Sole_Source_Justification-Hydrospace_Chiller_Redacted.pdf

June 13, 2018

MEMORANDUM

Subj: SOLE SOURCE JUSTIFICATION FOR CHILLER REPLACEMENT (Purchase Request TBD)

1. Identification of the agency and the contracting activity, and specific identification of the document as a “sole source justification.”

This is a sole source justification. Contracting activity is NSWC-PCD, Code 024, 110 Vernon Ave., Panama City, FL, 32407.

2. Nature and/or description of the action being approved.

This action will award a firm fixed price purchase order to Comfort Systems USA, 7826 McCelvey Road, Panama City Beach, Florida 32408 for the replacement of the chiller system for building number #413 at the Hydrospace Laboratory at NSWC-PCD, including removal and disposal of the unserviceable unit.

3. A description of the supplies or services required to meet the agency’s needs (including the estimated).

This procurement is for:

Trane CGAM070F2**3AXD2A1B1B1 70-ton Chiller Crane services for installation and insulation Removal and disposal of current unit Labor

This acquisition will be conducted using simplified acquisition procedures FAR 13.106-1(b)(1), with a total dollar value estimated at $152,000.00. The Government's minimum needs have been verified by the certifying technical and requirements personnel. This memo does not authorize acquisition for other requirements. This purchase will be funded with FY18 Overhead Funding through the Hydrospace Laboratory (DR-044254).

4. Identification of the justification rationale and, if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

10 U.S.C. 2304(c)(2). Unusual and Compelling Urgency FAR 6.302-2(c).

In order to simulate conditions that Navy and other divers might experience, it is critical to simulate temperatures consistent with the World’s oceans. An air-cooled chiller allows the

Hydrospace Laboratory to test equipment in water ranging from room-temperature to as low as 27 degrees Fahrenheit. Alternative chilling methods are inefficient, costly, time-consuming, and require large storage capability.

The current RTAA chiller is nearly 25 years old and it recently experienced a major failure, which disclosed that the parts and chemical solution needed for repairs are obsolete. The primary functional issue is related to the operational flow of chemical solution required for operation. As an alternative, the Hydrospace Laboratory scientists created a non-approved, alternate chemical mixture to help the chiller operate. This alternative proved inefficient and presents health risks, potential damage to laboratory equipment. However, this nontraditional option helped maintain the scheduled experiments, and does not comply with prescribed equipment usage directions.

The Hydrospace Laboratory operates with a preset schedule of experiments with little flexibility for rescheduling and shifts or downtimes causes delays that translates to costs in operations. The Hydrospace Laboratory is now tasked with providing a schedule change accounting for the unit’s replacement after award of this proposed order.

The replacement of this unit is the only option to keep supporting the experiments conducted at the Hydrospace Laboratory without interruptions. Due to the urgency and scope of this requirement, the contracting officer allowed site visits to large and small businesses for market research rough estimates, receiving three independent estimates. The estimated prices ranged from $151,988 to $209,000.00, with Comfort System USA providing the lowest price. Each entity demonstrated the ability to resell authorized chiller brands and having licensed chiller technicians. Based on this research and the urgency statement, the contracting officer determined that competing this action under full and open competition will not likely result in significant savings to the Government and will consume lead time needed to reduce the downtime of the chiller replacement as aforementioned. Based on this information, awarding on a sole source basis to Comfort Systems USA represents the best advantage to the Government.

5. A determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 13.106-1(b)(1).

The Contracting Officer has determined that the order represents the best value and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government’s needs.

6. A description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted.

For the reasons specified in paragraph 4 above, Comfort Systems USA Panama City Beach, FL is the only entity that can meet the minimum Government’s needs.

7. Any other facts supporting the justification.

The removal and installation of a Chiller unit of this size requires licensed and trained chiller technicians. The market research demonstrated that the business entities visiting the site complied with this requirement. Any attempt to compete this requirement under full and open competition will require that the vendor demonstrates owning the capability to provide all hardware and licensed technicians.

8. 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.

As stated in paragraph 4 above, Comfort Systems USA Panama City Beach, FL is the only entity that can meet the minimum Government’s needs and it is not suitable for competition.

TECHNICAL AND REQUIREMENTS REQUESTING OFFICIAL

I certify that the facts and representations under my cognizance, which are included in this justification, are complete and accurate to the best of my knowledge and belief.

CONTRACTING OFFICER REVIEW AND APPROVAL

I, as contracting officer for the contracting activity, have reviewed this justification and certify that the justification is accurate and complete to the best of my knowledge and belief.