JA ML-21-56 Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND, MID-ATLANTIC

9324 VIRGINIA AVENUE

NORFOLK, VIRGINIA 23511-3095

J&A No. ML-21-56

August 03, 2021

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Department of the Navy, Naval Facilities Engineering Systems Command (NAVFACSYSCOM) Mid-Atlantic, Public Works Department (PWD) Naval Station Great Lakes, Great Lakes, IL

2. Description of the Action Being Approved: Approval is sought to increase the contract maximum not-to-exceed (NTE) amount for the following CLIN as shown below on contract N4008517D0733 entitled “Facility Maintenance Services” with Siemens Building Technology Inc.:

Option Period 3 Non-Recurring Work CLIN 0008 (PoP: 09/29/2020 – 9/28/2021) by $2,000,000.00 from $220,880.79 to $2,220,880.79

This is a total increase to the contract of $2,000,000.00.

3. Description of Supplies/Services: NAVFACSYSCOM Mid-Atlantic procured an Indefinite Delivery Indefinite Quantity (IDIQ) contract with recurring and non-recurring services for the base wide analysis, repairs, and alterations of HVAC systems; testing, adjusting and balancing of air conditioning equipment including air distribution devices, supply ducts, air handling units, condensing, units, fans, coils, hydronic systems including pumps, water distribution systems, chillers, boilers, heat exchangers coils and other related equipment at Naval Station Great Lakes, Great Lakes, IL. The contract was awarded on 29 September 2017.

The contract has a one-year base period and four one-year option periods and is currently in the third option period. The current contract completion date for the third option period is 28 September 2021.

4. Statutory Authority Permitting Other Than Full and Open Competition: 10 U.S.C. 2304(c)(1);

FAR 6.302-1, Only one responsible source . Contracting without providing for full and open competition under this acquisition may be accomplished pursuant to the authority of 10 U.S.C.

2304(c)(1) of the Federal Acquisition Regulation, as implemented by FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority: The use of the authority cited in Section 4 is deemed appropriate as Siemens Industry, Inc. is the only responsible source to provide the necessary service required by NAVFACSYSCOM Mid-Atlantic. Siemens Industry, Inc. has proprietary software which regulates temperature control, increases energy efficiency, and reduces maintenance and operating costs. Naval Station Great Lakes was selected as the Navy’s pilot site to ensure a combination of fiber and LTE communications can be utilized for secure communications back to a central location while maintaining the military’s level of cybersecurity. As part of the SMART ENERGY/SMART GRID initiative, Naval Station Great Lakes will be upgrading components to maintain cyber security across our network. The requirement covers the maintenance and repair of existing proprietary equipment for Digital Data Controls (DDC) systems currently monitoring and controlling HVAC systems. Upgrades are necessary to facilitate the cyber securing of our Facility Related Control Systems (FRCS). Once Siemens Industry has completed the proprietary system upgrades the communication infrastructure can then be tied in to the secure network for observation and program testing of the network. NAVFACSYSCOM Mid-Atlantic is requesting additional contract ceiling capacity in order to facilitate the necessary upgrades as this was not included in the original scope of the contract.

The above request represents $2,000,000.00 or 76% of the original contract allocation for the current contract. This additional amount was unforeseen at the time of award since Naval Station Great Lakes was selected as the pilot program after award date.

The total contract amount, inclusive of the requested $2,000,000.00, will be $4,624,279 and will be sufficient to cover the mission requirements as needed of the contract.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable. Due to the proprietary nature of the software and services of the equipment provided by Siemens, it is not practical or in the best interest of the Government to solicit additional sources for the required services.

7. Determination of Fair and Reasonable Cost. The price was determined to be fair and reasonable prior to award based on negotiated labor rates under the basic contract to be utilized for all task orders.

8. Competition Actions to Remove Barriers to Future Competition. This exception to full and open competition is dictated the proprietary nature of the necessary requirements.