B_02.0_J&A_Chiller_Services_Sole_Source.pdf

DEPARTMENT OF THE NAVY

PUGET SOUND NAVAL SHIPYARD

AND INTERMEDIATE MAINTENANCE FACILITY

1400 FARRAGUT AVENUE STOP 2090

BREMERTON WASHINGTON 98314-2090 IN REPLY REFER TO:

J&A Number: 19-03JA

Ser 440/623 15 Nov 2018

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

Puget Sound Naval Shipyard and Intermediate Maintenance Facility (PSNS&IMF), Industry Management Contracts Division (Code 440) Puget Sound, Bremerton, WA 98314-2026 will be the contracting activity.

2. Description of the Action Being Approved

Award of a 5-Year IDIQ contract using commercial procedures to Trane Supply to perform preventive and corrective maintenance and repair to Government owned water chillers.

The action being submitted for approval is to contract under the conditions of having only one responsible source and no other supplies or services will satisfy agency requirements. Trane is the only firm capable of meeting this technical requirement due to the warranty under Trane that requires that modifications, repairs, or alterations to the equipment shall be by Trane, refrigerant shall be supplied by Trane, and maintenance shall be performed as recommended by Trane.

Trane is the original contracted service provider (FAR 6.302-1(b)(1)(i)).

Estimated Dollar Value

OM&N Total

FY19 $90,000 $90,000

FY20 $90,000 $180,000

FY21 $90,000 $270,000

FY22 $90,000 $360,000

FY23 $90,000 $450,000

3. Description of Supplies/Services

Provide annual maintenance per the manufacturers recommendation on each Government owned chiller and on-demand inspections. Services include all manufacturers recommended annual maintenance on the following units as well as two additional units currently under contract and the option to add additional units. Additional services that may be required are on-site diagnostics and repair services for Chiller failures, such as (but not limited to) failure to

26 Oct 2018

J&A Number: 19-03JA start/run or failure to chill water. During the performance of annual service, identify defective parts that require replacement. Provide an estimate of parts and labor to perform repairs to the Contracting Officer or his/her representative. If approved by the Contracting Officer, perform repairs. Estimated dollar value - $450,000 over 5 years. Period of Performance to begin 15 January 2019.

4. Statutory Authority Permitting Other Than Full and Open Competition

FAR 6.302-1/10 U.S.C. 2304(c)(1): Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

The units are made by Trane, and maintenance of the units have a warranty under Trane, which is a valid justification for a sole source, because the terms of Trane’s warranty require that modifications, repairs, or alterations to the equipment shall be by Trane, refrigerant shall be supplied by Trane, and maintenance shall be performed as recommended by Trane.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable

a. Sources Expressing Interest.

A Notice of Intent to Sole Source will be posted to Government Point of Entry (FBO) on 15 November, 2018 closing 30 November, 2018.

b. Market Research.

The market research shows that there are a limited number of contractors in the area that have the ability to perform the required maintenance on the refrigeration portion of the units.

Trane is the only local vendor that is familiar with the water recirculation portion of the 60 Ton units. The four 90 Ton water chillers are still under a five-year manufacturer’s warranty for the compressors and Trane will exclusively perform work on the compressors while warranty is still in effect.

For the reasons cited above, in paragraph 5, no additional efforts were made to solicit for this requirement. Notification of this action will be publicized as required by FAR 5.2 and 6.305.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by this J&A will be fair and reasonable based on previous contracts and cost history. The government will require certified cost or pricing data and will use historical prices, published price lists, quotes received in market research, and any other information to determine fair and reasonable pricing.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, PSNS&IMF has no plans at this time to compete future contracts for the types of services covered by this document. If another potential source emerges, PSNS&IMF will assess whether competition for future requirements is feasible.

CERTIFICATION AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(b))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL AND REQUIREMENTS COGNIZANCE

/s/___________ ___________________ __ __ __ Signature JONATHANE R. MERRITT, PSNS & IMF, Code 270TS (360) 476-0376

LEGAL SUFFICIENCY

Signature D. J. KELLY, Legal, C/107

CONTRACTING OFFICER CERTIFICATION

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

Signature D. J. ELLIS, Contracting Officer C/440.23 (360) 476-4001

APPROVAL REQUIRED BY FAR 6.304 (HCA)

Upon the basis of the above justification, I hereby approve, the solicitation of the proposed procurement(s) described herein using other than full and open competition pursuant to the authority of 10 U.S.C. 2304(c)(1).

Signature D. C. CROW, CCO C/440 (360) 476-4111