Attachment 12 - MAHG171095 Renovate Stennis Hall - HVAC Chiller JA.pdf

This is a Justification and Approval (J&A) document for a Class acquisition using Other Than Full and Open Competition authority under 10 USC 3204(a)(1) for a single source procurement.

The Department of the Air Force, through the Air Force Installation Contracting Center (AFICC) at Tyndall AFB, Florida, is seeking to establish a Brand Name Class J&A for HVAC chiller standardization across all DAF installations from October 1, 2024, through September 30, 2029. The estimated contract cost is $437.5 million, covering approximately 1,654 chiller units expected to be at least 17 years old by 2029. HVAC chillers are mission-critical equipment required for maintaining controlled temperature and humidity in facilities with no natural ventilation methods. The acquisition covers all DAF HVAC chiller purchases during the five-year period, with purchases procured competitively among authorized distributors supporting each installation's pre-approved manufacturer. The contracting activity is classified as Other Contracting under Air Force Category Management of Facilities and Construction (Cat #4).

The J&A justifies single-source treatment based on findings that HVAC chillers are available from only one or a limited number of responsible sources. Prior market analysis identified 142 different chiller manufacturers in the DAF inventory, creating inefficiencies in training (65% unique to each manufacturer), maintenance, and inventory management. The 2018 Category Intelligence Report recommended standardizing to one HVAC manufacturer per installation, resulting in reduced manufacturers from 142 to 127 as of 2024. Standardization has yielded documented benefits including $50 million in avoided training costs, enhanced cybersecurity, improved resilience, and increased small business participation (92% of chiller purchases with small businesses, up from 73%). An RFI/Sources Sought notice was posted on SAM.Gov on December 12, 2023, for 15 days, receiving two industry responses supporting the standardization approach. The document includes a public-release manufacturer selection list showing Trane as the approved manufacturer for Keesler AFB's 81st Civil Engineer Squadron.