P03 - BNO Justification - Water Treatment Maint Services - Redacted.pdf

Effective Date: 12/30/2025 Page 1 of 3 Revision: 02

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

1. Contracting Activity: Department of Veterans Affairs, Network 23 Contracting Office, 316

Robert St N, Ste 506, St. Paul, MN 55101 Requesting Activity: Department of Veterans Affairs, Black Hills VA Health Care System, Hot Springs VA Medical Center, 500 N 5th St, Hot Springs, SD 57747

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

The Department of Veteran’s Affairs, Hot Springs VA Medical Center, Hot Springs SD, has a requirement for water treatment, maintenance, and monitoring services of all domestic water systems. This action will be a Base + 4 Option Years Service Contract with a Brand Name Only component as pertains to any replacement parts the vendor would be required to use to comply with the Statement of Work while performing preventative maintenance tasks as part of this service contract.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

Background: The Hot Springs VAMC owns a total of four (4) water treatment units. One (1) SaniKill SaniTec SKHP/-K and three (3) Sanikill-LITE SKHP/025 monochloramine feed and control units. The Sanikill SaniTec SKHP/1000 is located in building 18 and feeds monochloramine and corrosion inhibitor to the cold potable water system. Two (2) Sanikill- LITE SKHP/025 are located in buildings 10 and 12 (one in each location) feed and control monochloramine into the domestic hot water systems. One (1) Sanikill-LITE SKHP/025 is located in building 29 and feeds and controls monochloramine into the domestic cold water systems.

Description of the Services Required by this Action: The Contractor shall provide all labor, management, tools, travel, supplies, consumables, equipment, culturing, and qualified personnel necessary for water treatment, maintenance, and monitoring services of the water treatment units.

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 as pertaining specifically to the replacement parts the vendor would be required to use to comply with the Statement of Work while performing preventative maintenance tasks as part of this service contract 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

Effective Date: 12/30/2025 Page 2 of 3

( ) 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):

The Government requires the use of original equipment manufacturer (OEM) parts because the water treatment system is engineered as an integrated unit, and the use of non‑OEM components could compromise system performance and reliability. Any deviation from OEM parts may jeopardize water quality, creating unacceptable risks to patient and employee health. Therefore, only OEM parts can ensure safe, effective, and uninterrupted operation of the water treatment system, making the use of the cited authority essential to meet mission and safety requirements. The existing SANIKILL water treatment units were installed in 2020 and have not reached the expected end of life for the systems. There would be a substantial cost to replace this equipment before the end of its life cycle, and even if it was replaced, there is an expectation that any replacement equipment would have the same requirement for OEM replacement parts for the exact same reason as previously given.

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

A solicitation will be posted for a reasonable period of time to allow for submission of competitive quotes.

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

The Contracting Officer anticipates that prices can be determined to be fair and reasonable based on adequate competition through submitted quotes.

8. Description of the Market Research Conducted and the Results, or a Statement of the

Reasons Market Research Was Not Conducted:

The SBA Small Business database was searched using NAICS 221310 resulting in 526 SDVOSB vendors and 557 VOSB vendors. On 09/04/2026, Sources Sought Notice # 36C26327Q0015 was published to SAM.gov to conduct market research for the Water Treatment Maintenance Services package. Responses were due on 09/11/2026 at 12:00pm Central Time. Two emails from interested vendors were received. See P11 – Memo SS Responses in the eCMS briefcase. Although there are multiple SD/VOSB vendors performing work under this NAICS Code, there were none who submitted a responsive email with all required information. There were also no responsive small business vendors. Neither the VA Rule of Two nor the SBA rule of two can be met. A full and open competition solicitation will be issued to meet the needs of this requirement.

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

This section is not applicable.

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

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See P11 – Memo SS Responses, P11 – SS Response 1 - Klenzoid, Inc., and P11 – SS Response 2 - Water Compliance Services LLC in the eCMS briefcase.

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:

Unless the current system is replaced this service is limited to the constraints described above. Should a new system be required, the Government will consider all potential systems and products and a determination be made as to the most advantageous method of procurement.