JA Redacted.pdf

Rev: 13 Effective Date: 02/01/22 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID:__36C244-22-AP-4322

1. Contracting Activity:

Department of Veterans Affairs, Services Area Office East (SAO-E), Network Contracting Office 4 (NCO4) provides contracting support for the Erie Veterans Affairs Medical Center (VAMC), 135 East 38th Street, Erie, PA 16504.

2. Nature and/or Description of the Action Being Processed:

The proposed action will be a new firm fixed price contract to provide maintenance and repair of Daikin heating, ventilation, and air conditioning (HVAC) equipment at the Erie VAMC. The equipment was recently installed and is under manufacturer warranty. A manufacturer authorized service provider is required to maintain the warranty.

This procurement is in accordance with FAR 13.5 Simplified Acquisition Procedures for certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

The Contractor shall furnish all labor, parts, materials, equipment, and supervision for the preventive maintenance and services on all existing and installed Daikin Variable Refrigerant Volume (VRV) Equipment in the new CLC and the parking Garage. The current Diakin equipment was recently installed, and requires a Daikin authorized service provider for maintenance and repairs to maintain the manufacturers warranty. Currently service calls are being processed as single emergent requirements, or on government purchase card. The proposed contract action would include a base year and four one year option periods to perform preventative maintenance and make repairs as required by the statement of work.

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;

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

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5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

In accordance with FAR 6.302-1(b)(1)(i) the proposed action is for unique services available from only one source with unique capabilities. The Erie Medical Center has already purchased and installed a new Diakin HVAC system in the CLC and Garage. In order to maintain the manufacturer warranty maintenance and repairs must be performed by a Daikin authorized service provider.

Daikin authorizes local HVAC services by geographical region. The authorized service provider for the Erie Pennsylvania area is HAVTECH Services Division LLC.

Diakin has provided a manufacturer letter stating HAVTECH Services Division LLC is the only authorized representative in the Erie, Pennsylvania area. The medical center could purchase a new HVAC system, but having just installed the new system it would be neither cost or time productive.

Nor would it be in the best interest of the Government or be fiscally responsible.

It is essential that the HVAC system be maintained by an authorized manufacturer representative to take full advantage of the warranty, and provide climate control to the facility. Failure to service the system will result in the Medical Center being unable to provide care for Veteran patients, adversly impacting the mission.

Accordingly, HAVTECH Services Division, LLC is the only firm capable of providing the services described in Section III above without the Veteran’s Health Administration experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

A VIP search was conducted for Service Disabled Veteran Owned Small Business (SDVOSB) and Veteran Owned Small Business (VOSB) vendors for this requirement using NAICS 811412 , the search produced 6 SDVOSB/VOSB vendors in PA, OH, NY, and MD. This NAICS covers a wide range of services and based on the available capabilities narratives not all vendors appear to be able to provide maintenance and repair services required. In addition, none of the vendors returned are authorized Daikin service contractors.

A survey was conducted of potential GSA vendors to fulfill this requirement. Market research conducted in eLibrary indicated there were no contract holders available to service Daikin VRV equipment.

Daikin authorizes local HVAC services by geographical region. The authorized service provider for the Erie Pennsylvania area is HAVTECH Services Division LLC. Diakin has provided a manufacturer letter stating HAVTECH Services Division LLC is the only authorized representative in the Erie, Pennsylvania area. HAVTECH Service LLC is a small business concern. HAVTECH also lists the organization as a VOSB, but is not VIP certified.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and

Reasonable:

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Pricing shall be deemed fair and reasonable at the time of award. Pricing will be evaluated by comparing previous awards with similar scopes to offered pricing, as well as comparing the offered price with the Independent Goverenement Cost Estimate (IGCE).

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

A VIP search was conducted for SDVOSB/VOSB vendors for this requirement using NAICS 811412 , the search produced 6 SDVOSB/VOSB vendors in PA, OH, NY, and MD. This NAICS covers a wide range of services and based on the available capabilities narratives not all vendors appear to be able to provide maintenance and repair services. In addition, none of the vendors are authorized Daikin service contractors.

A survey was conducted of potential GSA vendors to fulfill this requirement. Market research conducted in eLibrary indicated there were no contract holders available to service Daikin VRV equipment.

Market research was completed using available resources. It is not reasonable to assert that two or more SDVOSB or VOSB concerns would be able to complete the requirement. HAVTECH is the Daikin authorized service contractor for the Erie area. Failure to use an authorized provider would void the factory warranty.

HAVTECH Service LLC is a small business concern. HAVTECH also lists the organization as a VOSB, but is not VIP certified.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

There are no additional facts to be identified.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

HAVTECH Services Division LLC, 9505 Berger Road, Columbia, MD 21046.

11. 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:

Due to the need to maintain manufacturer warranty only authorized service providers can provide maintenance and repairs, the only other option would be to completely transition from the current HVAC system to another HVAC system, which would not be cost efficient and timely.

When the existing HVAC system needs to be replaced, or the current manufacturer warranty expires, additional market research will be conducted to determine a suitable provider for maintenance and repair or replacement of the system. The VA will continue to monitor the market for solutions that meet future needs.

12. Requirements Certification: I certify that the requirement outlined in this justification is a Bona Fide Need of the Department of Veterans Affairs and that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.