JA-19001.pdf

J&A Number: 19001

Code: 10

P.R. Number: 1300711891

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Undersea Warfare Center

Division, Keyport (NUWC Keyport), in support of the Corporate

Operations Department (Code 10), intends to procure the following supplies/services under circumstances other than full and open competition based on the justification contained herein.

2. Description of the Action Being Approved

Award of a firm fixed price contract for a commercial product on a sole source basis for removal and replacement of Heating

Ventilation and Air Conditioning (HVAC) control systems throughout NUWC Keyport facilities. The controls to be removed are Java Application Control Engine (JACE) units. The replacement controls are Trane Tracer SC (model number known as

System Controller) systems to be manufactured, programmed, and installed by Trane U.S. Inc. (Cage 60532, hereinafter Trane).

3. Description of Supplies/Services

The installation and programing of Trane Tracer SC controllers are required in order to allow Trane to continue to effectively operate and maintain the HVAC systems in buildings currently under the Trane maintenance delivery order, N62583-10-F-0309, which runs through December 16, 2028 in support of NUWC Keyport operations.

NUWC Keyport buildings that require the control replacements are as follows:

The control system supplies for each building shall include:

One (1) Tracer SC System Control Panel

One (1) 120 license pack (for connection to existing LON devices)

One (1) Chiller Plant software package in buildings where chillers operate

The control system services for each building shall include:

Project Management

Demolition of the obsolete and failing JACE controllers

Demolition of the obsolete Building Control Units (BCU) controllers & panels

Installation of new Tracer SC equipment

Combining of JACE airside system control programming and BCU chilled water plant programming within the new Tracer SC system control panels

Extension of BCU Local Operating Network (LON) links to new

Tracer SC locations and termination of current control system programming

Systems startup and testing

Owner control system operational training

Electronic and hard copies of the installed control system as-built drawings, equipment manuals, and sequence of operations

The new SC units shall have graphics similar to those found on the old JACE units, enabling service laptop direct connection to each building for diagnostics, repair, and programming.

The estimated total value of the procurement is $651,5251 and it shall be funded by the Energy and Utilities portion of the overhead budget. It is requested that this project be divided into two phases, with the highest priority buildings to be upgraded in Phase I, as shown on the Independent Government

Estimate, utilizing an Options CLIN for Phase II to be executed based on the successful completion of Phase I.

Delivery and installation requirements shall be no longer than

360 days from receipt of order.

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

1 IAW NMCARS 5206.304(a) If the dollar value of the contract is negotiated at a level that exceeds the dollar threshold of the original justification approval authority, a new justification approval shall be obtained from the appropriate approval authority prior to award.

4. Statutory Authority Permitting Other Than Full and Open

Competition

The statutory authority is 10 U.S.C. 2304(c)(1), Only One

Responsible Source and No Other Supplies or Services Will

Satisfy Agency Requirements, as implemented by Federal

Acquisition Regulation (FAR) 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority

The existing JACE units have never been under the Trane maintenance agreement and they are beginning to fail. The JACE units are also not under the West Sound Base Operations Support

(WSBOSC), contract N44255-14-D-9000, nor can they be added as they reside within buildings maintained by Trane. This has left the overarching HVAC control system in NUWC

Keyport buildings without a proper maintenance and software backup protocol. This is now starting to dramatically impact system HVAC performance, reliability, energy savings, and utility costs. Trane Brand SC units fit the requirements for both HVAC operational control, IT Security, and the terms of the maintenance agreement. Sole Source Trane equipment is required to maintain the guaranteed savings requirement and maintenance agreement in the Energy Savings Performance delivery order

(ESPC) N62583-10-F-0309 for the remaining 10 years of the delivery order.

Background:

During the ESPC installation in 2010, JACE units where installed by NAVFAC NW on top of the Trane Summit Controllers as a means of establishing an Integrated Controls System (ICS) to NAVFAC

Naval Base Kitsap (NBK) at Subbase Bangor. Unfortunately, the

JACE units were never part of the Trane maintenance delivery order and since that time, any attempt to implement ICS to

NAVFAC NBK has been terminated out of cybersecurity concerns.

The JACE units are now beginning to fail leaving NUWC Keyport without adequate HVAC controls including the lack of energy and cost saving afterhours temperature and operational setbacks.

This also compromises the guaranteed savings that was the foundation of the ESPC delivery order potentially leaving the

Government vulnerable to legal disputes as the JACE units were installed by the Navy without a maintenance plan.

The first JACE unit to fail is in , which alone has been estimated to be costing NUWC Keyport $24K per year without heating and cooling setbacks. The JACE in has also now failed and the unit in will follow shortly. In addition, the Tridium, JACE operating software, is no longer supported for the JACE units, creating further issues with these superfluous units.

Trane has proposed a Tracer SC as replacement for both the JACE units and the Summit controllers. Trane has indicated that it will maintain the Tracer SCs as a direct replacement to the

Trane Summit controller currently under the maintenance delivery order. The Tracer SC controllers have been approved by the NUWC

Keyport Information Technology department as standalone systems with both wireless and wired capabilities to allow for future networking options.

6. Description of Efforts Made to Solicit Offers from as Many

Offerors as Practicable

The Trane Service and Maintenance Agreement associated with delivery order N62583-10-F-0309 (under contract DE-AM36-

99OR22704) specifically states that the scope of coverage will include “all Trane Summit Panels and second level controllers attached to the main panel.” The delivery order also specifically states, “no controls other than the Trane Summit controls installed in the energy project,” will be covered under the delivery order. The JACEs reside on top of the Summit controllers and they are not a Trane brand, therefore they are not covered under the maintenance agreement.

As only Trane can install, program the proprietary software, and maintain the control equipment under the HVAC maintenance delivery order agreement, no other sources were sought.

A sources sought notice under number N0025318Q0318 was published in accordance with DFARS PGI 206.302-1(d) via the Federal

Business Opportunities website on 09/07/2018 by NUWC Keyport with responses due by 09/24/2018. The notice provided the statement of work. No responses from industry were received.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by the J&A will be fair and reasonable.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, NUWC Keyport has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, NUWC Keyport will assess whether competition for future requirements is feasible.