JA_Building 11575 18471_Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

Controlled Unclassified Information

March 2018 Controlled Unclassified Information Page 2 of 4

I. Contracting Activity.

673d Contracting Squadron 10480 Sijan Avenue Joint Base Elmendorf-Richardson, Alaska

II. Nature and/or description of the action being processed.

This is a new order. It will be competitively bid through the Open Market as a part of an SRM project; a portion of the project includes acquiring the brand name Automated Logic Controls (ALC) components. This will be a firm fixed price order.

III. Description of supplies/services required to meet agency needs.

The direct digital control (DDC) system utilized by Joint Base Elmendorf-Richardson (JBER) for heating, ventilation, and air conditioning (HVAC) in base facilities is ALC. A DDC is an automated control of a process, such as an HVAC system, by a computer or digital device. The ALC system provides a multiple layer process that provides the users with an ability to remotely monitor, control, adjust, and program the base HVAC systems from an existing front end computer.

The user can use the front end station to adjust or monitor the HVAC system down to each building within the control system. The user employs this process to provide energy savings through continuous monitoring and controlling of the base’s HVAC systems. In addition, a front end station operating on a single control system prevents unnecessary man hours to visit each individual HVAC system throughout the base. The process of controlling an HVAC system has three layers. The first layer measures the data which is output from the HVAC systems located in each individual building on base. The second layer is the processing of the data received along with other information input by the user. The final layer is the systems response to the data gathered which causes an action or the adjustment piece by the user. The base achieves Air Force directed energy cost savings through the ability of the 673 Civil Engineer Squadron (673 CES) to remotely monitor and control the HVAC systems throughout the base from a single station.

IV. Statutory authority permitting other than full and open competition.

10 USC 2304(c)(1). The property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or devices will satisfy the needs of the agency, as implemented by FAR 6.302-1(a), when the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full an open competition need not be provided for. Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

The use of brand name description is essential to the Government’s requirement, thereby precluding consideration of a product manufactured by another company. The current ALC system was installed in over 88 current base facilities under the base’s previous HVAC contract (FA5000-08-D-0007) which employed subcontractor Meridian Systems, Inc.

for the ALC system. Specifications required all installed equipment be fully functional with existing ALC system on base. Approximately $9.6 million was spent on DDC controls and DDC control points on that contract alone to upgrade JBER facilities. Additionally, MACC task orders have been awarded with an estimated $3.6 million in brand name ALC requirements. Meridian Systems maintains the proprietary data specific to JBER’s HVAC ALC system and the Government does not have rights to the ALC source code. The Government does, however, own the ALC software and hardware currently installed in numerous base facilities (232). The ALC controls are fully integrated with numerous base systems which ensure mission capability. The ALC controls are integrated with the base emergency management system in the event of mission essential exercises, operations, and global system response for emergency situations

March 2018 Controlled Unclassified Information Page 3 of 4 that occur in real world events. Moreover, the ALC controls currently operate at full capacity with the energy management control system (EMCS) that is currently operating on JBER. Due to the complexity of DDC systems, the level of control can vary based on each company providing the control system and the user’s requirements. Each company’s software for their control system is often proprietary in nature, which means that though the software capabilities and language are similar, they are not identical. The user is not able to obtain 100% integration substituting one system for another because of the proprietary nature of the software. The costs associated with any switch are also considerable given the manpower necessary to reprogram the system and retrain the users. Cost will vary depending on the extent of the system already in place and the timeline needed to integrate another control system. If required to purchase an alternative system, a complete retro-commissioning of 232 current JBER facilities would also be required. A change of this magnitude would require certification of the new program, replacement software, and retraining of operators.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

This is a firm fixed price order which will be competed Open Market as a part of an SRM. Based on previous competition and supporting market research the contracting officer has determined it is in the best interest of the Government to compete this brand name requirement Open Market, price and other factors considered.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The contracting officer anticipates that a fair and reasonable price will be based on adequate price competition. The contracting officer shall not require certified cost or pricing data to support any action when the contracting officer determines that prices agreed upon are based on adequate price competition per FAR 15.403-1(b)(1).

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

A justification and approval (J&A) for a brand name Automated Logic System for JBER was approved by the Corps of Engineers, Alaska District Control No. POA 11-2, solicitation W911KB-11-R-0020. Market research (dated 31 Jan 2014) for the Maintenance/Repair HVAC Systems (FA5000-14- R-0016) which included the controls system was conducted.

Information from the market research is applicable to this J&A. A similar J&A for the Marine Corps Air Station (MCAS) Miramar, San Diego, California, Control No. HNC-12-16132, contract W912DY-11-D-0003 ESS-V under the US Army Engineering & Support Center J&A included market research for a similar sole source system for the base. A previous J&A for Joint Base Elmendorf-Richardson, Alaska, was accomplished for the HVAC Phases Energy Projects. Six (6) projects were awarded as separate task orders under a MACC. The MACC task orders awarded were FA5000-12-D- 0005-0015, FA5000-12-D-0005-0016, FA5000-12-D-0009-0033, FA5000-12-D-0009-0034, FA5000-12-D-0009-0035 and FA500012D-0009-0036. The J&A included market research for the same system under the current acquisition. A previous J&A for Joint Base Elmendorf-Richardson, Alaska, was accomplished for Repair FOR OFFICIAL USE ONLY Source Selection Information See FAR 2.101 and 3.104 HVAC Systems and Controls, People Center Bldg. 8517, TORFP Project FXSB 06-1010 (FA5000-12-D-0009-0038). The J&A included market research for the same system for this acquisition. A previous J&A for Joint Base Elmendorf-Richardson, Alaska was accomplished for Repair HVAC SATCOM, Bldg. 5385 Project FXSB14-2903. The J&A included market research for the same system for this acquisition.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

Currently JBER has a total of 232 facilities on the existing ALC system with a “point” count of 130,542 for the 232 facilities. A point is a value in the system that has an address in the software that makes calculations to perform a function; examples of points are room sensors, outdoor air temp sensors, etc. Industry standard cost of a "point" in a control system ranges from $750 in a simple installation in a warehouse to $1,800 in facilities with sophisticated equipment (i.e. paint booth hangars). If we use an average of $1000 per point, current network value on JBER is $130,542,000. This represents the value of the current investment in a system that will likely be duplicated if base facilities were converted to another proprietary system.

X. List of any sources that expressed, in writing, an interest in the acquisition.

None.

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XI. 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.

The 673d Civil Engineer Squadron does not plan to acquire any alternative system. The base plan is to convert the remaining facilities to the current control system to achieve full compatibility with the EMCS network. LonWorks and BacNet are not fully compatible and interoperable with the current EMCS. Other control systems have been considered currently and in the past, but due to interoperability issues full integration is not possible. We will continue to evaluate other controls to determine if future efficiencies can be gained. At that time, we will strive for competition among vendors.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.