JA 25-08 AL DDC_r.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND, HAWA

400 MARSHALL ROAD

JBPHH, HAWAII 96860-3139

J&A No. 25-08

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION WORK ORDER NUMBER , FY2024 MCON PROJECT P-

875 WATER RECLAMATION FACILITY, MARINE CORPS BASE HAWAII, KANEOHE,

HAWAII

1. Contracting Activity.

Naval Facilities Engineering Systems Command (NAVFAC), Hawaii (HI), Facilities Engineering and Acquisition Division (FEAD) Marine Corps Base Hawaii (MCBH), Kaneohe, HI.

2. Description of the Action Being Approved.

Request approval for the use of Direct Digital Control (DDC) software by Automated Logic Corporation (ALC) for the military construction project P-875 Water Reclamation Facility MCBH, Kaneohe, HI. The DDC software by ALC is essential to the project completion and will not provide for full and open competition for the portion of the acquisition that relates to this brand-name component only.

3. Description of Supplies/Services.

The P-875 construction project will provide new ducted central station DX-split air conditioning systems to serve the Operations, Lab, and Electrical Building.

The P-875 project requires three recirculating air handling units, one dedicated outdoor air system (DOAS) air handler, and two exhaust fans to be provided to serve the Operations, Lab, and Electrical Building, all of which need to be connected to the existing ALC DDC system. This system will require DDC software that can maintain the integrated energy management systems for the building so that all heating, ventilation, and air conditioning (HVAC) controllers can be programmed and monitored from a central station (base-wide energy management system (BWEMS)). The system requires integrated controls between the various HVAC equipment to maintain proper building pressurization within the lab space. The DDC system also provides for the HVAC to operate efficiently, conserve energy, and immediately notify maintenance when problems occur.

The estimated construction cost is

, will be for the procurement of the ALC DDC software.

4. Statutory Authority Permitting Other Than Full and Open Competition.

This request is submitted pursuant to the authority of 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 new HVAC system provided by this project must tie into and be compatible with the existing BWEMS. This can only be accomplished by providing an Alerton DDC system or an ALC DDC system to monitor and control the new HVAC system. Other DDC system manufacturers do not offer programmable controllers that can be configured/programmed with an Alerton or ALC system. Although the BACnet open protocol is the required communications protocol for the BWEMS, it only allows for different manufacturer’s equipment to share basic point data. BACnet does not allow for configuration and programming functions to take place between different manufacturers. Each manufacturer’s proprietary software tools must be used to configure or change the program within a controller. Although MCBH has extensive experience with both Alerton and ALC platforms, MCBH has determined that the ALC platform is required for the project because of the following:

a. Cost. Use of ALC DDC would provide substantial cost savings.

(1) MCBH has conducted a rigorous Business Case Analysis (BCA) in August 2021 to compare standardization with ALC versus no standardization with 12 different manufacturers, including Alerton.

In an analysis of 25 years of life cycle costs for the project, annual costs for a base-wide standardization is , while no standardization is ; and over the 25-year life cycle cost, base-wide standardization is while no standardization is resulting in a savings of To date, NAVFAC HI concurs with the analysis and has no reason to believe that there has been any change in their conclusions.

b. Maintenance & Impact to Operations.

(1) The controllers for the project would need to be able to continue to utilize existing Government-licensed ALC proprietary software to configure and program the controllers. Other manufacturers do not offer programmable controllers that can be configured/programmed with ALC software.

(2) Use of the ALC controllers would avoid the significant burden and cost of having MCBH DDC maintenance and engineering staff becoming proficient with the configuration, programming, commissioning, operation, and maintenance of equipment from different manufacturers. This would also require additional personnel training costs and delay. Maintaining multiple solutions is inefficient and creates unnecessary work and unproductive or low-value-added overhead, which increases the total costs of ownership and manpower costs.

(3) The new controllers would need to be able to maintain the integrated energy management systems for the building so that all controllers can be programmed from a central station running on ALC’s DDC proprietary software. This will further provide operational efficiency and decrease energy costs. Utilizing hardware products from the same vendors that produced the configuration/programming software eliminates multi-vendor conflicts regarding controller function.

(4) MCBH personnel are trained in the use of ALC DDC software.

The ALC controllers would leverage efficiencies of expertise by having automation/DDC maintenance and engineering staff become proficient with the configuration, programming, commissioning, operation, and maintenance of one system instead of having to be trained in various equipment from different manufacturers. This would reduce the requirement for additional personnel training costs and the procurement of additional equipment, maintenance and support contracts for another manufacturer’s hardware and software, as well as the maintenance of an additional parts inventory. Maintaining multiple solutions is inefficient and creates unnecessary work and unproductive or low-value-added overhead which increases the total costs of ownership and manpower costs.

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

A sources sought Notice (No. N62478CON33FY2502) was published in the System for Award Management (SAM) with a closing date of 11 December 2024 seeking other potential responsible sources that can provide a software with equal performance and listing/approval requirements as the ALC DDC software. No responses were received from this announcement.

Additional market research was conducted between November 2022 through January 2023, by researching other known manufacturers that can potentially provide a software for this project, including Alerton, Delta Controls, Distech Controls, Johnson Controls, and Honeywell.

Review of these manufacturers’ software specifications revealed that each have their own proprietary system which cannot communicate with software of other manufacturers without some type of interface. None of the other manufacturers are able to minimize costs with the existing system due to the added costs of maintaining different systems, including maintenance costs, training, parts, vendor support, etc.

Subsequently, additional market research was conducted between June 2024 through October 2024 to determine if there were any new developments in systems compatibility between differing manufacturers, including Alerton, Delta Controls, Distech Controls, Johnson Controls, and Honeywell. Review of these manufacturers’ software revealed that each manufacturer still utilizes their own proprietary system with unique controls structures and user interface programs. Programming tools and parts are unique to each company and the integration of multiple different systems still creates issues of compatibility, along with added costs to maintain multiple systems and an increase in the number of required equipment and parts for repair and maintenance.

Therefore, ALC is determined to still be the only manufacturer that can meet the Government’s requirements.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.

8. Actions taken to remove barriers to future competition.

For the reasons set forth in Paragraph 5, NAVFAC HI has no plans at this time to compete future contracts for the DDC software requirements for P-875. However, NAVFAC HI will continue to monitor the DDC software industry to determine if other compatible software becomes available, and if another potential manufacturer emerges, NAVFAC HI will assess whether competition for future requirements is feasible. Should any other offers for DDC software be submitted during the construction procurement process, the Government will evaluate submissions, as applicable.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which 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 belief.