P03 HCA Signed OverSAT SSJ_Redacted.pdf

Acquisition ID#: 36C244-26-AP-0076

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C244-26-AP-0076

1. Contracting Activity: Department of Veterans Affairs, VISN 04, NCO4 Services 2 in support of the

Pittsburgh VA Medical Center.

PR: 646-26-2-5079-0001

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

This procurement is for preventive maintenance of the Direct Digital Controls (DDC) and Building Automation System (BAS) for the plumbing and HVAC systems at the Pittsburgh VA Medical Center, both Heinz and University Drive campuses. In addition to the weekly preventive maintenance services, this procurement will provide a DDC system upgrade to the controls system in the chiller plant on the Pittsburgh VA Medical Center Heinz campus. This will result in the replacement of obsolete controllers which currently could not be repaired or adequately maintained due to age.

The chiller plant controls system upgrade will include a complete remapping and connection to a new main control panel to prevent any future shutdowns. Shutdowns of the boiler plant would cause loss of steam to the entire medical center. Only existing wiring will be used, no new wiring or runs will be needed for this upgrade. This procurement will be awarded as a follow-on firm-fixed price contract for a base year, with four one-year option periods. All options will be priced and evaluated before the award.

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

The resulting contract will provide weekly preventive maintenance services, annual support, and equipment replacement – chiller plant controls system upgrade.

Weekly preventive maintenance of the DDC system will consist of control system changes and adjustments to keep the facilities plumbing and HVAC systems operating safely and efficiently. This includes updating system settings, installation of software updates on each control unit, maintaining the fiber optic connection and communications between system components, and updating system backups. Weekly preventive maintenance will be completed by a contractor provided system specialist performing repairs, adjustments, and calibration of all DDC systems during two eight-hour visits per week. A separate bank of four eight-hour shifts for emergency service visits are included annually.

Annual support includes separate service visits to conduct graphics maintenance and improvements, as well as an annual audit detailing performance and recommendations for system optimization.

Database backup and protection, online support, software maintenance, and expedited response time is included with annual support.

The chiller plant controls system upgrade will be completed in the base year of the contract and will consist of a complete controls system replacement as a one-time upgrade. All outdated controllers will be removed and replaced with the most current Optiflex controllers and point expanders, as well as a new control panel to be supplied and integrated with all system components. All the new components are designed to be compatible with the WebCTRL Building Automation System. Only existing wiring will be utilized for the chiller plant controls system upgrade.

Estimated period of performance:

Base Year: 12/21/2025 – 12/20/2026 Option 1: 12/21/2026 – 12/20/2027 Option 2: 12/21/2027 – 12/20/2028 Option 3: 12/21/2028 – 12/20/2029 Option 4: 12/21/2029 – 12/20/2030

Total estimated value:

Base Year: CLIN 0001 – Maintenance CLIN 0002 – Chiller BAS Upgrade

Option 1: CLIN 1001 – Maintenance Option 2: CLIN 2001 – Maintenance Option 3: CLIN 3001 – Maintenance Option 4: CLIN 4001 – Maintenance

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

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

This proposed follow-on sole source acquisition for preventive maintenance and upgrades to the HVAC/plumbing DDC and BAS installed at the VA Pittsburgh Healthcare System will utilize the procedures outlined in FAR Subpart 13.5 authorizing the use of simplified acquisition procedures for commercial products and services up to $7.5 million. Specifically, FAR 13.501(a)(2) speaks to the requirement for a sole source justification which is the purpose of this document.

Market research shows similar BAS maintenance services are available on the commercial marketplace from multiple vendors, however each BAS is unique in the software, hardware, and maintenance requirements depending on the system itself as well as the intended use. The VA Pittsburgh Healthcare System consisting of two VA Medical Center campuses (Heinz and University Drive) uses the WebCTRL BAS, which is a proprietary system from Automated Logic. As such, all DDC components must be compatible with the WebCTRL system. The WebCTRL BAS is highly specialized in that only vendors authorized by the manufacturer possess adequate training, software, and replacement parts can provide any services to the BAS or DDC components.

The Optiflex DDC components included in the chiller plant controls system upgrade are manufactured by Automated Logic and designed for use with the WebCTRL BAS. The BAS and DDC systems are programmed to perform specific tasks to manage the plumbing and HVAC of each campus safely and efficiently. The systems communicate and when combined perform tasks automatically such as controlling the amount of water flow through a valve, water temperature in a heating jacket, or monitoring and adjusting building temperature. The control system for the related software and components are highly specialized to meet the needs of each facility.

Automated Logic Contracting Services Inc. possesses the proprietary rights to all the hardware and software of the BAS and DDC in both Pittsburgh VA Medical Center campuses. Use of any non-authorized software or components would result in a complete system failure and loss of control for the plumbing and HVAC systems. Continued use of Automated Logic’s BAS and DDC systems is essential to the government to prevent substantial duplication of costs; any change in BAS or DDC would require the removal of Automated Logic’s control modules, ancillary equipment and software, then require the installation and programming of a completely new system. Previous market research and Technical Point of Contact investigation on complete removal, purchase, and reinstallation of a new BAS/DDC system resulted in an estimated cost of $20-30 million, which is likely a conservative estimate based on pricing trends. The Pittsburgh Healthcare System has maintained and upgraded the existing system as needed to ensure optimal functionality, further increasing the detrimental cost impact of any significant change.

Furthermore, any other BAS and DDC system which could be obtained would require the same ongoing preventive maintenance services. Market research shows similar systems are all proprietary to their respective manufacturers and would result in the same need to sole-source any preventive maintenance needs.

Accordingly, Automated Logic Contracting Services Inc. is the only firm capable of providing the supplies and services described in Section III above without the Veteran’s Health Administration experiencing substantial duplication of cost that could not be expected to be recovered through competition.

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

Although market research supports the need to sole source this procurement, the contract specialist posted a notice of the government’s intent to sole source these services to SAM.gov:

Notice 36C24425Q0897 was posted to SAM on 08/13/2025 and explained the government’s requirement for preventative maintenance and upgrades to the WebCTRL Building Automation System and related Direct Digital Control components at the Pittsburgh VA Healthcare System. The notice identified the intended awardee (Automated Logic Contracting Services Inc.) and requested that any firms who believe they could also provide the services respond with sufficient evidence to determine capability. Any responses were required to demonstrate they were authorized to service the WebCTRL Building Automation System. Responses were due by 08/20/2025 at 10:00am, and no responses were received.

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

Reasonable:

The anticipated cost will be determined to be fair and reasonable prior to the award. The original quoted price for these services was The contract specialist was able to secure an discount for the base year, resulting in an updated price of inclusive of all options.

To compare with the previous contract pricing (36C24421D0022), the contract specialist adjusted the base year price based on inflation (23.84% from December 2020 to June 2025), which provided an estimated base year price of . Assuming a 5% annual increase and including the additional estimated for the chiller plant controls system upgrade, a total estimated price of The actual price is 8% ( ) higher than the estimate based on previous contract pricing; the increase is due to a combination of anticipated inflation and increased service rates from the contractor which were not included in the previous firm fixed price contract.

The updated pricing will also be compared to the IGCE, and market research on historical pricing for similar services will be conducted and evaluated to support the fair and reasonable price determination.

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

Market Research Was Not Conducted:

Market research was conducted by performing searches on VetCert, FPDS, DSBS, SAM, and from utilizing online catalogs from the WebCTRL manufacturer. Initial market research on VetCert, SAM, and DSBS using the relevant NAICS and PSC codes as well as keywords demonstrated that similar services are commercially available from multiple sources. Additional information on each search and the results of each are documented in the Market Research Report and within the eCMS briefcase.

The Pittsburgh VA Technical Point of Contact indicated this requirement would need to be sole sourced due to the proprietary system requiring maintenance and upgrades. Research on the WebCTRL BAS identified Automated Logic as the manufacturer, which was supported through multiple independent vendor websites providing information on the system. Searches on FPDS using the keyword “WebCTRL” identified multiple businesses which were awarded contracts for maintenance or upgrades including Automated Logic Contracting Services INC. All the surveyed WebCTRL service contracts from FPDS were sole sourced to their respective awardees. Automated Logic provides a list of authorized dealers who can design, engineer, install, and service Automated Logic systems such as those installed within the Pittsburgh VA Healthcare system. Automated Logic themselves is the only authorized dealer for the Pittsburgh, PA area according to their authorized dealer list. There is no other vendor capable or authorized to service or otherwise upgrade the WebCTRL system. Automated Logic Contracting Services Inc is a large business.

In consideration of the Buy American Act and FAR Part 25, this procurement is for commercial services to be performed inside of the U.S. All applicable clauses will be included in the resulting contract.

As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition and the posting of a Notice of Intent to sole source this requirement, advising industry of the pending acquisition and soliciting inquiries from interested parties.”

Acquisition History: This is a follow-on requirement which has been historically awarded to Automated Logic Contracting Services on a sole source basis due to the highly specialized and proprietary system requiring preventive maintenance (WebCTRL BAS). The most recent contract was 36C24421D0022, a requirements contract awarded on 12/21/2020 in the amount of The ordering period was 12/21/2020 - 12/20/2025. Before the listed requirements contract, maintenance services were again sole sourced to Automated Logic under 36C24419P0186.

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

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

AUTOMATED LOGIC CONTRACTING SERVICES, INC. (Incumbent Contractor)

SAM: DFB2TDLGDMT4

Large Business

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:

Due to the proprietary nature of the existing BAS and DDC supporting the plumbing and HVAC systems at the Pittsburgh VA Healthcare System, no competition would be feasible for upcoming years unless an entire new BAS and DDC was purchased. As documented in Section 5 of this document, the complete removal and replacement of the BAS and DDC would be more than based on previous research performed by the Technical Point of Contact. Furthermore, similar acquisitions and maintenance contracts demonstrate BAS programs, software, and components are proprietary in nature and require a similar sole-source maintenance contract.

Should the existing WebCTRL BAS or related DDC components become obsolete or damaged to the extent that extensive repairs/replacement is needed, it will be evaluated whether the government would get additional value by replacing the entire system at that time. Market research will be conducted on a continuous basis to determine whether new technologies or updates to the market would affect change these conditions.

12. 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 and belief.

Charles P. Carr Date Utilities Operation Manager Pittsburgh VAMC

CHARLES CARR

Digitally signed by CHARLES

CARR

Date: 2025.09.08 12:49:25 -04'00'

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

Nicholas Guzenski Date Contract Officer NCO4 Services 2

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Pamela Rayburg Date Branch Chief NCO4 Services 2

c. 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 ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.

Gerald F. Jacobs Date Executive Director Regional Procurement Office East

NICHOLAS GUZENSKI

Digitally signed by NICHOLAS

GUZENSKI

Date: 2025.09.08 13:05:07 -04'00'

PAMELA RAYBURG

Digitally signed by PAMELA

RAYBURG

Date: 2025.09.08 14:23:35 -04'00'

GERALD JACOBS

Digitally signed by GERALD

JACOBS

Date: 2025.09.11 09:23:25 -04'00'