JA - AFMC HQ - Reno Trane Chillers - SAM Redacted.pdf

LRL_FY22-21

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Agency: U.S. Army Corps of Engineers (USACE), Louisville District, Post Office Box 59, Louisville, Kentucky 40201-0059.

2. Description of Action: This justification and approval (J&A) is being prepared for the use of a brand name item, Trane HVAC Chillers, in the firm fixed price construction contract for the Repair/Renovate Air Force Materiel Command (AFMC) Headquarters Building 10262 Package A project at Wright-Patterson Air Force Base, Ohio. The government will not purchase the Trane equipment directly, but rather brand name specifications will be included in the design bid build solicitation that will lead to a new firm fixed price (FFP) construction contract. The construction contract is planned to be awarded under a full and open solicitation, using FY23 Air Force O&M funding.

3. Description of Supplies/Services: The chillers selected for use on the Repair/Renovate AFMC Headquarters Building 10262 Package A project at Wright- Patterson Air Force Base, Ohio are Trane chillers. Trane has offices around the world, with a regional office in Holland, Ohio. The estimated cost for chillers in this project is .

4. Authority Cited: 10 United States Code (U.S.C.) 3204(e), as implemented by

Federal Acquisition Regulation (FAR) 6.302-1(a)(2), “Only One Responsible Source and no other supplies or services will satisfy agency requirements.” This authority is applicable to brand name justifications in accordance with FAR 6.302-1(c)(1).

5. Reason for Authority Cited: As described at FAR 6.302-1(a)(2), when the supplies or services required by the agency are available only from one responsible source and no other types of supplies or services will satisfy agency requirements, full and open competition need not be provided for. This J&A applies that ‘Only One Responsible Source’ authority using the application of FAR 6.302-1(b)(4), which states that “[w]hen the agency head has determined in accordance with the agency’s standardization program that only specified makes and models of technical equipment and parts will satisfy the agency’s needs for additional units or replacement items, and only one source is available.”

a) Background: The Phase 1 (Package A) AFMC Headquarters Building

Renovation will connect to existing facilities. This project will be designed to tie-in to existing building systems so that there is one (1) system servicing the facility. The existing AFMC facility is currently housed in several buildings (primarily Buildings 10262 and 10266) that have been combined into one (1) contiguous facility. The existing facility is comprised of two (2) three-story buildings that have been renovated over their existence. These facilities currently use Trane chillers.

b) Justification:

(1) The renovation of the existing AFMC facilities will require synchronization of the current HVAC equipment already installed in the existing facilities with the new equipment to be procured for the project. The existing facilities currently utilize Trane chillers in order to ensure a seamless connection between the current and new equipment, it will be necessary to procure similar HVAC chillers as the ones currently in place. Additionally, as described below, the Trane Chillers have been established as the standard for all facilities at WPAFB, creating significant estimated cost savings in training expenses and efficiency improvements in mission performance not otherwise available under full and open competition.

(2) FAR 6.302-1(b)(4) permits use of the Only One Responsible Source authority when the agency head has determined in accordance with the agency's standardization program that only specified makes and models of technical equipment and parts will satisfy the agency's needs for additional units or replacement items, and only one source is available.

(3) The Air Force has an approved standardization program for HVAC chiller systems in which a single HVAC chiller manufacturer is selected for each installation in order to significantly reduce the total cost of ownership, including initial procurement, subsequent maintenance, and associated training costs to operate the system over its lifetime. Pursuant to this established standardization program, the Civil Engineer Center Director (AFCEC/CL) has been appointed as the Air Force Category Manager for the Facilities and Construction Category. The AFCEC/CL has further delegated the authority and responsibility for administering this single manufacturer approval to the AFCEC Operations Directorate (AFCEC/CO).

The AFCEC/CO approved the selection of specific brands as the single manufacturer for various installations, including WPAFB. Trane Inc. is the selected manufacturer for this installation. This selection, supported by the standardization program and delegations discussed above, satisfies the FAR 6.302-1(b)(4) application of the ‘Only One Responsible Source authority,’ as the Agency Head (delegee) has determined in accordance with the agency's standardization program that only specified makes and models of technical equipment and parts will satisfy the agency's needs for additional units or replacement items, and only one source is available.

c) Impact: Connecting new HVAC chillers to the facility’s existing HVAC system is a very complex process. In order to ensure a seamless connection between the current and new equipment, it will be necessary to procure similar HVAC chillers as the ones currently in place. Further, if this J&A is not approved, USACE will be unable to implement the Air Force’s standardization decision for WPAFB. If the HVAC equipment at this installation is not standardized, the Air Force will not be able to realize the efficiencies and reduction of costs that have been targeted in its category management analysis. Anticipated advantages include reduced training costs for Air Force maintenance personnel, efficiencies in obtaining and storing spare parts, and decreased disruption to mission by rapid resolution of any HVAC system failures. According to a class J&A executed in June 2019, the Air Force estimated that it’s decision to standardize it HVAC chiller purchases for each installation would ultimately reduce the cost of training by an estimated per 5-year training cycle. The Air Force also noted that over time, its decision to standardize HVAC chillers would allow HVAC Chiller repair to be performed primarily in-house, as opposed to contracting out these services, resulting in further savings to the Air Force of approximately for every 5-year training cycle. If Trane chillers are not utilized in this facility, the installation and the Air Force as a whole would not be able to fully realize the benefits of its standardization decision in gaining efficiencies, decreasing disruptions, and achieving less system down time.

d) Alternatives: None viable to achieve a fully functioning system for the reasons noted above in paragraph 5. b) and c). Additionally, there is no alternative product that meets the AF’s need to standardize this equipment.

The only alternative available would be to purchase the HVAC equipment separately and provide it to the construction contractor as government furnished equipment (GFE). This alternative would still involve the purchase of the Trane equipment on a sole source basis. Further, the effort associated with purchasing, storing, equipment warranty, conveying and managing the GFE was determined to both be inefficient and uneconomical. No other feasible alternative was identified.

6. Efforts to Obtain Competition: A technical review and evaluation was conducted of the Chillers for all of the Air Force, per Installation, by the Air Force Civil Engineering Command (AFCEC). AFCEC determined TRANE would be the official sole-source provider of Chillers for WPAFB to provide efficiencies in maintenance support and in savings of training time and money for their maintenance staff.

A Notice of Intent to Sole Source was posted on 05 January 2022. To date, no other sources have written to express interest. If prior to issuance of the solicitation, responses are received expressing interest, the justification will be amended.

7. Actions to Increase Competition: Apart from a complete replacement of the current HVAC chiller system for the AFMC facilities in its entirety, competition will be limited. This is a finite requirement with no future needs, and therefore there are no actions to increase future competition.

8. Market Research: A technical review and evaluation was conducted of the chillers for all of the Air Force, per Installation, by the Air Force Civil Engineering Command (AFCEC), AFECEC determined Trane would be the official sole-source provider of chillers for Wright-Patterson Air Force Base to provide efficiencies in maintenance support and in savings of training time and money for their maintenance staff.

A Notice of Intent to Sole Source was posted on 05 January 2022. To date, no other sources have written to express interest. If prior to issuance of the solicitation, responses are received expressing interest, the justification will be amended.

9. Interested Sources: A Notice of Intent to Sole Source was posted 05 January 2022.

To date, no other sources have written to express interest. If prior to issuance of the solicitation, responses are received expressing interest, the justification will be amended.

10. Other Factors: None

11. Technical Certification: I certify that the supporting data under my cognizance, which are included in the Justification and Approval, are accurate and complete to the best of my knowledge and belief.

12. Requirements Certification: I certify that the supporting data under my cognizance, which are included in the Justification and Approval, are accurate and complete to the best of my knowledge and belief.

13. Legal Review and Concurrence: I hereby determine that the information herein is legally sufficient, and I concur with the sole source procurement.

14. Contracting Officer Certification and Fair and Reasonable Cost Determination:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

I hereby determine that an anticipated cost for Trane chillers for this project will be fair and reasonable based upon the estimate outlined in paragraph 3. At time of evaluating proposal price, the overall proposed price will be evaluated for fair and reasonableness. I recommend this approach to the prompt attainment of services for the upcoming construction.

Approval

Based on the forgoing justification, I hereby approve the brand name specification for Trane in the amount of . This approval is given pursuant to the authority of 10 United States Code (U.S.C.) 3204(e) as implemented by FAR 6.302-1, subject to availability of funds and provided the services and property herein described have otherwise been authorized for acquisition.