Other Contracting

Authority: Multiple Award Schedule Program (FAR 8.405-6)

Estimated Contract Cost (including options): $549,352.16

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Description of Limitation:

The 721st Civil Engineering Squadron (721 CES), Cheyenne Mountain Air Force Station (CMAFS), has a requirement for a Centrifugal Trane Chiller (Model: CVHE045FA, Serial: L92E13230) and proprietary software installation in accordance with Statement of Work (SOW) dated 14 February 2019.

COORDINATION (AFFARS 5306.304(a) )

** To remove a row, click the "X" next to the signature block.

** To restore the row, click the appropriate link to the right: CSO Legal COCO CA SCO PEO AQC AQ Blank-1 Blank-2PM CO

Date Project Lead / Program Mgr / Requiring Activity Jimmy Thompson

721 CES/CEOE, 719-474-2733

jimmy.thompson.8@us.af.mil

Signature

X

Date Contracting Officer Katie M. Hudiburgh

21 CONS/PKAB, 719-556-7979

katie.hudiburgh@us.af.mil

Signature

X

Date

06 Jun 2019

Local Legal Reviewer Katie A. Illingworth

21 SW/JA/ 719-556-4871

Signature X

Date Competition Advocate Kylie J. Hager

21 CONS/PK, 719-556-4835

kylie.hager@us.af.mil

Signature

X

Date [ Title ] [ Name ] [ Office Symbol / Phone Number ]

Signature X

APPROVAL (AFFARS 5306.304(a) ) ** To remove a row, click the "X" next to the signature block.

** To restore the row, click the appropriate link to the right: COCO CO CA SPEPEO Blank

Date

25 Jun 2019

Contracting Officer Katie M. Hudiburgh

21 CONS/PKAB, 719-556-7979

katie.hudiburgh@us.af.mil

Signature

X

March 2018 FOR OFFICIAL USE ONLY Page 2 of 5

Date [ Title ] [ Name ] [ Office Symbol / Phone Number ]

Signature

X

March 2018 FOR OFFICIAL USE ONLY Page 3 of 5

Remove guidance pages.

I. Contracting Activity.

The contracting organization that is responsible for the proposed contract action is the Air Force Space Command, 21st Contracting Squadron, Infrastructure Flight- Services, 580 Goodfellow Street, Bldg 1324 Suite 133, Colorado Springs, CO 80914. The contracting officer for this acquisition is Katie M. Hudiburgh (719-556-7979). The contracting officer is requiring a Limited Source Justification for the 721st Civil Engineering Squadron (CES), Cheyenne Mountain Air Force Station (CMAFS), for purchase request (PR) F3L3509112A001.

II. Nature and/or description of the action being processed.

This will be a new order under Federal Supply Schedule GS-07F-0248K (Trane U.S. Inc.). This will be a firm fixed price (FFP) delivery order with the items delivered and installed within 20 weeks of contract award.

III. Description of supplies/services required to meet agency needs.

Contractor shall provide Trane Chiller (Model: CVHE045FA, Serial: L92E13230) and perform services as outlined in the Statement of Work (SOW) dated 14 February 2019. The product and tasks for this requirement will be incorporated into one CLIN with one total price. The anticipated total value of this contract action is $549,352.16 .

IV. Identification of the justification/rationale for limiting sources and demonstration of the contractor's unique qualifications to provide the required supply/service.

FAR 8.405-6(a)(1)(i)(B), "Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized." CMAFS requires that the new highly specialized chiller must be compatible among the existing chillers in order to enable the required proprietary software integration. The required software can only be provided by a certified Trane technician. A confirmation email is included in the file from a Trane Representative indicating there are no authorized providers for the software. Having the same manufacture reduces the risk of interoperability by keeping repairs and maintenance procedures to one type of chiller, which also provides continuity and reliability. Trane provides software upgrades and diagnostic repairs that reduces overall costs as well as provides the quality required for the CMAFS mission.

Standardization of all HVAC chiller systems allows the Air Force to significantly reduce the total cost of ownership to include the initial procurement, subsequent maintenance and associated training costs.

Trane U.S. Inc. has proprietary software loaded onto their chillers that operates the system. The technician must be able to communicate to the systems computer by pulling info, diagnose problems/errors, and set new commands once error code is identified. In order to diagnose the system, installation of new components, and the reprogramming and confirming that they are functioning correctly, a certified Trane technician must perform the work. The Trane chillers require highly specialized proprietary software that only a certified Trane provider can service. If other providers tried to perform an upgrade or repair to the unit, they would not be able to provide Trane a certified technician which would result in a significant impact in level of quality, performance and financial liability to the Government if not designed, engineered, applied and installed properly. All chillers at CMAFS are Trane chillers. Any new chiller must be compatible with the current system. Trane chillers are only compatible with Trane chillers and the operation systems. If another provider offered a chiller other than Trane, the system would not be operable with the current system. The existing Trane chillers have to operate on CMAFS on a 24 hour/365 day basis.

March 2018 FOR OFFICIAL USE ONLY Page 4 of 5

V. Determination by the ordering activity Contracting Officer that the order represents the best value consistent with FAR 8.404(d).

A Statement of Work (SOW) and a RFQ will be sent directly to Trane IAW FAR 8.405-2. The RFQ will include a statement that the Contracting Officer will perform a price reasonableness determination as part of the best value determination and will seek a price reduction or any discounts available to the Government. Further, IAW FAR 8.404(d), the Contracting Officer will make a determination that the price is fair and reasonable prior to contract award. The LSJ will be posted to FedBizOps (FBO) for 30 days within 14 days of executing a delivery order for this requirement IAW FAR 8.405-6(a)(2)(i).

VI. Description of the market research conducted and the results, or explain why market research was not conducted.

A review of previous acquisitions determined this requirement is commercially available in the marketplace.

Additionally, a sources sought notice was posted to FedBizOpps (FBO) on 6 April 2018 and closed on 8 April 2018.

The Sources Sought results identified that there are (7) seven small businesses interested in fulfilling this requirement, but CMAFS requires that the specialized quality of the replacement chiller be consistent among the remaining three Trane chillers and requires highly unique software which only a certified Trane service provider can provide per Trane's specifications. An authorized Trane representative confirmed that there are no authorized providers. While other companies may be able to install and service a stand-alone Trane Chiller, this particular requirement also includes the interoperability of controls between other Trane systems, which is propriety and unique to Trane, with no other company holding that certification. Installing and having chillers of the same manufacture keeps compatibility amongst the existing units, limits repairs/maintenance to one type of chiller, thus providing continuity and reliability to the CMAFS overall mission.

VII. Other facts supporting the justification.

There are two parts to this limited sources procurement. First, limiting the type of chiller to a Trane highly specialized chiller in order to be compatible amongst the three existing chillers for continuity and continuous performance. Second, the highly specialized Trane chiller requires proprietary software for integration and installation by a certified Trane technician. David Robey, the Trane point of contact, confirmed in order to complete the requirements set forth in the SOW, the Contractor must use Trane proprietary software and have a Trane certified technician for complete start-up. Mr. Robey, also confirmed that there are no authorized providers.

VIII. Actions the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services.

The Government will continue to make a conscious effort to avoid sole source and limited source vendors that could provide the product for this requirement in the event the current Trane Chiller has to be replaced again in its entirety. A consideration in the market research phase for new chiller purchases will be presented to the requirements function. This will allow the requiring activity access to whether or not other companies have proprietary software or restrictions that limit other companies from providing repairs and maintenance to their equipment.

IX. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my

March 2018 FOR OFFICIAL USE ONLY Page 5 of 5 knowledge and belief.

X. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.

March 2018 Page of Authority: Multiple Award Schedule Program (FAR 8.405-6) Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan?

COORDINATION (AFFARS 5306.304(a)) ** To remove a row, click the "X" next to the signature block.

** To restore the row, click the appropriate link to the right:

APPROVAL (AFFARS 5306.304(a)) ** To remove a row, click the "X" next to the signature block.

** To restore the row, click the appropriate link to the right:

( See guidance at the end of this document for completing the following sections. ) I. Contracting Activity.

II. Nature and/or description of the action being processed.

III. Description of supplies/services required to meet agency needs.

IV. Identification of the justification/rationale for limiting sources and demonstration of the contractor's unique qualifications to provide the required supply/service.

V. Determination by the ordering activity Contracting Officer that the order represents the best value consistent with FAR 8.404(d).

VI. Description of the market research conducted and the results, or explain why market research was not conducted.

VII. Other facts supporting the justification.

VIII. Actions the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services.

IX. Certification by the Contracting Officer.

X. Certification by the technical/requirements personnel.

GUIDANCE

I. Contracting Activity.

Fully identify the contracting activity responsible for the proposed contracting action. Include the name/phone number of the Contracting Officer. Specifically identify as a “Limited Sources” Justification. Identify purchase request number, if applicable.

II. Nature and/or description of the action being processed.

State whether the action is a new order or by modification to an existing order. Identify the GSA schedule number, the Blanket Purchase Agreement (BPA) number, the order number for the current action, and the Contactor(s). Indicate the Period of Performance (PoP). Also identify the type of the order/line items on the order (e.g. Firm Fixed Price, Labor Hour, etc).

III. Description of the supplies/services required to meet agency needs.

Specifically describe the supplies and/or services to be acquired including the price and quantity of each item in the order and state the total estimated value of the order. For services, state whether the services are performance-based and, if not, provide rationale for not being performance based. Also state the delivery/performance schedule/period for the items under the order.

IV. Identification of the justification/rationale for limiting sources and demonstration of the contractor's unique qualifications to provide the required supply/service.

This section is normally the most detailed part of the justification. To assist you in preparing this justification, an introductory sentence and the four circumstances of FAR 8.405-6 that justify restricting the number of schedule holders are provided below. Select the appropriate cite, then provide, in narrative form, a detailed explanation supporting the specific circumstance cited for limiting the number of schedule holders.

(Introductory sentence) FAR 8.405-6 requires an ordering activity to justify its actions when restricting consideration of schedule contractors to fewer than required in FAR 8.405-1 or 8.405-2.

After selecting the appropriate cite, next select one of the four sentences below and provide a detailed explanation supporting the specific circumstance cited.

FAR 8.405-6(a)(1)(i)(B), “Only one source is capable of responding due to the unique or specialized nature of the work”. (Provide a detailed justification with supporting documentation, as evidence of the “unique or highly specialized” nature of the procurement. The user/customer typically provides this supporting information. Recommend attaching supporting documentation to the back of the document. General statements are not acceptable.)

FAR 8.405-6(a)(1)(i)(C), “The new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures.” The original order was not issued under sole source or limited source procedures. (Provide details on the previously competed order and explain how this order is a logical follow-on to that order. Explain fully the connection between the previous work/order and the current one. The user/customer typically provides this supporting information. General statements are not acceptable.)

FAR 8.405-6(a)(1)(i)(A), “An urgent and compelling need exists, and following the ordering procedures would result in unacceptable delays.” (Provide a detailed justification with supporting documentation that explains the exact urgency of the requirement and the schedule impact if time were to be taken to follow FSS ordering procedures. The user/customer typically provides this supporting information. Recommend attaching supporting documentation to the back of the document. General statements of urgency are not acceptable.)

FAR 8.405-6(b)(1), “The item is peculiar to one manufacturer. A brand name item, whether available on one or more schedule contracts, is an item peculiar to one manufacturer.” (Brand name specifications should not be used unless the particular brand name, product or feature is essential to the Government's requirements. Therefore, explain why the particular brand item is essential to the Government's requirements, and why other companies' similar items, or products lacking the particular feature, do not meet, or cannot meet, or cannot be modified to meet, the agency's need. The user/customer typically provides this supporting information. General statements are not acceptable.)

V. Determination by the ordering activity Contracting Officer that the order represents the best value consistent with FAR 8.404(d).

This section needs to be tailored based upon whether the order is for supplies/services not requiring a statement of work (FAR 8.405-1) or if the order is for services requiring a statement of work (FAR 8.405-2).

For FAR 8.405-1 orders the best value determination needs to be based upon the supply or service offered under MAS contracts by surveying at least three schedule contractors through the GSA Advantage! on-line shopping service, or by reviewing the catalogs or price lists of at least three schedule contractors. The ordering Contracting Officer's review of the Contractor's price list(s) and any price reductions sought is also required. (Contracting Officer should seek additional price discounts/concessions based on the specific order requirements on all orders over the micro-purchase threshold.) In addition to price, when determining best value, the ordering activity may consider, among other factors, past performance, special features of the supply or service required for effective program performance, trade-in considerations, probable life of the item selected as compared with that of a comparable item, warranty considerations, maintenance availability, environmental and energy efficiency considerations, and delivery terms.

When an order contains brand name specifications, the Contracting Officer shall post the Request for Quote (RFQ) along with the basis of the justification as required by FAR 8.405-6(b)(3).

For FAR 8.405-2 orders for services requiring a statement of work, FAR 8.405-2(d) requires that an evaluation be performed based on the criteria provided to the schedule contractors. Therefore, the justification must address how the FAR 8.404(d) requirement for an evaluation of the proposed level of effort and mix of labor will be conducted and include a statement that the Contracting Officer will perform a price reasonableness determination as part of the best value determination.

VI. Description of the market research conducted and the results, or explain why market research was not conducted.

Discuss market research that was conducted among schedule holders and the market research results that led to the conclusion to go sole source or to limit the number of schedule holders to be solicited. The narrative in this section should provide a high level of confidence that the requirements of 8.405-1 and 8.405-2 could not be met. If no market research was conducted, state so and provide the rationale.

VII. Other facts supporting the justification.

When FAR 8.405-6(a)(1)(i)(C) is cited for an follow-on acquisition as the basis for the justification, include an estimate of the cost that would be duplicated and the basis and derivation of the estimate, or provide details on why a delay to solicit additional schedule holders would be unacceptable.

Provide any other facts supporting the Limited Sources Justification.

VIII. Actions the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services.

Describe all efforts to be taken to remove or overcome any barriers that preclude the agency from meeting the requirements of FAR 8.405-1and FAR 8.405-2 before any subsequent acquisition for the supplies or services is made. If no actions are planned, so state and provide reasons.

IX. Certification by the Contracting Officer.

The contracting officer's signature on the signature page evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

X. Certification by the technical/requirements personnel

As evidenced by their signatures on the signature page, the technical/requirements personnel have certified that any supporting data contained herein which is their responsibility is both accurate and complete.

9.0.0.2.20120627.2.874785

721 CES/CEOE, 719-474-2733

jimmy.thompson.8@us.af.mil Name: Katie M. Hudiburgh

21 CONS/PKAB, 719-556-7979

katie.hudiburgh@us.af.mil Name: [ Name ] [ Office Symbol / Phone Number ] Name: Katie A. Illingworth

21 SW/JA/ 719-556-4871

Name: [ Name ] [ Office Symbol / Phone Number ] Name: Kylie J. Hager

21 CONS/PK, 719-556-4835

kylie.hager@us.af.mil Name: [ Name ] [ Office Symbol / Phone Number ] Name: [ Name ] [ Office Symbol / Phone Number ] Name: [ Name ] [ Office Symbol / Phone Number ] Name: [ Name ] [ Office Symbol / Phone Number ] Name: [ Name ] [ Office Symbol / Phone Number ] Name: Katie M. Hudiburgh

21 CONS/PKAB, 719-556-7979

katie.hudiburgh@us.af.mil Name: Kylie J. Hager

21 CONS/PKD, 719-556-4835

kylie.hager@us.af.mil Name: [ Name ] [ Office Symbol / Phone Number ] Name: [ Name ] [ Office Symbol / Phone Number ]