P03 JOFOC FINAL - C40368.pdf

Attachment 1: Request for Sole Source Justification Format >SAT Requirement: Boiler System Repairs (Emergency)

Acquisition Plan: 36C248-24-AP-5819

VHAPG Part 806.3 OFOC Page 1 of 4 Revision: 03 Effective Date: 04/15/24

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C248-24-AP-5819

1. Contracting Activity:

Department of Veterans Affairs, Network Contracting Office (NCO) 8, 8875 Hidden River Pkwy., Tampa, FL 33637, in support of the James A. Haley Veterans’ Hospital (JAHVH) at 13,000 Bruce B. Downs Blvd., Tampa, FL 33612; 2237# 673-24-4-6045-0937

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

The James A. Haley Veterans’ Hospital (JAHVH) Facilities Management Service (FMS), Central Energy Plant (CEP) Team, has an urgent and compelling need for emergency boiler system repairs (to include replacement of the Burner Refractory Assembly’s) on the three (3) fire tube steamed boilers located in Bldg. 39.

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

The Contractor shall furnish all necessary services, equipment, labor materials, supervision, tools, testing, and any required specialty services to successfully perform Boiler System Repairs in Bldg. 39. The Contractor will also be repairing/replacing the thermal refractory on all three (3) fire tube steamed boilers. The repairs will be sequenced in a manner where one boiler is repaired at a time, beginning with the boiler showing the worst refractory cracking and spalling. Once repaired, each boiler will then undergo a startup sequence required to fully cure the ceramic material to prevent future premature failures.

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

() (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1.

(X) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302-2.

() (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3.

() (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4

() (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302-5.

() (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6.

() (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7.

VHAPG Part 806.3 OFOC Page 2 of 4

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

The CEP Team along with Engineers with Central Maintenance and Welding (CMW) have indicated that the Burner Refractory Assembly’s on boilers 1, 2, and 3 are failing. A detailed inspection report of all three boilers by CMW has revealed the front refractory walls and the burner throats has several critical issues. These areas revealed evidence of thermal fatigue on the internal burner shrouds. In addition, the burner throats refractory revealed areas of spalling and cracking. Emergency repairs must be made to include, but not limited to burner throat and burner shroud, and all needed repairs of front wall refractory, burner cones, and heat stressed metals. Without the properly operation of boilers 1, 2, and 3, and the risk of a boiler failure, is imminent. Significant health care operations will have to stop. The JAHVH may lose the ability to produce steam. The boilers are also required to help maintain proper temperature and humidity along with surgical sterilization. Making this a high risk and cause a devastating effect to patient care at

JAHVH.

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

The facility boiler systems manufactured by English Boiler and Tube Inc. at JAHVH is a critical Infrastructure. CMW maintains a staff of factory employed and fully trained field service engineers that are qualified to perform annual inspections, maintenance, repairs and necessary enhancements and upgrades. There are no third-party service organizations that have the expertise, experience, and record documentation to enable them to fully support a complex specialty system of this type. Installation services will be required as part of this emergency repair at JAHVH. Central Maintenance and Welding (CMW) is a recommended boiler contractor who is already familiar with the English boiler system that is currently in place at JAHVH. CMW has provided numerous installations and repairs in the past and has met (and exceeded) the needs that are needed at JAHVH.

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

Reasonable:

The estimated cost for the Boiler System Repairs is $669,209.00. The CO determined the anticipated cost to the government will be Fair and reasonable based on a comparison of similar items that have been procured within both VHA and the Federal Government. The CO was able to confirm that multiple VA Medical Centers across the United States have procured/awarded similar boiler repair services that JAHVH is requesting. On July 20, 2018, Network Contracting Office (NCO) 23 at Nebraska/Western Iowa VA awarded Contract # 36C26318P3295 for similar Boiler System Repair Services on one (1) steamed boiler for $218,406.00. JAHVH is repairing three (3) steamed boilers in the amount of $669,209.00 ($223,070.00 each). The cost difference from July 2018 to September 2024 (six

(6) year difference) reflected a 2.5% increase, where in today's Open Market (OM) are typically 10% + each year. With current supply chain issues, and with rise of labor costs within the current U.S. economy, the Nebraska/Western Iowa VA Medical Center in NCO 23

VHAPG Part 806.3 OFOC Page 3 of 4 offer comparable cost data to use as part of the final fair and reasonable price determination with this emergency procurement.

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

Limited market research was conducted due to the urgency and proprietary nature of the requirement. This agency is committed to the competitive spirit of all procurement regulations. It is our policy to seek full and open competition to the largest extent possible while fulfilling the necessary requirements. The proprietary nature of this equipment restricts other vendors from being able to provide support.

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

As indicated above, there are no third-party service organizations that have the expertise, experience, and record documentation to enable them to fully support a complex specialty system of this type. As installation services will be required as part of this emergency replacement at JAHVH, CMW is a recommended Boiler maintenance contractor who is already familiar with the English Boilers System that is currently in place at JAHVH. CMW has provided numerous installations and repairs of the boilers at JAHVH.

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

None, as limited market research was conducted due to the urgency and proprietary nature of this emergency service request.

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:

VHA is committed to the competitive spirit of all procurement regulations. It is our policy to seek full and open competition to the largest extent possible while fulfilling the necessary requirements. Currently there is no anticipated competition for the repairs of the Burner Refractory Assembly’s during this urgent and compelling situation.

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.

Daniel Miller Supervisory Healthcare Engineer James A. Haley Veterans’ Hospital (JAHVH)

VHAPG Part 806.3 OFOC Page 4 of 4

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

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

Jose E. Ortiz-Velez Contracting Officer (NCO) 8 – Tampa Services/Commodities Team

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.

Ellen S. Clark Branch Chief

(NCO) 8 – Tampa Services/Commodities Team https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx