P03 - FAR 8 LSJ Over SAT - signed.pdf

VHAPM Part 808.405-6 Limiting Sources Attachment 2: Request for Limited Sources Justification Format >SAT

VHAPM Part 808.405-6 Limiting Sources Page 1 of 4 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C242-20-AP-1616

(1) Contracting Activity: Department of Veterans Affairs, VISN 02, New Jersey Healthcare System (NJHCS) - Lyons Campus, 151 Knollcroft Road, Lyons, NJ 07939 2237: 561-21-1-5100-0003

(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 is a request for the approval of a sole-source task order under FSS contract number GS21F044CA for a full-service agreement on the Distech Controls Automatic Temperature Control (ATC) systems currently in use at the NJHCS - Lyons Campus. This procurement shall be conducted in accordance with FAR Part 8.405-6(a)(1)(B). The purpose of this service agreement is to reduce service costs and improve equipment turn-around time and reliability.

This will be a firm-fixed price task order number GS21F044CA. The anticipated period of performance is from 10/1/2020 – 9/30/2021 with the provision of four (4) option years. The annual cost is $282,587.24, and the total estimated cost is $1,657,856.44.

Order against: FSS Contract Number: GS21F044CA

Name of Proposed Contractor: Innovative Controls Group, LLC Street Address: 11 Smoke Rise Lane City, State, Zip: Annandale, NJ 08801 Phone: 908-735-5200

(3) Description of Supplies or Services:

The estimated value of the proposed action is $ 1,657,856.44

Innovative Controls Group, LLC is the original equipment manufacturer (OEM) and developer of the Distech Controls ATC (Automatic Temp Control) systems, TAC Building Control system and OPIX front end, and is the sole authorized provider of maintenance and support. Innovative Controls Group, LLC will provide a full service agreement to include: authorized/trained technician (on-site three days per week - eight hours each day), OEM parts, travel, labor, 24/7 telephone and remote diagnostic support, programming, diagnostic calibration, trending, updates to the hardware and software in place as required, preventative maintenance and as needed repairs.

The anticipated period of performance is from 10/1/2020 – 9/30/2021 with the provision of four (4) option years.

Base period, 10/1/2020 – 9/30/2021: $282,587.24 Option year one, 10/1/2021 – 9/30/2022: $305,193.72 Option year two, 10/1/2022 – 9/30/2023: $329,616.68 http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3 https://www.gpo.gov/fdsys/pkg/USCODE-2011-title40/pdf/USCODE-2011-title40-subtitleI-chap5-subchapI-sec501.pdf

VHAPM Part 808.405-6 Limiting Sources Page 2 of 4 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

Option year three, 10/1/2023 – 9/30/2024: $355,991.68 Option year four, 10/1/2024 – 9/30/2025: $384,467.12

Total estimated cost: $1,657,856.44

(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.

FAR 8.405-6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

FAR 8.405-6(a)(1)(B): 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.

Innovative Controls Group, LLC, a small business, is the only company that can provide all the necessary OEM parts and perform all necessary repairs for the equipment described above due to patents and copyrights on the equipment. This prevents other possible contractors from accessing the diagnostic software, possessing necessary tooling and providing OEM parts to the Government. These maintenance services are considered “highly specialized” and thus there is only one responsible source.

FAR 8.405-6(a)(1)(C): 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.

FAR 8.405-6(b): Items peculiar to one manufacturer:

A patent, copyright or proprietary data limits competition. The proprietary data is:

These are “direct replacements” parts/components for existing equipment.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing.

(5) Describe Why You Believe the Order Represents the Best Value consistent with FAR 8.404(d) to aid the contracting officer in making this best value determination:

The anticipated cost to the government is considered fair and reasonable based upon adequate competition on the FSS contract requirements and negotiation of prices prior to contract award. The pricing for this annual service requirement comes directly from the manufacturer, Innovative Controls Group, LLC, is identical to the pricing available under their FSS contract.

The proposed pricing for this task order has been compared to the price of the previous procurement.

This service was last procured as a consolidated facilities maintenance contract (GS-21-F-0062V/VA243- 16-F-1561) where ProSource, Inc., small business, managed the consolidated facilitates maintenance contract and then sub-contracted out all OEM requirements to the respective vendor. For this service, ProSource, Inc. charged a 15% fee to manage each part of the contract. Therefore, for this part of the procurement, the cost of the last option year (10/1/2019 – 9/30/2020) was $310,969.04, which paid Innovative Controls Group, LLC $270,407.86 for service provided during the option year. Due to the end

VHAPM Part 808.405-6 Limiting Sources Page 3 of 4 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020 of the current contract, it was determined that several services, such as this, be removed from the consolidated facilities management contract. This will allow for cost savings, and more oversight of the contract by the VA. With an anticipated cost for the base year of the contract being $282,587.24, this represents less than a 5% increase from last year and considered to be fair and reasonable.

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

• A search of VetBiz using NAICS code 811219 and keyword “Distech” did not identify any SDVOSB or VOSB that could provide service to meet the requirements of this procurement.

• A search of SBA website using the NACIS code 811219 and keyword “Distech” did not identify any vendors that could provide service to meet the requirements of this procurement. Another search of Innovative Controls Group, LLC, original equipment manufacturer (OEM), identified the vendor as a small business.

• A search of GSA eLibrary using the keyword “Distech” did not identify any vendors that could provide service to meet the requirements of this procurement. Another search of Innovative Controls Group, LLC, original equipment manufacturer (OEM), identified the vendor as a small business and having a contract (GS-21F-044CA) that expires June 18, 2025.

• A Notice of Intent, 36C24220Q0941, was posted to beta.SAM.gov from 7/21/2020 – 7/28/2020.

This received zero responses. Innovative Controls Group, LLC is the only vendor identified that can provide for this requirement.

(7) Any Other Facts Supporting the Justification: N/A

(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:

In situations involving complex equipment, it is difficult to remove barriers to competition because the OEM is the only qualified company capable to provide the repair and maintenance of its own specialized equipment. This is especially true where proprietary software, specific diagnostics tools, and specialized electronics are used to maintain the equipment in accordance with OEM specifications. Unless the manufacturer chooses to license its software and authorize local service providers to maintain their equipment, the only alternative would be to replace the existing equipment with another system. At this time, the NJHCS - Lyons Campus is satisfied with the quality and operation of the installed equipment, its maintenance and repair. NJHCS - Lyons Campus currently does not have the sufficient budget to replace the existing equipment thus the reason to have equipment properly maintained through the life of the contract. Considerations for new equipment will be made when the existing equipment reaches the end of its life cycle span.

VHAPM Part 808.405-6 Limiting Sources Page 4 of 4 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

(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 limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

STANLEY CHMIELEWSKI DATE

CHIEF, MAINTENANCE AND REPAIR

FACILITIES MANAGEMENT, NJHCS – LYONS CAMPUS

(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.

JANINE CHILDS DATE

CONTRACTING OFFICER, SERVICE TEAM I

RPO – EAST, NCO 02, BUFFALO, NY

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

CHERYL BRIMMER DATE

BRANCH CHIEF, SERVICES TEAM I

RPO – EAST, NCO2, BATH, NY

HIGHER LEVEL APPROVAL (Required for orders over $700,000):

c. VHA RPO HCA Review and Approval (over $700,000 to $68 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 FAR Subpart 8.4.

JOSEPH MALETTA DATE

EXECUTIVE DIRECTOR

REGIONAL PROCUREMENT OFFICE - EAST

Stanley J.

Chmielewski 163662

Digitally signed by Stanley J.

Chmielewski 163662 Date: 2020.08.12 09:08:10 -04'00'

Janine C. Childs 183575

Digitally signed by Janine C.

Childs 183575 Date: 2020.08.21 14:40:21 -04'00'

Cheryl M Brimmer 113171

Digitally signed by Cheryl M Brimmer 113171 Date: 2020.08.28 14:50:28 -04'00'

P03 - FAR 8 LSJ Over SAT - Cheryl signed