P03 - Electrical Metering - SDVOSB Direct Award - JA - Redacted - Fully Signed.pdf

Request for Sole Source Justification Format >SAT Iron Mountain Metering and Condensate Lines and Pumps

36C776-25-AP-2434

Page 1 of 4 VHAPG Part 806.3 OFOC Revision: 03 Effective Date: 04/15/24 Acquisition ID#:36C776-25-AP

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C776-25-AP-2434

1. Contracting Activity:

The contracting activity for this requirement is the Department of Veterans Affairs, Veterans Health Administration (VHA) Program Contracting Activity Central (PCAC).

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

This justification is in support of a new, single award, firm-fixed-price (FFP) contract for construction services to upgrade the electrical metering and replace condensate lines and pumps at the Oscar G. Johnson VA Medical Center (VAMC) located in Iron Mountain, Michigan.

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

This project will correct a facility condition assessment (FCA) deficiency through the replacement of 70-year-old condensate lines and the existing pumps. Replacing the condensate pumps will improve the flow back to the boiler plant. Additionally, this project includes the replacement of 29 existing PM800 meters and 10 existing CM4000 meters;

upgrade of the protection and monitoring components; and upgrade and modernization of the closed and/or open transition main-main and main-tie-main automatic transfer system used to switch between sources. All equipment required to complete the work shall be included in the contract.

Independent Government Cost Estimate:

4. Statutory Authority Permitting Other than Full and Open Competition:

(X) 819.7008 Sole source awards to a verified services disabled veteran-owned small business; or

( ) 819.7009 Sole source awards to a verified veteran-owned small business

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

36C776-25-AP-2434

This requirement is for construction services that are technical in nature and specific to metering and condensate lines. The contractor selected, Venergy Group, has extensive experience in mechanical type projects to include the installation of energy-efficient units and providing turnkey solutions for advanced utility metering.

6. Description of Efforts Made:

A notice of intent to sole source was posted for two weeks on Sam.gov on 9/8/2025. In accordance with Veterans Affairs Acquisition Regulation (VAAR) 819.7008, a determination that only one SDVOSB can meet the requirement is not required. No additional efforts were made to solicit to more than one (1) source. Venergy Group is a highly qualified contractor capable of performing.

7. Description of efforts made to ensure that offers are solicited from as many potential sources as deemed practicable:

A determination that only one SDVOSB can meet the requirement is not required in accordance with VAAR 819.7008. The criteria for sole sources awards to verified service-disabled veteran-owned small businesses has been met for this requirement to include the following –

(a) The anticipated award price does not exceed $5 million;

(b) The requirement has been synopsized and the justification will be posted in accordance with FAR part 5;

(c) The SDVOSB has been determined to be a responsible contractor with respect to performance; and

(d) The contracting officer anticipates the award can be made at a fair and reasonable price.

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

Venergy Group has been awarded over 200 VA contracts indicating they have an extensive record of providing fair and reasonable prices to receive awards. Their ratings within the Contractor Performance Assessment Reporting System (CPARS) for cost control also provide a snapshot of fiscal responsibility as the majority of the ratings provided range from satisfactory to exceptional. The CO anticipates the prices received from Venergy Group will be fair and reasonable.

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

It is recommended that a sole source award be made to Venergy Group. Market research was conducted by using previous market research for metering requirements as well as PCAC CO knowledge of the specific capabilities of the selected contractor. Venergy Group specializes

36C776-25-AP-2434

Date

One Level Above the Contracting Officer (Required over $750K): I certify the justification meets requirements for other than full and open competition.

Director of Contracting (Required with HCA Approval): I certify the justification meets requirements for other than full and open competition.

VHA 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 recommend approval (if over $75 million) or approve ($750K to $75 million) for other than full and open competition.