JOFOC for Extended Warranty Agreement CO-GEN_APPROVED 2025 07 15.pdf

U.S. GENERAL SERVICES ADMINISTRATION

NATIONAL CAPITAL REGION

PUBLIC BUILDINGS SERVICE

Justification for Other than Full and Open Competition for Extended Warranty

Agreement CO-GEN at HOTD

1. Nature and description of the item being approved.

This action is for a new contract to provide the necessary, management, equipment, labor, mobilizations, supplies, and supervision to perform extended warranty/preventive maintenance to the co-generation system, mainly consisting of two Solar Taurus gas turbines, two generators and associated equipment for the Central Heating and Refrigeration Plant (HOTD), located at 325 13th Street SW, Washington, DC 20024. The current extended warranty agreement CO- GEN contract (47PM1120C0006) expires on August 31, 2025. The General Services Administration (GSA), Building Services Division, Service Center 2 is in need of a new recurring contract from 9/1/2025 - 3/31/2030 to continue with the Service Contract/Agreement and Warranty Maintenance Agreement at HOTD. GSA seeks to enter into a sole source negotiated contract (7 month base and (4) 12-month option years) with Solar Turbines Incorporated, the current incumbent contractor.

The period of performance is:

Base Year (7 months): September 1, 2025 through March 31, 2026 Option 1: April 1, 2026 through March 31, 2027 Option 2: April 1, 2027 through March 31, 2028 Option 3: April 1, 2028 through March 31, 2029 Option 4: April 1, 2029 through March 31, 2030

The total estimated value is: $5,018,333.25

2. Description of supplies or services required.

The General Services Administration Central Heating & Refrigeration Plant (HOTD) currently supplies steam and chilled water service to over 65 federal buildings in the District of Columbia , serving agencies such as the Department of Energy (DOE), Department of Agriculture (DOA), and Smithsonian Institute (SI). These services are a critical part of the customers’ daily operation. To guarantee that these customers receive steam and chilled water services without interruption, HOTD must continually maintain the plant’s critical equipment.

HOTD operates 24 hours a day, 365 days a year, and the reliability of the plant is important as it supports an operation of Federal and Quasi-Federal customers. HOTD uses natural gas to produce steam for the space comforts at the customer buildings and it operates two chillers to produce chilled water for the building year around.

Docusign Envelope ID: 6E7EB213-FC57-497B-A51B-12EEC3B2C599

HOTD uses natural gas in a combine cycle mode, which first operates the gas turbines/electric generators and the turbine waste heat is then used in a boiler to produce steam. This combined cycle or co-generation also produces electricity for HOTD to avoid purchasing high priced electricity from the utility company. Average yearly savings are estimated over $5 million. The waste heat also increases boiler efficiency to result in additional savings. HOTD has invested several million dollars in the co-generation system to realize substantial savings and reduce pollution. The maintenance and operational support to operate this equipment was being performed for several years under the installation contractor, the Washington Gas Company, of which Solar Turbines Incorporated was the subcontractor and system manufacturer.

The contractor shall provide comprehensive support for two Taurus 60 turbine/generator sets, encompassing scheduled turbine overhauls, generator reconditioning, and the replacement of components with new or remanufactured Original Equipment Manufacturer (OEM) parts as needed. The contract includes four maintenance visits per year, during which all instrumentation associated with the control system—including fire and gas detection systems—will be thoroughly tested. All field service work is performed by a highly skilled local team of qualified representatives, supported by OEM design engineers to ensure the highest standards of safety, reliability, and technical accuracy.

3. Identification of statutory authority.

The statutory authority permitting only one responsible source is 41 U.S.C. section 3304(a)(1) as implemented by FAR section 6.302-1 (Only one responsible source and no other supplies or services will satisfy agency requirements) and subsequently revised by the Revolutionary FAR Overhaul section 6.103-1(Only one responsible source and no other supplies or services will satisfy agency requirements).

Solar Turbines is the proprietary manufacturer, installer, warranty holder, and service provider of this equipment. The agency’s minimum needs can only be satisfied by Solar Turbines Incorporated which has demonstrated a unique, innovative concept, and capability to perform extended warranty/preventive maintenance to the co-generation system, mainly consisting of two solar Taurus gas turbines, two generators and associated equipment at the Central Heating and Refrigeration Plant (HOTD).

4. Demonstration that the acquisition requires use of the authority cited.

The incumbent contractor is uniquely positioned to continue providing extended warranty and preventive maintenance services for the facility’s co-generation system. The contractor originally designed, manufactured, and installed the system and, as such, retains proprietary rights to critical components, software, and diagnostic tools. These proprietary elements are essential for proper maintenance, troubleshooting, and repair, and are not available to third-party vendors.

Due to the proprietary nature of the system and the incumbent’s unmatched familiarity and expertise, no other source is currently capable of satisfying the Government’s requirements within the required timeframe and without incurring unacceptable delays or risk to ongoing operations.

5. Description of efforts to solicit as many offerors as practicable.

This action is a sole-source procurement to Solar Turbines Incorporated, the current incumbent contractor, under FAR 6.302-1. Given the nature of the requirement, the Government did not solicit other sources. The incumbent possesses unique knowledge, experience, and technical capabilities resulting from performance under the current contract. Transitioning to another contractor at this time would result in substantial duplication of cost and unacceptable delays in fulfilling mission requirements.

As such, the contracting officer has determined that issuing a Sources Sought Notice or otherwise soliciting interest from additional vendors would not have been practicable or effective. However, if new sources become known prior to award and are determined to meet the Government’s requirements, they will be given appropriate consideration.

Since the cited authority is one single source, the Government intends to send the Request for Proposal (RFP) to one vendor, Solar Turbines Incorporated. This justification will be made available within 14 days after contract award on SAM.gov for a period of 30 days.

6. Demonstration that the anticipated cost will be fair and reasonable.

The Contracting Officer determines, by certifying this document, that the anticipated cost to the Government for this contract action will be fair and reasonable. The anticipated cost for the base plus option years is $5,018,333.25 and is based on historical pricing for these unique services used in the past. Furthermore, these costs will be offset by the anticipated annual savings by having this contract in place.

The price for this contract will be based on the existing Service Contract Act (SCA) wage determination. Therefore, the Contracting Officer has determined the anticipated cost to the Government of the services covered by this justification will be fair and reasonable.

7. Description of the market survey conducted.

Other than seeking information in accordance with FAR section 6.302-1, no market survey was conducted. This interim contract requires the use of intimate knowledge of the program that only the current contractor possesses.

8. Other facts supporting the use of other than full and open competition.

The proprietary nature of the system limits the availability of technical data, software, and specialized components necessary for operation, maintenance, and support. No other vendors possess the necessary technical rights, certifications, or system knowledge to provide compatible services or parts without significant risk to system performance, safety, and warranty integrity.

As such, competition is currently not feasible without duplicating costs and delays associated with reengineering or replacing the existing system.

9. List of sources that expressed interest in the acquisition.

Other than Solar Turbine Inc., no other sources have expressed interest in this acquisition. Prior acquisition history confirms that Solar Turbines Incorporated, is the original equipment manufacturer (OEM) and sole proprietor of the installed co-generation (co-gen) system currently in use. As the OEM, Solar Turbines Inc. holds proprietary rights to the system’s design, software, and parts, and retains exclusive access to the technical data, engineering support, and authorized maintenance resources required for sustained, reliable operation.

Given the proprietary nature of the system and the technical complexity involved in servicing and maintaining the co-gen equipment, no other vendors are authorized or capable of providing the required support without jeopardizing system integrity, safety, or warranty compliance.

Accordingly, only Solar Turbines Inc. is deemed a responsible source for this procurement.

10. Statement of actions to overcome barriers to competition.

The Government recognizes the importance of promoting competition in acquisition processes.

However, for the current requirement, Solar Turbines Inc. is the sole proprietor and Original Equipment Manufacturer (OEM) of the installed co-gen system, which is uniquely designed and configured to meet the operational needs of the facility.

While the current procurement must be limited to Solar Turbines Inc. to ensure system compatibility and continuity of operations, it is not anticipated that we will be needing these services after this contract is completed due to the targeted disposal of the HOTD facility.

11. Certification:

I certify that this justification is complete and accurate to the best of my knowledge and belief.

Tyler Anderson - WPH1BB Date Contracting Officer

12. CONCURRENCES:

7/15/2025

Melvin Sloan - WPH1BB Date Branch Chief, Building Services Division 2

Shantá Cardiel - WPH Date OOA Office Director, Office of Acquisition

Angel Leal – LR Date Assistant General Counsel

Approval:

Michael Spriggs – PQ Date National Capital Region Advocate for Competition

Aimee Whiteman – P2 Date National Capital Region Acting Regional Commissioner Head of the Contracting Activity

7/15/2025