JA Redacted.pdf

TMEN

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND MARIANAS

PSC 455, BOX 195

FPO AP 96540-2937

IN REPLY REFER TO:

J&A NO. ACQ22B-25-0002

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

The requiring activity is Department of the Navy, Naval Facilities Engincering Systems Command (NAVFAC) Marianas.

2. DescriptionoftheActionBeingApproved.

This justification and approval (J&A) seek authority to award, on a sole-source basis, a contract to Schneider Electric Inc. to provide hardware updates for the Advanced Metering Infrastructure (AMI) system installed at Naval Base Guam (NBG) and associated auxiliary sites.

The period of performance is 240 calendar days from contract awar.

DescriptionofSupplies/Services.

This projcct is intended to provide for additional improvements to harden pathways, provision cquipment spares, incorporate alternate system networking infrastructure, and provide resilience to known and demanding operational and cybersecurity hazards. The current AMI system is running Schncider Elcctric Inc. devices and its EcoStruxure Power Monitoring Expert (PME) software, as well as devices from Supervisory Control and Data Acquisition (SCADA) metrics and Badger Mcter.

The project is divided into work clements consisting of base cffort and options for continued support throughout the contract period of performance. The base effort and options include but are not limited to: replaccmcnt of existing AMI nctwork switches and meters; implement communications pathways to various buildings' network switch using existing outside plant (OSP) single mode fiber pathway; ensure full communications and integration with existing AMI server; provide AMI laptop workstations; provide cquipment as indicated for use in AMI system troubleshooting, testing, diagnostics, and replacements.

Facilities affected include: Alpha substation, Bravo substation, Kilo substation, Romeo substation, Buildings 30 12, 4434, 1995, 556A, 18, 105, 1 (USCG), 2125SY (EOD), 400NM, 1706SV, 200 (Nimitz Hill), 4175C (Apra Heights), S1 (Barrigada), 23 (Naval Hospital), 112 (NCTS), and electric and water meters for ncarby facilities. Affected facilities will primarily oPwnc

3.

J&A NO. ACQ22B-25-0002

be subject to nctwork switch replacements or new installations in existing communications spaces, with interior and cxterior cable and conduit placed above grade in alignment with Inside Plant (ISP) communications infrastructure typical for facilities. In addition, up to 84 clcctrical meter replacements will take place at the listed waterfront substations, as well as digital encoder and register replacements for 53 water mters.

The estimated cost for this proposcd solicitation is The Government intends to use FY25, Operation and Maintenance (0&M), Navy funds.

4. StatutoryAuthorityPermittingOtherThanFullandOpenCompetition.

The statutory authority permitting other than full and open competition is 10 U.S.C. 3204(a)(1), as implemented by FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agencyrequirements.

5. RationaleJustifyingUse ofCitedStatutoryAuthority.

The current AMI infrastructure system in Guam was installed and turned over to the Navy in 2011. Due to the age of the system, network failurcs and component problems have been noted on the Navy's AMI system, with noted hardware failures of some system components. To mitigate these problems and risks, hardware replacements are required to restore reliable system operations.

If not provided, the Navy AMI system will continue to degrade, with waterfront clectrical substations continuing to suffer loss of metering capability, and without ability to recover the existing communications network. New projects will not be able to cover total system integration requirements for AMI meters, resulting in waste of project funding.

AMI is a system of software and hardware clements that allows industrial organizations to:

Monitor, gather, and process real-time and historical utility data from remote locations Identify andassessexigent operational conditions of facilities Determine locations of water leaks in an cxpedited fashion Identify facilitics with high cncrgy footprint for targeted restoration and modernization funding Record events into a log file

AMI systems arc crucial for industrial organizations since they help to ensure cnergy efficiency, maintain reliability, proccss data for smarter decisions, and communicate system issues to help mitigate downtime. Specialized services are required for the installation and configuration of the AMI system.

Market research as well as a query for Small Business concerns was conducted using the Dynamic Small Business Scarch (DSBS), GSAbuy.gov and Industry Vendor sites, with search criteria set for Keyword "Advanced Metering" and NAICS codes 3345 1$- Instrument Manufacturing for measuring and testing clectricity and electrical signals, 2211-clectric power gencration transmission and distribution, 423420-23 fluid meters and counting.

rendered only a limited number of companics nationwide that are capable of providing these scrvices and no companies on Guam that are able to provide these services. Of the companies identificd in the DSBS rescarch, only Schncider Electric has experience with the current AMI meters at NAVFAC Marianas. The results of the sources sought, as discussed in paragraph 6, further supported this determination as no additional company expressed their capabilities and interest for this requirement.

Results

As Schncider Electric Inc. completcd the ovcrall system design, installation, and integration of the Navy AMI system in 2011, utilizing another vendor provides significant risk for compatibility issues which will result in significant cost over runs and time delays. Schneider Elcctric Inc. possesses unique expertise as the software developer and system integrator to be able to cffectively integrate and implement the repairs and replacement of the network appurtenanccs. Furthermore, Schneider Electric Inc. is currently providing services for the repairs of the Navy's AMI system through the prior contract vehicle administered through NAVFAC Pacific for NAVFAC commands in the NAVFAC Pacific Area of Responsibility (AOR). The Risk Mitigation Framework (RMF) Authority toOperate (ATO) covering the AMI system authorizes the use of Schneider Electric Inc. electric meters and system software throughout the Navy, and are used in all Navy regions for these purposes. To maintain the RMF ATO, the proposcd components must be compatible with the existing front-end system or Ecostruxure's Power Monitoring Expert.

Schneider Electric Inc.'s years of past work on the Navy's AMI system provides them with unique and intimate knowledge of the system. As stated above, the market availability for these services is quite limited in the U.S., let alone Guam itself.

In accordance with FAR 6.302-1(a)(2)\(iii), Schneider Electric Inc. is deemed to be the only responsible source for this folow-on contract for the provision of highly specialized services as selection of another vendor provides significant risk for compatibility issues which will result in significant cost over runs and time delays. As discussed in detail above, awarding this requirement to other than Schneider Electric Inc. would result in substantial duplication of cost to the Government. Such duplicated cost is not expected to be recovered through competition.

In addition, duplication of cffort will result in unacceptable delays in fulfilling the agency's requirements, which subsequently results in degradation of ability to reliably and resiliently to provide utility metering capability for clectrical power and water distribution which enables utilities billing and revenue strcams for operational requirements.

6. Description ofEffortsMadetoSolicitOffersfromasManyOfferorsasPracticable.

Per Defense Federal Acquisition Regulation Supplement (DFARS) Procurement, Guidance, and Information (PGI) 206.3-1, FAR S.201, a Notice of Intent to Sole Source was published on SAM.gov on 04 August 2025 which provided interested parties the opportunity to identify their interest and capability in response to the requirement and to determinc availability of other providers. The noticcd closcd on 11 August 2025. There were no responses from the industry. Receiving no responses from compcting vendors indicates that there are no other available providers that can fulfill the requirement.

7. DeterminationofFairandReasonableCost.

The Government will ncgotiate this requirement to reach price fair and reasonableness consistent with FAR 15.404. Furthermore, awarding this project to another service provider would result in a significantly highcr price because the other firm would have to conduct extensive rescarch to be familiarizcd with the existing systems cquipment, network, and software, systems redesign and reprogramming to align with products and/or programming practices of the other firm's tcchnicians, mobilization to an Outside of Continental United States (0CONUS) site for which the other firm does not already have an on-site presence, redevclopment of systems documentation and processes from a much lower baseline, and a higher risk deploymcnt. Significant addcd costs and time would be expended by the Government in order to properly evaluate an alternate solution and to ensure that critical operational systems can be replaced and made resilicnt in a timely manner.

8. ActionstoRemoveBarrierstoFutureCompetition.

Prior to competing future requirements for the type of supplies/services covered by this document, NAVFAC Marianas will conduct a market survey to ascertain whether other potential sources are capable of mecting the Government's needs. If another potential source emerges, NAVFAC Marianas will assess whether competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAUREQUIREMENTS CERTIFICATION

I certify that the factsandrepresentationsunder mycognizancewhich are included in this Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belicf.

Technical/Requirements Cognizance:

Signaturc

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Signaturc

Printed Name Phone No. Date

Printed Name Phone No. Date

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

Signature Printcd Name

Phonc No. Date

Phonc No. Date

ECHELON IV CCO ENDORSEMENT

Chicf of the Contracting Office NAVFAC Marianas

APPROVING OFFICIAL

Upon the basis of the above justification, I hercby approve, as the Commanding Officer, the solicitation of the proposcd procurement(s) described hercin using othcr than full and open competition, pursuant to the authority of 10 U.S.C. 3204(a)(1), as implemented by FAR 6.302-1.

Signaturc Printed Name Phone No. Date