JOFOC NCO17 Emergency Surgery DX Chiller Replacement - Redacted.pdf

This is a Justification and Approval (J&A) document for an emergency, firm-fixed-price construction contract awarded to Brand Construction LLC, a Service-Disabled Veteran-Owned Small Business (SDVOSB), by the Department of Veterans Affairs. The contract (Award: 36C257/26C0078) was awarded on July 1, 2026, for the emergency replacement of a 22-year-old Surgery Direct Expansion (DX) chiller at the Central Texas Veterans Health Care System (CTXVHCS) in Temple, Texas. The failed chiller, which was the only unit on emergency power supporting all 10 operating rooms and associated clinical spaces, posed immediate life-safety risks including potential cancellation of surgeries and infection-control failures. The contractor must furnish all labor, materials, equipment, and services necessary to complete the full chiller replacement, including temporary chiller support, demolition, structural and electrical modifications, installation of a 200-ton air-cooled chiller (Brand Name or Equal), Building Automation System (BAS) integration, startup, and commissioning. The final awarded amount is $1,740,296.17, which includes one month of temporary chiller rental at $43,000, with potential additional rental months at $30,000 each. The Government anticipates potential need for in-scope modifications covering up to three additional months of temporary chiller rental, up to an additional $90,000, for a total contract value not to exceed $1,830,296.17. The performance period is 90 business days with no option years.

The J&A justifies using other than full and open competition under the "Unusual and Compelling Urgency" provision (41 USC §3304(a)(2)) due to immediate life-safety risks and the need to prevent cancellation or delay of surgical procedures. Market research conducted on June 25, 2026, confirmed that no domestic chiller was available in sufficient commercial quantities within the emergency timeframe, as domestic alternatives carried minimum 12-week lead times. The chiller purchased exceeded the Buy American Act (BAA) domestic content threshold under FAR Part 25, triggering a nonavailability exception under FAR 25.103(b)(2); the Contracting Officer will submit the required urgent requirement report to MadeInAmerica.gov within 30 days. The Contracting Officer determined the price of $1,740,296.17 was fair and reasonable, falling below the Independent Government Cost Estimate (IGCE) and consistent with comparable federal chiller replacement projects. A synopsis was not posted due to the urgent timeframe, consistent with RFO 5.101(b)(2). Brand Construction LLC was selected based on its immediate responsiveness, ability to mobilize without delay, prior experience with similar work, and familiarity with VA campus infrastructure and BAS systems.