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This document is a justification for a sole source acquisition under the Federal Acquisition Regulation Part 13.5 for a security camera server upgrade. The Department of Veterans Affairs plans to award a firm fixed price contract to Johnson Controls Fire Protection LP for equipment and services totaling approximately $XXX,XXX. Johnson Controls would provide two enterprise video servers, SAN storage, a core switch, cables and harnesses, as well as 67 hours of project management and 200 hours of technical services. The justification cites FAR 13.5 for restricted competition as the statutory authority. The agency requires the equipment to integrate with its existing video management and physical access control systems from Johnson Controls, and switching to a new vendor would require additional licensing costs and integration work. The notice of intent was published on May 7, 2021 to allow other sources to identify their interest and capabilities by that date, but the agency may still make a non-competitive award at its discretion based on the justification presented.

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DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C252-21-AP-2460

1. Contracting Activity:

Department of Veterans Affairs, VISN 12, William S. Middleton Memorial Veterans Hospital, Great Lakes Acquisition Center, 607-21-3-5969-0108.

2. Nature and/or description of the action being processed:

This is a new, firm fixed price procurement for a security camera server upgrade 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.

3. Description of supplies/services required to meet the agency’s needs:

This is a brand name only purchase of security camera servers and project management/technical services to be provided by Johnson Controls Fire Protection LP (“Johnson Controls” or “JCI”): 2400 Kilgust Rd, Madison, WI 53713, 608-274 1244.

The estimated amount is . Period of performance is a one-time delivery no later than 30 days after receipt of order.

CLIN Item Description Qty Unit Unit Cost Total

BCD108X-EVS-

216-D240

Enterprise 1U 8-Bay Multi Pu 2 EA

BCD584X-SAN-

HE-1008T-12

SAN Storage 1008TB 1 EA

BCD584X-SAN-

EX-336T-12

Expansion SAN Storage 336TB 1 EA

BCD-PROSRV-

ONS-1D-USA

Professional Services 1 DY

BCD-ALE-6900-

40X

SFP+ Port 10GbE Core Switch 1 EA

BCD-ALE-SFP-

10G-C3M

10 Gigabit direct attached ca 1 EA

0007 DPSEC CABLES/HARNESSES 1 EA

0008 PM LAB

PROJECT/CONSTRUCTION

MGMT

67 HR

0009 TECH LAB TECHNICAL SERVICE 200 HR

Total:

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):

The system needs to integrate with the facility’s current software, video workstations, cameras, and Physical Access Control systems (PACs) at different locations overseen by the William S. Middleton Memorial Veterans Hospital. The system software is not open source. It is to be purchased from the same vendor as this is a system upgrade and not a complete replacement. It will allow for continued operation for the next 5-7 years without needing further enhancement (unless increased storage is needed for off-site video). This upgrade is needed now to support the increased number of cameras recently installed, the enhanced resolution they provide, and the large number of additional cameras to be added during the FY22 Parking Ramp/Warehouse/Skywalk project.

The facility is currently using the ExacqVision video system both in Madison and at remote Community-Based Outpatient Clinics (CBOCs) with active video. The primary advantage of this system is that it allows for integration with the facility’s Physical Access Control System (PACS) with no additional licensing costs. If it were to switch to a competing system it would contain start-up costs in excess of the equipment costs for the items needed for this purchase.

In addition, the facility uses CCURE-9000 to control its PACs. ExacqVision and CCURE-9000 are both TYCO/Software House companies. This means that the facility does not have to pay licensing fees to have its camera system integrated into the PACS. With a competing system from another vendor ( for instance) it would be required to pay a license for each PACS card reader tied to an ExacqVision camera. The facility would also be required to pay a licensing fee for each ExacqVision camera that is tied to a reader. The William S. Middleton Memorial Veterans Hospital is instead looking to purchasing replacement components for its current system. This upgrade will allow it to leverage the current system without the need for a complete system replacement.

The current security camera video management system is comprised of four ExacqVision video servers running ExacqVision server software. The facility purchased the current servers several years ago, and they were sufficient at that time to have the video feeds provided by approximately 100 analog video cameras. It recently completed a hospital-wide physical security upgrade project that involved the replacement of all existing cameras and the addition of over 20 new cameras. All cameras were replaced with Axis IP cameras that provide a much higher level of resolution/detail. As a result, the larger files generated by the cameras, in addition to the increased number of cameras, have necessitated an upgraded security camera video management system be installed to provide the proper “backbone” for the camera system. Additionally, the facility is undertaking a new hospital parking ramp project that will also include an extended employee skywalk and a new Logistics warehouse. This project will add at least 50 new cameras, further increasing the need for an improved system.

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

JCI has performed security camera and server installation and the facility uses its ExacqVision and CCURE-9000 (Tyco/Software House/JCI) products. No other source is identified.

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

For its open market items, prices offered by JCI are lower than those commercially available by Burgess Computer Decisions, Inc. (“BCD”), a firm which sepcailizes in providing video recording servers, workstations, and industrial servers and switches.

For its FSS items, the CO will consider its level of effort and the mix of labor proposed to perform the specific task being ordered to determine its acceptability of fair and reasonable.

8. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted:

The CO conducted a search on VIP for “server” and NAICS 334111. 19 results were returned, 17 for SDVOSBs and 2 for VOSBs.

The CO conducted a search on GSA Advantage for the brand name part numbers. Zero results were returned except for professional services by server distributor, BCD. The CO contacted the server distributor to determine price reasonableness and learned that its business model is to use integrated distributors to distribute its products. This procurement is for brand name equipment (servers) and installation using professional services.

An Intent to Sole Source notification is to be posted along with this justification. Information received because of the notice of intent will normally be considered for determining whether to conduct a competitive procurement.

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:

Johnson Controls Fire Protection LP.

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:

The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be competed.

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.

SIGNATURE DATE

NAME TITLE SERVICE LINE/SECTION

FACILITY

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.

CONTRACTING OFFICER DATE

Jim Hedman, Contracting Officer Great Lakes Acquisition Center/NCO 12

NAME AND TITLE FACILITY/NCO

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.

SIGNATURE DATE

Parris Weidenbach

NAME

NCO 12 Branch Chief - Equipment

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