JOFOC_Redacted.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Request for Sole Source Justification Template >SAT $7.5M under FAR13.5

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: 36C261 23 AP 1955

1. Contracting Activity: Department of Veterans Affairs, VISN 21, Network Contracting Office 21, 3230 Peacekeeper Way Bldg. 209, McClellan, CA 95652 Requiring Activity: VA Sierra Nevada Healthcare System, 975 Kirman Ave, Reno, NV 89502

PR#: 654 23 2 6093 0023

2. Nature and/or Description of the Action Being Processed: This procurement is for preventative maintenance and training services on a VHA owned Metasys® Building Automation System (BAS) located at VA Reno in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303 2. The proposed contract action is a new, firm fixed price contract.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: VA Reno requires a contractor to provide maintenance services on the Metasys® BAS and all the applicable hardware components. The services include programming, troubleshooting, repairs, day to day maintenance, preventive maintenance (PM), and training to ensure hospital operations is sustained and not disrupted.

The proposed contract action includes a base year and one, one year option period with the estimated dates as follows:

Base Year = 04/01/23 – 03/31/24 Option Year 1 = 04/01/24 – 03/31/25

The IGCE (inclusive of options):

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

Effective Date: 02/01/2022 Page 2 of 4

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 Metasys® building automation system (BAS) is a Johnson Controls Inc. technology system that integrates a facility’s HVAC, lighting, and security and protection systems and enables all the systems to communicate on a single platform. This provides a much more efficient and proficient means of monitoring and managing VA Reno’s major systems. As such, any technician working on the BAS must be trained and certified by JCI and have access to all the propriertary software and OEM parts to properly maintain the system. As destailed in the market research below, only one capable company is currently available to provide the maintenance and training services: Johnson Controls Inc.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Please see Section 8 below for details.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable:

Market price Average Annual Cost: $115,608.95

Searches through recently (within the past three years) awarded contracts for maintenance services on various building automation systems revealed several contracts awarded to various companies.

Because the prices were considered fair and reasonable at the time of award, these prices were used in the average calculation. The government notes that the actual cost of the maintenance services depends on the type of BAS and the extent of the services required, so any proposed pricing within a deviation of $20,000 would be considered fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

Searches through the VIP Database under the applicable NAICS and keyword “Metasys” did not reveal any companies. Searches under the keyword “automation” resulted in Aldevra LLC and Foundation Mechanical Limited Liability; however, further review of each company’s capabilities statement and websites revealed that neither company works on Metasys® BAS.

Searches through the SBA’s DSBS tool under the applicable NAICS and keyword “Metasys” revealed no small businesses. Searches under keyword “BAS” resulted in a handful of small business;

however, further review of each company’s capabilities statement and company website revealed that none of these companies can provide maintenance services on the Metasys® BAS.

Searches through mandatory sources, AbilityOne and UNICOR, revealed that neither source can be used for this procurement. Similarly, searches through existing VA contract vehicles, which is highly recommended within VHA contracting, revealed that there are no existing contract vehicles that can be used. There are currently two IDIQs within VHA for Johnson Controls’ Metasys BAS; however, the IDIQs are restricted to VISN 23 and VISN 15 only. As such, the IDIQs are not available for NCO 21 within VISN 21.

Searches through GSA Advantage revealed two contracts with Johnson Controls Inc. (JCI): GS 07F 190CA and GS 06F 0060P. To determine if either contract could be used for the maintenance services, the contract specialist contacted the POC at JCI on 02/16/23 and asked if either contract could be used. The POC advised they would try to get an answer back to the contract specialist but as of 03/01/23, no answer was given. The contract specialist has no reason to believe the GSA

Effective Date: 02/01/2022 Page 3 of 4 contracts can be used for this procurement. No other contract or contract vehicle was located under

GSA.

To determine if there are any other sources capable of providing the maintenance services on the Metasys® BAS, a Sources Sought Notice (36C26123Q0372) was posted to Contracting Opportunities on 02/16/23. A drafted copy of the Performance Work Statement (PWS) was included with the notice. Responses were due by 02/23/23, and two companies responded to the notice: Intech Mechanical Company LLC (Large) and RJY Group LLC (Small). A review of Intech’s SAM.gov registration revealed that the company is not registered under NAICS 811310, which is the NAICS assigned to this procurement, and thus would not be eligible to respond to any solicitation. The company is only registered under NAICS 238220 – Plumbing, Heating, and Air Conditioning Contractors, which does not apply to this procurement. RJY Group noted that their company is a SDVOSB; however, a check through the VIP Database revealed that the company is only registered under NAICS 561210 in the VIP Database, which doesn’t apply to this procurement. The company is registered in SAM.gov under the applicable NAICS as a small business, so the technical capabilities statement was sent to the VHA program POC to verify if the company seemed technically capable to complete all the required services. The program POC and technical expert explained that RJY is not technically capable of providing the services. The contract specialist also reviewed the capabilities statement and verified that though the Sources Sought Notice explicitly asked contractors to provide clear evidence or explanation of how their company provides Johnson Controls Inc. (JCI) technicians or JCI trained and certified technicians, RJY did not provide any evidence or make any statements to such. Furthermore, of the past performance contracts referenced in the capabilities statement, only two were for building automation systems. A review of both contracts revealed that neither contract was for the JCI Metasys BAS. As such, the government has no reason to believe that RJY can provide all the required services or adhere to the applicable subcontracting limitations clauses that will be included in the resulting contract.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

None found

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

Johnson Controls Inc. (Large) 5757 N Greenbay Rd, Milwaukee, WI 53209

UEI: Z2N8C3NL8FW5 CAGE: 25244

POC: CJ Crandall PH: 775 223 3009 Email: casey.james.crandall@jci.com

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: The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be competed.

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

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.

Facilities Operations Specialist VA Reno

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.

Contracting Officer

NCO 21

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.

Branch Chief

NCO 21