JOFOC 36C260-23-AP-4484 Alerton HVAC_R_Redacted.pdf

Effective Date: 02/01/2022 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C260-23-AP-4484

1. Contracting Activity: Network Contracting Office 20, Department of Veterans Affairs, VA Puget

Sound Veterans Affairs Heathcare System, Seattle VAMC, 663-23-4-581-1714

2. Nature and/or Description of the Action Being Processed: This is a sole source justification for procurement of Alerton and Phoenix Controls HVAC system maintenance at Seattle VAMC, WA. ATS Automation, a large business, is the only company authorized to sell, install and service Alerton and Phoenix Controls product in Seattle, WA (see P02-Proprietary Letter from Alerton). The action will be awarded as a new contract. Firm-fixed-price contract is contemplated. Estimated award date is 15 Sept 2023.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: This is a follow-on requirement for the maintenance of Alerton and Phoenix Controls HVAC system installed at the Seattle VAMC, WA. Majority of systems are Alerton. Services include software updates, as well as regular system servicing, preventative and emergency maintenance on Alerton and Phoenix Controls HVAC systems. A base plus four (4) options years is contemplated, with a total estimated value of . Period of performance is 15 Sept 2023 – 14 Sept 2028.

Pricing Summary Period of Performance Yearly Amount

15 Sept 2023 – 14 Sept 2024 15 Sept 2024 – 14 Sept 2025 15 Sept 2025 – 14 Sept 2026 15 Sept 2026 – 14 Sept 2027 15 Sept 2027 – 14 Sept 2028

FAR 52.217-8 Six (6) Mo. Value

4. Statutory Authority Permitting Restricted Competition: FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement. Competition is restricted on this procurement for the reason below:

( X ) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert

Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

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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): The current Alerton and Phoenix Controls are major systems responsible for heating and cooling several Seattle VAMC buildings. ATS Automation, Inc. is the only company directly authorized to sell, install and service Alerton and Phoenix Controls product in Seattle, WA (See P02 – Proprietary Letter). Work performed on Alerton system hardware and software by a non-authorized Alerton dealer will void a warranty on Alerton product, or previous ATS Automation, Inc. installed product. Furthermore, no other vendor could purchase new parts for Alerton or Phoenix Controls for systems at Seattle VAMC, WA.

A verification on Honeywell Building Technologies website which owns both Alerton and Phoenix Controls confirmed ATS Automation, Inc is the only authorized dealer (see P02 – Alerton Website).

As only one company is directly authorized to sell, install and service Alerton and Phoenix Control products in Seattle, WA, a substantial duplication of cost to the Government would occur. Any other vendor, besides ATS Automation, would not be able to procure, install and service Alerton and Phoenix Controls in Seattle, WA.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A Sources Sought was posted on Contract Opportunities on 10 August 2023. Reference Sources Sought ID 36C260-23-AP-4484. Sources Sought stated Contractor shall be directly authorized to sell, install and service Alerton and Phoenix Controls product in Seattle, WA.

Contractor must be an authorized Alerton dealer in order to maintain any pre-existing warranties in place. Sources Sought also stated, “in the event it is determined by the Contracting Officer that only one source is capable of providing services, this posting serves as the Notice of Intent to Sole Source the requirement.”

A email notice regarding the Sources Sought was sent to SDVOSB/VOSBs listed on DSBS with NAICS 561210, Facilities Support Services.

Two responses were received – one from a vendor that stated their license is for California only and the other from known source, ATS Automation, which reiterated Alerton’s letter that ATS Automation is the sole provider authorized to sell, install, and service Alerton and Phoenix products in Seattle, WA. No other sources were identified.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The CO will determine the pricing fair and reasonable based on previous prices paid, as well as Independent Government Cost Estimate (IGCE) which factors inflation change per year.

Requirement will be reviewed for technical acceptability.

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

Market Research Was Not Conducted: As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.

Based on Market Research, only one (1) vendor is capable of performing the requirement. ATS Automation, Inc., a large business, is the only company directly authorized to sell, install and service Alerton and Phoenix products in Seattle, WA.

Although the requirement is a service, vendor may be required to replace parts as part of preventative maintenance. Therefore, Buy American Act applies.

Effective Date: 02/01/2022 Page 3 of 4

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: None.

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: During the construction, remodel or rennoviation of buildings that require HVAC replacements, Government should consider any proprietary systems and future competition impacts for maintenance requirements of these installed systems.

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.

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.

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

c. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.

Effective Date: 02/01/2022 Page 4 of 4