limited_sources_J_and_A_CO Signed_FC (JA signed).pdf

Limited Sources Justification and Approval (J&A)

CONTROLLED UNCLASSIFIED INFORMATION

April 2021 CONTROLLED UNCLASSIFIED INFORMATION Page 1 of 7April 2021 CONTROLLED UNCLASSIFIED INFORMATION Page 1 of 7

Contracting Activity: 9th Contracting Squadron

Purchase Request / Local ID Number: TBD

Program / Project (and PE, if applicable): Environmental Control Systems (ECS) Maintenance and Support

Program Type (PEO or Other Contracting): Contracting

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

Estimated Contract Cost (including options): $4,556,529.00

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

Description of Limitation:

The limiting factor for this requirement is the proprietary nature of the software. Siemens Industry, Inc. is the sole provider and servicer of the Apogee software that Beale AFB requires to have maintained and supported. In addition, Siemens Industry, Inc.

does not have authorized distributors.

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

14 Feb 2024

Project Lead / Program Mgr / Requiring Activity Jennie Davis

9 CES/CEOES, 530-634-3289

Signature X

Date Contracting Officer Candice Richardson

9 CONS/PKB, 530-634-3404

Signature X

Date

21 Feb 2024

Local Legal Reviewer William M. Wright, Jr.

Attorney-Advisor, 9 RW/JA, 530-634-2927

Signature X

Date Chief of the Contracting Office (COCO) James Ciccone, Maj, USAF

9 CONS/CC, 530-634-4522

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

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( See guidance at the end of this document for completing the following sections. ) Remove guidance pages.

I. Contracting Activity.

The Contracting Activity responsible for the proposed contract action is the 9th Contracting Squadron, 9th Reconnaissance Wing located at Beale AFB, CA.

The Contracting Officer responsible for the proposed contract action is Candice Richardson.

The proposed contract is solicited as a "Limited Sources" Justification.

The Purchase Request (PR) number is TBD.

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

This is a follow on contract to FA4686-19-F-0001, that was previously awarded directly to Siemens Industries, Inc. on 1 October 2018 under GSA Multiple Award Schedule (MAS) GS-06F-0033P as a one (1) - twelve (12) month base and four (4) -twelve (12) month options.

The current acquisition will be solicited and awarded to Siemens Industry, Inc. as a firm-fixed-price task order under Siemens Industry, Inc.'s GSA MAS Contract Number GS-07F-217CA. The task order will be awarded as a one (1) - twelve (12) month base year and four (4) - twelve (12) month option periods with an anticipated period of performance (PoP) of 1 April 2024 through 31 March 2029. The MAS has an ultimate contract end date of 31 August 2035.

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

The 9th Civil Engineering Squadron Energy Management Control System (ECMS) is a computerized control system designed to regulate the energy consumption of a building by controlling the operation of energy consuming systems, such as the heating, ventilation and air conditioning (HVAC), lighting, and water heating systems, and is capable of monitoring environmental and system loads, and adjusting the HVAC operations in order to optimize energy usage and respond to demand response signals. The Apogee Insight and Apogee Desigo CC platform monitors and controls over 265 control panels in each of the 100+ buildings and facilities across Beale AFB. The services provided are for recurring maintenance operational support of the Environmental Control System (ECS) located on Beale AFB, CA. Contractor support shall consist of emergency on-line support, on-site operator support/maintenance/training, on-site operator programming and factory certifications, Apogee/Desigo CC server updates and license and component replacement coverage.

The use of performance-based acquisition methods will be used to the maximum extent practicable for the services being performed.

The anticipated total value of this contract is $4,556,529.00 Below outlines the performance schedule for the services being procured, to include, the CLIN structure and description of services:

Base year (1 April 2024 - 31 March 2025) - $877,794 Option Period (1 April 2025 - 31 March 2026) - $893,892 Option Period (1 April 2026 - 31 March 2027) - $910,635 Option Period (1 April 2027 - 31 March 2028) - $928,048 Option Period (1 April 2028 - 31 March 2029) - $946,157

CLIN 0001: On-Site Operator Support (12 MO - FFP) The Contractor shall provide all management, tools, supplies, equipment, and labor IAW PWS dated 7 February 24 necessary to provide service on all Apogee and Desigo installed ECS systems for Beale AFB, CA.

CLIN 0002: Emergency On-line/On-Site Support (12 MO - FFP) The Contractor shall provide Emergency On-Line/On-Site Specialist support through the Service Response Center. The emergency on-line support shall be available 24 hours/day, 365 days/year.

CLIN 0003: Smart Building Assessment - Air Handler and Zones (12 MO - FFP) The Contractor shall provide an assessment of the Air Handler Units and the zone controllers associated with those air handlers at the buildings identified in Appendix 3 - Covered Facilities.

CLIN 0004: Smart Building Assessment - Chilled Water (CHW) Plant (4 QTR - FFP) The Contractor shall provide an assessment per quarter on three (3) chilled water loops and their associated central plant equipment on the facilities outlined in

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Appendix 3, Covered Facilities.

CLIN 0005: Smart Building Assessment - Hot Water (HW) Systems ( 2 EACH - FFP) The scope of this assessment shall include the hot water distribution system and its associated pumps.

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

Only one source is capable of responding to the ECS requirement due to the unique or specialized nature of the work (FAR 8.405-6(a)(1)(i)(B)). Apogee and Desigo CC software is proprietary software hosted on servers assembled and developed by Siemens Industry, Inc. There are no other vendors outside of Siemens Industry, Inc. that can perform updates to the Apogee software. Only Siemens regional and independent field offices are authorized to configure, commission, and maintain APOGEE automation systems, fire and life safety systems and HVAC field devices.

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

The Contracting Officer has determined that ordering from Siemens will provide the best value to the Government, as they are the only company capable of fulfilling this requirement and would provide continuity of services. Additionally, the BACnet APOGEE system is proprietary to Siemens and would require Apogee certified Siemens technicians to conduct maintenance, training and diagnostics. Siemens does not certify external organizations or third-party distributors. The cost and time required to pursue the use of a new software and hardware configuration would not be reasonable for this requirement.

FAR 8.405-2(d) requires that the ordering activity shall evaluate all responses received using the evaluation criteria provided to the schedule contractors. As part of the best value determination, a price reasonableness determination will be performed after receipt of proposal in accordance with FAR 8.404(d) using various price analysis methods from FAR 15.404-1 to include FAR 15.404-1(B)(2)(iv), FAR 15.404-1(B)(2)(v) and FAR 15.404-1(B)(2)(vi).

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

On 18 January 2024, the Government issued an RFI on eBuy for seven (7) days in efforts to identify small businesses capable of providing the services outlined in the PWS. The Government received interest from four (4) small business vendors.

Capability statements were received from each company and received a call from one (1) who informed the Government the APOGEE system is proprietary to Siemens.

Although market research revealed at least two (2) or more small businesses interested in performing the services, the Government identified that the BACnet APOGEE system is proprietary to Siemens and would require Apogee certified Siemens technicians to conduct maintenance, training and diagnostics.

VII. Other facts supporting the justification.

Proprietary letter dated 10 January 2023 from Siemens on file addressing the proprietary nature of the requirement. All other facts supporting the justification have been presented in the sections above.

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.

Actions taken to remove and overcome barriers leading to the restriction for the acquisition of this service included contacting Siemens to identify companies certified and authorized to perform the work--there are none. Siemens has not authorized any other companies to perform work on or distribute parts, leaving Siemens as the sole provider for support and updates for the software/equipment.

Market research will be conducted prior to exercise of each option year and prior to a new acquisition to determine whether barriers to competition have been removed. This will depend largely on whether the 9 CES has identified a new source for

April 2021 CONTROLLED UNCLASSIFIED INFORMATION Page 4 of 7 software maintenance. Additionally, if Siemens Industry, Inc. authorizes other vendors to maintain their proprietary software, then future acquisitions will be competed among all authorized contractors.

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 knowledge and belief.

X. Certification by the technical/requirements personnel.

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

April 2021 CONTROLLED UNCLASSIFIED INFORMATION Page 5 of 7

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

April 2021 CONTROLLED UNCLASSIFIED INFORMATION Page 6 of 7 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

April 2021 CONTROLLED UNCLASSIFIED INFORMATION Page 7 of 7

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.

April 2021 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

9 CES/CEOES, 530-634-3289

Name: Candice Richardson

9 CONS/PKB, 530-634-3404

Name: [ Name ] [ Office Symbol / Phone Number ] Name: William M. Wright, Jr.

Attorney-Advisor, 9 RW/JA, 530-634-2927 Name: James Ciccone, Maj, USAF

9 CONS/CC, 530-634-4522

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: [ 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 ]