FAR 13.5 Sole Source Justification -_Redacted.pdf

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

Effective Date: 11/15/24 Page 1 of 4

REVISION: 01

Acquisition ID#: 36C242-26-AP-0044

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C242-26-AP-0044

1. Contracting Activity: Department of Veterans Affairs, VISN 02, James J Peters VA Medical Center located at 130 W. Kingsbridge Road, Bronx, NY 10468 Engineering Office submitted purchase request number 526-26-1-350-0001 to Network Contracting Office (NCO) 2.

2. Nature and/or Description of the Action Being Processed: This is a new firm fixed price contract request for other than full and open competition for the procurement of services involving the storage, maintenance, and transport of government property that requires specialized care.

Government Property will continue to be stored and maintained at a contractor facility that meets requirements for a period of one year (December 21, 2025, through December 20, 2026) with three option years. Specialized preventive maintenance services will be periodically performed on two diesel engine generators by Contractor personnel while in storage. Estimated contract value is $738,158.35.

Description of Supplies/Services Required to Meet the Agency’s Needs: The following Government Property is currently in storage and being maintained by H. O. Penn Machinery Company, Inc. This equipment will remain in storage and receive periodic maintenance for up to four additional years.

No. Equipment Manufacturer Model Number QTY Size

(WxDxH) inches

Weight Approx.

each (lbs)

Approx Value per item

1 Diesel Engine Generator Caterpillar C175-16 (60Hz) 2 84 x 238 x

93 44,000 $570k

2 Diesel Gen Loose Crate Caterpillar Gen Parts 2 30 x 51 x

35 370 $570k

3 Battery Chargers La Marche ESCR-10-24V-AV1 2 8 x 7 x 12 25 $1.7k

5kV Circuit Breakers Cubicle 1200 Amp

Eaton VCP-TR Fixed CB 2 36 x 50 x 85 2,000

$64k

Neutral Grounding Resistor

Post Glover NG024A400- DDDAACEK0 3 36 x 50 x

85 350 $10k

6 Current Transformers GE Model 780 6 10 x 4 x 10 30 $0.5

7 Paralleling Switchgear ASCO 8 36 x 50 x

85 1,500 $707k

Automatic Transfer Switches

ASCO 7000 Series 7ATB 14 34 x 28 x 86 950

$440k

Effective Date: 11/15/24 Page 2 of 4

Acquisition ID#: 36C242-26-AP-0044

HVAC

Equipment

(RTU-1)

AAON RQ005 1 45 x 100 x 50 899

$23.5k

HVAC

Equipment

(RTU-2)

AAON RN013 1 96 x 110 x 48 2071

$23.5k

HVAC

Equipment

(RTU-5)

AAON RQ002

45 x 100 x 50 799

$23.5k

12 NiCAD Battery Crates

SPH Advance Technology SPH320

48 x 40 x

20 800 $21.7k

13 JW/AC Radiator (Custom)

Diesel Radiator Co. DR4214

114 x 87 x

128 6,800 $63k

It is in the best interest to ensure the equipment is stored and maintained properly while not in use to preserve the equipment (called “pickling”). For item 1, returning the Government Property entails special equipment (e.g. rigging, crane) to accomplish onloading to vehicles and delivery at the medical center. Prior to delivery that the warehouse, it was inspected for acceptance by a Government representative for conformance with manufacturer requirements for equipment storage. While in storage, the Contractor shall perform periodic maintenance of the two Diesel Engine Generator Caterpillar Model Number C175-16 (60Hz) units. Diesel Generators require specialized care while not in use (i.e. storage).

3. 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:

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

( ) 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

Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): The two (2) Diesel Engine Generators manufactured by Caterpillar Model Number C175-16 (60Hz) require specialized care and maintenance while in storage for a period longer than three months. The original equipment manufacturer, Caterpillar Inc., restricts maintenance services to authorized maintainers. H. O. Penn Machinery Company, Inc., (hereinafter H.O. Penn) is an authorized Caterpillar Inc. retailer and maintenance provider covering the New York City georgraphical area. H.O. Penn will provide storage for all items listed in paragraph 3 and periodic maintenance for the diesel generators. The two diesel generators are

Effective Date: 11/15/24 Page 3 of 4

Acquisition ID#: 36C242-26-AP-0044 currently under an extended warranty expiring March 2026 that covers any damage or failures due to workmanship and is in accordance with Caterpillar Limited Warranty SELF5731. That warranty will be replaced by a new 60-month warranty starting in April 2026. No other company can provide this guarantee and protection of the two Diesel Engine Generators. Only Caterpillar-certified technicians can perform this service with certainty that the equipment will work properly after installation and without risk to the terms and conditions of the warranty.

The government has previously paid for the rigging, onloading, transportation, and offloading of the listed equipment to get it to the approved storage facility where it is currently located. Changing vendors would require substantial duplication of these handling and transportations costs to relocate the equipment to a different facility.

4. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Due to the limitations of the warranty terms and conditions, the availability of capable vendors and the geographical distribution of manufacturer-certified technicians for maintenance services, there is only one responsible source available.

Special Notice 36C24226Q0006, Notice of Intent to Sole Source was posted to sam.gov on August 6, 2025, and closed August 13, 2025. No responses were received.

5. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The anticipated total cost of this requirement, for a base year plus three option years, is $738,158.35. This anticipated cost is considered fair and reasonable based on a comparison to the prices on the current (expiring) contract for the same services. The prices on the original contract for these services were determined fair and reasonable based on a comparison to prices found reasonable on awards for similar requirements and a comparison to catalog prices for nearby industrial storage spaces.

6. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: The SBA’s Database was searched using NAICS 811310 and keywords “generator storage” which yielded 23 SDVOSBs, five VOSBs and 197 small businesses.

As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.

7. Any Other Facts Supporting the Use of Other than Full and Open Competition: None.

8. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

H. O. Penn Machinery Company, Inc.

Power Systems Division – Bronx Sales 699 Brush Avenue Bronx, NY 10465

9. 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: In this situation, it is difficult to remove barriers to competition because the OEM restricts technical capability to authorized dealers and maintainers certified to perform maintenance services on its own specialized equipment. Additionally the equipment is currently covered by an extended warranty, provided exclusively by H.O. Penn. Market conditions will be monitored by technical personnel to determine if other viable sources for the required service become available in the

Effective Date: 11/15/24 Page 4 of 4

Acquisition ID#: 36C242-26-AP-0044 future. However, now that the equipment is already located in H.O. Penn’s storage facility, moving it to a different storage facility would result in significant duplication of costs.

10. Requirements Certification: I certify that the requirement outlined in this justification is a Bona Fide Need of the Department of Veterans Affairs and that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Chief of Projects & Planning Bronx VAMC

11. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer or Designee’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer Network Contracting Office 02

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

NCO 02, Branch Chief