Brand Name Justification_Leibert HVAC Systems_Redacted.pdf

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

March 2023 Page 2 of 4

I. Contracting Activity.

USAF/AETC, 502d ABW, 502 CONS/JBKAA - 1655 Selfridge Ave, Bldg. 5450, JBSA Lackland, TX 78236

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

This action encompasses the complete replacement of existing Liebert HVAC units within Building 1062, JBSA-Fort Sam Houston. The project requires decommissioning and disposal of old units, along with the procurement, installation, and commissioning of new, energy-efficient, Brand Name Liebert HVAC systems.

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

Project Overview: HVAC System Upgrade in Building 1062, JBSA-Fort Sam Houston

The government requires the complete removal and replacement of existing Liebert HVAC units in Building 1062 at JBSA-Fort Sam Houston. This project aims to modernize the building's HVAC infrastructure, improving climate control, energy efficiency, and overall building performance.

Description of Supplies/Services Required:

This project encompasses a comprehensive range of supplies and services, including:

- Decommissioning and Disposal: Safe and environmentally responsible decommissioning and disposal of the existing outdated Liebert HVAC units. This includes proper handling of refrigerants and other hazardous materials in accordance with all applicable regulations.

- New HVAC System Acquisition: Procurement and delivery of new, Brand Name Liebert HVAC systems with high-efficiency ratings. The systems must be compatible with the existing building infrastructure and designed to meet the specific climate control needs of Building 1062.

- Installation and Commissioning: Complete installation and commissioning of the new HVAC systems, ensuring seamless integration with existing building systems. This includes:

All necessary labor, including skilled technicians and project management.

All required materials, including ductwork, piping, wiring, insulation, and mounting hardware.

All necessary equipment, including lifting equipment, tools, and testing instruments.

System testing and validation to ensure optimal performance and energy efficiency.

- Permitting and Compliance: Securing all necessary permits and ensuring compliance with all applicable federal, state, and local regulations related to HVAC installation and environmental protection.

- Documentation and Training: Provision of complete system documentation, including operation and maintenance manuals, and training for government personnel on the proper operation and maintenance of the new HVAC systems.

IV. Statutory authority permitting other than full and open competition.

This requirement for the removal and replacement of Liebert HVAC systems in Building 1062 at JBSA-Fort Sam Houston necessitates a clear and precise description of the government's needs. While the government seeks to modernize the building's HVAC infrastructure with high-efficiency systems, the existing infrastructure and integration requirements are specific to current Liebert systems. A market survey was conducted, which indicated that other brands would require significant modifications to the existing infrastructure, leading to increased costs and potential performance issues. Therefore, utilizing a brand name description, as permitted under FAR 13.501(a)(ii), is justified to ensure

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

March 2023 Page 3 of 4 compatibility, minimize the risk of integration issues, and avoid potential performance problems. This approach allows offerers to propose systems from the specified Liebert brand, fostering competition while ensuring the government receives a suitable replacement that meets the building's specific climate control requirements and integrates seamlessly with the existing infrastructure.

The procurement encompasses the complete removal and disposal of the existing Liebert units, including all associated components, and the installation and commissioning of new Leibert HVAC systems. This includes providing all necessary labor, materials, equipment, and permits required for a fully functional and compliant system.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

Building 1062 at JBSA-Fort Sam Houston currently utilizes Leibert HVAC systems, and the existing infrastructure, including ductwork, electrical connections, and control systems, is configured specifically for these units. Replacing the existing systems with a different brand without careful consideration of compatibility could lead to significant integration challenges, potentially requiring extensive and costly modifications to the building's infrastructure. Simply specifying performance requirements without referencing the existing Leibert system would not adequately convey the necessary compatibility requirements to potential offerers.

Therefore, utilizing the brand name description allows the government to clearly communicate the need for compatibility with the existing infrastructure. This approach ensures that proposed systems seamlessly integrate with the building's current setup, minimizing disruption and avoiding unnecessary costs associated with infrastructure modifications. By specifying "Leibert," the government ensures offerers understand the critical compatibility requirements.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

Because the required Liebert HVAC units are manufactured by Virtiv, a large business, the non-manufacturer rule applies. Since this procurement exceeds the ( and falls under a manufacturing NAICS code (Sectors 31-33 and 541519) suitable for SB set-asides, the manufacturer must be a small business. However, market research confirmed that none of the responding SBs manufacture Virtiv HVAC systems. Therefore, this requirement will be solicited as full and open.

The solicitation will be publicly posted to the government point of entry, SAM.gov, ensuring broad visibility and accessibility to potential offerers. The solicitation documents will be crafted to be clear, concise, and easy to understand, minimizing barriers to entry for small businesses and encouraging a higher response rate. These efforts demonstrate a commitment to maximizing competition and ensuring a fair and transparent procurement process, ultimately resulting in the best value for the government.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer has determined that the anticipated cost to the Government for this requirement is fair and reasonable. This determination is based on thorough market research, analysis of historical pricing data for similar HVAC removal and installation projects, and an evaluation of the competitive landscape, which includes a number of qualified small businesses interested in the requirement as evidenced through market research efforts. The planned competitive RFQ process further supports this determination, as it will encourage competitive pricing and ensure the government receives the best value.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

Market research for this procurement encompassed multiple approaches to ensure a comprehensive understanding of

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

March 2023 Page 4 of 4 pricing and availability. Direct outreach to small businesses specializing in HVAC services within the San Antonio area was conducted via email to solicit market-based pricing estimates, as well as a Sources Sought RFI posted to SAM.gov.

Further insights were gleaned from a market research proposal provided by the project manager, which likely included data analysis and cost projections. Finally, publicly available resources, such as online searches for average HVAC system costs, were consulted to provide additional context and benchmarks. This multi-faceted approach provided a well-rounded perspective on market conditions, enabling an informed assessment of fair and reasonable pricing for this requirement.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

Not Applicable

X. List of any sources that expressed, in writing, an interest in the acquisition.

See Market Research Report.

XI. 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.

While this acquisition utilizes a brand-name justification due to the specific integration requirements of the existing Liebert HVAC infrastructure in Building 1062, the agency is committed to exploring options to promote greater competition in future HVAC system upgrades. These actions may include:

Infrastructure Standardization: Investigating the feasibility of standardizing HVAC infrastructure in other buildings to allow for broader competition in future procurements. This could involve designing new buildings or retrofitting existing buildings to accommodate multiple HVAC brands.

Performance-Based Specifications: Developing performance-based specifications that focus on desired outcomes (e.g., temperature control, energy efficiency) rather than specific brand requirements. This would allow vendors to propose a wider range of solutions that meet the government's needs.

Technology Monitoring: Continuously monitoring advancements in HVAC technology to identify potential alternatives to Liebert systems that could meet the building's requirements without significant integration challenges.

XII. 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 knowledge and belief.

XIII. 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.