Request for Sole Source Format >SAT GSAM/R 538.7104-3(b) Sole Source Justifications - Federal Supply Schedule Ordering

Procedures

Acquisition ID#: 36C242-26-AP-1046

SOLE SOURCE JUSTIFICATION

GSAM/R 538.7104-3(b)

This justification aligns with the deviation outlined in the Revolutionary FAR Overhaul (RFO) for FAR 8.4 - Ordering under the Federal Supply Schedule and GSAM/R 538.71, as required by Executive Order (E.O.) 14275, Restoring Common Sense to Federal Procurement, signed April 15, 2025. Deviation effective date: November 3, 2025.

Acquisition Plan Action ID: 36C242-26-AP-1046

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 02, located at 130 West Kingsbridge Road, Bronx NY 10468, in support of VISN 02 Stratton VA Medical Center at 113 Holland Avenue, Albany New York 12208.

Purchase request #528-26-2-8893-0087

2. Description of Action: This acquisition is conducted under the authority of the Multiple- Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501).

This requirement will be awarded as a new task order, firm fixed price for comprehensive maintenance and repair services for its chiller systems to ensure they operate efficiently and reliably. Services include regular maintenance, repairs, and any required part replacements to maintain optimal performance of the chillers.

Order against: FSS Contract Number: 47QSWA20D002A

Name of Proposed Contractor: Trane U.S. Inc.

Street Address: 4833 White Bear Parkway

City, State, Zip: White Bear Lake, Minnesota, 55110-3325

Phone: 214 869-3037

3. Description of Supplies or Services:

The estimated value of the proposed action is $1,801,668.05.

The Department of Veterans Affairs (VA) requires specialized services for maintaining and managing the Chiller Plant and Air-Conditioning and Refrigeration Facilities (ARF). These services ensure that the medical center's cooling systems operate efficiently and without interruption. Specifically, the services provided include:

Procedures

Acquisition ID#: 36C242-26-AP-1046

Routine Maintenance: Regularly scheduled inspections, cleaning, and upkeep of the chiller and refrigeration systems to prevent breakdowns and extend equipment life.

Repairs: Rapid response to any unexpected failures or malfunctions to ensure that the cooling systems are restored to full operation as quickly as possible.

System Optimization: Enhancements and adjustments to the cooling systems to improve performance, increase energy efficiency, and reduce operating costs.

Performance Monitoring: Ongoing tracking and analysis of the system’s performance to identify potential issues early and make informed decisions about repairs or upgrades.

Component Replacement: When necessary, replacement of critical components with original manufacturer parts to maintain system integrity and performance. Specific

Equipment and Brand:

The services are specifically tailored to TRANE brand chiller and refrigeration systems.

TRANE is known for its high-quality, reliable equipment and proprietary technology that ensures optimal performance in demanding environments like medical centers. The OR Chillers are currently under warranty until 2028. The make and model of the key equipment include:

Main chiller Building # 54 Maintenance and Operation, Inspection

1 Trane Centrifugal Chiller 750-ton 1000# R-123 2 Trane Centrifugal Chiller 750-ton 1000# R-123 3 Trane Centrifugal Chiller 1000-ton 1700# R-123 Main Chiller Building Roof Cooling tower #1 BAC Model 3604A-2 Main Chiller Building Roof Cooling tower #2 BAC Model 3604A-2 Main Chiller Building Roof Cooling tower #3 BAC Model 3456C-2 Variable Frequency Drives

Main Hospital Sub basement OR Chiller Maintenance, Operation, Inspection, Repair

OR Chiller 1, Manufacturer: Trane, Model: RTUD110F, Serial: U22J03995 OR Chiller 2, Manufacturer: Trane, Model: RTUD110F, Serial: U22J03994 Variable Frequency Drives OR /ARF plant inventory

Estimated period of performance is 4/6/2026 – 3/31/2027 with 4 provisional option years against FSS contract number 47QSWA20D002A.

Base Year: $316,002.00 Option Year 1; $334,962.12 Option Year 2: $377,624.84 Option Year 3: $375,281.11 Option Year 4: $397,797.98

Procedures

Acquisition ID#: 36C242-26-AP-1046

4. Identify the Authority and Supporting Rationale (see below and if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

GSAM/R 538.7104-3(b)(1)(i): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

GSAM/R 538.7104-3(b)(1)(ii): Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

TRANE, the Original Equipment Manufacturer (OEM) of the chillers at Albany VAMC has issued a sole source letter indicating that only authorized / certified personnel can perform the required services to ensure compliance with warranty terms. The O.R.

Chillers are under warranty until 2028, and using unauthorized vendors could void this warranty. TRANE and its authorized service providers are uniquely qualified to perform this work according to OEM specifications and maintain warranty protections.

GSAM/R 538.7104-3(b)(1)(iii): In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures.

GSAM/R 538.7104-3(b)(1)(iv): It is necessary to place the order with a particular FSS contractor to satisfy a minimum guarantee established in the FSS BPA; or

GSAM/R 538.7104-3(b)(1)(v): A law expressly authorizes or requires that the purchase be made from a specified source.

5. Describe Why You Believe the Order Represents the Best Value consistent with GSAM/R 538.7102-2-(b)(4) to aid the contracting officer in making this best value determination:

This GSA order represents the best value to the government leveraging the sole proprietary advantages of the company. This determination ensures that the government receives a unique, high-quality solution tailored to its specific needs, all while maintaining cost efficiency and reliability. This justification is consistent with the requirements of GSAM/R 538.7104-3, ensuring a comprehensive assessment in support of the contracting officer's determination.

Procedures

Acquisition ID#: 36C242-26-AP-1046

Awarding to TRANE U.S. Inc., the Albany VA Medical Center ensures that its cooling systems are maintained to the highest standards, minimizing the risk of downtime and ensuring a comfortable and safe environment.

6. Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted.

On 12/16/2025 a source sought (36C24226Q0208) was posted in SAM.gov using NAICS 238220.

On 12/16/2025 Sources Sought (Request ID: RFI1789742) on GSA eBUY under MAS 561210FAC, resulted in 16 responses received, 3 interested vendors and 13 not interested.

CAPITAL BRAND GROUP LLC, MULTI AIR SERVICES ENGINEERS, CORP and BROWN POINT FACILITY MANAGEMENT SOLUTIONS, LLC. provided capabilities statements and GSA contract numbers demonstrating capability to provide services to the chillers. Contracting Officer emailed the vendors to further confirm authorization by manufacture TRANE to provide services. All vendors responded confirming that subcontracting will be utilized.

Incumbent TRANE U.S. INC. provided a quote in the amount of $2,118,218.18 for base year and 4 option years. Vendor is a large business venture and holds GSA contract 47QSWA20D002A. A new quote was provided due to changes in the scope and the new quoted price for base year and 4 option years is now $1,801,668.05. This is a quote under Trane’s GSA Contract 47QSWA20D002A, current option 1 period of performance 12/10/2024 to 12/9/2029 and option 2 period of performance 12/10/2029 to 12/9/2034.

Based on the market research and the unique requirements necessitating TRANE's capabilities, it is advised that the procurement be awarded on a sole source basis to TRANE.

This will ensure that the VA's needs are met with a reliable, cost-effective solution that leverages TRANE's proven expertise and existing system compatibility.

VA Rule of Two cannot be met the market research conducted provides sufficient evidence that the requirements of obtaining at least two responsible SDVOSBs or VOSBs offers at a reasonable price cannot be met.

7. Any Other Facts Supporting the Justification:

The manufacturer provided a letter stating only Trane U.S. Inc. and their specialized trained technicians are the only ones allowed to service and maintain the chillers.

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:

Procedures

Acquisition ID#: 36C242-26-AP-1046

In recognizing the sole proprietary nature of the current procurement, the agency acknowledges the importance of maintaining fair and open competition in future acquisitions.

To remove or overcome any barriers that led to the restricted consideration in this instance, the agency will take the following actions:

Market Research: The agency will conduct thorough market research to identify potential alternative vendors or emerging technologies that may mee the same requirements.

9. Requirements Certification: I certify that the requirement outlined in this justification is a

Bona Fide Need of the Department of Veterans Affairs and that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge. I understand that processing of this sole source justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by GSAM/R 538.71 as directed by FAR 8.4.

Michael Mullahey DATE

Utility Systems Repair/ Operations Supervisor

10. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Natalie Acevedo DATE Contracting Officer

JAMES

MULLAHEY

Digitally signed by

JAMES MULLAHEY

Date: 2026.03.16 07:08:20 -04'00'

NATALIE ACEVEDO Digitally signed by NATALIE ACEVEDO Date: 2026.03.16 13:35:24 -04'00'

Procedures

Acquisition ID#: 36C242-26-AP-1046

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $900k): I certify the justification meets requirements for other than full and open competition.

Janine Childs DATE Branch Childs, Services Team II Network Contracting Office 2

HIGHER LEVEL APPROVAL (Required for orders over $900,000)

c. VHA RPO HCA Review and Approval (over $900,000 to $90 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by GSAM/R 538.71 ordering procedures as directed by FAR 8.4.

Gerald F. Jacobs DATE Executive Director, Regional Procurement Office East VHA Head of Contracting Activity (HCA)

JANINE CHILDS

Digitally signed by JANINE

CHILDS

Date: 2026.03.16 12:09:40 -04'00'