JA OVER SAT -PM and Repair of Reverse Osmosis and De-Ionized Water Systems.pdf

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J046--Preventative Maintenance and Repair of Reverse Osmosis and De-Ionized Water Systems for the San Francisco VA Medical Center
Solicitation number
36C26121Q0322
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This document is a justification and approval for a sole source award of a contract for preventative maintenance and repair of reverse osmosis and de-ionized water systems at the San Francisco VA Medical Center. The incumbent contractor, Evoqua Water Technologies LLC, owns the proprietary equipment installed at the site and is the sole provider of maintenance supplies and repair parts. Market research found no other authorized service providers. The contract award to Evoqua Water Technologies LLC is for base year plus four option years, with pricing consistent with the past eight years. The Department of Veterans Affairs Veterans Health Administration Veterans Integrated Service Network 21 issued solicitation number 36C26121Q0322 with intent to sole source posted on February 1, 2021 and no responses received by the February 15, 2021 deadline. Contract 36C26121P1047 was awarded to Evoqua Water Technologies LLC for $487,192.40 on June 3, 2021.

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VHAPM Part 806.3 Other Than Full and Open Competition (OFOC)

OFOC SOP Revision 11 Page 1 of 4 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C261-21-AP-1444

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office (NCO 21) on behalf of VISN 21, San Francisco VA Medical Center (SFVAMC). The procurement request number is 662-21-2-6048-0010

2. Nature and/or Description of the Action Being Processed: This acquisition is for preventive maintenance inspections and emergency repair service for the Government-owned Reverse Osmosis Filter Systems and De-Ionized Water systems located at the Main Campus, 4150 Clement St. San Francisco, CA 94121, and the Mission Bay facility, 1700 Owens St., San Francisco, CA 94158.

Estimated dollar amount: (base year plus four option years).

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The labs and Sterile Processing Service (SPS) must have a Deionized Water source in order to function. The patient labs cannot process tests without a source of deionized water. Sterile Processing Service’s sterilizers and cart washers require deionized water to perform their functions. The loss of either of these services would effectively shutdown hospital services. Research labs would also be impacted. Due to the physical attributes of our current system, these services must come from the same vender. Evoqua Water Technologies LLC., proprietary equipment is installed at this site. Proprietary maintenance supplies and repair parts are unavailable to other companies. Evoqua Water Technologies LLC., is the sole source of supplies and maintenance parts for VA owned equipment. They do not utilize any distributors or subcontractors.

Period of Performance (Base Year plus four option years):

Base Year: 9/8/2021 – 9/7/2022 Option Year 1: 9/8/2022 – 9/7/2023 Option Year 2: 9/8/2023 – 9/7/2024 Option Year 3: 9/8/2024 – 9/7/2025 Option year 4: 9/8/2025 – 9/7/2026

4. Statutory Authority Permitting Other than Full and Open Competition:

(X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4 ( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6;

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC)

OFOC SOP Revision 11 Page 2 of 4 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7;

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Evoqua Water Technologies LLC., proprietary equipment is installed at the San Francisco VA Medical Center (SFVAMC). The systems installed contain Service Deionization tanks that are the property of Evoqua Water Technologies LLC, and provided on a service contract account. Evoqua Water Technologies LLC., trains employees to service the products that they sell and do not train or authorize anyone outside of the company or customers to service their equipment. Evoqua technicians visit the site on a regular interval or as required (due to water quality or usage) to record data from the equipment to assure water quality and to exchange any DI Tanks/Filters to assure the quality of water as is required.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Posted an Intent to Sole Source to Award this requirement to Evoqua Water Technologies LLC., Contract Opportunities on February 1, 2021 with a due date of February 15, 2021 and received no responses.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: Evoqua Water Technologies LLC. provided an estimated price for a new contract base plus four option years and the pricing is very consistent with the pricing the VA has paid over the past 8 years.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

A. General Services Administration (GSA) - A GSA E-Library search was done using keyword search criteria Evoqua Water Technologies LLC and there were zero results. Also searched using keywords Reverse Osmosis De-Ionized and received zero results. There is no GSA schedule for these services.

I confirmed with Evoqua Water Technologies LLC., they do not have a GSA contract nor a VHA National Contract.

B. Query of the Vendor Information Pages (VIP) Database at https://www.vip.vetbiz.va.gov/ resulted in: The VIP database was quired to determine if there where at least two SDVOSB or VOSB contractors available to perform the requires services. There was one (1) SDVOSB contractor listed under NAICS 811310, PSC J046 and Keywords Reverse Osmosis De-Ionized. The one SDVOSB contractor is Faraday Electric Motors, LLC., but this contractor nor any other company is authorized by Evoqua Water Technologies LLC., to provide these services. There are not two or more SDVOSB or VOSB that are capable of performing this requirement.

C. Query of the SBA Dynamic Small Business Search (DSBS) tool at http://dsbs.sba.gov/dsbs/search/dsp dsbs.cfm), resulted in: This website was down. Evoqua Water Technologies LLC., (large business) proprietary equipment is installed at this site. Proprietary maintenance supplies and repair parts are unavailable to other companies. Evoqua Water Technologies LLC., is the sole source of supplies and maintenance parts for VA owned equipment.

They do not utilize any distributors or subcontractors.

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