FOUO-Brand-Name-JA_EMCS_JBER_final_review_20150112.pdf

FOR OFFICIAL USE ONLY

Source Selection Information See FAR 2.101 and

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COORDINATION AND APPROVAL DOCUMENT

(also known as Justification Review Document)

CONTRACTING ACTIVITY: 673d Contracting Squadron

10480 22d Street Joint Base Elmendorf-Richardson, Alaska

PROGRAM/PROJECT: Energy Management Control System (EMCS)

AUTHORITY: FAR 13.106-1(b)(1)(i) & 13.501(a)(2)(i)

ESTIMATED CONTRACT COST: $398,129.58. This justification covers only the portion of the acquisition which is brand-name or peculiar to one manufacturer.

TYPE J&A: Individual

COORDINATION DATE

DAVID D. VANDERBURG, Lt Col, USAF Commander, 773d Civil Engineer Squadron

(907) 552-5749

JEFFERY G. MOODY, Lt Col, USAF Commander, 673d Contracting Squadron

(907) 552-2810

APPROVED:

1137155784A Typewritten Text 15 Jan 15

1079176326A Typewritten Text 23 Jan 15

1079176326A Typewritten Text

1079176326A Typewritten Text

1079176326A Typewritten Text

1079176326A Typewritten Text

1079176326A Typewritten Text

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JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY: 673d Contracting Squadron

10480 22d Street Joint Base Elmendorf-Richardson, Alaska

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

A firm fixed-priced contract is contemplated for an Energy Management Control System (EMCS). Period of Performance (PoP) 04 Apr 15 through 30 Sep 18. Estimated contract value is $398,129.58.

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS

The Brand Name EMCS system utilized by JBER for Direct Digital Control (DDC) of on base facilities’ HVAC is manufactured by Automated Logic Controls (ALC). A DDC is an automated control of a process, such as an EMCS system, by a computer or digital device. The EMCS system is a system of computer aided tools used by operators of electric utility grids to monitor, control, and optimize the performance of the generation and or transmission system. The user employs this process to provide continuous monitoring and controlling of the base’s HVAC systems. The contractor will provide operations and maintenance along with technical training and operator support for 773CES HVAC employees on ALC’s EMCS system presently on JBER, AK. The operational support will include, but is not limited to full operation and maintenance of the control system, programming set points, software programming and systems data back-ups, module driver updates, electronic Operation and Maintenance (O&M) manual generations, network training. The current requirement is a 6 month purchase order valued at $71,110.00; the requirement that is projected to be solicited is for a base (five months and 27 days) plus three option years and is estimated to be $398,129.58. The base period of five months and 27 days is contemplated in order to avoid a lapse in service while covering the rest of the current fiscal year.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

FAR 13.106(b)(1)(i) & 13.501(a)(2)(i)

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS

OR NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY

CITED ABOVE (APPLICABILITY OF AUTHORITY)

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FAR 13.501(a)(2)(i) requires an ordering activity to justify its actions when restricting consideration of a particular item peculiar to a particular brand name. The specific FAR references that justify other than full and open competition for this acquisition are FAR 13.106-1(b)(1)(i) & 13.501(a)(2)(i), “The item is peculiar to one manufacturer (e.g. a particular brand-name item, product, or a feature that is peculiar to one manufacturer).” Market research has indicated that while other control systems exist in the commercial market place; an alternative system to ALC does not provide the same functionality and cannot be integrated with 100% synergy to the base’s current operating system. Sources sought produced only three interested vendors: Meridian Systems, Siemens, and Trofholz Technologies, of which only Meridian Systems stated that they had the capability to do the project. For example, research has indicated that if the Siemens system could be integrated with the current ALC system, it would only be partially integrated. Meaning that a portion of the current EMCS system would be dysfunctional. Therefore, any alternative system cannot be modified to achieve 100% integration in order to meet the agency’s need.

The results of market research indicate the use of brand name description is essential to the Governments’ requirement, thereby precluding consideration of a product manufactured by another company. The current ALC system is installed in 172 base facilities and is currently being monitored through the current EMCS servicing contract with Meridian Systems, Inc.

Meridian Systems maintains the proprietary data specific to JBER’s EMCS system and is licensed by ALC.

Due to the complexity of DDC systems, the level of control can vary based on which company provides the control system and the customer’s requirements. Each company’s software for their control system is often proprietary in nature, which means that although the software capabilities and language are similar, they are not identical. The proprietary status makes the ability for the software to integrate across each other’s products time consuming. Moreover, the user is not able to obtain 100 percent integration by substituting one system for another because of the proprietary nature of the software. The costs associated with any switch are also considerable given the manpower necessary to reprogram the system and retrain the users.

Costs will vary depending on the extent of the system already in place and the timeline needed to integrate another control system. If required to purchase an alternative system, a complete retro-commissioning of 172 current JBER facilities would also be required. A change of this magnitude would require network certification of the new program, replacement software, and retraining of operators. This cost would not be recovered through competition. Replacing the entire system would cost an estimated $114.5 million.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

Previous market research identified four companies Siemens, Meridian Systems, Johnson Controls and Avisar as current providers of maintenance support for this type of requirement.

However, Meridian Systems is the only company authorized and licensed by Automated Logic Corporation to service their equipment in Alaska. A sources sought was posted on 30 April 2014 and there were three responses received from Meridian Systems, Siemens, and Trofholz

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Technologies. Siemens stated that most, if not all, DDC or automation system providers have proprietary programming and or a graphical user interface that limits the ability for others to provide service and support for that system. However, BACnet is a program developed to integrate systems together. That being said, the integration will never be a 100% match because some data within the system can only be accessed by the manufacturer. The integration is possible; however assistance from the current ALC distributor is necessary to accomplish this task. The Siemens team acknowledges that this is not a seamless process due to the teaming that would need to take place between Siemens and the ALC distributor.

Furthermore, market research has found that if the Siemens EMCS software is integrated over the current ALC software, approximately 15-30% of the points could be dysfunctional.

Meridian is currently the only vendor licensed by ALC for the state of Alaska, however, by leaving this a brand name instead of a sole-source; the government is ensuring that any contractor that wishes to pursue the licensing procedures has the opportunity to do so.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE

The government recently negotiated the current contract for the same service with Meridian Systems within the last 12 months. Additionally, the government received the commercial rates paid locally for the same service. With this information, the contracting officer will be able to make a determination of price fair and reasonableness.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS

NOT CONDUCTED

A sources sought was posted on 30 April 2014 to recognize any potential contractors that could provide service with the current Automated Logic Control system in use at Joint Base Elmendorf-Richardson. The following are the responses for capabilities provided from interested vendors:

Siemens:

Siemens has shown interest and provided information on a BACnet based system for easier integration. However, 100% integration with the current hardware installed is not possible.

Government technical representatives have concluded that at best, Siemens’ software would only be 70-85% integrated.

Trofholz Technologies:

Trofholz Technologies, Inc. (Trofholz), a prime contractor with the US Army Corps of Engineers provides similar services in support of Energy Management Control Systems. The company expressed interest but did not state how they would integrate their software with the current hardware in place on JBER.

Meridian Systems:

Meridian Systems has expressed interest and is the current successful incumbent contractor.

They are currently the only company responsible for after sales service and warranty of all

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Automated Logic products within the State of Alaska.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL

AND OPEN COMPETITION

If required to purchase an alternative system, a complete retro-commissioning of 172 current JBER facilities would also be required. A change of this magnitude would require certification of the new program, replacement software, and retraining of operators.

The installation of an entirely new system would result in substantial duplication of costs to the government that is not expected to be recovered through competition. The 773 CE HVAC technical experts provided an estimate of approximately $114.5 million and an expectation that some hardware would need to remain in place even if a new system was put into place. In this event, the remnants of the current system would still need to be serviced and maintained. The current contract in place with all option years does not exceed $500k. Research conducted on Meridian Systems’ prices have determined that over the past four years they have provided this service in the local market for $145 per hour compared to the $130 per hour that the government has paid.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN

THE ACQUISITION

Meridian Systems, Siemens and Trofholz Technologies

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

Meridian Systems is the only sales, training, and support agency currently approved by Automated Logic for the State of Alaska. In an effort to try and overcome existing barriers to competition on future actions the government has changed the acquisition approach from sole source to brand name to open this opportunity for any contractor willing and able to be licensed by ALC. We will continue to evaluate other controls to determine if future efficiencies can be gained.

XII. CONTRACTING OFFICER’S CERTIFICATION

The contracting officer’s signature on the signature page implies that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief IAW FAR13.106-1(b)(1)(i) & 13.501(a)(2)(i) .

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

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