LSJ_Waters_Strategic_Source_BPA__AAC_Signature__7-12-22_1.pdf

ENVIRONMENTAL PROTECTION AGENCY (EPA)

LIMITED SOURCE JUSTIFICATION

UNDER FAR 8.405-6(a)(1)(i)(B)

Waters Corporation Strategic Source BPA

(1) FAR 8.405-6(c)(2)(i) - Identification of the agency and the contracting activity:

Agency U.S. Environmental Protection Agency (EPA) Office of Air and Radiation (OAR) Office of Transportation Air Quality (OTAQ) Testing and Technology Division (TATD) National Vehicle Fuels and Emissions Laboratory (NVFEL) 2565 Plymouth Road Ann Arbor, MI 48105

Contracting Activity U.S. Environmental Protection Agency (EPA) Office of Acquisition Solutions (OAS) Headquarters Acquisitions Division (HQAD) Pre-Award and Professional Services Branch (PAB) 1200 Pennsylvania Avenue, NW Washington, DC 20460

(2) FAR 8.405-6(c)(2)(ii) - Nature and/or description of the action:

The purpose of this limited source justification is to issue a firm-fixed price agency-wide single-award blanket purchase agreement (BPA) with Waters Corporation against its GSA Schedule contract to provide service level agreements (SLAs) for government owned laboratory equipment across the EPA’s Centers/Offices/Regions. Waters is the original equipment manufacturer (OEM) for this requirement.

In previous individual acquisitions for service level agreements of Waters-manufactured equipment owned by various EPA centers, offices, and regions, Waters Corporation was deemed the only source capable of providing the specialized service level agreements, which resulted in a duplicative, inefficient contract portfolio. EPA now intends to establish the agency-wide BPA to leverage cost savings, GSA Schedule discounts, and administrative efficiencies across the board on Waters Corporation-manufactured equipment. Each Center or Region will be under the blanket purchase agreement for services or repairs required, which will provide a universal asset management program to include the following: maintenance optimization (service level agreements appropriate for individual instrument needs), cost efficiency initiatives, and single leadership team with oversight by a single governance structure. This requirement does not affect the individual laboratory’s decision to use Waters-manufactured equipment but simply provides a more efficient vehicle for maintaining equipment that must be maintained by the

(OEM).

This acquisition and the consolidation of EPA’s duplicative contract portfolio aligns with the Office of Management and Budget (OMB) May 20, 2019, memorandum M-19-13 subject “Category Management: Making Smarter Use of Common Contract Solutions and Practices.”

Furthermore, this acquisition is projected to reduce the number of separate contracts with Waters currently used to meet the Agency’s needs from 39 separate Waters contracts into one (1) BPA.

This is also in response to, and in line with, the M-19-13 directive and others from the Office of Management & Budget (OMB) which instruct EPA to reduce unnecessary contract duplication.

(3) FAR 8.405-6(c)(2)(iii) - Description of the supplies or services required to meet the agency’s needs (including the estimated value):

Waters Corporation shall provide all personnel, equipment, parts, tools, materials, vehicles, transportation, supervision and other items and services necessary to provide on-site preventative maintenance visits, repairs, calibrations, emergency services visits, telephone support, software updates, and timely scheduled requested service maintenance that shall be agreed upon mutually by the contractor and government. All consumable parts (non-operating supplies) are purchased through separate orders and are not part of this procurement effort. All services shall be provided by authorized Waters factory trained field service engineer employees. This acquisition may provide opportunities for subcontracts.

NAICS/PSC:

The North American Industry Classification System (NAICS) is 811219 Other Electronic and Precision Equipment Repairs and Maintenance with a size standard of $22 million. The product service code (PSC) is J066 Maintenance, Repair, and Rebuilding of Equipment – Instruments and Laboratory Equipment.

Proposed Contract/Order type:

Single-award firm-fixed price (FFP) Blanket Purchase Agreement (BPA)

Period of Performance:

The ordering period will be for One (1) Base Year, and Four (4) 12-month Option Periods.

Estimated Value:

The estimated value of these services is $5 million (total inclusive of all options).

(4) FAR 8.405-6(c)(2)(iv) - The authority and supporting rationale and, if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

The authority for this action is FAR 8.405-6(a)(1)(i)(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

Waters Corporation is the only source capable of providing the required service level agreements to the EPA for laboratory instruments and equipment manufactured by Waters. Specifically, it is Waters’ ability to provide the required proprietary software and hardware updates and maintenance on vendor specific laboratory equipment that necessitates them as the only capable source. The required proprietary software and services are what constitutes the contractor’s unique qualifications.

Furthermore, only Waters employees are trained and certified field service engineers (FSE) by Waters, and only Waters FSEs are granted authorization to use the Waters proprietary software and hardware. Waters does not provide third party trained and certified FSEs and Waters does not authorize third parties to access, use, and/or redistribute its propriety software or hardware. The OEM warranties are voided if non-Waters trained and certified FSE service and maintenance the Waters equipment.

Due to the nature of the requirement’s unique circumstances surrounding propriety software used in maintenance and upkeep of the instrumentation and the inability to access Waters certified, specialized technicians outside of the OEM, which is required to sustain the warranty coverage within the industry, alternates such as teaming are not viable options

(5) FAR 8.405-6(c)(2)(v) - A determination by the ordering activity contracting officer that the order represents the best value consistent with 8.404(d)

The Contracting Officer has determined the anticipated cost to the Government of the services covered by this Limited Sources Justification will be fair and reasonable based on historical pricing information. The Contracting Officer will ensure the price structure proposed by the contractor is fair and reasonable prior to award. The anticipated cost for this single award BPA (firm-fixed-price) is expected to be fair and reasonable since GSA has already determined the unit prices and fixed rates to be fair and reasonable at the GSA Schedule level thus providing the best value for the government.

(6) FAR 8.405-6(c)(2)(vi) - A description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted

A Request for Information (RFI) RFQ1540003 was posted to GSA eBuy on 02/24/2022. The RFI was solicited under MAS 334516: Analytical Instruments to a total of 95 vendors, and MAS 532490L: Laboratory Maintenance, Repair, Leasing and Warranties to a total of 37 vendors. The Government received one (1) response from the RFI which was from Waters to the sources sought/RFI. Waters Corporation is the only entity capable of providing this service the EPA.

(7) FAR 8.405-6(c)(2)(vii) – Any other facts supporting the justification.

None.

(8) FAR 8.405-6(c)(2)(viii)- 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.

There are barriers that are inherent with this type of services because this industry will only warranty the equipment when serviced by their (the OEM) own trained, certified professional and the OEMs do not outsource such certifications to third-party entities. Additionally, certain hardware and software updates are only available through the OEMs. Due to the nature of the requirement’s unique circumstances surrounding propriety software used in maintenance and upkeep of the instrumentation and the inability to access certified, specialized technicians outside of the OEM (Waters), which is required to sustain the warranty coverage within the industry, alternates such as teaming are not viable options.

Given the Agency can make decisions to change its portfolio of the instrumentation/equipment it purchases when refreshing, replacing, and/or establishing its equipment needs, the Agency is not bound in perpetuity under this sole source acquisition. The Agency’s portfolio of OEMs is already vastly diverse as to reduce instances of sole source acquisitions inherent in a requirement of this nature. This individual decision by the requiring activities serves to overcome barriers in competition.

Following this acquisition EPA will publicize the action IAW FAR 8.404(g)(2)(a)(i) and post the justification IAW FAR 8.404(g)(2)(a)(ii). All market research efforts will be conducted in line with FAR Part 10 for future acquisitions of a similar nature, to include Sources Sought Notices.

(9) FAR 8.405-6(c)(2)(ix)- The ordering activity contracting officer’s certification that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief.

This is to certify that the justification for the proposed acquisition has been reviewed and that to the best of my knowledge and belief the information and/or data provided to support the rationale and recommendation for approval is accurate and complete.

Brandon Butler Date Contracting Officer/Team Lead

OAS/HQAD/PAB

Reviewed by Branch Chief I certify that this justification is accurate and complete to the best of my knowledge and belief.

Josh Jordan Date Branch Chief

OAS/HQAD/PAB

(10) FAR 8.405-6(c)(2)(x)- Evidence that any supporting data that is the responsibility of technical or requirements personnel (e.g., verifying the Government’s minimum needs or requirements or other rationale for limited sources) and which form a basis for the justification have been certified as complete and accurate by the technical or requirements personnel.

7-12-2022

Jordan, Joshua

Digitally signed by Jordan, Joshua Date: 2022.07.12 12:16:48 -04'00'

Butler, Brandon Digitally signed by Butler, Brandon Date: 2022.07.12 14:53:43 -04'00'

UNDER FAR 8.405-6(a)(1)(i)(B)

Waters Corporation Strategic Source BPA

I certify that the facts and representations stated in this justification are complete and accurate which form the basis to award this requirement.

Matthew Parsons Date Contracting Officer Representative

OAR/OTAQ/TATD/NVFEL

(11) FAR 8.405-6(c)(2)(xi)- For justifications under 8.405-6(a)(1), a written determination by the approving official identifying the circumstance that applies.

Approval from the Agency’s Advocate for Competition I certify that FAR 8.405-6(a)(1)(i)(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 applies to this justification, and this justification is accurate and complete to the best of my knowledge and belief.

Tommie Madison Date EPA’s Advocate for Competition

7-12-2022 atthew Parsons