-P00003007.pdf

DEPARTMENT OF VETERANS AFFAIRS

Office of Acquisition Operations

Strategic Acquisition Center – Frederick 5202 Presidents Court, Suite 103

Frederick, MD 21703

Justification and Approval for Other than Full and Open Competition 6.302-5 – Authorized or required by statute

1. Identification of the agency and the contracting activity.

This Justification and Approval (J&A) for Other Than Full and Open Competition is executed by the Strategic Acquisition Center in Frederick, Maryland on behalf of the Department of Veterans Affairs (VA), Office of Information and Technology (OIT), Enterprise Operations (EO) Austin Information Technology Center (AITC).

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

This action is a modification to the existing award (VA119A-17-P-0409) with Water Treatment Services, dba, First Defense, a Service-Disabled Veteran-Owned Small Business (SDVOSB), for the procurement of continuous Computer Room Air Conditioning (CRAC) system maintenance and emergency repair services. This modification is necessary because the AITC CRAC systems require 24/7 maintenance technician staffing including Holidays and weekends. The initial purchase order was awarded using competitive FAR 13.5 procedures. Furthermore, the modification will provide for an Other Direct Costs (ODC) Contract Line Item (CLIN), not included in the initial award, to provide funding for routine maintenance materials, as well as emergency repair parts.

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

The Austin Information Technology Center (AITC) processes data that is considered a lifeline to Veterans and constant availability of that data is crucial. The AITC facilities department is responsible for ensuring the data center will not experience any cooling loss or air-conditioning outage under any circumstance, 24 hours a day and seven days a week (24/7). In support of these efforts, the Computer Room Air-Conditioning (CRAC) System, which includes all computer rooms, PBX, and IDF Rooms AC units, located at the AITC, consists of forty-one (41) Liebert or Emerson air handlers, evaporators, condensers, and associated equipment operated through standalone computer control systems. Despite the necessity of 24/7 CRAC Systems operation, the current staffing plan only provides for two (2) technicians, each working a 40-hour shift, Monday through Friday (7:00 am to 3:30 pm). At present there are no staffed technicians providing weekend coverage.

VA119A-17-P-0409 P00003

Office of Acquisition Operations

Strategic Acquisition Center – Frederick 5202 Presidents Court, Suite 103

Frederick, MD 21703

VA119A-17-P-0409 P00003

The proposed modification will ensure a constant staff presence by providing 24/7/365 coverage and enabling the vendor to provide immediate alarm responses and emergency repair services mandated to begin within a two-hour window. An updated staffing plan will provide for one (1) Supervisor of Maintenance working a 40-hour week, four (4) Engineering Operations Technicians and two (2) Operations Center Technicians each working 40 hour shifts that will allow ample coverage for all CRAC systems maintenance requirements, including weekends and holidays. An ODC CLIN in the amount of $50,000.00 is also needed to allow the contractor to purchase the supplies necessary to successfully fulfill the taskings in the Performance Work Statement (PWS).

The current process has become cumbersome and has prevented timely repairs during outages and in other emergency situations. The subsequent, remaining OYs (2-4) would also require the inclusion of an ODC CLIN, each funded at the same level ($50,000 per OY) to continue providing a cost for unforeseen material needs, and imminent emergency repairs.

An independent government cost estimate (IGCE) placed the cost of the additional labor hours and the ODC CLIN for the remainder of the current period of performance (through September 24, 2019), at $422,320.00. The current balance remaining for Option Year 1 is approximately $103,988.04, thus the total amount of increased purchase order value would be $318,331.96. The IGCE estimate for OY 2 through OY 4, included in the initial award totaled $623,928.24. An updated IGCE for OY 2 through OY 4 increases purchase order value estimates by $1,759,991.76 to a total of $2,383,920.00. Including these proposed changes would increase the overall purchase order value by $2,078,323.72 from $1,199,537.72 to $3,277,861.44.

4. An identification of the statutory authority permitting other than full and open competition.

The statutory authority permitting other than full and open competition for this procurement is Public Law (PL) 109-461, Veterans First Contracting Program, as codified at 38 U.S.C. 8127 and 8128 and implemented at Veterans Affairs Acquisition Regulation (VAAR) Subsection 819.7007.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

38 U.S.C. 8127(c) permits a contracting officer to award to a Center for Verification and Evaluation (CVE) verified SDVOSB using procedures other than competition if:

(1) such concern is determined to be a responsible source with respect to performance of such contract opportunity;

Office of Acquisition Operations

Strategic Acquisition Center – Frederick 5202 Presidents Court, Suite 103

Frederick, MD 21703

(2) the anticipated award price of the contract (including options) will exceed the simplified acquisition threshold (as defined in section 134 of title 41) but will not exceed $5,000,000; and

(3) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price that offers best value to the United States.

The proposed action meets all three of the requirements of 38 U.S.C. 8127(c).

(1) First Defense has been verified by CVE as owned and controlled by a service-disabled veteran and has the corporate knowledge to continue providing fully qualified and knowledgeable staff personnel. First Defense has successfully provided the required services over the past 18 months for the AITC CRAC, less the requirement for round the clock staff coverage. First Defense’s proposal was determined the best value to the Government based on the merits of the proposal. First Defense is also registered in the System for Award Management (SAM) as an SDVOSB under the applicable North American Industry Classification System (NAICS) code 238220 for Plumbing, Heating, and Air- Conditioning Contractors. As such, First Defense is determined to be a responsible source with respect to performance of this opportunity.

(2) The anticipated total value of the purchase order is $3,277,861.44, an increase of $1,199,537.72 and, therefore, does not exceed the statutory threshold of $5,000,000.

(3) The contracting officer estimates that the award can be made at a fair and reasonable price that offers best value to the United States. First Defense has already competed and was awarded the initial purchase order. Their quote was one of two submitted in a 100% small business set aside and price reasonableness was evaluated using price analysis techniques as prescribed in FAR 13.106-3(a)(1). Most importantly, the contracting officer will not award a modification to the current contractor without first determining that the proposed price is fair and reasonable, and the offer represents best value.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies.

Office of Acquisition Operations

Strategic Acquisition Center – Frederick 5202 Presidents Court, Suite 103

Frederick, MD 21703

In accordance with 819.7007(b), the determination to make a sole source award to an SDVOSB is a business decision wholly within the discretion of the contracting officer;

therefore, the requirement to ensure that offers are solicited from as many potential sources as practicable is not applicable to this procurement. In addition, 819.7007(c) further authorizes the contracting officer to make the award without first determining that only one SDVOSB source can meet the requirement. The agency will make publicly available the justification required by 6.305(a) within 14 days after award.

7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

No award shall be made until the Contracting Officer determines the costs to the Government to be fair and reasonable. The increase includes an ODC CLIN that will be billed as cost of materials procured.

8. A description of the market research conducted (see Part 10) and the results or a statement of the reason market research was not conducted.

VA conducted extensive market research and The Strategic Acquisition Center – Frederick (SAC-F) verified what was submitted and provided further research.

A search of Vendor Information Page (VIP) was conducted by searching NAICS 238220, which resulted in 770 matches. Narrowing the criteria with keyword “Liebert” resulted in one (1) match, Site Support Services, Inc. (DUNS: 174226951 Narrowing the criteria with keyword “Emmerson” resulted in zero (0) matches.

A search of GSA eLibrary, 03FAC – Facilities Maintenance and Management, Category 811 005 – Refrigeration, Heating, Ventilation, Air Conditioning, Boiler, and Chiller HVAC Maintenance revealed 169 contractors that perform this type of work. Contractor pricelists were searched using the keyword “Liebert” which produced two (2) results – one large and one small business. Changing the search criteria to “Emerson” resulted in zero (0) matches. As a result of the search there was not a reasonable expectation that two or more small businesses would respond to a solicitation posted to GSA eLibrary, and these services were determined to be not available from any other previously awarded contract vehicle.

A Sources Sought (VA119A-17-Q-0020) was posted to the Federal Business Opportunities website (FBO.gov) on October 24, 2016 with responses due no later than November 9, 2016. Positive responses were received from two small businesses and one large business.

Office of Acquisition Operations

Strategic Acquisition Center – Frederick 5202 Presidents Court, Suite 103

Frederick, MD 21703

In accordance with §8127’s “Rule of Two”, market research indicated that there was not a reasonable expectation that two or more SDVOSB/VOSB offerors would respond to a solicitation for this requirement; therefore, the procurement was determined to not be suitable for a SDVOSB/VOSB set-aside.

This procurement was set-aside 100% for small business and solicited on FBO.gov in accordance with FAR 13.5 –Simplified Acquisition Procedures for Commercial Items and FAR Part 12.6 –Streamlined Procedures for Evaluation and Solicitation of Commercial Items.

Final market research was conducted using CVE’s Vendor Information Pages (VIP) database to ensure that First Defense is verified by CVE as an SDVOSB. The VIP search confirmed that First Defense is verified by CVE. In addition, First Defense has been determined to be responsible, and is registered in the SAM as a small business under the relevant NAICS code.

9. Any other facts supporting the use of other than full and open competition.

The FAR allows restrictive provisions or conditions to the extent necessary to satisfy the needs of the agency or as authorized by law (FAR Subsection 11.002(a)(1)(ii)). As such, the Government has discretion to reasonably restrict competition as long as that requirement is needed to meet the agency’s minimum need.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

None.

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

The awarded Purchase Order was competed, and it was determined that First Defense, a CVE certified SDVOSB interest, provided the best value to the Government. Any future acquisitions for this same service requirement would be competed similarly and thus, will ensure all competition requirements continue to be met.

Office of Acquisition Operations

Strategic Acquisition Center – Frederick 5202 Presidents Court, Suite 103

Frederick, MD 21703

VA119A-17-P-0409 P00003

12. Certifications / Signatures.

Technical Representative Certification:

Pursuant to FAR Subsection 6.303(c), I certify that any supporting data that is my responsibility and which forms a basis for the justification is complete and accurate to the best of my knowledge and belief.

Wesley Patton Date Engineer, NDCOL Facilities Management

Contracting Officer Certification/ Approval:

Pursuant to FAR Subsection 6.303-2(b) (7) and (12), I certify that this justification is accurate and complete to the best of my knowledge and belief, the anticipated cost to the Government will be fair and reasonable, and approval is thus provided.

Tara Flores

_____3/28/19 Date

Contracting Officer Strategic Acquisition Center – Frederick

Advocate for Competition Certification/ Approval:

Pursuant to FAR Subsection 6.304, I certify that this justification is accurate and complete to the best of my knowledge and belief and approval is thus provided.

Clint Druk Date Agency Competition Advocate Office of Acquisition Operations

Wesley G. Patton 298186 Digitally signed by Wesley G. Patton 298186 Date: 2019.03.28 09:33:41 -05'00'

Tara C. Flores 898543 Digitally signed by Tara C. Flores 898543