JOFOC 36C261-24 AP-2450-FY24-477 JOFOC NCO21 Trane BAS Maintenance - HCA Approved.pdf

Effective Date: 02/01/2022 Page 1 of 5

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C261-24-AP-2450

(1) Contracting Activity: Department of Veterans Affairs, Network Contracting Office 21 (NCO 21), located at 459 Patterson Road, Honolulu, HI 96819-1522, in support of Veterans Integrated Service Network (VISN) 21 Veterans Affairs (VA) Health Care System at 1 Jarrett White Road, Building T-1, E-Wing, Honolulu, HI 96819.

Purchase Request: 459-24-4-622-0452 JOFOC Tracker: FY24 - NCO 21 - 1519

(2) Description of Action: This acquisition is conducted under the authority of the Multiple- Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501).

This will be a new requirement for the facility in Hawaii and will be a service contract for both the mechanical and system requirements to ensure both are functional for all Heating Ventilation and Air Conditioning (HVAC) equipment.

Order against: FSS Contract Number: 47QSWA20D002A

Name of Proposed Contractor: Trane US, Inc.

Street Address: 4833 White Bear Parkway

City, State, Zip: White Bear Lake, Minnesota, 55110-3325

Phone: (817) 850-8119

(3) Description of Supplies or Services:

VA Pacific Islands Health Care System (VAPIHCS) require the vendor to support, update, and perform Trane specific repairs for the Building Automated System controlling all of the facility HVAC Systems. Provide all parts and labor to conduct major, minor repairs and maintenance to VAPIHC’s Tracer Summit Building Automated System located on three buildings. Ambulatory Care Center (ACC) Building 30, Center for Aging (CFA) Building 110, and E-Wing Building T-

1. Provide Eleven monthly and one annual service and inspection for Two RTAE Model Chillers at E-Wing Building T-1. Provide Emergency and unscheduled repairs and parts for Two RTAE Chillers at E-Wing, Building T-1 not to exceed $20,000. This is a Base +4 Option year request.

a) The estimated value of the proposed action is $803,660.90.

b) Estimated period of performance: July 2024 – June 2029

Effective Date: 02/01/2022 Page 2 of 5

(4) Identify the Authority and Supporting Rationale (see below and if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service).

FAR 8.405-6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

FAR 8.405-6(a)(1)(B): Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized; the proprietary nature of the existing equipment and legacy controllers requires Trane US, Inc. to provide Tracer Software, associated updates, service pack/patches, and legacy system modernization bridges.

FAR 8.405-6(a)(1)(C): In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures.

FAR 8.405-6(b): Items peculiar to one manufacturer:

A patent, copyright or proprietary data limits competition. The proprietary data is: The Trane Certified technicians that service our HVAC systems are the ones that installed the Building Automated System logic, and hardware and commissioned the RTAE Chillers. TRANE alone have intimate, thorough and exclusive knowledge of our systems that no other company will have. Proprietary programs associated with our Building Automated System is Rover, Ensemble and Tracer Summit, and Terminal Unit (TU) programs.

These are “direct replacements” parts/components for existing equipment. The components and devices associated with Tracer Summit are the computer boards for the Blower and Coils (BCUs), MP581s, Chillers components that must be “Binded” with proprietary TU computer interface, and other controllers that are required to be compatible and function harmoniously.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing.

(5) Describe Why You Believe the Order Represents the Best Value consistent with FAR 8.404(d) to aid the contracting officer in making this best value determination:

It is not feasible to engage another vendor because if another vendor works on the Building Automation System (BAS) or Chiller system and a major failure occurs, they will not be able to recover and restore the data lost nor “Bind” replacement parts for the Chiller. No other vendor has the proprietary program to interface with Tracer Summit/Rover/Ensemble/TU. Trane will

Effective Date: 02/01/2022 Page 3 of 5 then have to be brought in separately to recover the critical data that was lost and perform the actual repair. As a healthcare provider, we require immediate resolution and remediation to all of the HVAC problems to potentially avoid cancelling hundreds of patient appointments per day.

Delays to repairs or services requested would directly impact patient care.

(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted.

In accordance with FAR 10.001, Market Research was conducted prior to solicitation to determine the availability of Trane specific repairs for the Building Automated System controlling all of the facility HVAC Systems. The Contracting Office performed an VetCert search on 4/17/2024 referencing North American Industry Classification System (NAICS) number 811310 – Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance which returned 794 verified Service Disabled Veteran Owned Small Business (SDVOSB) concerns. Further Market Research has determined Trane is the Sole-source provider of Tracer Software, associated updates, service pack/patchers, and legacy system modernization bridges. Tran US Inc is the Original Equipment Manufacturer (OEM). A GSA Advantage search returned Contract number 47QSWA20D002A Effective Dec.

9, 2024 through Dec. 9, 2039 | Multiple Award Schedule (MAS) Service, Installation, Facilitation of Misc. Equipment. Trane U.S. Inc is a Large Business. A search in USA Spending resulted in 32 non-compete contracts, of which, 23 were awarded to TRANE and TRANE Technologies.

(7) Any Other Facts Supporting the Justification:

Trane has been the facility service company for the past 22 years and has always successfully resolved the HVAC issues without delay. Because of having the proprietary programs required, Trane is solely able to maintain, troubleshoot and repair the BAS systems and Chiller HVAC Equipment. The facility utilizes Trane Equipment throughout the campus, and they are heavily invested in keeping the equipment with one manufacturer as much as possible to keep complexities to a minimum. Trane is well versed in the requirements to repair the current BAS Controls and Mechanical HVAC issues. Currently there are no service contracts for either Control or Mechanical Trane systems. It is costing VAPIHCS considerable amount of money and delays to repairs, alterations and issues with a lack of manufacturer support.

(8) A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

This acquisition is unique and proprietary to Trane US, Inc. and there are no further actions to be taken with regards to competition barriers. On going Market Research will be conducted to see if any other vendor can provide this service on future actions.

Effective Date: 02/01/2022 Page 4 of 5

(9) 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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

(This signature is the requestor’s supervisor, fund control point official, chief of service or someone with responsibility and accountability.)

SIGNATURE DATE

Jeremy Matsumoto Facility Operations Specialist 138 FMS

NAME TITLE SERVICE LINE/SECTION

VA Pacific Islands Health Care Systems

FACILITY

Effective Date: 02/01/2022 Page 5 of 5

(10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

CONTRACTING OFFICER/DESIGNEE’S SIGNATURE DATE

Corey Kline, Contracting Officer Las Vegas VAMC/NCO 21_____

NAME AND TITLE FACILITY/NCO/PCO

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

Nicholas J. Kluch DATE Director of Contracting Network Contracting Office 21 (NCO 21)

HIGHER LEVEL APPROVAL (Required for orders over $750,000):

c. VHA RPO HCA Review and Approval (over $750,000 to $75 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

Curtis M. Jordan DATE Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA)