JA_FAR 13.5_SIEMENS Desigo_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL RESEARCH LABORATORY

4555 OVERLOOK AVE SW

WASHINGTON, DC 20375-5320

Justification for Other than Full and Open Competition Under Simplified Procedures For Certain Commercial Items In

Accordance With Federal Acquisition Regulation (FAR) 13.5

PURCHASE REQUEST NO.

J&A NO: J&A13.501-24-MB13

Estimated Cost:

On the basis of the following, I, as the Contracting Officer, hereby approve the use of a sole source proposed contractual action pursuant to the authority of :

41 U.S.C. 1901 41 U.S.C. 1903

1. The U.S. Department of Navy; Naval Research Laboratory Contracting Division proposes to enter into a sole source contract with Siemens Industry, Inc. under simplified procedures for certain commercial items included in FAR subpart 13.5.

2. The nature and/or description of the action being approved, i.e., sole source under procedures for certain commercial items in accordance with FAR Subpart 13.5.

This effort is to upgrade the current Building Automation System (BAS) from Siemens APOGEE Insight to Siemens Desigo CC. This requires but is not limited to recreating the existing graphical interfaces in the new platform, replacing the existing Modular Controllers to Programmable Controller (PXC) platforms, and providing the required software licenses to use and update the new software. The current APOGEE Insight system has been in existence since 1998 and is nearing its end of life and support. In order to maintain continuity of operations, NRL must upgrade its current software and infrastructure to mitigate firmware/component obsolescence.

3. A description of the supplies and/or services required, including the delivery schedule and/or the period of performance (inclusive of all option periods), and the estimated dollar value of the acquisition.

This project includes both hardware and software/firmware components. It will take approximately 12-18 months to complete this upgrade. During this upgrade to Desigo CC, Siemens will continue to operate/support the APOGEE Insight system in parallel so that NRL does not lose operational capabilities of the BAS that control the HVAC systems campus wide.

Hardware ( ):

Replace (27) Modular Equipment Controllers (MEC’s), (12) Modular Building Controllers (MBC) and (1) Floor Level Network Controller to Siemens PX Modular Controllers or PX compact controllers. Provide programming and database transfer. Provide project management, design, start-up, and programming and commissioning. Furnish and install (1) new BACnet Communications driver to the McQuay HVAC equipment to replace existing driver in Bldg A47.

Software/Firmware ( ):

Provide new Siemens Desigo CC Version graphical user interface software. Provide Desigo CC Version Standard Feature Set which includes: “Max” Unlimited User Client Licenses, remote event notification, full graphics editor, point licensing for current points 10% spare capacity. Flash firmware in all existing Siemens DDC field panels (80) to communicate with Desigo CC. Furnish new virtual (8) Siemens AEM’s Ethernet

Microservers. Create new over (900+) Desigo graphics by the National Operations Center (NOC). STIG (Security Technical Implementation Guides) for the MS SQL database and MS IIS Site and Server

4. The statutory authority permitting sole source.

41 U.S.C. 1901 41 U.S.C. 1903

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring use of the authority.

While other manufacturer brands for the BAS may have similar functionality, they will not be fully compatible with the currently installed building level components. It would be impractical to select a different product that would not be able to communicate with the existing controls, and it would require extensive replacements across the campus. Upgrading the current BAS from Siemens APOGEE Insight to Desigo CC allows NRL to operate in parallel while maintaining operations.

In order to implement a different manufacturer’s BAS, this would require replacing existing controls across the entire campus. During which, mission critical research would be severely impacted and the ability to operate an alternative manufacturer’s BAS in parallel with the current BAS is unknown. In addition, extensive man-hours and design costs would be required to transition the current databases and re-design the graphic interfaces in order to maintain compatibility and entertain other vendor’s design and/or development. Additionally, Siemens Industry, Inc. has data rights to the required hardware and software. See Section 9 for examples for recent examples of Direct Digital Controls (DDC) replacements for cost/scope.

At this time, there are no known authorized resellers of the Desigo CC software or required controllers.

6. A description of efforts made to ensure offers/quotes are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized to the Government Point of Entry (as required by FAR Subpart 5.2) and, if not, which exception under 5.202 applies.

The Technical POC (TPOC) reviewed catalogs and other generally available product literature published by manufacturers, distributors, and dealers or available on-line. No other authorized distributors or vendors were identified. Similar hardware products were found, but they were not authorized distributors.

In accordance with FAR Subpart 5.2, an RFI/Notice of Intent (NOI) (N00173-24-RFI-MB13) to sole source was posted to the SAM.gov website on 2/15/2024. The intent of the public posting was to gauge industry interest and offer the opportunity for alternate sources to provide capability statements. The notice included the Governments technical requirements. As of the closing of the notice on 3/02/2024, no inquiries or challenges to the sole source were received.

7. The anticipated dollar value of the proposed acquisition, including options if applicable, and a determination by the contracting officer that the anticipated cost to the government will be fair and reasonable.

The anticipated cost total cost to the The Contracting Officer will determine price reasonableness in accordance with FAR 13.106-3(a)(2) through the use of market research to find comparable pricing for similar items and comparison to proposed prices to previous similar purchases.

8. A description of the market research conducted and the results or the reason market research was not conducted.

As noted in the above sections, the current Building Automation System is supported by Siemens. In order to change providers, this would incur exorbitant costs to replace all of the existing controls to be compatible with a different BAS provider. Extensive man-hours, redesign, and development for the front-end of the BAS is not feasible due to the proprietary nature of the current system. Results concluded that due to the extensive costs and development associated with maintaining and operating our current system, potential alternative sources were unviable and unable to meet the form, fit, and function of the current system that is in place. This does not even consider the requirement to re-train personnel to operate and maintain the new BAS.

9. Any other facts supporting the use of sole source.

Siemens Industry, Inc. products are the only equipment able to interface with the existing enclosures, wiring, sensors, actuators, etc… without having to install new components. Replacing the campus-wide BAS with a similar product from a different manufacturer/supplier would entail replacing these components in order to communicate with their vendor-proprietary systems.

NRL estimates that the upgrade only replaces approx. 5% of the existing Siemens Building Automation System (Hardware & Software) at NRL and that the system controls most of the buildings at NRL This system upgrade eliminates the need to replace field end devices or wiring in most of the NRL facilities thereby minimizing downtime and controlling migration costs. NRL has invested in Siemens products for the past 25 years.

Therefore, we would need to consider not only the price of another vendors BAS product but also the impact of replacing the millions of dollars already invested in the Siemens system. An incompatible BAS would require new System Engineering, Installation, Hardware, Programming, Workstations, Graphical Interface, Databases, Training, Startup, etc… Not will NRL be saving money by upgrading the existing Siemens system, but system downtime and operation impact are minimal as compared with installing another vendors BAS product.

This project essentially affects the majority of all occupied NRL buildings: approximately 50+ buildings, over 2,8 million SF. There are current ongoing projects that will also have to tie into the Siemens BAS (i.e. 65/75 and 74/81) with sizable footprints.

For reference, recent BAS projects that required new Direct Digital Controls (DDC) include Bldg 210 and Bldg

256. The Bldg 210 Upgrade DDC Controls awarded in SEP 2019 included converting the previous pneumatic controls to a DDC system and integrating these controls into Siemens Apogee. That effort for a single, large building was Install DDC Controls for a similar scope of work awarded by USACE under a Sole Source Siemens contract out of Huntsville Alabama was

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

Siemens Industry, Inc.

11. A statement of any actions the agency will take to remove or overcome any future barriers to competition before any subsequent acquisition for the supplies or services required.

Siemens Industry, Inc. is the only vendor with the knowledge and skill set to leverage the existing software/hardware to make the necessary upgrades without incurring significant rework and development/implementation costs. Alternative vendors could eventually replace the form, fit, and function of the current system. However, that would require heavy investment in replacing and changing the entire infrastructure for the existing physical controls and operator systems along with the software/firmware configurations without impacting the mission critical requirements to maintain temperatures and humidity across the campus.