P03 - Attachment 1 FAR 13.5 Sole Source Justification - Over SAT - Daikin Repair and Install_signed_co Print copy_Redacted.pdf

Effective Date: 02/01/2022 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C244-24-AP-3334

1. Contracting Activity: Department of Veterans Affairs, VISN 04, Erie Veterans Affairs Medical Center

(VAMC), 135 East 38th Street, Erie, PA 16504. PR#562-24-2-5021-0148

2. Nature and/or Description of the Action Being Processed:

The Erie VA Medical Center has a new requirement for the repair of the currently installed Daikin Heating, Ventilation, and Air Conditioning (HVAC)system. The current unit services the Community Living Center (CLC). The equipment and system is under manufacturer warranty. A manufacturer-authorized service provider is required to maintain or service the warranty.

This procurement is in accordance with FAR 13.5 Simplified Acquisition Procedures for certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2.

The estimated value of this requirement is

3. Description of Supplies/Services :

The contractor shall furnish all labor, parts, materials, equipment, and supervision for the required work. The currently installed HVAC system is experiencing recurring problems. The proposal will fix the identified problems. The proposed solution will require the removal of the piping that violates the Daikin guidelines and the existing strained equipment. New piping and equipment will be installed in accordance with Daikin guidelines. The new system will offer a simpler piping and branch selector box design, better technology, and new labor/equipment warranties.

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement. 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

Effective Date: 02/01/2022 Page 2 of 4

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

In accordance with FAR 6.302-1(b)(1)(i) the proposed action is for unique services available from only one source with unique capabilities. The Erie Medical Center has already purchased and installed a new Diakin HVAC system in the CLC. In order to maintain the manufacturer warranty maintenance and repairs must be performed by a Daikin authorized service provider. Daikin authorizes local HVAC services by geographical region. The authorized service provider for the Erie Pennsylvania area is HAVTECH Services Division LLC.

Diakin has provided a manufacturer letter stating HAVTECH Services Division LLC is the only authorized representative in the Erie, Pennsylvania area. The medical center could purchase a new HVAC system, but having just installed the new system it would be neither cost or time-productive.

Nor would it be in the best interest of the Government or be fiscally responsible.

The HVAC system must be maintained by an authorized manufacturer representative to take full advantage of the warranty and provide climate control to the facility. Failure to service the system will result in the Medical Center being unable to provide care for Veteran patients, adversely impacting the mission.

Accordingly, HAVTECH Services Division, LLC is the only firm capable of providing the services described in Section III a duplication of the cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

A VIP search was conducted for Service Disabled Veteran Owned Small Business (SDVOSB) and Veteran Owned Small Business (VOSB) vendors for this requirement using NAICS 811412, the search produced 19 SDVOSB/VOSB vendors in PA, OH, NY, and MD. This NAICS covers a wide range of services and based on the available capabilities narratives not all vendors appear to be able to provide the maintenance and repair services required. In addition, none of the vendors returned are authorized Daikin service contractors.

Market research conducted in GSA did not show any GSA contracts for HAVTECH.

Daikin authorizes local HVAC services by geographical region. The authorized service provider for the Erie Pennsylvania area is HAVTECH Services Division LLC. Diakin has provided a manufacturer letter stating HAVTECH Services Division LLC is the only authorized representative in the Erie, Pennsylvania area. HAVTECH Service LLC is a small business concern. HAVTECH also lists the organization as a VOSB, but is not VIP certified.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable:

Pricing shall be deemed fair and reasonable at the time of award. Pricing will be evaluated by comparing previous awards with similar scopes to offered pricing, as well as comparing the offered price with the Independent Government Cost Estimate (IGCE).