JOFOC - Chiller Condenser Coils (For Signature) FM Signed.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SECTION 1: IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY

Department of State Contracting Activity

☒ Overseas Post Embassy Cotonou (BENIN)

Requiring Activity Replacement of Chancery HVAC Condenser Coils – Embassy Cotonou

SECTION 2: NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

Approval is requested to award a new contract on a sole source basis to SERVICE FIRST GP Ltd. (South Africa)

- for the supplies and/or services described in Section 3 on behalf of the Requiring Activity.

This new contract will be Firm-Fixed-Price (FFP), for the replacement and installation to specification of Embassy Cotonou’s condenser coils (also herein referred to as “chillers”).

SECTION 3: DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS

Embassy Cotonou requires the provision of all materials, tools, equipment, transportation, and labor necessary to remove existing corroded condenser coils and install new condenser coils on both Chancery chillers at US Embassy Cotonou, BENIN. The work includes, but is not limited to:

Materials and Equipment (5-9 months)

• Provision of eight (8) new condenser coils:

o Four (4) units of Model #COL29351 o Four (4) units of Model #COL29477

• Marine Protective Coating:

o The Contractor with apply marine-grade protective coating treatment to the condenser coils at the manufacturer's factory or the Contractor's factory prior to shipment to US Embassy Cotonou.

The marine coating shall provide enhanced corrosion resistance suitable for coastal environments with high humidity and salt air exposure. (See the SOW for more details).

• All other incidental tools, supplies, or equipment, including but not limited to those required to fully install the condenser coils.

Services (1-3 months)

• Securing condenser coils meeting the above stated specification, including the marine treatment.

• Professional preparation and packing of coils for international shipment.

• Shipment and delivery of coils to Chancery in good condition.

• Full and timely installation of all coils, based on a mutually agreed upon schedule.

• Testing of coils to ensure installation was done properly.

This order will be a Firm-Fixed Price (FFP) consisting of supplies of condenser coils, its transportation and installation in the chancery chillers at US Embassy Cotonou. The estimated value for the entire period of performance is $420,000.00. The period of performance is ideally six (6) months, but up to a maximum of one

(1) year is acceptable depending on production time, shipping time, and travel planning.

SECTION 4: IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING OTHER THAN

FULL AND OPEN COMPETITION

This statutory authority permitting other than full and open competition is 41 US Code 1901 as implemented by FAR 13.501(a) and FAR 13.106(b); specifically, this authority permits contracting on either a sole-source or brand-named basis.

This project requires unique TRANE (brand-name) parts, and after conducting market research only one (sole-source) contractor is able and willing to provide the required products and services.

SECTION 5: DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF THE AUTHORITY

CITED

SERVICE FIRST GP Ltd is uniquely qualified to provide these services to US Embassy Cotonou based on the following:

a. Authorized TRANE Dealer and O&M Parts Requirement: Only TRANE or a TRANE dealer can provide genuine O&M condenser coils (Model #COL29351 and #COL29477) compatible with the existing chiller model to maintain system integrity and warranty. Therefore, the contractor must be a licensed TRANE dealer.

b. Unique Capability for Marine Coating: Only a few specific contractors have factory authorization for marine coating treatment on TRANE coils and the technical capability to install and commission these coils.

c. Only One Company Identified after Market Research Results: During the market search, the TRANE factory in Dubai declined to provide installation and commissioning services as required in the solicitation. This is a non-negotiable requirement mandated by the Overseas Building Operations (OBO) to maintain system integrity. BOLAND INTERNATIONAL also declined to provide installation services. Only SERVICE FIRST GP Ltd. is qualified and committed to complete the entire project as specified by OBO.

d. Original Subcontractor and Knowledge of the Building: The selected contractor, SERVICE FIRST GP Ltd., was the subcontractor that originally installed and commissioned the chillers and other cooling equipment during the construction of US Embassy in Cotonou. Since 2016, this contractor also received the Preventive Maintenance (PM) and training contract. The PM contract was competitively solicited and open to all interested offerors; SERVICE FIRST GP Ltd.'s technical and financial proposals were superior to those of their competitors, demonstrating their proven capability and competitive pricing. This established relationship and institutional knowledge of the Embassy's HVAC systems, combined with their factory authorization for TRANE equipment and marine coating application, uniquely positions SERVICE FIRST GP Ltd. to execute this critical replacement project efficiently and effectively.

e. Unusual and Compelling Urgency: Due to the critical condition of the Chancery chillers, which are currently non-operational due to refrigerant leaks, there is insufficient time to process a full and open competition solicitation. This contract must be awarded by June 2026; otherwise, Embassy operations will be at risk due to the non-operational cooling system, which supports critical IT infrastructure, communications equipment, and occupied office spaces essential to the diplomatic mission.

SECTION 6. DESCRIPTION OF EFFORTS TO ENSURE THAT OFFERS WERE SOLICITED FROM AS

MANY POTENTIAL SOURCES AS IS PRACTICABLE, INCLUDING WHETHER A NOTICE WAS OR

WILL BE PUBLICIZED AS REQUIRED BY FAR SUBPART 5.2 AND, IF NOT, WHICH EXCEPTION

UNDER FAR 5.202 APPLIES

In accordance with FAR 6.103(c), the Contracting Officer solicited offers from as many potential sources as practicable given the nature of this requirement. The Embassy’s Facilities section conducted market research, which identified and contacted three (3) potential contractors capable of providing the required HVAC installation and commissioning services.

a. The requirement for factory-authorized installation and commissioning services was mandated by the US Department of State, Overseas Buildings Operations (OBO), to ensure system integrity and compliance with OBO technical standards. This requirement is non-negotiable and cannot be waived.

The results of the market research outreach are as follows:

1. TRANE (Factory Representative, Dubai, UAE): Contacted and declined to provide installation and commissioning services as specified in the solicitation. TRANE's factory representative stated it would not perform the required installation and commissioning scope.

2. BOLAND INTERNATIONAL: Contacted and declined to provide installation services as required under the solicitation terms.

3. SERVICE FIRST GP Ltd.: Contacted, confirmed qualification, and committed to perform the full scope of work as specified, including all OBO-mandated installation and commissioning requirements.

Based on the results of this market research, SERVICE FIRST GP Ltd. is the only source that is both technically qualified and willing to fulfil the complete requirement as specified. Notwithstanding the Embassy’s completion of substantial market research, the unusual and compelling urgency of the required materials and services exempts this contract from publishing a synopsis of the procurement under the FAR 5.202(a)(2) regulatory exception. An award notice will be posted to SAM.gov in accordance with FAR Subpart 5.2 and the applicable RFO FAR Part 5 deviation.

SECTION 7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST

TO THE GOVERNMENT IS FAIR AND REASONABLE

The Contracting Office has determined that the anticipated price(s) will be fair and reasonable based on the following methodologies:

1. Independent Government Cost Estimate (IGCE): The Contracting Officer compared the contractor's proposed price to an Independent Government Cost Estimate prepared by FAC. The IGCE was developed using industry standards for HVAC equipment costs; labor rates for specialized technician services in the West Africa region; marine coating treatment costs; shipping expenses to Cotonou; and equipment rental rates for crane operations. The contractor's proposed price was found to be within an acceptable range of the IGCE.

2. Catalog or Established Price List: The cost of the genuine O&M TRANE condenser coils (Model #COL29351 and Model #COL29477) was verified against TRANE's established pricing for O&M parts. The marine coating treatment costs were compared to industry-standard pricing for factory-applied corrosion-resistant coatings suitable for coastal/marine environments.

3. Market Prices: The Contracting Officer conducted market research to establish prevailing market prices for similar HVAC replacement projects, specialized condenser coil procurement with marine coating, and installation services in overseas locations. This research included inquiries to TRANE factory in Dubai and BOLAND INTERNATIONAL, which provided pricing information even though they declined to provide installation services.

4. Cost Analysis: The Contracting Officer conducted a detailed cost analysis of the contractor's price proposal, including examination of:

• Material costs (eight condenser coils with marine coating treatment)

• Labor hours and rates for specialized HVAC technicians

• Transportation and shipping costs from supplier to Cotonou

• Equipment rental costs (cranes, lifting equipment, tools)

• Defense Base Act (DBA) insurance premiums

• Overhead and profit margins

The cost analysis verified that individual cost elements are reasonable and consistent with industry standards for this type of specialized work in an overseas location.

By signing the justification, the Contracting Officer makes a determination that the $420,000 price to the Government is expected to be fair and reasonable.

SECTION 8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED (SEE PART 10) AND THE

RESULTS OR A STATEMENT OF THE REASON A MARKET RESEARCH WAS NOT CONDUCTED

Market Research Timeframe: Market research was conducted between June 15, 2025 and April 29, 2026, by the Facilities section at US Embassy Cotonou in coordination with ORSC Abidjan Engineering staff.

Market Research Methodology:

The Facilities Section at Embassy Cotonou conducted comprehensive market research to identify sources capable of providing genuine O&M TRANE condenser coils (Model #COL29351 and Model #COL29477) with marine coating treatment, along with installation and commissioning services for the Chancery chillers

(Model: RTAC200DUZ0NNAFQN4WX1CDBNN6TN11NRCEXN). The market research included:

• Direct inquiries to TRANE authorized dealers and service providers in the region and internationally

• Solicitation of quotes from qualified HVAC contractors with experience in commercial chiller systems

• Review of contractor capabilities to meet technical requirements, including marine coating application, overseas installation, and compliance with US Government rules and regulations

• Assessment of contractor willingness and ability to perform work at US Embassy Cotonou, including

Defense Base Act (DBA) insurance compliance and security clearance requirements

Sources Identified and Contacted:

1. TRANE Factory, Dubai, United Arab Emirates

• Capability: Able to provide genuine O&M condenser coils with marine coating treatment

• Result: Declined to provide installation and commissioning services as required by Overseas Building

Operations (OBO) to maintain system integrity

• Reason for Declining: Does not provide on-site installation services at overseas diplomatic facilities

2. BOLAND INTERNATIONAL

• Capability: Able to provide TRANE OEM parts

• Result: Declined to provide installation and commissioning services

• Reason for Declining: Boland does not have a regional office in Africa and was not interested in the lengthy travel and shipping distances required to complete this project.

3. SERVICE FIRST GP Ltd. (selected source)

• Capability: Authorized TRANE dealer/service provider with capability to provide genuine OEM condenser coils with marine coating treatment, installation, and commissioning services.

• Result: Qualified and committed to complete the entire project as specified by OBO.

• Qualifications:

- Factory authorization for TRANE equipment service and marine coating application

- Demonstrated experience with commercial chiller systems

- Capability to meet overseas installation requirements

- Ability to comply with DBA insurance and US Government security requirements

- Willingness to perform work at US Embassy Cotonou within required timeframe

Market Research Results:

The market research revealed that while multiple sources can provide the O&M TRANE condenser coils, only

SERVICE FIRST GP Ltd. possesses the combination of:

1. Factory authorization for marine coating treatment on TRANE coils

2. Technical capability and qualified personnel to install and commission the specialized equipment.

3. Willingness to perform work at an overseas US diplomatic facility

4. Ability to comply with all US Government requirements (DBA insurance, security clearances, OBO technical standards)

5. Commitment to meet the urgent timeline required to restore critical cooling services to the Chancery in less than a year.

6. SERVICE FIRST originally installed and commissioned the chillers in 2015

Conclusion:

The market research supports the determination that SERVICE FIRST GP Ltd. is the only responsible source capable of meeting the Government's complete requirement for procurement, marine coating treatment, delivery, installation, and commissioning of the replacement condenser coils within the required timeframe of approximately six (6) months. The requirement for installation and commissioning services, as mandated by OBO to maintain system integrity and warranty coverage, eliminates other potential sources that can only provide equipment without installation services.

Additionally, the critical and urgent nature of the requirement—the Chancery chillers require constant repair and are often non-operational due to refrigerant leaks—necessitates award to a contractor who can immediately commence the site preparation and ideally complete project by December 2026 to avoid significant operational disruption to the diplomatic mission.

SECTION 9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION

None. However, Embassy Cotonou cannot emphasize enough that the current chillers are limping along and have to be constantly repair with a quick-fix, “use what is handy” approach. Our engineer advises at some point soon they may no longer be able to be fixed and the Embassy will lose air climatization in a humid, tropical environment, placing millions of dollars of equipment at risk.

SECTION 10. LISTING OF SOURCES, IF ANY, THAT EXPRESSED A WRITTEN INTEREST IN THE

ACQUISITION

To date, no other sources have written to express an interest.

SECTION 11. STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR

OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION FOR

THE SUPPLIES OR SERVICES REQUIRED

For the reasons set forth in Paragraph 5, US Embassy Cotonou has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, US Embassy Cotonou will assess whether competition for future requirements is feasible.

SECTION 12. CERTIFICATIONS

All reviews and approvals should be completed in the order listed unless otherwise authorized or required.

Tailor this Section based on the elements of the action being requested.

TECHNICAL AND REQUIREMENTS CERTIFICATION (FAR 6.303-2(b))

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

SIGNATURE:

Jonas Gamavo Date Building Engineer, Embassy Cotonou

Requirements Cognizance:

Eusebio Lopez Date TDY Facilities Manager, Embassy Cotonou

05-12-26

05-12-2026

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(a)(12)) I certify that this submission is accurate to the best of my knowledge, and that it contains complete information necessary to enable other officials to make an informed recommendation for approval or disapproval.

SIGNATURE:

Joanne Cossitt Date Contracting Officer and General Services Officer (GA has approved a one-time warrant increase to $420,000)

Marc Trahan Date (Branch Chief) Management Officer Embassy Cotonou

May 12, 2026