Justification 36C25525Q0100 _Rebuild Trane Chillers_Scipio final_HCA Redacted.pdf

VHAPG Part 813.5 Simplified Acquisi on Procedures for Certain Commercial Items A achment 1: Request for Brand Name Only Jus fica on >SAT-$7.5M under FAR13.5

Effec ve Date: 11/15/24 REVISION: 01 Acquisi on ID#: 36C255-25-AP-0639

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisi on Plan Ac on ID: 36C255-25-AP-0639

1. Contrac ng Ac vity: Department of Veterans Affairs, VISN 15, in support of Robert J. Dole VA Medical Center, 2237# 589-25-1-4736-0014

2. Nature and/or Descrip on of the Ac on Being Processed:

This procurement is for R’Newal Cage Chillers in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documenta on Requirements, where acquisi ons conducted under Simplified Acquisi on Procedures are exempt from the requirements of FAR Part 6, but s ll require a jus fica on using the format of FAR 6.303-2. The proposed requirement is for a Firm-Fixed-price contract for a Brand Name Only proprietary onsite rebuild of four of the sta ons exis ng chillers.

3. Descrip on of Supplies/Services Required to Meet the Agency’s Needs:

The sta on has four exis ng Trane Chillers that are well past their useful life. The chillers have significant run-hours and rebuild/replacement is what is the recommenda on of the manufacturer and subject-ma er-experts at the sta on. The rebuild process is the most economical and mesaving route. The rebuild process, proprietarily called R’newal, must be done by the manufacturer (Trane). This process will give the Robert J. Dole VAMC like-new chillers, with new serial numbers, complete with a manufacturer’s warranty. The rebuild process must be completed by a Trane cer fied representa ve, along with all OEM parts.

The R’Newal/Rebuild of all Cage Chillers include:

Building 26-61 - Model Number: RTAC1704UR Serial Number: U09F04425

- (2) new compressors

- New fan motors and blades

- New R134A Refrigerant (up to 465 lbs.)

- New contactors

- Oil

- O-Rings & Gaskets

- New dryers

- Oil Adaptor/Coupling (supply and return)

- (4) new coils to replace exis ng coils. Warranty - 1 yr. labor and 2 yr. parts

- Crane

- Labor

- Cleaning on evaporator side to assist in lowering approach temps.

- Includes new serial number for unit.

- Unit up-grades and modifica ons per unit schedule

- All necessary labor and rigging - Insulate compressor motor terminals.

Effec ve Date: 11/15/24 REVISION: 01 Acquisi on ID#: 36C255-25-AP-0639

- Start-up and system checkout

- Shipping and Handling

- Service agreement, which includes 3 inspec ons per year and an annual oil analysis

Building 26-61 - Model Number: RTAC1704UR Serial Number: U09F04424

- (2) new compressors

- New fan motors and blades

- New R134A Refrigerant (up to 465 lbs.)

- New contactors

- Oil

- O-Rings & Gaskets

- New dryers

- Oil Adaptor/Coupling (supply and return)

- (4) new coils to replace exis ng coils. Warranty - 1 yr. labor and 2 yr. parts

- Crane

- Labor

- Cleaning on evaporator side to assist in lowering approach temps.

- Includes new serial number for unit.

- Unit up-grades and modifica ons per unit schedule

- All necessary labor and rigging

- Insulate compressor motor terminals.

- Start-up and system checkout

- Shipping and Handling

- Service agreement, which includes 3 inspec ons per year and an annual oil analysis.

Building 34 - Model Number: RTAC1404UR Serial Number: U08H01231

- (2) new compressors

- New fan motors and blades

- New R134A Refrigerant (up to 465 lbs.)

- New contactors

- Oil

- O-Rings & Gaskets

- New dryers

- Oil Adaptor/Coupling (supply and return)

- (4) new coils to replace exis ng coils. Warranty - 1 yr. labor and 2 yr. parts

- Crane

- Labor

- Cleaning on evaporator side to assist in lowering approach temps.

- Includes new serial number for unit.

- Unit up-grades and modifica ons per unit schedule

- All necessary labor and rigging

- Insulate compressor motor terminals.

- Start-up and system checkout

- Shipping and Handling

Effec ve Date: 11/15/24 REVISION: 01 Acquisi on ID#: 36C255-25-AP-0639

- Service agreement, which includes 3 inspec ons per year and an annual oil analysis.

Building 34 - Model Number: RTAC1404UR Serial Number: U08H01232

- (2) new compressors

- New fan motors and blades

- New R134A Refrigerant (up to 465 lbs.)

- New contactors

- Oil

- O-Rings & Gaskets

- New dryers

- Oil Adaptor/Coupling (supply and return)

- (4) new coils to replace exis ng coils. Warranty - 1 yr. labor and 2 yr. parts

- Crane

- Labor

- Cleaning on evaporator side to assist in lowering approach temps.

- Includes new serial number for unit.

- Unit up-grades and modifica ons per unit schedule

- All necessary labor and rigging

- Insulate compressor motor terminals.

- Start-up and system checkout

- Shipping and Handling

- Service agreement, which includes 3 inspec ons per year and an annual oil analysis.

The period of performance shall be 60 days a er the contractor arrives on-site. The es mated cost for the replacement of all four chillers is

4. Statutory Authority Permi ng Restricted Compe on:

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 restric ng compe on on this procurement. Compe on is restricted on this procurement for the reason below:

(X) Only One Responsible Source and No Other Supplies or Services Will Sa sfy Agency Requirements

5. Demonstra on that the Contractor’s Unique Qualifica ons or Nature of the Acquisi on Requires the Use of the Authority Cited Above (applicability of authority):

The Trane exclusive R’newal service program is performed by Trane factory technicians. The R’newal service program requires a high level of technical exper se, coupled with special tooling and fixtures necessary for compressor removal, disassembly, repair and reassembly. The Trane exclusive R’newal service program includes a parts and labor warranty; along with providing each piece of equipment that goes through the R’newal program, a new serial number. In addi on to the Trane service installa on and regular maintenance, the upgraded equipment is also covered by Trane factory warran es.

Effec ve Date: 11/15/24 REVISION: 01 Acquisi on ID#: 36C255-25-AP-0639

The R’newal rebuild process will save the government from a substan al duplica on of cost and prevent unacceptable delays in fulfilling the agency’s requirements. Currently at the same facility there is a similar construc on project (FCA – Replace Chillers and Associated Equipment 589A7- 21102) that is nearing comple on. That project fully replaced a 30, 40, and two 60-ton chillers at a cost of The Trane chillers in this procurement are 120-ton in size and would cost significantly higher. A complete construction analysis on the cost to replace the four (4) 120-ton chillers is es mated on the low side to cost before comple on. This replacement cost represents a increase over the selected R’newal rebuild process. In addi on to being more cost effec ve, the R’newal process would be completed within 60 days from start to finish. Having the chillers down for an extended period would also necessitate the addi onal cost and burden for the use of rental chillers and would add to the overall project cost. The R’newal process by Trane is the most cost effec ve and me efficient method for the government.

The chillers are essen al to the day-to-day opera ons of our facility. The sta on currently has a total of ten (10) Trane brand chillers. Staying with one manufacturer helps to maintain familiarity of the equipment with our staff and minimize the number of service contracts required to keep the equipment maintained and serviced. This also reduces our logis cal supply chain and minimizes the quan ty of replacement parts that need to be maintained as some are interchangeable. Our down me and maintenance costs will also be reduced. The use of only Trane is essen al to the Government’s requirement, thereby precluding considera on of a product manufactured by another company.

6. Descrip on of Efforts Made to ensure that offers are solicited from as many poten al sources as deemed prac cable:

SAM: Special No ce: Intent to Sole Source (36C25525Q0100) was posted from 12/13/24 – 12/20/24

GSA eBuy: Special No ce: Intent to Sole Source (RFQ1736949) was posted 12/16/24 – 12/20/24

Trane U.S., Inc. is the sole manufacturer of this equipment and only cer fy their own technicians for installa on.

7. Determina on by the CO that the An cipated Cost to the Government will be Fair and Reasonable:

Pricing will be determined fair and reasonable based on comparison of quoted prices, GSA pricing and similar recently awarded contracts within the Department of Veterans Affairs. The recent completed replacement of four smaller chillers provides informa on for price analysis in determining these prices fair and reasonable. Upon completion of chiller rebuild, the station would have prevented at a minimum additional cost to replace the chillers. The rebuilt chillers will have all the same factory warranty coverage as a new chiller.