Justification Restricting Competition - HVAC_Redacted.pdf

Source Selection Information – See FAR 2.101 and 3.104

Room 247:

One (1) Liebert DS(s), Model DS070AZA1E0NPLS, Liebert DS Precision Cooling Systems: Nominal 70 kW (20 Ton) Air Cooled Downflow System, 460 Volts, 60Hz, 3 Phase, 65,000 amps rms Short Circuit Current Rating.

One (1) Liebert MC Air-Cooled Microchannel Condenser(s), Model MCM080E5AD2DZA, using input supply voltage of 460 Volt, 3 Phase, 60 Hz. Electrical Requirement: 2.8 FLA, 3.2 WSA, 15.0 OPD

1 system, with accessories, services, and freight

The resultant contract will be funded with FY26 Navy Operations & Maintenance (O&MN) appropriations. These funds are currently available.

4. Statutory Authority Permitting Sole Source.

41 U.S.C. 1901 The statutory authority permitting this sole source action is 41 U.S.C. 1901, Simplified acquisition procedures - a sole source acquisition using simplified procedures for the acquisition of commercial products and/or commercial services, as implemented by FAR 12.102(b). For additional statutory authority, see below.

5. Rationale Justifying Use of Cited Statutory Authority.

The replacement components purchased under this action must integrate directly with, and be controlled by, the existing Liebert building-wide HVAC control network. Awarding this contract to any manufacturer other than Vertiv (Liebert) would require the complete removal of the existing proprietary control infrastructure and the installation of an entirely new, facility-wide control system compatible with a non-Liebert unit. The government would incur substantial, non-recoverable duplication of costs estimated to be over $1M to replace a functioning control network, alongside unacceptable operational delays that would leave critical cyber infrastructure unprotected during construction. Consequently, Vertiv (Liebert) is the only source capable of satisfying the government's technical and scheduling requirements without causing severe, duplicate costs and prolonged mission degradation.

NCDOC requires an immediate, non-competitive acquisition of Vertiv (Liebert) HVAC systems. The building's current HVAC system has exceeded its projected end-of-life cycle and is actively failing. This critical failure is causing severe overheating throughout the facility, resulting in multiple electrical blackouts. These blackouts and extreme thermal conditions pose an immediate threat to the vital computer databases and cyber defense systems housed within the facility. Continued operation under these conditions will result in catastrophic damage to sensitive government hardware, substantially increase replacement and recovery costs by an estimated $100 million, and ultimately lead to total mission failure for NCDOC's cyber defense operations. In consideration of the above, the requiring activity has determined that this critical requirement necessitates a Defense Priorities and Allocations System (DPAS) rating, with an expected rating of DO-C3 to be assigned to this procurement.

Due to the fact that the manufacturer, Vertiv (Liebert), does not engage in direct contracting with the Government for these supplies, this requirement necessitates a sole-source award to a reseller. Vertiv (Liebert) provided a vetted list of five (5) resellers with established history of partnering with the OEM and executing Navy contracts: Atlantic Diving Supply, Inc. (ADS), CDW Government LLC, Epoch

Concepts LLC, Government Acquisitions LLC, and Swish Data Corporation. The requiring activity and contracting officer have independently reviewed each of the potential resellers and selected Swish Data Corporation as the vendor for this procurement. The contracting officer reviewed the supplier risk score within the SPRS Supplier Risk reports for each vendor. The supplier risk score considers 10 factors of performance information and uses the last three (3) years of recent and relevant data to calculate an overall score. In this rating scale, higher scores indicate stronger performance. When reviewing this score for each of the vendors, it was noted that ADS was the highest scoring vendor at 360.8, while Swish Data Corporation was the second highest scoring at 344.33. A review of SAM and DSBS revealed that ADS is a large business, while Swish Data Corporation was certified HUBZone Small Business. Of the five (5) resellers identified by the OEM, Swish Data Corporation is the only certified HUBZone Small Business (HUBZone). Based upon the research done for the 5 known resellers, the contracting officer does not have a reasonable expectation that offers would be received from two or more HUBZone small business concerns. As a result, the contracting officer will proceed with a HUBZone sole source award IAW FAR 19.105-3.

The statutory exception supporting the placement of an order exceeding the SAT on a sole source basis is: Authority 10 U.S.C. 3204(a)(2) and 10 U.S.C. §3204(a)(5). IAW FAR RFO 6.103-2 Unusual and compelling urgency and 19.105-3 HUBZone Program Sole Source Awards.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

The proposed contract action was not published to the GPE IAW FAR RFO 5.101(b)(2).

Market research was conducted among GSA schedule holders, during which AllCom Global Services (a Vertiv (Liebert) reseller) confirmed on July 27, 2026, that they cannot fulfill this requirement under their GSA contract. Because the original equipment manufacturer (OEM), Vertiv (Liebert), does not contract directly with the Government for these supplies, the Government will solicit this requirement as a sole-source action using FAR Part 12 commercial procedures to their reseller, Swish Data Corp. The government utilized the list of resellers provided by Vertiv who have had significant ties with the Navy and a history of working and selling for the OEM. Swish Data was selected and verified by the requiring and contracting activity due to their superior past performance rating and HUBZone Small Business size status.

Estimated pricing is based on a budgetary quote from Vertiv. The budgetary quote provided by the OEM already includes the estimated reseller cost; therefore, the Government assumes this estimate is accurate and does not anticipate a significant price increase resulting from the use of a reseller. Procuring a non- Vertiv (Liebert) system remains unacceptable because only Vertiv (Liebert) hardware can seamlessly integrate with NCDOC’s existing proprietary building-wide HVAC control system, avoiding a costly and time-consuming complete system replacement.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined that the anticipated cost to the Government of the supplies/services covered by this Justification will be fair and reasonable. The Contracting Officer will determine, using the procedures in FAR 15.404-1, that the prices are fair and reasonable and will document such determination with a level of detail commensurate with the complexity and circumstances of the order.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAVSUP FLC Norfolk - Fleet Directorate has no plans at this time to compete future contacts for the types of supplies covered by this document. If another potential source emerges, NAVSUP FLC Norfolk - Fleet Directorate will assess whether competition for future requirements is feasible.