P03 final Justification and approval.pdf

GSAR 538.7104-3 Sole Source Justifications Page 1 of 6 Acquisition ID#: 36C256-27-AP-0229

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

GSAR 538.7104-3

Acquisition Plan Action ID:_36C256-27-AP-0229

(1) Contracting Activity: Department of Veterans Affairs, Veterans Health Administration (VHA), Network Contracting Office (NCO) 16, Commercial Acquisition Team (CAT) Biloxi, supporting VISN 16, Gulf Coast Veterans Health Care System (GCVHCS), Engineering Service, 400 Veterans Avenue Building 10, Biloxi, MS 39531.

Purchase Request: 520-27-1-543-0007 Estimated value: $1,706,044.82 base and four option years

(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). Services include maintenance, repair, testing, remote start/stop, and emergency response for facility generators. All work must comply with VHA Directive 1028, National Electrical Code, The Joint Commission, and OIG requirements.

Order against: FSS Contract Number: _47PA0425D0027

Name of Proposed Contractor: Mississippi Power Company Business & Industry Services

Street Address: 2908 28th St/ 2992 West Beach Boulevard

City, State, Zip: Gulfport, MS 39501

Phone: 228-234-6230

Point of Contact :

Brent Kirkpatrick bkirkpat@southernco.com

Robert Thomas robbethom@southernco.com

(3) Description of Supplies or Services:

The estimated value of the proposed action is $ 1,706,044.82

Services include maintenance, repair, testing, remote start/stop, and emergency response for facility generators. All work must comply with VHA Directive 1028, National Electrical Code, The Joint Commission, and OIG requirements.

GSAR 538.7104-3 Sole Source Justifications Page 2 of 6

(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.

GSAR 538.7104-3(b)(1)(i): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

GSAR 538.7104-3(b)(1)(ii): 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:

Mississippi Power Company is uniquely qualified due to its experience, certifications, and exclusive control over the facility’s electrical distribution system. Competition is not feasible due to utility-controlled access and service territory exclusivity.

Mississippi Power Company, under GSA Areawide Public Utilities Contract 47PA0425D0027, is the only source capable of providing the full scope of generator maintenance, including remote start capability and compliance with regulatory directives. Their specialized competencies, certifications, and familiarity with the facility’s systems make them uniquely qualified.

Further supporting this determination, the GSA Senior Contracting Officer for the Regulated Utility Services Division confirmed that regulated public utilities—such as Mississippi Power Company—operate as state regulated monopoly providers within legally defined service territories. Federal agencies do not conduct competitive procurements for regulated utility services because:

1. The utility provider is designated by law, not selected through competition.

2. Rates and terms are established through state approved tariffs, which constitute “prices set by law or regulation” and are not subject to negotiation.

3. Federal agencies are required to use the GSA Areawide Public Utilities Contract, unless a delegation from GSA exists. This Areawide contract establishes the binding legal framework for obtaining service from the sole authorized utility provider.

The GSA Senior Contracting Officer further clarified that no separate justification is required for standard tariff based utility services, as these are prescribed by law and tied directly to the regulated provider. However, because the Government’s requirement includes non-standard ancillary services—such as emergency generator maintenance, testing, remote start/stop capabilities, and corrective repair actions—an agency level Limited Sources Justification is required to document the basis for obtaining such utility related ancillary services from MPC under the Areawide contract. These services cannot be performed by any non-utility entity due to utility controlled access restrictions, safety requirements, and the need for utility authorized personnel to interface with interconnected high voltage infrastructure.

Given these factors—statutory service territory exclusivity, tariff regulated pricing, mandated use of the Areawide Utility Contract, and the unique technical qualifications required—

GSAR 538.7104-3 Sole Source Justifications Page 3 of 6

Mississippi Power Company is the only responsible source capable of providing these specialized generator services, and the use of limited source procedures under GSAR 538.7104 3(b)(1)(ii) is fully justified.

GSAR 538.7104-3(b)(1)(iii): 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.

GSAR 538.7104-4: 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 GSAR 538.7102-2(b)(4) to aid the contracting officer in making this best value determination:

The proposed order represents the best value to the Government because pricing offered by Mississippi Power Company has been previously determined fair and reasonable for substantially similar generator maintenance and repair services. Historical data supports this determination: the prior base and four option years totaled slightly over $1.3 million, while the current requirement—expanded in scope and aligned with updated facility needs—reflects an estimated value of $1.7 million. This cost progression is consistent with market conditions, labor increases, and the technical complexity required to maintain critical emergency power systems.

Mississippi Power’s longstanding performance at the Biloxi campus provides a proven record of reliability, quality, and compliance with regulatory standards, offering reduced performance risk and ensuring continuity of operations. Their unique system familiarity and integration with the facility’s existing electrical infrastructure further contribute to best value by minimizing downtime, mitigating safety risks, and avoiding transition-related inefficiencies.

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

Market research was conducted using multiple techniques:

VetCert database search for NAICS 221122 identified two small businesses, but none demonstrated capability for full-scope maintenance, especially remote start requirements.

GSAR 538.7104-3 Sole Source Justifications Page 4 of 6

GSA search for “utilities electric” found 46 SDVOSB vendors, but utility-related control access and service territory constraints limit performance for this requirement.

Prior SDVOSB set-aside solicitation was canceled due to unresolved access/control issues; Areawide pathway addresses these issues.

No other sources were found capable of meeting the requirement.

(7) Any Other Facts Supporting the Justification:

Recurring generator maintenance is mission-critical. Failure to perform required maintenance poses severe risks to facility operations, patient care, and regulatory compliance.

Mississippi Power Company is the only responsible source with proven ability to support uninterrupted power distribution operations.

(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:

No additional actions are planned to remove barriers to competition for future acquisitions.

Because generator maintenance and repair services fall under Mississippi Power’s mandatory Government-Wide Areawide Contract (GWAC), the agency is required to procure these services through that vehicle. As a result, future consideration of alternative competitive sources is not applicable. The restricted consideration stems from utility-controlled access, service-territory exclusivity, and mandatory GWAC coverage, all of which eliminate opportunities for competitive procurement in subsequent acquisitions.

(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 GSAR Subpart 538.71.

Alyssa Adrion GCVHCS Biloxi

FACILITY

ALYSSA ADRION

Digitally signed by ALYSSA

ADRION

Date: 2026.10.06 10:02:14 -05'00'

GSAR 538.7104-3 Sole Source Justifications Page 5 of 6

(10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

Tina Harris Contracting Officer

NCO 16 CAT LR/BIL

b. One Level Above the Contracting Officer: I certify the justification meets requirements for other than full and open competition.

John Walker Branch Chief

NCO 16 CAT LR/BIL

Christopher Vu Acting Chief Division I

NCO 16

c. Director of Contracting Concurrence: 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 for Other Than Full and Open Competition.

Reuben Zepeda Director of Contracting Network Contracting Office 16

TINA HARRIS

Digitally signed by TINA

HARRIS

Date: 2026.10.06 10:12:56 -05'00'

JOHN

WALKER JR.

Digitally signed by JOHN

WALKER JR.

Date: 2026.10.06 12:24:33 -05'00'

CHRISTOPHER

VU

Digitally signed by

CHRISTOPHER VU

Date: 2026.10.07 09:34:27 -05'00'

DAVID

BOURGEOIS

Digitally signed by

DAVID BOURGEOIS

Date: 2026.10.08 14:42:54 -05'00'

GSAR 538.7104-3 Sole Source Justifications Page 6 of 6

HIGHER LEVEL APPROVAL:

d. 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 approve for restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by GSAR Subpart 538.71.

Daryl A. Berg Executive Director, RPO Central Head of Contracting Activity

DARYL BERG

Digitally signed by DARYL

BERG

Date: 2026.10.15 08:52:34 -05'00'

36C256-27-AP-0229 LSJ PKG DoC SIGNED Gen Maint-Biloxi-DB_HCAprinted to adobe