Limited Sources Justification - 36C257-24-AP-0378 - Redacted.pdf

VHAPG Part 808.405-6 Limiting Sources JOFOC#: FY24-NCO 17-892 Attachment 2: Request for Limited Sources Justification Format >SAT

Effective Date: 02/01/2022 Page 1 of 4

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C257-24-AP-0378

(1) Agency: Department of Veterans Affairs (VA)

Contracting Activity: Network Contracting Office 17 (NCO 17) 5441 Babcock Rd., Ste. 302 San Antonio, TX 78240

Purchase Request ID: 549-24-1-5096-0019

(2) Description of Action: This acquisition is conducted under the authority of the Multiple- Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501).

NCO17 intends to place a sole source order with Siemens Industry Inc. for maintenance services of the building automation systems at the Dallas VAMC, Garland VAMC, and the Sam Rayburn Medical Center at Bonham, TX. The request also includes a requirement to upgrade the panels and software programs in the base period. The order will contain a one-year base period and four one-year option periods. The order will also include FAR clause 52.217.8, option to extend services.

Order against: FSS Contract Number: GS-07F-217CA

Name of Proposed Contractor: Siemens Industry Inc.

Street Address: 1000 Deerfield PKWY

City, State, Zip: Buffalo Grove, IL 60089-4547

Phone: 571-379-1092

(3) Description of Supplies or Services:

The Veterans Health Administration (VHA), VA North Texas Health Care System (VANTHCS) has established a requirement for the ongoing service for the Siemens Apogee Building Management systems located at the VANTHCS: Dallas VAMC, Garland VAMC, and Sam Rayburn Memorial Veterans Center (SRMVC), Bonham, Texas. The manufacturer shall be responsible for providing the management, technical support, tools, material, equipment, and labor necessary to maintain, upgrade, and repair the Siemens Apogee Building Management systems for the

VANTHCS.

https://www.acquisition.gov/far/part-8#FAR_8_405_6 http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3 https://www.gpo.gov/fdsys/pkg/USCODE-2011-title40/pdf/USCODE-2011-title40-subtitleI-chap5-subchapI-sec501.pdf

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

The estimated value of the proposed action, including all options, is $REDACTED.

(4) Identify the Authority and Supporting Rationale:

FAR 8.405-6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

FAR 8.405-6(a)(1)(B): Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized:

Siemens provided a letter stating that they are the sole manufacturer, distributor, and service provider for their Apogee Desigo Energy Management System. Siemens does not use third parties to work on the Apogee System. The proprietary data in the Apogee is exclusive to only Siemens Industry Inc. Only Siemens trained technicians can provide detailed program add, moves, changes and support. The existing government-owned Siemens Apogee systems require ongoing maintenance services. Accordingly, Siemens Industry Inc. is the only firm capable of providing the services without the VHA experiencing duplication of cost that is not expected to be recovered through competition.

FAR 8.405-6(a)(1)(C): In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures.

FAR 8.405-6(b): Items peculiar to one manufacturer:

A patent, copyright or proprietary data limits competition.

These are “direct replacements” parts/components for existing equipment.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing.

(5) Determination by the Ordering Activity Contracting Officer that the Order Represents the Best Value consistent with FAR 8.404(d):

The Contracting Officer has determined that the proposed order with Siemens Industry Inc.

represents a best value and will result in the lowest overall cost alternative to meet the government’s needs.

(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted.

https://www.acquisition.gov/far/part-8#FAR_8_405_6 https://www.acquisition.gov/far/part-8#FAR_8_405_6 https://www.acquisition.gov/far/part-8#FAR_8_405_6 https://www.acquisition.gov/far/part-8#FAR_8_405_6

Effective Date: 02/01/2022 Page 3 of 4

A look at Multiple Award Schedule (MAS), category 56210SB (Smart Building Systems Integration) identifies that there are 66 contractors within the category. A special notice, notice of intent to award a sole source procurement, was posted to SAM Contract Opportunities for this requirement. The response date of the notice has passed and there was no response to the notice.

(7) Any Other Facts Supporting the Justification:

None

(8) A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

Market research will be performed prior to exercising options and on subsequent procurements to see if there have been any changes in the marketplace.

(9) 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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

//SIGNED//

REDACTED Date: 04/29/2024 Maintenance & Operations Supervisor, Engineering VA North Texas Health Care System

(10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

//SIGNED//

REDACTED Date: 04/29/2024 Contracting Officer https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM2/VHAPM_Part_806.3.aspx https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM2/VHAPM_Part_806.3.aspx

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

b. One Level Above the Contracting Officer: I certify the justification meets requirements for other than full and open competition.

//SIGNED//

REDACTED Date: 05/15/2024 Branch Chief, Patient Administration Support Network Contracting Office 17

Director of Contracting: I certify the justification meets requirements for other than full and open competition.

//SIGNED// __

SIGNED Date: 05/16/2024 Director of Contracting Network Contracting Office 17

HIGHER LEVEL APPROVAL (Required for orders over $750,000):

c. VHA RPO HCA Review and Approval (over $750,000 to $75 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

//SIGNED//

REDACTED Date: 05/18/2024 Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA)