P03 - J_A FINAL FAR 13.5 Sole Source Justification 36C242-23-AP-1629 REV 6.6.2023.R1_Redacted.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-$7.5M under FAR13.5

Effective Date: 02/01/2022 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C242-23-AP-1629

1. Contracting Activity: Department of Veterans Affairs, VISN 2, NCO2, James J. Peters Bronx Medical

Center (JJPVAMC), 130 W. Kingsbridge Road, Bronx, NY 10468, in support of VA Hudson Valley Healthcare System (VAHVHS), Castle Point Campus, 41 Castle Point Road, Wappingers Falls, NY 12590. 2237 # - 620-23-2-3087-0035

2. Nature and/or Description of the Action Being Processed: This procurement is for one Mobile Chiller Unit manufactured by Carrier Rental Systems Inc in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2.

This sole source justification is for the award of a non-competitive, firm-fixed-price (FFP) Purchase Order to Carrier Rental Systems Inc, which is a Large business. It has been determined that Carrier Rental Systems Inc is the only vendor capable of providing this unit, which is compatible with the unique requirements and expedited delivery requirements of the VAHVHS.

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

The Mobile Chiller Unit package will include the following:

One (1) 350-ton air cooled chiller 460V/3PH model # 30XV-3506ML01G4D3 mounted on VA provided 48' flatbed trailers with two (2) VA-provided 950-gpm pumps with check valves and 120ft of head pressure on each trailer. Ancillary items shall include startup, delivery, training, oil heaters, strainer, and valves.

The Custom Mobile Chiller package will be built to serve as a VISN2 resource and can be quickly driven to various hospitals as needed. The mobile chiller will be delivered to a VA Hospital within the VISN 2 System (exact location to be determined).

Estimated total: $415,000.00 Required Delivery Date: 65 Weeks from receipt of award

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

Effective Date: 02/01/2022 Page 2 of 4

( ) 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): Carrier’s HVAC employees have extensive experience assembling similar Mobile Chillers as part of their Chiller rental line.

Additionally, VISN2 maintenance staff is familiar with the units and this familiarity along with accessibility is an important advantage during both emergencies as well as scheduled maintenance.

Carrier’s units are also a turnkey solution which meets the hospital’s stringent time constraints of delivery within 65 weeks.

This unit will be used as a VISN2 resource. Other facilities within the VISN currently have Carrier products and will benefit from not having to train staff on the use of this Chiller. Based on space considerations at the Castle Point Campus of VAHVHS, the Carrier Chiller unit is the only one that will fit in the tightly confined space around the chiller plant while not adversely affecting other systems. Market research has determined that the physical size of the Carrier unit is smaller than any other Manufacturer’s units

The Carrier chiller model specified has the best energy rating among all similar sized chillers from other manufactures. VA is mandated to reduce its energy footprint by various executive orders.

These units come with a proprietary AeroAcoustic fan system while other units do not. These units will be placed outside of the chiller plant building and in close proximity to the neighboring structures. This quiet fan will reduce the noise pollution while running continuously through the cooling season.

VAHVHS currently has the 48’ trailer that the chiller will sit atop and this trailer is already pre-piped with VFDs, pumps, and electrical requirements to fit this exact chiller. Any other Chiller would require extensive re-piping of the mechanical piping and rewiring of the electrical components.

The Carrier model has one of the most accessible units to gain access for maintenance and repairs, minimizing operational down time. It can be accessed very easily and quickly during both emergencies as well as scheduled maintenance.

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

GSA, SAM, FPDS and Internet research was conducted in an attempt to find alternative sources for these products. The searches did not yield any results, (see Section 8, below).

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

To determine price reasonableness, this requirement was compared to the following two similar procurements:

Purchase Order 36C24219P0916 was awarded (April 2019) for the Castle Point VA Medical Center, to provide two retrofitted 350-ton air-cooled chillers, 460v/3PH model # 30XV-3506M40-53-0, mounted on two separate 48’ flatbed trailers with two 950-gpm pumps with check valves and 120-ft head pressure on each trailer. This procurement involved purchasing two new trailers. Total procurement value is $698,839.00 for two chillers mounted on two separate trailers ($62,100.00

Effective Date: 02/01/2022 Page 3 of 4 each); $349,419.50 total for each. Without the trailer procurement price, the retrofit total is $287,319.50 each (April 2019) revised to $341,079.10 each (April 2023) for inflation based on the Bureau of Labor Statistics inflation calculator.

Purchase Order 36C24221P1099 was awarded (July 2021) for the Canandaigua VA Medical Center, to provide a 295-ton self-contained chiller system (460V/60Hz/3Ph) mounted on one trailer with a 625kVA generator with integral 2000-gallon fuel tank mounted on the same dedicated trailer. This procurement involved purchasing one new trailer. Total procurement value is $824,439.33 for one chiller mounted on one trailer ($42,449.72 for the trailer). Without the trailer procurement price, the retrofit total is $781,989.61 (July 2021) revised to $868,952.77 (April 2023) for inflation based on the Bureau of Labor Statistics inflation calculator.

In comparison to the above prior procurements, this requirement is priced 21.6% higher than 36C24219P0916 and 52.2% lower than 36C24221P1099 after adjusting for inflation. In comparison to the average of the two prior procurement amounts, this requirement is 28% lower priced. Based on this analysis, the CO determines the price to be fair and reasonable.

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

Market Research Was Not Conducted:

A Special Notice – “Intent to Sole Source” was posted to SAM on May 10, 2023, for five days, which allowed other firms selling mobile chillers to provide evidence they can meet the requirements. No responses were received. Another manufacturer’s chiller will be designed differently and will not fit the current trailer mechanical and electrical configuration. GSA, SAM, FPDS and Internet research was conducted in an attempt to find alternative sources for these chiller units. The searches did not yield any results.

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

None

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

Carrier Rental Systems Inc

9655 INDUSTRIAL DR

BRIDGEVIEW, IL 60455-2323

UEI: PZADQ3H1ZZ71

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 fact that the Carrier mobile chiller units are highly customized and the only ones currently able to meet the size, noise, turnaround time, training and other specs for the facility, the ability to compete similar subsequent acquisitions is wholly dependent on whether other compatible mobile Chillers will enter the marketplace. The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable competition in the future.