Limited Sources Justification.pdf

VHAPM Part 808.405-6 Limiting Sources

Attachment 2: Request for Limited Sources Justification Format >SAT

Acquisition Plan Action ID: 36(242-20-AP-2991

D FAR 8.405-6(a)(l)(B): Only one source is capable of providing the supplies or ser ices required at the level of quality required because the supplies or services are unique or hlighly specialized;

D FAR 8.405-6(a)(l)(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.

The proprietary data for the Trane Tracer Summit HVAC and Building Automatic� Systems operates on a system that is proprietary to TRANE U.S INC., company. TRANE company does not have authorized third-party dealers and only train and certify t heir own employees to work on their equipment, thereby ensuring protection of thei proprietary software which their units operate on. Furthermore, the temperatu e, humidity and pressure sensors which periodically require repair or replacements are also proprietary to TRANE U.S. INC and they don't have authorized distributors.

Therefore, TRANE U.S. INC is the only firm capable of providing the supplies and services required to meet the needs of the requirement.

l D These are "direct replacements" parts/components for existing equipme t.

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

(5) Describe Why You Believe the Order Represents the Best Value consistent with FAR

8.404(d) to aid the contracting officer in making this best value determination: The prbvious contract for these services which was awarded to TRANE US INC., was GS-06F-0079R/vh242- 17-F-2485. The base period was awarded for $227,926.83 per year. The first option year

1 was $235,904.26 per year and the last option year was for $244,160.90 per year. The cost of services increased by 3% for every option year. The current requirement estimated rate for the base year is $252,543.00 per year. This is slightly more than the final option of the previ us

I contract. The pricing for the follow-on options increases 3% over the previous contract. fhis rate coincides with their labor rate increase for maintenance technicians from one opti9n year to the next on the GSA contract 47QSWA20D002A. TRANE US INC. also utilizes this rate to make adjustments to other costs on their GSA contract.

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

VHAPM Part 808.405-6 Limiting Sources

Original Date: 08/30/2017

Revision 02 Eff Date: 02/21/2020

Acquisition Plan Action ID: 36C242-20-AP-2991

Used VA's VIP database to identify verified capable SDVOSBs and VOSBs. A search was conducted on 09/11/2020 on the U.S. Department of Veteran Affairs (VetBiz) website u l

• ilizing keyword HVAC Maintenance and Repair, NAICS Code 238220 and Product Service Code H141 and it returned 7 vendors. Refined the search on 09/14/2020 to change the Product Se vice Code to J045 and it returned 25 vendors. An e-mail for Sources Sought Notice was sentfo all 33 vendors on 09/14/2020 with a response due date of 09/23/2020 by 3 PM EST. There w

· re no responses received.

A search was conducted on 08/27/2020 in Federal Procurement Data System (FPDS) with keywords: HVAC Maintenance, NAICS code 238220, PSC: H141, and Department of VetJrans Affairs and it returned 15 results. Refined search by adding the Year 2019 and it returndd 41 results. Most of the results were for HVAC control system maintenance awarded to diff�rent

I companies and varying funding amounts. One of the highest amounts was for $1,449,9i6.00 awarded to Veterans Elite Incorporated for base plus four option years.

JA search was conducted on 10/03/2020 in Small Business Administration (Dynamic Small Business) website using NAICS 238220, and keyword HVAC Maintenance, it returned 481 results.

An e-mail for Sources Sought Notice was sent on 10/03/2020 to all 48 vendors. There were no responses received.

A search was conducted on 08/27/2020 in GSA Advantage website using keyword HVACI I

Maintenance and keyword 238220, it returned 9 results. Conducted a search in GSA elibrary with keyword 238220 and it returned a Multiple Award Schedule under category 56121

1I0

FAC

which contains HVAC Services. A Sources Sought notice was posted on GSA e-Buy on 09/14/2020 GSA e-Buy RFQ1460645 closing on 09/23/2020. The notice was sent to18 vendors, but only two vendors provided a quote. The remaining vendors responded with "I don'� sell those products or services" and "out of service area". The 1st quote came from Brown P oint

Facility Management Solutions, LLC, a Woman Owned Small Business (WOSB). Reviewed I its capability statement, GSA Catalog and Pricing List they provided, contracts awarded in �PDS and beta.SAM.gov and the vendor has contracts similar in nature to the requirement. They currently are performing on a 4-year IDIQ for HVAC Services. They also provided a past I performance on contracts that included HVAC maintenance services. The vendor shows capability in meeting the needs of the requirement. The 2nd quote came from TRANE US INC., a Large Business. They did not provide their capability statement, instead they provided J I GSA Federal Supply Schedule Proposal for the services in the requirement. TRANE US Inc., is the incumbent contractor providing the services of the requirement on the current expirinJ contract.

A Sources Sought notice was posted in Contract Opportunities on 09/14/2020, RFI 36C24220Ql228, closing on 09/23/2020. There were 4 responses received. One vendor1 RJY Group, LLC., a Service-Disabled Veteran Owned Small Business (SDVOSB} provided its capability statement and it seems capable in meeting the needs of the requirement. Searched the' vendor

VHAPM Part 808.405-6 Limiting Sources Original Date: 08/30/2017

Acquisition Plan Action ID: 36(242-20-AP-2991 in FPDS and beta.SAM.gov, and they have contract similar in nature to the requirement They currently are performing on a contract for HVAC-R Systems PMI. Vendor Iron Sword, In,., a Service-Disabled Veteran Owned Small Business (SDVOSB) provided its capability stateient, but the company mainly provides construction management and General contracting a7d owner representative services. A search in FPDS for contracts awarded to Iron Sword under

I

HVAC maintenance did not provide any contracts. A search in beta.SAM.gov only provided two contracts both f,?r construction of offices and retaining walls. Based on their capability I statement, Iron Sword does not show capability in meeting the needs of the requirement.

Vendor Team Gov, Inc., a certified 8(a), Economically Disadvantaged Woman Owned S�all Business (EDWOSB) provided their capability statement and GSA contract catalog and p 1ricing list. A search in FPDS provided some contracts with similar services as in the requireme�t. A search in beta.SAM.gov did provide any contracts for the vendor. Based on their capability statement, vendor Team Gov, Inc., seems capable in meeting the needs of the requirerrient.

Vendor Bluelce Engineering, LLC, a Small Business provided their capability statement. h search in FPDS for HVAC services contracts for the vendor provided 17 contracts, one of the I contracts was for HVAC Systems. Based on the review of their capability statement, vendor seems capable of meeting the needs of the requirement.

I

A search was conducted on 09/11/2020 in USASPENDING.GOV website using keyword 'V 15- FY 20, Dept. of Veterans Affairs, and NAICS code: 238220 and it returned 11 results. An Ie-mail for Sources Sought Notice was sent all 11 vendors. There were no responses received frbm any of the vendors.

Based on the Market Research, and only one SDVOSBs vendor responded being capable of meeting the needs of the requirement, it was determined to Issue a solicitation for Tod I Small Business set aside thereby allowing the Small Business respondents an opportunity to p1 ovide for the requirement.

7) Any Other Facts Supporting the Justification: Solicitation 36C24221Q0101 for HVAC Controls and BAS Full Maintenance and Repair Services at the Stratton VA Medical Centfr at Albany, NY was already posted and closed on 11/17/2020. Two proposals were received. One proposal was incomplete, therefore nonresponsive. The second proposal was from AccJrd Federal Services, LLC a SDVOSB vendor who was teaming up with TRANE US INC., a La�ge Business as the subcontractor. After the initial review of vendor's proposal, it was deter!

l mined that Accord Federal Services, LLC identified as the Prime Vendor was non-responsible in Capacity and Limitations on Subcontracting efforts. A request was submitted on 11/25/2020 to Small Business Administration for a Certificate for Competency (COC).

cate of On December 17, 2020, the Small Business Administration had decided to issue a Certifi Competency to Accord Federal Services based on subcontractor's quote to Accord of l$120,000.00. According to the SBA, Accord Federal Services had communicated that the subcontractor TRANE US INC. had quoted the price of $120,000.00 for base year with t 1 tal VHAPM Part 808.405-6 Limiting Sources

Original Date: 08/30/2017

Acquisition Plan Action ID: 36C242-20-AP-2991 grand price of $626,000.00 which includes four option years. TRANE US INC., confirmetf that Accord Federal Services was quoted the base price of $252,543.00 with total grand pric� of $1,354,250.00 which are the same prices for base and options years the Contracting Officer received from TRANE during the Sources Sought phase of the market research. The l· representative from SBA was notified that per TRAN E's verification, the subcontractor quote SBA used to base their decision was altered by Accord Federal Services, LLC. SBA was pr6vided with the original e-mail communication and quote between TRANE and Accord Federal Services, LLC. The SBA re-opened the case and reversed their original decision to issue t e Certificate of Competency.

I made Based on the above findings, the Contracting Officer has determined an award cannot b for RFQ 36C24221Q0101.

(8) A Statement of the Actions, if any, the agency may take to remove or overcome a y barriers that led to the restricted consideration before any subsequent acquisition tor[ the supplies or services is made: The government will conduct market research for every new requirement as well as renewal request as a means to verify whether or not new authotized providers have entered the market place since the award of the previous contracts.

(9) Requirements Certification: I certify that the requirement outlined in this justific tion is a Bona Fide Need of the Department of Veterans Affairs and that the supporting data u[nder 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. (This signature is the requestor's supervisor, fund control point officiall chief of service or someone with responsibility and accountability.)

Ke.1th 01 m sted 1823 22·.

Digitally signed by Keith Olmsted 182322

- · Date: 2020.12.22 11 :15:59 -05'00'

SIGNATURE

Keith Olmsted

NAME

Stratton VA Medical Center

FACILITY

HVAC Supervisor

TITLE

12/22/2020

DATE

Facilities Mana ement

SERVICE LINE/SECTION

(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.

VHAPM Part 808.405-6 Limiting Sources

Original Date: 08/30/2017