ACQ PLAN # 36C247-26-AP-0620

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 1 of 4 Revision: 05 Effective Date: 12/15/2025

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition

Acquisition Plan Action ID: 36C247-26-AP-0620

1. Contracting Activity Department of Veterans Affairs, NCO7, Charlie Norwood VA Medical Center.

Contract administration will be performed by the Network Contracting Office (NCO) 7.

The purchase request number for this requirement is 509-26-1-5934-0002.

2. Nature and/or Description of the Action Being Approved: Requesting approval to award a new firm-fixed price contract. This project involves the complete demolition and replacement of the existing cooling tower system at the Charlie Norwood VA Medical Center Central Energy Plant in Augusta, Georgia. The work includes removal of the existing cooling tower, concrete basin, condenser water pumps, and related electrical and control systems, followed by installation of a new four-cell cooling tower, reinforced concrete basin, variable-speed condenser water pumps with NEMA 4 VFDs, new condenser water piping, insulation, and heat tracing. The contractor shall also provide a temporary cooling tower to maintain continuous plant operation during construction, integrate new systems into the existing JCI Metasys Building Automation System, and perform all associated structural, mechanical, electrical, and control work in accordance with VA standards and applicable codes. Upon completion, the contractor shall test, balance, and commission the new system to ensure full functionality and compliance with project requirements.

This authorization will support project 509-24-250, Replace Cooling Towers, which is currently funded for construction in the FY26 VISN7 NRM Operating Plan. This is not a consolidated requirement; work is to be performed at one discrete site.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: This project involves the complete demolition and replacement of the existing cooling tower system at the Charlie Norwood VA Medical Center Central Energy Plant in Augusta, Georgia.

The period of performance is 230 calendar days after issuance of the Notice to Proceed. The estimated award date is August 16, 2026—total estimated contract value: $3,805,513.00.

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S.

Code § 8127(c), as implemented by RFO 6.103-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7008 (DEVIATION) or VAAR

819.7009 (DEVIATION)- up to $5,000,000. Check the specific VAAR clause used below:

(X) 819.7008 Sole source awards to a certified service-disabled veteran-owned small business; or ( ) 819.7009 Sole source awards to a certified veteran-owned small business

5. Demonstration that the Contractor’s Unique Qualifications and/or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): The authority allows sole source awards to SDVOSB/VOSB based on 38 U.S.C. 8127(c) and Nacci Construction, a SDVOSB, has been determined to be a responsible source with respect to performance. The recommended construction firm meets all professional qualifications outlined in FAR Part 36 and is a certified https://www.va.gov/oal/library/vaar/vaar819.asp#8197008 https://www.va.gov/oal/library/vaar/vaar819.asp#8197009 https://www.va.gov/oal/library/vaar/vaar819.asp#8197009

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 2 of 4 Revision: 05 Effective Date: 12/15/2025

Service-Disabled Veteran-Owned Small Business (SDVOSB) with no active exclusions. In addition, Nacci Construction meets all eligibility requirements listed in 819.7003 (DEVIATION). The firm is uniquely qualified to perform the required construction services due to its comprehensive understanding of the project requirements and previous successful performance on similar VA construction projects.

The Government intends to award a sole-source contract to Nacci Construction. In reviewing the contractor’s past performance, Nacci Construction has been rated satisfactory or better on all projects since 2018, with no ratings of marginal or unsatisfactory. Furthermore, the contractor is on site performing multiple projects, which allows this project to transition in easily without unnecessary delays or ramp-up time. Nacci also completed phase one of the elevator project, on which this project, phase two, follows. As a result, they have extensive knowledge of the facility.

Additionally, the construction contractor will maintain full responsibility for the execution of the work, including identifying and correcting any construction errors, omissions, or deficiencies that may occur during the project. This ensures that all construction activities are completed in accordance with project specifications, safety standards, and VA requirements, maintaining the integrity and quality of the final product.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable, including whether a notice was or will be publicized as required by RFO 6.301 and, if not, which exemption under RFO 5.101(b)(1) applies:

The Contracting Officer has determined that NACCI is a qualified SDVOSB construction contractor and has the necessary familiarity with the project’s technical requirements, existing site conditions, and prior construction work to perform the construction activities successfully. Awarding the contract to NACCI will ensure continuity, minimize the risk of project delays, and maintain compliance with project specifications and VA standards. A pre-solicitation notice was posted on 5/12/2026 to ensure that all SDVOSB contractors who have familiarity with the area know about the sole source solicitation being used IAW 819.7003 (DEVIATION) and FAR 5.101(b)(2). No other sources will propose on this requirement.

Use of the SDVOSB sole source authority is a business judgment within the contracting officer’s discretion and is being used because it is in the best interest of the Government. A notice will be publicized in accordance with RFO 6.301 after award. Exemption at FAR 5.101(b)(2) applies.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The recommended Construction firm will be issued a request for proposal that will include the updated scope of work and a new VA 6298 Form to capture the current cost to complete all tasks. The proposal will undergo a technical evaluation and cost comparison to the IGCE. Recommendations and/or revisions will be provided to the contracting officer. The final cost will be negotiated following discussions with the Construction firm to arrive at a fair and reasonable cost for the contract award.

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

Market Research Was Not Conducted:

Due to the authority being used, market research was limited. Market research was conducted in accordance with RFO Part 10, VAAR Part 810, and VHAPG Part 810.001 by reviewing available sources capable of performing occupied healthcare renovation work, including service-disabled https://www.acquisition.gov/far-overhaul/far-part-deviation-guide/far-overhaul-part-6#FAR_6_301 https://www.acquisition.gov/far-overhaul/far-part-deviation-guide/far-overhaul-part-5#FAR_5_101

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 3 of 4 Revision: 05 Effective Date: 12/15/2025 veteran-owned small business certification status and vendor eligibility. Market research concluded that this requirement cannot be fulfilled through any existing contracts covering the scope of the needed work, nor through mandatory national contracts.

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

None. This action is supported by 38 U.S.C. § 8127(c) and VAAR 819.7008 (Deviation).

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

Nacci Construction (SDVOSB), 110 N Louisville St, Harlem, GA 30814, has expressed interest in the acquisition and has all the experience and facility awareness to perform all requirements for this requirement. Per VAAR 819.7008 (DEVIATION), the Contracting Officer is authorized to use the non-competitive (sole source) procedures for sole source awards to a certified service-disabled veteran-owned small business.

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:

For future similar requirements, the Government will conduct updated market research early in acquisition planning and will consider competitive set-aside procedures or other competitive methods to the maximum extent practicable. For similar acquisitions, the requirement will be reviewed to determine whether it can be publicly competed among eligible small business concerns.

At present, no additional barriers to competition have been identified beyond the decision to use the statutory SDVOSB sole-source authority. The contracting officer will evaluate competition for future requirements to determine whether the use of statutory authority is in the Government's best interest.

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.

Dalton Maddox Date Healthcare Engineer Charlie Norwood VAMC

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 4 of 4 Revision: 05 Effective Date: 12/15/2025

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP: This part if filled out by Contracting Staff as part of the Justification

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.

Kenyon Dulaney Date Contracting Officer NCO7 Construction Team 2

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $900K): I certify the justification meets requirements for other than full and open competition.

Chaz Bowling Date Branch Chief

NCO7 Construction Team 2

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 recommend approval (if over $90 million) or approve ($900K to $90 million) for other than full and open competition.

Gerald F. Jacobs Date Executive Director, Regional Procurement Office East Head of Contracting Activity (HCA) https://dvagov.sharepoint.com/sites/vhapromanual/SitePages/VHAPM-Part-806.3.aspx