Limited Sources Justification-Furniture_Redacted (signed).pdf

Department of Energy Washington, DC 20585

January 27, 2021

MEMORANDUM FOR FILE

FROM: Lisa Persson, Contract Specialist

RE: Limited Sources Justification for the Purchase of Herman Miller

Furniture for the ARPA-E Suite

The following rationale is provided under FAR 8.405-6(b) – An item peculiar to one manufacturer is required (i.e., brand name item, product, or a feature of a product), specifically, FAR 8.405-6(b)(2)(i) as the acquisition is estimated to be $ .

The Committee on Prospering in the Global Economy of the 21st Century, which first proposed the creation of the Advanced Research Projects Agency – Energy (ARPA-E), envisioned an agency that would “sponsor creative, out-of-the-box, transformational . . . energy research in those areas where industry by itself cannot or will not undertake such sponsorship, where risks and potential payoffs are high, and where success could provide dramatic benefits for the nation.”

Rising Above the Gathering Storm (2007) at 154.

Congress incorporated this vision into ARPA-E’s governing statute:

“The goals of ARPA-E shall be (A) to enhance the economic and energy security of the United States through the development of energy technologies that result in (i) reductions of imports of energy from foreign sources; (ii) reductions of energy-related emissions, including greenhouse gases; and (iii) improvement in the energy efficiency of all economic sectors; and (B) to ensure that the United States maintains a technological lead in developing and deploying advanced energy technologies.”

42 U.S.C. § 16538(c).

Congress authorized the creation of ARPA-E under the America COMPETES Act in 2007.

However, ARPA-E did not receive any funding until Congress appropriated $400 million to ARPA-E in the American Recovery and Reinvestment Act. When it commenced operations in spring 2009 with a handful of employees and contractors, ARPA-E inherited an office suite on the 8th floor of 955 L’Enfant Plaza SW, Washington, DC, which was poorly designed in the sense that it made inefficient use of the available space. In addition, ARPA-E inherited a motley assemblage of worn and damaged office furniture and cubicles that had been used for many years by Bechtel, the original occupant of the office space, and later by other Department of Energy (DOE) programs. Two years later, ARPA-E had outgrown the space in 955 L’Enfant Plaza SW and relocated to 950 L’Enfant Plaza SW to acquire adequate square footage.

ARPA-E has occupied the entire 8th floor of 950 L’Enfant Plaza in Suite 8000 since 2011 when the suite was renovated and Herman Miller furnishings were selected for ARPA-E based on the manufacturer’s offering of energy-saving technologies that were built into their products. At that time, ARPA-E was seeking to establish a showcase for energy-efficient technologies given that part of its statutory mission included (and includes), “reductions of energy-related emissions” and “improvement in the energy efficiency of all economic sectors.” Herman Miller was unique in its ability to provide Convia Programmable Infrastructure (“CPI”), which is a modular, programmable electrical and data infrastructure for building interiors that delivers “plug-and-play” power to virtually anywhere within a space, without requiring the hardwiring of devices or switches. Herman Miller also offered an “Energy Manager” which is a simple device added to their systems furniture for the purpose of saving electrical energy by utilizing occupancy sensors.

The layout of the ARPA-E suite included individual offices with glass walls along the perimeter of the entire floor and large open areas of low-walled cubicles throughout the center on both sides of the elevator bank. The design aesthetic was modern, even progressive with clean contemporary lines and a light color palette all of which visually reinforced ARPA-E’s brand of innovation and forward-thinking. The furnishings, predominantly Herman Miller, were visible across the open areas and through the glass office walls so the design was highly cohesive in nature, creating a progressive, professional and functional aesthetic.

Today the layout and design aesthetic are essentially the same as in 2011, with only minor tweaks made over the years. ARPA-E’s desire to maintain its brand as a forward-thinking, innovation organization at the forefront of advanced energy technologies has not changed over the years either. Conveying its brand within its office space is still of greatest importance to ARPA-E.

ARPA-E’s suite of offices is not only for existing staff but hosts hundreds of visitors each year from across academia and industry. A space with a mixture of mismatched furniture would send the wrong message and could hamper ARPA-E’s ability to recruit new advanced energy technology researchers, merit reviewers—and potentially most importantly—new federal Program Directors and other term appointees where the build-out of the space materially conveys the organization’s culture and brand.

In addition to concerns for the aesthetics of the suite and the message it conveys to staff and visitors, interchangeability of the office furniture is of great importance to ARPA-E. The staff has continued to grow and there have been recent discussions of reorienting some workstations to create more efficient arrangements. Interchangeability of parts and pieces of existing and new furniture provides greater flexibility without compromising aesthetic. The previously mentioned tweaks ARPA-E has made over the years have consisted of relocation of chairs, side tables and storage units to other areas of the suite and there has been no impact on the overall aesthetic due to the visual consistency of all the furniture. ARPA-E continues to value and require interchangeability.

Currently, ARPA-E has a requirement for the purchase, delivery and installation of additional Herman Miller furniture for its reception area, multipurpose room, team rooms, and open office area (also known as the “Innovation Area”). As a Federal agency, ARPA-E is aware of the mandates to promote competition and utilize required sources. Recognizing that ARPA-E’s requirement to purchase Herman Miller furniture limits competition, we consulted the Government Accountability Office’s bid protest decisions seeking information pertaining to such actions. ARPA-E reviewed decisions B-220451, B251685, B-257395, B-261356, B-408388 and

B-413373. Of particular interest is decision number B-408388 where the protester argued the agency unduly restricted competition by requiring oak material for its furniture procurement. The GAO denied the protest because the agency successfully argued that, “red oak is the best material to provide a ‘uniform appearance and interchangeability’ with its existing furniture supply and inventory. (Agency Supp. Report at 4.)” J. Squared Inc., d/b/a University Loft Company, B- 408388, Aug. 27, 2013, at 4. Moreover, GAO noted that, of the bases provided by the agency, “[m]ost compelling is its stated goal of ensuring standardized furniture procurements across the agency, which have historically been oak furniture procurements, and the need for future procurements to be consistent with the existing furniture for both aesthetic and practical reasons.”

Id. at 7.

Similarly, ARPA-E originally procured Herman Miller furniture for its energy-efficient features and now reasonably desires to maintain the ARPA-E brand aesthetic, maintain a uniform appearance, and maintain interchangeability with existing inventory by procuring more Herman Miller furniture. In short, this furniture will ensure a standardized work environment that would be interrupted by the inclusion of a different brand. In addition, continuing use of Herman Miller furniture provides ARPA-E with a cost-saving advantage by not having to replace the existing furniture in addition to purchasing new ones in order to maintain a uniform appearance.

Initiated by:

Lisa Persson

Lisa Persson Contract Specialist

Approved:

Bart Bridwell Contracting Officer & Procurement Director