JCI DDC JA_Redacted - Complete.pdf

OFOC SOP Revision 11 Page 1 of 3 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: 36C250-21-AP-3124

1. Contracting Activity: Department of Veterans Affairs, VISN 10, Chalmers P Wylie VA Ambulatory

Care Center (VAACC), will enter into a construction contract that requires the procurement of this item which requires justification for other than full and open competition. The project request number is 757-21-3-743-0138.

2. Nature and/or Description of the Action Being Processed: The Correct Retro-Commissioning (Cx) Deficiencies project will correct deficiencies and implement recommendations identified by previously completed retro commissioning activities. These tasks include itemized repairs detailed on the list of action items, and the refurbishment of roof top units. The goal of this project is to improve the energy efficiency of the VAACC. This will be awarded as a new contract. The contract number will be generated if the solicitation effort is successful. The VA plans to award a firm fixed price contract.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The Johnson Controls (JCI) direct digital control (DDC) system is required to provide electronic positioning of valves and dampers in the medical facility’s heating, ventilation and air conditioning (HVAC) system. The system is programmable and the program code can be customized to control time schedules, set points, controllers, logic, timers, trend logs, and alarms. The system, when properly integrated, can administer controls for the HVAC systems for the entire VAACC. One of the benefits of such a system is that it can greatly reduce overall HVAC operating costs and create significant cost savings for the VA by centralizing control of and coordinating the function of the various HVAC unit within the facility. This procurement requires the installation of one (1) set of temperature controls.

These controls are proprietary in nature and must be installed by a JCI employee. The estimated value for the equipment and labor is . This equipment will be purchased and installed as part of a new firm fixed price construction contract. The period of performance for this project is 210 calendar days.

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;

OFOC SOP Revision 11 Page 2 of 3

Revision 11 Date: 02/11/2021

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): The above listed JCI system is currently installed throughout the entire facility, thereby making it a major system, and it is solely responsible for controlling the conditioned air environment within the VAACC and is very specialized in nature. Competing HVAC system manufacturers use proprietary programming languages for their control systems. Therefore, temperature controls from another manufacturer cannot communicate with the JCI network, and would result in large and unnecessary duplicative installation, maintenance costs, as VA HVAC technicians would have to maintain training currency on two HVAC systems. Without a wholesale replacement of the VAACC’s HVAC controls network, the upgrade of the controls is required. The HVAC network is fully integrated into the VAACC and the facility cannot function without adequate HVAC, making this equipment and service essential to the Government’s requirements. Accordingly, JCI is the only firm capable of providing the supplies and 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.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A/E Contractor CBLH Design’s plans specifically mention the continued use of JCI controls. Efforts were not made to solicit from other electrical equipment manufacturers, because it is CBLH’s expert opinion that utilizing other manufacturer’s controllers would decrease the consistency and reliability of the facility’s HVAC network to an unacceptable level. This, in turn, would cause the patient care provided to our Veterans to suffer. Although this is a proprietary system and requires installation by a representative of JCI, there are ample tasks throughout the entire project that can be completed by the SDVOSB contractor that is awarded the contract. CBLH was determined to be a responsible design firm during the Indefinite Delivery Indefinite Quantity (IDIQ) process.

Market research conducted for this project proved that there is sufficient potential competition among SDVOSB firms in the Plumbing Heating and Air Conditioning NAICS code. Recent procurement history under this NAICS code for the VAACC also supports the competitive nature of this procurement of construction services. In addition, the required pre-solicitation notice for the construction procurement was posted to sam.gov, this informs the public and the marketplace of a possible contracting opportunity. The solicitation will also be published to sam.gov. These collective actions are expected to effective in ensuring there is adequate competition for this procurement.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: To counteract the lack of competition in the acquisition and installation of the JCI controllers, the entire project will be solicited as an Invitation for Bids (IFB). As stated above, in item 6, there is the potential for adequate competition among SDVOSB firms to ensure fair and reasonable bid pricing will be provided, for the entire project. To confirm fair and reasonable pricing, the IGCE will be compared to the bids received. If unfair and unreasonable pricing is suspected, the CO will request that the CBLH price estimator review the bid pricing.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted: The Correct Retro-Cx Deficiencies project is projected to be a SDVOSB set aside. The market research for this J&A is for the JCI equipment and installation only.

Pricing for the JCI system is by CBLH based upon extensive past experience with sole sourcing HVAC requirements for the VAACC. As stated earlier, market research was conducted for the entire

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Revision 11 Date: 02/11/2021 project, as required by FAR & VAAR regulations by the Contract Specialist, and in compliance with the VA Rule of Two, will result in a SDVOSB set-aside procurement.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: We have ensured that most of the project that can be completed by the prime SDVOSB firm that receives contract award and/or other subcontractors that may compete for specialized tasks within the overall project.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: As of 06-30-2021, none. However the site visit and/or RFI submittal process will provide opportunities to gauge interest in the project.

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: The facility has brought in other HVAC controls vendors to discuss the possibility to change over the system to an open source format in order to allow the DDC controls system to be competitively bid.

The cost of this change is enormous and can’t be included in a project of this size.

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.

Name: Roger Dunifon Date Title: Supervisory General Engineer Facility: Chalmers P. Wylie VAACC

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer or Designee’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Name: Brian S. Kish Date Title: Contracting Officer Facility: NCO 10 Contracting

VHACOSKISHB1

Typewritten Text 06/30/2021