Attachment_7_JA.pdf

JUSTIFICATION FOR OTHER THAN FULL AND

OPEN COMPETITION (OTFAOC)

Federal Acquisition Regulations (FAR) Part 6 Justification, Supporting Procurements under

FAR Part 12, FAR Subpart 13.501, and FAR Part 15

Purchase Request Number: DHQCSD16MPA0003 and DHQCSD16MPA0004 Contract Number: To be determined Task/Delivery Order Number: N/A Procurement Title: Building Automation System (BAS) Maintenance, Repair, and Installation for the Defense Information Systems Agency (DISA) Defense Enterprise Computing Center (DECC) Locations Enterprise-Wide Contracting Office: Defense Information Technology Contracting Organization (DITCO) Estimated Value: $25,415,070.56 Statutory Authority: FAR 6.302-1/Defense FAR Supplement (DFARS) 206.302-1

JUSTIFICATION FOR OTFAOC

Justification for OTFAOC Number: JA15-105

Upon the basis of the following justification, I, as Head of the Contracting Authority (HCA), hereby approve the use of OTFAOC of the proposed contractual action, pursuant to the authority of 10 U.S.C. §2304(c)(1).

JUSTIFICATION

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

a. Requiring activity:

DISA

Workforce Management Directorate, WMD Engineering and DECC Management Division, MPE Base Operating Support Branch, MPE1 6162 South Willow Drive, Greenwood Village, Colorado 80111

b. Contracting activity:

DISA/DITCO – PL8324

2300 East Drive Building 3600 Scott Air Force Base, Illinois 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S): This requirement is in support of the BAS maintenance and installation requirements of commercial BAS products and services which are configured to comply with DoD Information Assurance requirements and installed at multiple DISA locations worldwide. This is a follow-on contract which requires brand name software, training, hardware, manufacturer-specific certified service technicians, and manufacturer-specific application and installation support.

BAS Maintenance, Repair, and Installation for the DECC Locations Enterprise-Wide –JA15-105

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3. DESCRIPTION OF SUPPLIES/SERVICES:

a. The BAS system is used to control, monitor, and alarm a facility’s heating, ventilation, & air conditioning (HVAC) system and electrical systems which support the critical data center spaces at the DECC locations. The BAS system is integrated with other information technology (IT) systems such as enterprise monitoring tools, Data Center Information Management (DCIM), and Computer Maintenance Management System (CMMS). The BAS systems provide the following benefits to the government:

(1) Reduction of utility costs

(2) Increase in the facility systems reliability and dependability

(3) Real-time control and monitoring of remote equipment

(4) Alert facility personnel to alarm and failure conditions, allowing response to infrastructure situations in a proactive (vice reactive) manner

b. The contractor will be required to provide appropriately cleared and trained building automation technicians, project managers, application administrators, and quality control personnel to fulfill the troubleshooting, installation, and maintenance requirements outlined by the performance work statement (PWS).

Current DISA standards will ultimately determine the type of system and system components required by the existing and future BAS systems. All work performed under this requirement must be in accordance with DISA standards which require manufacturer specific software, hardware, and certified technicians to ensure compliance with DoD IA requirements as well as to provide a common BAS architecture across DISA’s enterprise.

The contractor shall be able to perform and/or provide, through a subcontract, products and services from the following manufacturers:

(1) A certified reseller of Iconic Genesis 32 and Genesis 64 software and Iconic Control and Monitoring software and application administration/engineering. Both software products are currently installed and in use by the existing BAS systems. As these systems are proprietary to the manufacturer application, all engineering support must be completed by manufacturer certified personnel.

(2) An authorized seller, installer, and maintainer of Delta Controls Company product and services. This hardware is the currently installed direct digital control system in use at Mechanicsburg, Pennsylvania; St. Louis, Missouri; Oklahoma City, Oklahoma;

Ogden, Utah; and Montgomery, Alabama. This system is also the approved system per the DoD 8500.2-compliant system architecture. As these systems are proprietary to the manufacturer, all installations, preventative maintenance, and troubleshooting must be accomplished by a manufacturer certified technician.

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(3) An authorized seller, installer, and maintainer of Johnson Controls Company hardware. This hardware is the currently installed direct digital control system in use at Mechanicsburg, Pennsylvania and San Antonio, Texas. As these systems are proprietary to the manufacturer, all installations, preventative maintenance, and troubleshooting must be accomplished by a manufacturer certified technician.

(4) An authorized seller and installer of Invensys (Schneider Electric) Controls Company hardware. This hardware is the currently installed direct digital control system in use at Montgomery, Alabama. As these systems are proprietary to the manufacturer, all installations, preventative maintenance, and troubleshooting must be accomplished by a manufacturer certified technician.

This procurement requires the contractor to provide ongoing sustainment, repair, modification, application administration, IA security compliance, installation services consisting primarily of hardware and software modifications, and preventive maintenance services for the government-owned BAS systems already installed at the following locations:

• Harrisburg, Pennsylvania area (Iconics, Johnson Controls, Delta Controls

Company)

• Montgomery, Alabama area (Iconics, Invensys and Delta Controls Company)

• Saint Louis, Missouri area (Iconics and Delta Controls Company)

• San Antonio, Texas area (Iconics and Johnson Controls)

• Salt Lake, Utah area (Iconics and Delta Controls Company)

• Oklahoma City, Oklahoma area (Iconics and Delta Controls Company)

The Government anticipates installation of new Government-owned BAS systems under this requirement. The size of the new systems will be dependent upon the size and quantity of the facilities infrastructure; all new installations will have standardized architecture incorporating Iconics genesis 64 and Delta Controls Company hardware with the potential for cost avoidance by using one of the other systems mentioned in 3.b (1)-(4). Upon installation of these new systems the Government will require the contractor to provide IA security compliance, installation services consisting primarily of hardware and software modifications, and preventative and emergency maintenance services for the remaining life of the contract. New systems are anticipated at the following locations:

• Macon, Georgia area

• Honolulu, Hawaii area

• DISA site in Germany

• DISA site in Bahrain

• Baltimore, Maryland area

• Denver, Colorado area

• Columbus, Ohio area

The currently installed systems will be modified, as required, over the life of the contract in order to provide a fully functional system that meets all current and future security and operational requirements.

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The period of performance (PoP) for this effort will consist of a 1-year base period with four 1-year option periods. The requirement will utilize a mix of firm fixed price (FFP) and time and materials line items to support the required tasks. The base year will be funded with fiscal year (FY) 2016 operation and maintenance (O&M) funds. The applicable North American Industry Classification System code is 541551. The anticipated start date for this effort is November 1, 2015.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

Only one responsible source, and no other supplies or services, will satisfy agency requirements, 10 U.S.C. §2304(c)(1). (FAR 6.302-1/DFARS 206.302-1)

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

a. Description of Events.

Contract number GS08T10BPC0003 was awarded by the General Services Administration (GSA) for the period of May, 2010 through October 31, 2015; this contract was in support of preventative maintenance and installation services to the BAS systems at the DECC locations worldwide. During the performance of this contract, six of the thirteen DECC locations had a BAS system installed as noted in 3b above.

Installation dates for the six DECC locations range from 2012 to 2015. Already installed systems will require brand name maintenance restrictions so as to uphold any remaining warranties, Department of Defense (DoD) security requirements, integration with other DISA tools, Underwriters Laboratories (UL) ratings, and overall performance of the systems.

The remaining seven sites will have new BAS systems installed that are compliant with DISA standards (Iconics and Delta Systems) so that they can integrate with the current systems, DISA IT tools, and maintain DISA IA compliance.

b. Justification.

(1) Minimum Government requirements.

DISA requires that a web-based BAS be installed, modified, and maintained on a DoD network, in full adherence with DoD IA requirements. The BAS system shall be able to provide real-time system monitoring, alarming, and control of DECC facility infrastructure. The system shall integrate with other IT systems, such as enterprise monitoring tools, DCIM, CMMS, and email. The BAS system shall be an enterprise solution, affording the government the ability to provide enterprise-level IT hardware, databases, and licensing.

The BAS PWS requires that technicians be certified in the use of Iconics Genesis 32 and 64 along with Johnson Controls, Delta Controls Company, and Invensys Controls. These restrictions are necessary to support the proprietary OEM equipment that is already installed on site. Failure of technicians to be trained in these proprietary systems or cleared to the point that they can obtain network access will place DISA’s mission at risk.

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(2) Demonstration of unique source.

To fulfill the government’s requirement, a contract was solicited in 2010 and awarded with the technical solution being Iconics products supplemented by Delta Controls Company, Johnson Controls, and Invensys systems hardware. Upon award of this contract, DISA IT, IA, and facilities specialists worked with the vendor for two-plus years to evaluate, modify, engineer, and install a technical solution that meets DISA’s operational and IA needs. The technical solution minimized installation and ongoing IT costs by designing the system around a virtualized operating system with single servers centrally supporting the enterprise (multiple sites) in coordination with DISA’s monitoring tools. The solution integrated the Iconics application with its enterprise network monitoring tools.

In order for the government to economically use, maintain, and modify the web-based BAS systems for an industry-acceptable life span, the system needs to be maintained and operated within the confines of the DoD IA guidelines by manufacture trained technicians.

The PWS requires that all technicians either be, or be teamed with, an authorized reseller of the system (Iconics, Johnson Controls, Invensys, or Delta Controls Company) with which they are working. All technicians shall be factory certified to operate, troubleshoot, and maintain the BAS component (hardware or software) on which they work. Any work performed by an uncertified technician would result in the IA support of the current BAS systems being voided and would alter the systems’ ability to be troubleshot, modified, or expanded. The integration of the facility infrastructure and DISA network tools requires intimate knowledge of the product that is achieved only through manufacturer-specific certification.

Replacement of the existing systems is not operationally or economically feasible as it will take approximately one to two years to implement. Historical data shows that installation of these systems range from $1.5M to $2.0M per site. Additionally, replacement of the systems would not eliminate the need for brand name restrictions as any new system would require configuration and testing to become DoD IA compliant upon installation; the configuration and testing must be done by manufacturer certified technicians. To maintain DoD Instruction 8500.2, certain products, such as network switches, were selected and specifically required within the DISA facility standards. The OEM products are necessary to maintain IA accreditation and standardized enterprise BAS architecture.

(3) Procurement discussion.

This requirement consists of the maintenance, modification, repair, and installation of the BAS systems for the DECC locations worldwide. To reduce costs and to allow for depreciation of newly installed systems these services must be procured and maintained

Page 6 of 9 Pages to continue DoD IA requirements and a common DISA enterprise BAS architecture. The procurement must ensure that the existing BAS systems are maintained and expanded by qualified (MFG certified) technicians using hardware that has been approved through the processes outlined by the Security Technical Implementation Guide (STIG) outlined by DoDI 8500.2.

All software, hardware, modification, and installation of new and existing systems must be compatible with the currently installed products mentioned in 3.b (1)-(4).

(4) Impact.

Failure to provide the requirements of the procurement will require DISA to test, evaluate, and configure a new BAS product for DoD IA compliance which history shows will take approximately one and a half years to complete.

Failure to provide preventative maintenance, application administration, or corrective (unscheduled emergency) maintenance by manufacturer certified technicians for the existing BAS systems will result in non-compliance with DoD IA assurance requirements thus making the BAS and other DISA systems vulnerable to IT security risks.

Ultimately, non-compliance with IA controls will result in the BAS systems being decommissioned thus preventing DECC facility managers and DISA facility engineers from operating and monitoring site facility infrastructure which is a requirement of DISA’s service level agreement and best industry practices. DISA and industry has proven that lack of control and monitoring of facility infrastructure presents a significant risk to data center operations

6. FEDERAL BUSINESS OPPORTUNITIES (FBO) ANNOUNCEMENT /POTENTIAL

SOURCES:

Market research was completed from May 2014 to present. A sources sought announcement was published on the FBO website in June of 2014. The only response submitted was from the current contractor, SPEC, LLC, a small business. Additional market research was completed to identify businesses capable of performing this work; this research identified multiple small businesses capable of performing. Based on this, the requirement will be solicited as a total small business set-aside and will be solicited through FBO in accordance with FAR 5.201(d). A redacted justification and approval (J&A) will be posted with the solicitation when posted to

FBO.

7. DETERMINATION OF FAIR AND REASONABLE COST:

Market research indicates adequate competition for this requirement. Price reasonableness is normally established by adequate price competition. In addition, a detailed government estimate will be used to ensure a fair and reasonable price on the overall contract. All pricing will be verified as fair and reasonable prior to contract award. The government will determine the overall price fair and reasonable based on a comparison of quotes received, review of recent contracts, GSA Schedule contractors, and current open market rates.

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8. MARKET RESEARCH:

Market research was conducted from May 2014 through April 2015 and revealed multiple small businesses capable of performing the required tasks. This market research was conducted using the Small Business Administration website, the System for Award Management website, the GSA e-library website to check and cross-check information, and a sources sought announcement that was posted to FBO in June of 2014. Based on this market research, there is adequate competition amongst the small business community for this requirement to be set-aside completely for small business.

The market research report has been attached.

9. ANY OTHER SUPPORTING FACTS:

Replacing all of DISA’s existing, fully functional (not end of life), BAS systems would cost $1.5M to $2.0M per site; there are currently six sites with fully operational systems which means the total cost of replacement would be $9M to $12M total. This estimate is based on historical costs for the installation of the current systems. Additional maintenance costs would also be incurred by DISA if replacement of the existing BAS systems is required as the current systems must be operated and maintained in parallel as a new BAS system is installed.

10. LISTING OF INTERESTED SOURCES:

a. Listed below are the interested sources identified during market research:

Contractor Name Cage Code Business Category

Information regarding the contractors ability to provide the brand name products/ services

SPEC, LLC 4HFJO Small Business (SB)

SPECC, LLC is the incumbent contractor. They have been performing work on the required systems from 2010- present and have been able to uphold the brand name requirements/ restrictions

Vortechs Automation 1B4Y2 Small Business (SB)

Vortechs automation says that they already have a business relationship with Delta and Iconics but would not subcontract with the other companies because they are more of an industrial integration company than a DDC firm.

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b. A combined synopsis/solicitation will be published on the FBO website for contractors to view and submit proposals. The solicitation will identify the Government’s minimum mandatory requirements. All responses to the FBO announcement will be considered by DISA prior to an awardee being selected.

11. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION.

a. BAS systems are available through various companies, to include Honeywell, Johnson Controls, and Circon; however, once the system is installed, the replacement and/or maintenance of the system components become proprietary to the OEM. Based on this, there is currently no opportunity to issue a contract without the use of a brand name justification. If the government should determine that certified authorized resellers are no longer required, the government will seek enterprise-wide competition for the required functionality of a new system.

b. Procurement History:

FY 2010:

Contract Number: GS08T10BPC0003 Contractor: SPEC, LLC Contract Period: March 26, 2010 to October 31, 2015 Total Estimated Contract Value: $16,000,000.00 Contract Type: FFP Objective of Contract: BAS DISA Enterprise-Wide requirement

12. REFERENCE TO THE APPROVED ACQUISITION PLAN: N/A, in accordance with DARS 7.103 (S-91)(h).

Wunderlich-Malec Engineering, Inc. 3EZ34 Small Business (SB)

Wunderlich-Malec confirmed they could subcontract with the appropriate resellers.

Middle Bay Solutions, LLC 70M98 Minority-Owned SB

It could not be confirmed that this company has a working relationship with the appropriate resellers or is capable of forming one;

however market research shows that it is likely most, if not all, companies could subcontract with the required brand name companies.

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TECHNICAL CERTIFICATION: I certify that the supporting data, under my cognizance, which are included in the J&A, are accurate and complete, to the best of my knowledge and belief.

NAME: _James Caves____ SIGNATURE: See PDF, EDMS tab 6

TITLE/ORGANIZATION: Facilities Engineer/

PHONE: 303-224-1665 DATE: June 17, 2015

REQUIREMENTS CERTIFICATION: I certify that the supporting data, under my cognizance, which are included in the J&A, are accurate and complete, to the best of my knowledge and belief.

NAME: Tuan Gormican_ SIGNATURE: See PDF, EDMS tab 6

TITLE/ORGANIZATION: Program Analyst/

PHONE: 303-224-1759 DATE: June 17, 2015

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete, to the best of my knowledge and belief. .

NAME: _Terri L. Rollins SIGNATURE: See PDF, EDMS tab 6

TITLE/ORGANIZATION: Contracting Officer/DITCO PL8324

PHONE: _618.229.9671_ DATE:

HEAD OF THE CONTRACTING ACTIVITY APPROVAL: I have reviewed this justification and find it to be accurate and complete, to the best of my knowledge and belief. Since this justification for OTFAOC does not exceed $85.5M, this review serves as approval.

NAME: DOUGLAS W. PACKARD SIGNATURE:

TITLE/ORGANIZATION: Head of the Contracting Activity

PHONE: 301.225.4120 DATE:

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Kali Clement, 618.229.9705, kali.r.clement.civ@mail.mil mailto:kali.r.clement.civ@mail.mil