Hca Signed NCO 10 Caterpillar - Sole Source - Pricing Removed.pdf

VHAPG Part 806.3 OFOC Revision: 01 Effective Date: 04/01/23

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C250-23-AP-2741

1. Contracting Activity: Department of Veterans Affairs, VISN 10, Chalmers P. Wylie

Ambulatory Care Center (VAACC)- Columbus, OH. Purchase Request Number 757-23-4- 747-0033. The Contracting Agency responsible for the proposed contracting action is Network Contracting Office 10 (NCO 10), 2780 Airport Drive - Suite 340, Columbus, OH 43219.

2. Nature and/or Description of the Action Being Processed: The Brand Name equipment required and outlined in this Justification and Approval is for the Construct Chiller Plant construction project at VAACC - Columbus, OH. The reference project is 757-15-102. The Construct Chiller Plant will be awarded as a new contract. A Firm Fixed Price contract is planned for the Construct Chiller Plant project.

3. Description of Supplies/Services Required to Meet the Agency's Needs: The VAACC's critical and life safety essential electrical systems rely on on-site electrical generation to support patient care functions during primary utility source failures. The existing generator is an aging Caterpillar generator that has experienced a recent history of parts failures and maintenance issues. Recently, a new Caterpillar generator has been designed and installed on campus to provide redundancy to the existing aging generator plant. This project intends to install (1) Caterpillar 3516C generator in a custom enclosure for connection to the existing essential electrical system and to support the chiller plant. This equipment is proprietary and must be installed by a contractor with assistance from a Caterpillar representative. The estimated value for the equipment and labor is $X.XX. This equipment will be purchased and installed as part of a new firm fixed price construction contract. The period of performance for this project is 425 calendar days. The generator is considered a "long lead time" item and will be ordered early in the period of performance. Based upon recent experience buying a Caterpillar generator for the VAACC, the manufacturer's delivery dates fluctuated until the order was placed. Furthermore, given the global supply chain uncertainties, it is impossible to gauge when the generator will arrive, as it is not a commercial off the shelf (COTS) item.

4. Statutory Authority Permitting Other than Full and Open Competition:

( X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(l) as implemented by FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4

Effective Date: 04/01/23

( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7;

5. Demonstration that the Contractor's Unique Qualifications or Nature of the

Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

Caterpillar's equipment is part of the VAACC's essential electrical system and is currently installed on the campus, making it a major system. The two existing Caterpillar generators will operate together to supply essential power to the paralleling switchgear during utility power outages. The compatibility between the highly specialized equipment is imperative in order for the system to work properly and the supply of generator power during a utility outage is a key aspect of restoral and maintaining power sensitive electrical equipment throughout the facility. It is the professional opinion of the A/E contractor CBLH that paralleling matched generators provides increased reliability and serviceability now and in the future. Attempting to pair and parallel unmatched generators would create substantial duplication of costs of equipment currently on site and reduce reliability. Without a replacement of the existing on-site, power generation sources on campus, the VAACC would not meet VA regulations. The Caterpillar equipment is required to ensure proper compatibility and therefore, ensure dependable, alternative power is safely available when it is needed. VA regulations dictate that facilities must have adequate and dependable alternative power source quickly available, making this equipment and service essential to the VA's requirements.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A/E contractor CBLH's design plans specifically mention the continued use of Caterpillar's equipment. Efforts were not made to solicit from other alternative power electrical equipment manufacturers, because it is CBLH's expert opinion that utilizing other manufacturer's equipment would decrease the consistency and reliability of the facility's alternative power network to an unacceptable level. This, in tum, would cause the patient care provided to our Veterans to suffer. Although this is proprietary equipment, the installation and connection of this equipment, as well as other tasks throughout the entire project can be completed by the contractor that is awarded the contract (with assistance from a Caterpillar representative). CBLH was determined to be a responsible design firm during the Indefinite Delivery Indefinite Quantity (IDIQ) process.

Market research for the overall project (based upon a sources sought notice) indicated that there is sufficient interest, among qualified SDVOSBs, in the general construction NAICS code (236220). Therefore, the overall project will be a SDVOSB set-aside. Recent procurement history in 2022 under this NAICS code, for this project resulted in one bidder.

That bid was double the IGCE, and the IFB was cancelled. For this new procurement effort, the required pre-solicitation notice for the construction procurement will be posted to sam.gov. Therefore, the public and the marketplace will be informed of a possible contracting opportunity. The solicitation will also be published to sam.gov. These required postings are expected to produce adequate competition among SDVOSBs for this procurement.

Effective Date: 04/01/23

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer believes that the anticipated costs will be considered fair and reasonable for all the requirements outlined in the Construct Chiller Plant project.

Now that market research activities have concluded, in accordance with 38 U.S.C. 8127, the Contracting Officer has determined that a SDVOSB set-aside is appropriate and will likely result in the VA receiving bids from two or more SDVOSB contractors. The Contracting Officer anticipates the pricing received will be considered fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a Statement of the

Reasons Market Research Was Not Conducted: Market Research was not conducted for the Caterpillar Generator brand name product since these brand name items were identified during the design process for the Construct Chiller Plant project. There was collaboration /communication was between VAACC Engineering, the AE Design Firm for this project (CBLH Design) and Network Contracting Office 10 during the entire design process for the Construct Chiller Plant project. Market research was conducted for the project, as a whole, utilizing a sources sought notice. As indicated in item 7, based upon the results of this market research, the project will be procured using a SDVOSB set-aside.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: This

Brand Name Sole Source Justification is for the Caterpillar Generator and required Caterpillar brand accessories only. The Construct Chiller Plant construction project may be competed as a Total Service-Disabled Veteran Owned Small Business (SDVOSB) Set-Aside or another socio-economic set-aside, depending on the results of on-going market research.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: As part of the market research being conducted, a sources sought notice published to SAM.gov. Three firms with active SAM registrations, construction related NAICS codes with VetCert verifications have indicated interest: Industrial Maintenance Services, Inc., Valiant Construction, LLC, and Armcorp Construction, Inc.

11. 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: Not Applicable. The Construct Chiller Plant project is a one-time acquisition and Non-Recurring Maintenance (NRM) project for the VAACC - Columbus, OH. There will be no subsequent follow-on competitive acquisitions planned. The J&A will be posted as part of the attachments for the Construct Chiller Plant solicitation and will be made available to all potential bidders for this construction project.

12. 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.

Digitally signed by GERALD JACOBS Date: 2023.06.13 14:43:39 -05'00'

GERALD JACOBS