MRM-J and A_Redacted.pdf

31 July 2026

MEMORANDUM FOR THE RECORD

SUBJ: Market Research Memorandum (MRM) and Justification and Approval for the Procurement of a 525-Ton Chiller Package Rental in Support of Naval Medical Center Camp Lejeune, NC (NMCCL)

1. Background. This document serves as documentation for market research as well as the justification for an urgent and compelling sole source award to Daiken Applied Americas, Inc.

for the one-month rental of a 5-ton Chiller Package. Due to the failure of chiller components for two of the three existing chiller units on site NMCCL has been experiencing rising temperatures and humidity throughout the facility. The increased temperatures have significantly reduced hospital operational capacity for patients and staff.

2. Requirement Description. Naval Medical Center Camp Lejeune (NMCCL), NC has an urgent and critical requirement for the rental of one 525-ton Chiller package. This package will include the chiller and trailer, freight, installation, decommission, and any overtime pay for after-hours services.

North American Industry Classification System (NAICS) Code: 334512, Automatic Environmental Controls Manufacturing for Residential, Commercial, and Appliance Use

Small Business Size Standard – 650 Employees

Product Service Code: W041 – Lease or Rental of Equipment – Refrigeration, Air Conditioning, and Air Circulating Equipment.

Estimated Dollar Value of Acquisition (including all options):

3. Market Research. Government databases/catalogs were searched to identify existing sources to include the following:

General Services Administration (GSA) – FSS, GSA Schedules.

- Company Daikin Americas has a GSA contract, but it did not include the rental of the required materials

The following sources were identified through the market research efforts

Company Name

POC Name/Contact Info Cage Code Location of source (ECAT. GSA, SAM.GOV, Google etc)

Daikin Applied Americas 3A3W3 GSA

4. Analysis: This requirement was to be initially procured via the GSA contract as a GPC or Contracting Officer Official Cardholder purchase. Upon further communication with the company, it was discovered that the rental aspect was not available on the GSA contract.

However, due to the urgent and compelling nature of the requirement and the risk of catastrophic results to the delivery of patient care, and the company’s ability to provide the product in a short period of time was instrumental in its selection as sole vendor for this action.

5. Identification of Those Involved in the Market Research Efforts:

Name Job Title Email Address

Felicia W. Smith Contracting Officer felicia.w.smith.civ@health.mil

6. Other relevant information: As an urgent and compelling requirement, minimal market research was conducted to find the most advantageous solution for the requirement.

7. Justification to Sole Source (Daikin Applied Americas, Inc.)

Company Name: Daikin Applied Americas, Inc.

Business Size: Large Business Address: 13600 Industrial Park BLVD, Minneapolis, MN 55441-3743 Cage Code: 3A3W3 Unique Entity ID: UMD4HJ2PR8D6

Factors Leading to Sole Source: Control module failures caused two of the three chillers servicing Naval Medical Center Camp Lejeune’s primary clinical area to become disabled. As a result of this failure, surgical cases were cancelled, non-emergent patients were transferred, all traumas, were being stabilized and rerouted unless a life-threatening condition was present. This is also resulting in high temperatures and humidity throughout significant patient care spaces throughout the hospital, making those areas unusable for patient treatment. The diversion of the cool air has resulted in a strain of resources and resulted in overheating of other critical clinical and administrative spaces.

Mission Impact and Risk of Delay: Failure to provide the Chiller rental would result in catastrophic delays in healthcare operations.

- Trauma Diversion: NMCCL will need to divert traumas after stabilization due to the inability to utilize operating rooms, sterile processing services, and other pertinent clinical areas within the hospital due to rising temperatures and humidity. Creating unsafe working conditions, and compliance with temperature requirements for infection control measures for certain patient treatment.

- Unsafe Working Conditions: The diversion of cool air has resulted in significant overheating of critical clinical and administrative areas, which have required telework or administrative leave due to the limited HVAC capacity.

8. Recommendation. This requirement is valued under SAT at for a period of one month from 31 July through 27 August 2026. This requirement was awarded to the sole source due to its urgent nature and for a minimal period of one-month to allow time for the completion of repairs and maintenance to return facility operation to a fully operational status. As stated by the contractors, a one-month span is described as 28 days. The selected contractor had prior knowledge of the facility and was able to provide the required equipment with a short turnaround time for installation. In accordance with FAR 6.103-2 for unusual and compelling urgency, the critical nature of this requirement, and the immediate impact on human life and military medical readiness, it is highly recommended to bypass competition efforts for a sole source award to Daikin Applied Americas, Inc. for the one-month rental of the 525-Ton Chiller.

Felicia W. Smith Contracting Officer

Date 05 Aug 2026