FA441726Q0202_1 SOCES Chillers - HVAC_Chiller_JA.pdf

This is a Justification and Approval (J&A) document for a non-competitive procurement under Federal Acquisition Regulation (FAR) 6.302-1(a)(2), citing the authority that only one responsible source can meet Air Force requirements.

The Department of the Air Force, through the Air Force Installation Contracting Center (AFICC), seeks to establish a Brand Name Class J&A for HVAC Chiller Replacement Standardization supporting multiple Air Force installations across CONUS and OCONUS locations. The estimated contract cost is $437.5 million covering the period October 1, 2024 through September 30, 2029. The procurement covers approximately 1,654 HVAC chiller units (systems at least 17 years old by 2029) valued at an estimated $437.5 million based on replacement values. This is a commercial item procurement for heating, ventilation, and air conditioning chiller purchases.

The J&A justifies single-source procurement based on the Air Force's HVAC chiller standardization policy, which limits purchases to approved manufacturers at each installation to reduce training inefficiencies, increase maintainability, improve cybersecurity, and achieve cost savings. A 2018 Category Intelligence Report identified that prior procurement practices resulted in 142 different chiller manufacturers in the Air Force inventory, creating significant sustainment costs. Under this standardization approach, 92% of chiller purchases will be with small businesses. The document references a Sources Sought notice posted December 12, 2023, which received two favorable industry responses supporting standardization as best practice. The J&A was approved on July 23, 2024, by the Deputy Assistant Secretary (Contracting) and subsequently approved by the Assistant Secretary of the Air Force for Acquisition, Technology, and Logistics.