Justification and Authorization Mobile Boiler.pdf

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 5: Request for Sole Source Justification Format >SAT

OFOC SOP Revision 11 Page 1 of 4 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C259-21-AP-0718

J&A Tracker # 2021-06-17T07:12:31

Contracting Activity: Department of Veterans Affairs, NCO 19, 6162S. Willow Dr., Suite 300, Greenwood Village, CO 80111.

Organizational Activity: Department of Veterans Affairs, VA Medical Center, 1898 Fort Road, Sheridan, WY 82801-8320 2237 666-21-3-683-0029

Nature and/or Description of the Action Being Processed: This procurement is for the rental of a backup boiler 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. This is a request for other than full and open competition for the procurement of a new, firm fixed price contract for the rental of a backup mobile boiler, fuel tank, and services for Sheridan VA Medical Center (VAMC). This will be a one-year with one option year contract with the incumbent contractor Ivan Ware and Sons, dba Ware Inc. that serves as a follow-on contract to 36C25919P0717.

Description of Supplies/Services Required to Meet the Agency’s Needs: This procurement is for the rental of one backup mobile boiler and fuel tank, to include maintenance, services, inspection, testing per EPA and STI standards, and transportation. This will be a backup boiler in the event the primary boiler fails during the replacement of the two-main coal fired boilers and their associated systems. The backup mobile boiler fills a Veteran’s Health Administration (VHA) requirement to significantly reduce the likelihood that the hospital will ever be without a boiler and be forced to shut down. This mobile boiler is needed until the completion and delivery of the newly constructed primary boiler. The Contracting Office intends to award a contract for the base period of /1/2021 to /3 /2022 at price of $338,535.96 and one option year of /1/2022 to /3 /2023 at price of $389,242.04 for a total price of $727,778.00.

Statutory Authority Permitting Other than Full and Open Competition:

OFOC SOP Revision 11 Page 2 of 4 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 5: Request for Sole Source Justification Format >SAT

( ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4 ( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7;

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 Sheridan VAMC currently has one permanent natural gas boiler capable of solely meeting the hospital’s requirements. The Sheridan VAMC also has two permanent coal fire boilers that together cannot meet the hospital’s total requirement. The hospital is required to maintain an N plus one boiler, meaning they must have however many boilers to meet their requirements (N) plus an additional back up boiler (plus one) capable of meeting the total requirement should the primary boiler(s) become inoperable. This is intended to prevent the hospital from falling into a situation where there is no operating boiler and the hospital is forced to cease operations.

The two coal fire boilers were previously functioning as the primary while the natural gas boiler was the backup. However, the two coal fire boilers are unusable since they are old, are not capable of meeting the station steam load requirement and need retrofitting or replacement. As a result, the natural gas boiler has become the primary and the VHA was required to rent a temporary plus one mobile boiler as an urgent and compelling procurement because of the inoperability of the two coal fire boilers.

For the past 20 months under sole source contract 36C25919P0717, VHA has been renting a 650 HP Super High Efficiency Mobile Boiler from Ware, Inc., a small business. The boiler has a steam capacity of 22,425 lbs per hour that is capable of solely meeting the entire hospital requirement.

This boiler is completely enclosed in a 53’L x 8’W trailer and located immediately outside of and connected to the boiler building. The connection of the boiler took two days and involved piping, bracing and obtaining air quality permits from the Department of Environmental Quality to ensure compliance with the Clean Air Act. The current contract also includes the cost of boiler rental, fuel tank rental, boiler inspection and maintenance, disassembly, and transportation.

If a new contractor is awarded this procurement, VHA will be duplicating the cost of delivery, installation, startup, permitting, and disassembly as well as an increase in rental costs at an estimated total of $223,000. Additionally, the new contractor will be required to begin a new permitting process that is extensive in nature. Accordingly, Ware, Inc. is the only contractor capable of providing the supplies and services described in Section 3 above without the VHA experiencing substantial duplication of costs that is not expected to be recovered through competition. The follow-on contract is only required for a maximum of two years until the replacement boiler construction is complete.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: The Contract Specialist searched GSA, eCAT, Mandatory Strategic Contract List

OFOC SOP Revision 11 Page 3 of 4 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 5: Request for Sole Source Justification Format >SAT contract, and SAC contracts but no contractor was found that could fulfill the requirement.

Market Research also included an examination of the acquisition history of this service at this hospital. Ivan Ware & Sons, Inc. the incumbent small business contractor was previously awarded 36C25918P1260 12/1/2017 to 5/31/2019 and 36C25919P0717 6/1/2019 to

/3 /2021 to fulfill these services.

Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The base year price is consistent with historical prices paid by the government in the previous periods of performance. In comparison with market research, the price is determined to be fair and reasonable.

Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: The Market Research conducted was limited due to the sole source nature of this require identified in section 6 above. The Rule of Two was met for VOSB, but utilization of a different contractor will result in unnecessary duplication of costs identified in section 5.

Any Other Facts Supporting the Use of Other than Full and Open Competition: There are no additional

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

Incumbent, Ivan Ware and Sons, dba Ware, Inc.

T&T Technologies, Inc.

Caldaia Controls Powerhouse Equipment & Engineering Co Ecology Mir Group LLC

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: Delays in construction of the replacement boiler resulted in the need for a follow-on contract.

Consequently, removing barriers to competition duplication of costs. Construction of the replacement boiler is estimated to be completed within 2 years and once it is ready for installation this requirement will no longer exist.

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.

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 5: Request for Sole Source Justification Format >SAT

OFOC SOP Revision 11 Page 4 of 4 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

Lenny Spaulding Supervisory General Engineer/COR Sheridan, WY

VAHCS

Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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.

Supply 2 Branch Chief, NCO 19

LENNY A.

SPAULDING

246553

Digitally signed by LENNY

A. SPAULDING 246553

Date: 2021.07.22 11:47:36 -06'00'

Bruce D. Bentley 3345625

Digitally signed by Bruce D. Bentley 3345625 Date: 2021.07.23 10:42:17 -06'00'

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.

Jason Thomas Division 2 Chief, NCO 19