P03 36C245-27-AP-0553 RFO 12 JA Over SAT Washington DC Steam Utility FY27 Final DC approved.pdf

Acquisition Plan Action ID: 36C245-27-AP-0553

DEPARTMENT OF VETERANS AFFAIRS

RESTRICTING COMPETITION USING SIMPLIFIED PROCEDURES

FOR COMMERCIAL ITEMS IN ACCORDANCE WITH RFO 12.102

1. Contracting Activity: Department of Veterans Affairs, VISN 05, Regional Procurement Network

Contracting Office East (NCO) 5.

Organization Activity:

Washington DC VA Medical Center, Department of Veterans Affairs, VHA, DC VAMC, FMS (138) Station 688, 50 Irving Street NW Washington, DC 20420. Washington DC VA Medical Center.

Purchase Request #688-27-1-436-0001.

2. Nature and/or Description of the Action Being Processed: This procurement is for the supply, transmission, and delivery of steam utility services for the Washington DC VA Medical Center (DC VAMC). Utility services are highly regulated in nature, and there is generally only one available source to meet an agency’s needs. The procurement of steam utility services from the Washington Hospital Center Corporation (WHCC) will be awarded as a new Firm-Fixed-Price Contract for a period of one year in accordance with Revolutionary FAR Overhaul (RFO) 12.1 Simplified Procedures for Certain Commercial Items and specifically RFO 12.102(b) For acquisitions valued over the Simplified Acquisition Threshold (SAT), prepare a written justification and obtain approval of the justification as described in RFO 6.104.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The DC VAMC requires steam in order to properly support its mission to serve the Veteran. The period of performance for the proposed action is one year, starting October 1, 2026, through September 30, 2027, as the VA does have a delegation of authority from the General Services Administration (GSA) to contract for these utility services for longer than one year, in accordance with RFO 41.103(b) and (c). The current ten-year GSA Delegation of Authority, issued on July 30, 2018, has two years remaining. Due to time constraints, requesting a one-year extension is the most feasible option at this time while discussions are underway to submit the next ten-year GSA Delegation. The estimated one-year usage for the DC VAMC is approximately 8,380,478 lbs. of steam per month, at the rate of $33.59/1000 lbs. of steam. Price per pound (lbs.) will be based on the most current tariff rate approved by the Public Utility Commission (PUC). Supply, transmission, delivery, and any other charges (customer charge, demand charge, purchased gas adjustment, etc.) shall be itemized on monthly bills.

The anticipated award date is October 1,2026. The total estimated cost of the contract is $3,378,100.00.

4. Statutory Authority Permitting Restricted Competition:

RFO 12.102 Restricting Competition. The statutory authority for applying the Simplified Acquisition Procedures is 41 U.S.C. § 1901 and is implemented by RFO 12.102(b) for Restricting Competition using Simplified Acquisition Procedures for Commercial Products and Services. Competition is restricted on this procurement for the reason below:

(x) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency

Requirements ( ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert

Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

WHCC has been determined to be the only responsible source able to provide the DC VAMC with steam, as it is the only provider with a steam pipe coming from their boiler plant to the DC VAMC steam lines. The DC VAMC is co-located within the WHCC Complex and is supplied with steam utility from the WHCC steam pipelines which supplies steam throughout the medical complex. There is no other option available to provide steam for the DC VAMC The statutory authority permitting other than full and open competition is 41 U.S.C. 3304(a)(1), as implemented by RFO 6.302-1, and when acquiring utility services, circumstances may dictate that only one supplier can furnish the service;

or when the contemplated contract is for the construction of a part of a utility system and the utility company itself is the only source available to work on the system.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A notice is not required to be publicized in accordance with RFO 5.101(b)(1)(vi), since this is a contract action for utility services and only one source of steam is available.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The quote provided by the WHCC outlining steam utility rates for this requirement has been determined fair and reasonable based off the current tariff rates approved by the PUC.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

In accordance with RFO 41.103(a), GSA is the procurement authority for the acquisition of utility services. RFO 41.201(b) states that except for acquisitions at or below the simplified acquisition threshold, agencies shall acquire utility services by a bilateral written contract, which must include the clauses required by RFO 41.501, regardless of whether rates or terms and conditions of service are fixed or adjusted by a regulatory body. Additionally, RFO 41.202(b) states that in performing a market survey, the contracting officer shall consider use of the following: GSA areawide contracts, separate contracts, or interagency agreements. Furthermore, RFO 41.204 states that areawide contracts provide a pre-established contractual vehicle for ordering utility services and any Federal agency having a requirement for utility services within an area covered by an areawide contract shall acquire services under that areawide contract unless service is available from more than one supplier, or the head of the contracting activity or designee otherwise determines use of the areawide contract is not advantageous to the Government. Market research indicated that the servicing steam utility provider, WHCC, does not have a GSA Areawide Public Utility Contract but is the only source capable of providing DC VAMC with its steam needs. Prior to moving forward with a separate contract, the contracting officer conducted market research IAW VAAR 810.001-70. Given the market research conducted, it was determined that there are no capable SDVOSB’s or VOSB.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

RFO 41.205 states that in the absence of an areawide contract or interagency agreement agencies shall acquire utility services by separate contract subject to agency contracting authority. RFO

41.103 states other agencies requiring utility service contracts for periods over one year, but not exceeding ten years, may request a delegation of authority from GSA, but, in the interim, a one-year contract will be awarded to continue providing the required steam utility to the hospital due to the fact that only two years remain on the current GSA Delegation of Authority letter, which expires on July 30, 2028. The DC VAMC and WHCC are currently looking at entering a ten-year contract for the supply of steam once the new GSA Delegation of Authority is issued by July 2028.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

Washington Hospital Center Corporation 110 Irving St NW Washington, DC 20010

11. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to

Competition before Making subsequent acquisitions for the supplies or services required:

There are no actions the VA can take to increase competition nor is there any reasonable likelihood of future competition in this area due to the highly regulated nature of utility services.

12. 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 and belief.

Cameron Williams Date

Energy Engineer Washington DC VA Medical Center

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

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

Shawn E. Shafer Date Branch Chief

NCO 05

https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx

b. One Level Above the Contracting Officer (Required over $350K but not exceeding $900K): I certify the justification meets requirements for other than full and open competition.

Angela Burger Date Division Chief

NCO 05

c. VHA Advocate for Competition and RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve $900K to $90 million for other than full and open competition.

Brent Goe Date Acting Executive Director VHA Head of Contracting Activity (HCA) Regional Procurement Office - East