JA_F.E. Warren AFB_HVAC Chillers_Final_Redacted.pdf

CECT-NWO-23-12

FAR Part 6 Justification and Approval for

Other than Full and Open Competition

1. Contracting Activity: U.S. Army Corps of Engineers (USACE), Omaha District, 1616 Capitol Ave, Omaha, NE 68102

2. Description of Action: This Justification and Approval (J&A) is requested to specify a make of HVAC chiller equipment for construction projects that will be executed at F.

E. Warren AFB, Cheyenne, Wyoming. In FY23 USACE Omaha Districts will compete and award a Firm-Fixed-Price (FFP), Design-Bid-Build construction contract utilizing Military Construction (MILCON) and Operations and Maintenance (Air Force) (OMAF) funding. In accordance with mandatory standardization decisions made by the Air Force in accordance with their Category Management (CM) Program, HVAC chiller equipment is being standardized throughout the Air Force on an installation basis and Trane is the make or brand name specified for F. E. Warren AFB. The government will not purchase the Trane equipment directly, but rather the requirement to utilize Trane equipment will be included in the solicitations that will lead to new construction contract at F. E. Warren

AFB.

3. Description of Supplies/Services: USACE has received mission to construct a

GBSD Integrated Command Center at F. E. Warren AFB in support of the SENTINEL program. Congress approved the projects and USACE received the DD Form 1391 From Air Force Civil Engineering Center (AFCEC). As part of the design and construction effort, new HVAC chillers will be installed to support operation of the facility and the Air Force has standardized use of Trane, Inc. equipment from its CM determination. Periods of performance will be specified in the contract. The Government will not purchase these items directly, but will require the construction contracts to provide and install the following:

ITEM PROPOSED MAKE ESTIMATED AMOUNT

HVAC Chillers Trane

The total estimate of was based on of a Rough Order of Magnitude (ROM), which was prepared by a contractor, Black & Veatch, and validated through the Engineering Division at Omaha District.

4. Authority Cited: The statutory authority permitting acquisition of the requirement by other than full and open competition is 10 United States Code (U.S.C) 3204(c)(1), 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.

5. Reason for Authority Cited: As set forth in FAR 6.302-1(a)(2), when the supplies or services required by the agency are available only from one responsible source, or for DoD, NASA and the Coast Guard, from only one or a limited number of responsible sources, 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 the Only One Responsible Source authority using the application of FAR 6.302-1(b)(4) and FAR

6.302-1(c)(1). FAR 6.302(b)(4) indicates that use of FAR 6.302-1 is appropriate "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." FAR 6.302-1(c)(1) indicates that use of FAR 6.302-1 is appropriate for “An acquisition or portion of an acquisition that uses a brand-name description or other purchase description to specify a particular brand-name, product, or feature of a product, peculiar to one manufacturer.”

a. Background:

(1) USACE will be the servicing agency for the construction of the WGF at F. E.

Warren AFB. The Air Force has established standardization requirements for the install of HVAC chiller equipment across all Air Force installations. The Air Force Head of Procuring Activity approved a Class J&A on 7 August 2019 that requires AF procurements to utilize specific makes of HVAC chiller equipment in all their requirements through 2024. The J&A speaks to estimated cost savings in training expenses and efficiency improvements in mission performance.

(2) FAR 17.503(d)(1) states that if a J&A or a D&F is required by law or regulation, the servicing agency shall execute and issue the J&A or D&F, though the requesting agency shall furnish the servicing agency any information needed to make the J&A or D&F. Therefore, USACE, as the servicing agency concluded that J&As in support of F. E. Warren AFB work and other Air Force projects must be executed by Army.

b. Justification:

(1) 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.

(2) FAR 6.302-1(c)(1) allows for the acquisition or portion of an acquisition that uses a brand-name description or other purchase description to specify a particular brand-name, product, or feature of a product, peculiar to one manufacturer.

c. Alternatives: The standardization determination executed by the Air Force compels USACE to include the requirement for Trane HVAC chillers in solicitations for construction work at F. E. Warren AFB. There is no alternative product that meets the AF’s need to standardize this equipment for F. E. Warren AFB. The only alternative considered that would differ from the terms of this J&A was to purchase the HVAC chiller 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, conveying and managing the GFE was determined to be both inefficient and uneconomical. No other feasible alternatives were identified.

d. Impact: If this J&A is not approved, USACE’s construction contracts will not be executed in accordance with the Air Force CM decision. USACE will be unable to implement the Air Force’s standardization program in the mission at F. E. Warren AFB.

If the HVAC chiller equipment is not standardized, the Air Force will not be able to realize the efficiencies and reduction of costs that have been targeted in the 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 chiller failures.

6. Efforts to Obtain Competition: Based on information in paragraph 5 above, and the sources sought information, competition for this action is best obtained through competition in sourcing the systems and equipment. Competition will be possible in the acquisition of the items. Each item is available from multiple suppliers and proposals received shall be considered.

7. Actions to Increase Competition: Future acquisitions will continue to seek sources sought to identify other name brands which are compatible with the current systems.

8. Market Research: Market research indicated that competition among authorized suppliers for the brand name product, Trane HVAC Chillers, will exist since they are readily available in the commercial marketplace and there are multiple companies that are licensed to sell the products. Because there are multiple sources, it is reasonable to expect that a fair and reasonable price will result from adequate competition at the subcontracting level.

In addition to the above, in accordance with FAR 5.201, the Air Force posted a Notice of Proposed Contract Action/Special Notice, 238220, HVAC chillers to FedBizOpps (FBO) on 15 March 2019 when efforts were underway to prepare their Class J&A. This AF J&A included standardization to Trane HVAC systems, for the requirements of F. E. Warren AFB. The posting remained open for 15 days. A description of the requirement was included in the FBO notice and advised any interested responsible party that believed it was equally or otherwise uniquely capable of meeting the requirements to submit a capability statement. Two sources expressed interest in the published notice, but neither were chiller manufacturers.

9. Interested Sources: One firm responded to the NOI/Sources Sought issued by Omaha District in April 2023, RV Global Solutions. The respondent did not provide information that they could provide HVAC chillers other than Trane, nor did they provide information that stated that other power generation brands were available that could meet the projects requirements. This J&A will be posted with the solicitation in accordance with FAR 5.102(a)(6).

10. Other Facts: Reasonable efforts were made to retrieve other facts from computer records, contract files, and other sources to support the use of other than full and open competition as follows:

a. Prior to the recent standardization efforts launched by the Air Force, there is no known history of sole source procurement of HVAC chiller equipment on an Air Force installation-wide basis.

b. As previously stated, the Air Force Senior Procurement Executive approved a Class J&A on 17 December 2021 that requires use of brand name HVAC chiller equipment in all requirements procured directly by the Air Force through 2025. The J&A encompassed all Air Force installations and specified that Trane HVAC systems are the designated single manufacturer for F. E. Warren AFB. The Air Force followed up with a formal HVAC chiller Standardization, Single Manufacturer Selection determination on 10 September 2019. This Class J&A implements the Air Force standardization determination for all construction projects executed at F. E. Warren AFB through 2025.