J&A_Other_than_Full_and_Open_Competition_(NIHOF201800027).pdf

Date: February 6, 2018

To: File

From: Contracting Officer

Subject: Justification and Approval for Other than Full and Open Competition -- Solicitation

No. NIHOF201800027 - Security System Support Services at Rocky Mountain Laboratories (RML), Hamilton, Montana

Justification:

1. Organization Identification:

a. Agency: Department of Health and Human Services (DHHS)

b. Program Offices: National Institutes of Health (NIH), Office of Research Facilities

c. Contracting Office: DHHS, NIH, ORF/OA, 903 South 4th Avenue, Hamilton, Montana 59840

d. Project Officer: Bryan Kercher

2. Nature/Description of the Action:

Designate sole source for support of various security and emergency response systems at the RML Campus located at Hamilton, Montana, Rocky Mountain Laboratories. It is estimated the yearly total cost of services under this contract is $170,800.00.

3. Description of Supplies/Services:

Procurement of support services from Systems Northwest to accomplish the inspection, testing, troubleshooting, repair, maintenance, system administration, programming, data back-up, and other related services required by the Government on the specified and related security systems. These are critical systems and require maintenance support. The systems include, but are not limited to:

a) Access control system(s)

b) Fire alarm system(s)

c) Mass Notification system(s)

d) Perimeter detection system(s)

e) Security Integration system(s)

f) Camera system(s)

g) Door hardware components

h) Leviton tele/data network components

i) Utility monitoring and control system(s)

4. Authority Cited:

Action is authorized by 41 U.S.C. 253(c) (1), FAR 6.302-1, which states "Only one responsible source and no other supplies or services will satisfy agency requirements."

5. Reason for Authority Cited:

Montana is a very sparsely populated state. The security systems specified above require specialized expertise to service and maintain. Many of the security system manufacturers have marketing and support structures that provide for authorized representatives or Service Companies within a geographical region or area. In Montana, that is the case as well; with only one firm within the entire state. The justification for the sole source includes the following:

Systems Northwest (a small business) is the authorized dealer/manufacturer’s representative for the following systems:

a) Notifier fire alarm systems, Notifier Net, and Onyx works

b) Notifier Nesco preferred distributor

c) Continuum by Schneider Electric

d) Pelco cameras

e) Airship VMS Certified Distributor

f) Leviton lifetime warranty installer

g) Honeywell Mass Notification by Notifier

h) Optellios Fiber Patrol

i) Structure ware by Schneider Electric

There are no known other authorized representatives available in this geographic area to provide this work. There are no known other firms available that can provide service on all the required systems within this market area.

Each of the security systems above are campus-wide “enterprise” central systems. Every new construction and renovation project is required to use these manufacturers and tie into, and be compatible with, these existing systems. In other words, systems from other manufacturers are not allowed and will not be installed.

Systems Northwest has been involved in the installation of each of these systems on all recent construction and renovation projects so they have the most corporate knowledge of the systems on the campus, even more so than government employees. This knowledge provides significant value and efficiency to the Government in this contract.

It is justified to have this security support contract awarded to Systems Northwest without full and open competition in this procurement action.

6. Efforts to Obtain Competition: Any efforts made by ORF/OA would have limited effect as representatives and service companies are certified by the manufacturers on geographically based areas. Consequently, this results in competitors being located a significant distance away and they would not be able to comply with the response times needed in emergency situations on these critical systems.

7. Actions to Increase Competition: Not applicable at this time. It would take senior leadership at NIH to make a decision to replace the current security systems in place across the NIH and the costs to do so appears prohibitive at this time.

8. Market Survey:

Market research was conducted through reach out to the various manufacturers of the security systems in use at NIH/RML. Through this process we were able to ascertain that the system manufacturers have marketing and support structures that provide for authorized representative or Service Companies within geographical regions or areas. In Montana, it is the cases that only one firm, Systems Northwest, a small business services the entire state.

9. Interested sources:

To date, only Systems Northwest has been the only firm interested in this type work on the RML Campus. No other firms have ever inquired about our security systems.

10. Other Factors:

a. Procurement History. In past construction and renovation contracts that tied into the existing systems listed above, the system manufacturer has been a sole source requirement. Systems Northwest has always been the subcontractor that has worked on the referenced security system because of the manufacturer’s market strategies and limitations. Also, Systems Northwest has performed various maintenance services on the security systems via purchase card, purchase order and most recently contract HHSN292201600014C.

b. Acquisition data availability. Maintenance and repair of the security systems was previously performed by a qualified and certified Government employee. When the employee sought employment elsewhere, maintenance and repairs on the system have been procured as needed under the Governments Purchase Card Program and Purchase Order. Most recently however, the maintenance services on the security systems have been performed under contract HHSN292201600014C.

c. Follow-on contracts: This is a follow on contract to HHSN292201600014C which were initially procured by this acquisition office.

d. Unusual and Compelling Urgency: Not applicable

e. Subcontracting Competition: Not applicable

Technical and Requirements Certification:

I certify that the supporting data under my cognizance which are included in the Justification for Other than Full and Open Competition are accurate and complete to the best of my knowledge and belief.

NAME: Bryan Kercher DATE: ________________

TITLE: Contracting Officer Representative SIGNATURE: ________________________

12. Fair and Reasonable Cost Determination:

Award of this service contract will be made at a fair and reasonable price after competitive negotiations are held with Systems Northwest.

13. Procuring Contracting Officer Certification:

I certify that the facts and representations under my cognizance which are included in this Justification for Other than Full and Open Competition are accurate and complete to the best of my knowledge and belief.

Based on the foregoing justification, I hereby approve the procurement NIH/RML Security Systems from Systems Northwest of Kalispell, MT, using other than full and open competition pursuant to the authority of 41 U.S.C.

253(c)(2), and FAR 6.302-1 subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

NAME: James Parr DATE: ________________________

TITLE: Contracting Officer SIGNATURE: ________________________

Concur:

NAME: Richard O’Neill DATE: ________________________

TITLE: Branch Chief FSSCB SIGNATURE: ________________________

Approval:

NAME: Kala Shankar DATE: ________________________

TITLE: Director ORF-OA SIGNATURE: ________________________