FAR 13.5 Sole Source Justification - Emergency Generator Repair Services_Redacted.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT‐$7.5M under FAR13.5

Effective Date: 11/15/24 Page 1 of 5

REVISION: 01

Acquisition ID#: 36C248‐25‐AP‐1831

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C248‐25‐AP‐1831

1. Contracting Activity: Department of Veterans Affairs, Veterans Health Administration, Regional

Procurement Office East, Network Contracting Office 08 on behalf of Bay Pines VA Health Care System located at 10,000 Bay Pines Blvd. Bay Pines, FL 33744. 2237#: 516‐25‐2‐5105‐0443

2. Nature and/or Description of the Action Being Processed: The Bay Pines Veterans Affairs Healthcare

System (BPVAHCS) will award a one‐time sole source firm‐fixed price contract to Ring Power Corporation, a large business, located at 10421 Fern Hill Drive, Riverview, FL 33578. Facilities Management Service (FMS) has an urgent need for emergency repairs for two back‐up generators in building 100.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: Facilities Management Services (FMS) has an emergent need for Caterpillar (CAT) genset model 3516 DITA diesel generator repair services. Back‐up generators #6 and #9 caught fire during emergency operations. The bearing assembly failed causing an excessive amount of heat to build up which caused the insulation to breakdown and ignite within the generators. The period of performance for this type of extensive repair is up to 120 days. The back‐up generators require complete disassembly, rigging and removal, and transporting to a rebuild/rewind shop for complete rebuilding, shipping, reassembly, testing to restore the generators to working condition, and must complete a recommissioning process. The generators are part of a complex system that provide standby back‐up power to the main hospital;

therefore, it must be serviced and returned to normal working conditions as soon as possible. The system is now out of balance due to the loss of the generators, and the facility is at risk of losing the power generation required to operate the hospital. This will take away all services to our veterans.

The CAT genset model 3516 DITA diesel generators have a voltage of 12,470 that is unique to this area of Florida. It operates in parallel with the power supplied from Duke Energy and operates the entire campus in the event of a power loss from the grid. Ring Power built the generators, possess original build specifications, and can rebuild it to original state quickly and efficiently. The warranty periods are 90 days on workmanship/labor, 2 years on the generator end, and 1 year on the voltage regulator.

Due to the extensive type of repairs, only CAT authorized dealers and service providers can provide repairs of this magnitude. A sole source letter from CAT is included in the contract file indicating Ring Power Corp. as the only authorized service provide available for this location. The cost of this requirement is .

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the

Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by

FAR 13.106‐1(b)(2) for restricting competition on this procurement. Competition is restricted on this procurement for the reason below:

Effective Date: 11/15/24 Page 2 of 5

Acquisition ID#: 36C248‐25‐AP‐1831

( ) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( X ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert

Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): This requirement is being procured under FAR 6.302‐2 unusual & compelling urgency. Immediate repair services are needed for two back‐ up generators. Generators #6 and #9 were catching on fire during operation. This led to the generators failing, not working properly, and falling out of compliance. Due to parts damaged by fires, these standby generators require complete tear down, repairs, and rebuilding. If the main generators fail, the facility will heavily rely on the back‐up generators to be in functioning order to provide power to the hospital.

Due to the current damages, these two generators are unable to function properly, thus, potentially creating catastrophic events for the medical facility if there is loss of power, posing significant risks to patient safety and extremely high risk of loss of life. Additionally, accreditation requirements mandate that these generators are in working standby condition in the event of power loss throughout the Bay Pines VA campus. It is imperative that the generators are restored to also meet these accreditation requirements. Ring Power is the only authorized contractor available within a 100‐mile radius of the medical facility. Due to the urgent and compelling nature of this requirement, Ring Power was contacted by FMS to conduct diagnostic testing and provide a quote. These services are needed immediately; consequently, selecting a contractor that is within the local commuting area will significantly reduce delays in these services.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: FMS contacted several vendors to conduct a site visit and diagnostics testing to provide a quote for the repairs. Only one contractor, T.A.W., responded but resulted in a rescission of their quote. The manufacturer of the generators, Caterpillar (CAT), was contacted to inquire about potential authorized service providers to complete services on these CAT genset model 3516 DITA diesel generator sets. CAT responded and provided only large businesses that are authorized for this substantial type of repair which includes complete teardown and reassembly. T.A.W. is not on the list of authorized service providers. Ring Power was the only contractor available within a 100‐mile radius of the medical facility.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable:

The Independent Government Cost Estimate (IGCE) was developed utilizing budgetary pricing information and is valued at . The Contracting Officer (CO) also obtained a similar historical quote from the manufacturer for generator repairs similar in size and scope. The final contract price of will be considered fair and reasonable based on a comparison of the awardee’s pricing to the IGCE, previous quote obtained from another vendor, and historical pricing

Effective Date: 11/15/24 Page 3 of 5

Acquisition ID#: 36C248‐25‐AP‐1831 from the manufacturer for services similar in size and scope in accordance with FAR 13.106‐3(a)(2)(iv) and FAR 13.106‐3(a)(2)(vi).

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market research was conducted by searching for historical contract information as well as queries on Federal Procurement Data System (FPDS), VA National Acquisition Center (NAC), GSA.gov, and System for Award Management (SAM).

The SBA Dynamic Small Business Search database was queried utilizing NAICS code 811310, specifically for active Service‐Disabled Veteran Owned Small Business (SDVOSB)/Veteran Owned Small Business (VOSB) and resulted in 201 SDVOSB/VOSB vendors that can possibly fulfill this requirement. FITARA is not applicable to these services.

FPDS was queried utilizing keywords “generator repair services.” Although there were several repair services for generators, they did not include a complete teardown, diagnostics testing, repair, and complete rebuild of these generators. There is no historical contract information available for this specific type of repair at BPVAHCS.

Facilities Management Services (FMS) contacted several vendors to conduct a site visit and diagnostics testing to provide a quote for the repairs. Only one contractor, T.A.W. responded but resulted in a rescission of their quote. The manufacturer of the generators, Caterpillar (CAT), was contacted to inquire about potential authorized service providers to complete services on these CAT genset model 3516 DITA diesel generator sets. CAT responded and provided only large businesses that are authorized for this substantial type of repair. T.A.W. is not on the list of authorized service providers.

Ring Power is the only authorized contractor available within a 100‐mile radius of the medical facility.

Due to the location of the generator sets in the middle of the building, the contractor is required to access the facility, completely teardown the generator sets, rigging, transport them to the contractor facility for repairs, transport back to the medical facility, and rebuild the generator sets.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: Caterpillar has a specific authorized dealer system and provided a sole source letter indicating Ring Power Corp. as the only authorized service provider for BPVAHCS. CAT does not have factory owned sales and service locations; therefore, their authorized dealers/service providers have specific assigned territories. If there is stationary equipment, such as generators #6 and #9, inside one authorized service provider’s area, no other CAT authorized service provider will work on them. A sole source letter was provided by Caterpillar indicating that Ring Power Corp. is the only authorized service provider in this territory.

These territories include counties east of and including Franklin, Liberty, and Gadsden and those north of and including Sarasota, DeSoto, Highlands, Osceola, and Brevard within the State of Florida.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Contractors were contacted by FMS to conduct site visits; however, those contractors did not provide quotes after realizing the full extent of the repairs that need to be completed. One contractor provided a quote but rescinded their quote due to the size and scope. Two additional contractors were contacted by FMS, and both verbally stated that they would defer to Caterpillar/Ring Power for the work as the systems are proprietary. Ring Power Corporation is the only authorized and capable service provider.

Effective Date: 11/15/24 Page 5 of 5

Acquisition ID#: 36C248‐25‐AP‐1831

c. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.

Head of Contracting Activity, East