HVAC Chiller JA - AQ Signed 10 Sep 24.pdf

This is a Justification and Approval (J&A) document for a procurement action using other than full and open competition authority.

The Department of the Air Force, Air Force Installation Contracting Center (AFICC), 772 Enterprise Sourcing Squadron (PKD), is seeking to establish a Brand Name Class J&A for HVAC chiller standardization across all DAF installations from October 1, 2024, through September 30, 2029. The estimated contract cost is $437.5 million, with purchases expected to number approximately 1,654 replacement units over the five-year period. The procurement authority cited is 10 USC 3204(a)(1), Only One Responsible Source, because HVAC chillers are available from only one or a limited number of responsible sources and no other supplies will satisfy agency requirements. This Class J&A will support multiple DAF installation-level HVAC chiller contracts throughout CONUS and OCONUS locations.

The justification demonstrates that the DAF's HVAC chiller standardization policy requires each installation to have an approved HVAC chiller manufacturer brand, limiting procurement to authorized distributors supporting those specific installations. The strategy addresses critical mission effectiveness by reducing the 142 different chiller manufacturers previously in inventory to 127 as of 2024. Key benefits include $50 million in training cost avoidance, enhanced cybersecurity, improved resilience, increased small business support (92% of chiller purchases with small businesses), and reduced equipment and parts inventories. The DAF conducted a Category Intelligence Report in 2018 and posted an RFI/Sources Sought notice on SAM.Gov on December 12, 2023, for 15 days, receiving two industry responses supporting the standardization approach. The document was approved on July 23, 2024, by the Deputy Assistant Secretary (Contracting) at the Maj Gen level and on an unspecified date by the Assistant Secretary of the Air Force for Acquisition, Technology, and Logistics.