P03_Justification and Approval_CRRC Controls_Redacted.pdf

DEPARTMENT OF VETERANS AFFAIRS

Office of Procurement, Acquisition and Logistics (OPAL)

Strategic Acquisition Center (SAC) 5202 Presidents Ct, Suite 103

Frederick, MD 21703

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN

COMMERCIAL ITEMS IN ACCORDANCE WITH FEDERAL ACQUISITION REGULATION

(FAR) 13.5

(1) Identification of the agency and contracting activity, and specific identification of the document as a “Sole Source Justification Under Simplified Procedures for Certain Commercial Items in Accordance with Federal Acquisition Regulation (FAR) 13.5.”

This Justification and Approval (J&A) for Other Than Full and Open Competition is executed by the Department of Veterans Affairs (VA), Strategic Acquisition Center – Frederick (SAC-F), on behalf of the Office of Information Technology (OI&T), Capital Region Readiness Center (CRRC) in Martinsburg, WV.

(2) The nature and/or description of the action being approved, i.e., sole source under procedures for certain commercial items in accordance with FAR 13.5.

This Justification and Approval supports a sole source award to Schneider Electric for the upgrade of the existing legacy Schneider TAC (The Automation Control) system to the current EcoStruxure Building Operation (EBO) platform at the VA Capital Region Readiness Center (CRRC). The CRRC’s mission-essential infrastructure is currently dependent on a proprietary control backbone installed and commissioned by Schneider Electric. This action is a firm-fixed-price acquisition under FAR 13.501(a) Sole Sourceprocedures.

The requirement includes removal of obsolete controllers, installation of SmartX AS-P controllers, SE7600 and VZ7656 RTU terminal devices, new licensing, software upgrades, integration with existing Schneider servers and operator workstations, and system commissioning. The action is necessary to sustain full environmental automation, energy efficiency, and HVAC safety interlocks across 30+ zones supporting sensitive equipment.

Interoperability with the currently installed TAC system and Schneider-developed programming logic is essential, as failure to maintain continuity would risk invalidating manufacturer warranty coverage, disrupt control of critical infrastructure, and trigger noncompliance with VA engineering and cybersecurity policy.

(3) A description of the supplies and/or services required, including the delivery schedule and/or the period of performance (inclusive of all option periods), and the estimated dollar value of the acquisition.

The Department of Veterans Affairs, Capital Region Readiness Center (CRRC), requires the acquisition of proprietary building automation components and services to upgrade its existing Schneider Electric TAC I/A Series control system to the EcoStruxure Building Operation (EBO) platform. The requirement includes licensed Schneider Electric software, SmartX AS-P controllers, SE7600 and VZ7656 terminal unit controllers, SmartX-compatible power supplies, and all associated accessories.

The contractor shall furnish all labor, supervision, tools, materials, and equipment necessary to remove existing legacy components installed circa 2010, install and program new Schneider Electric devices, integrate the upgraded components with existing operator workstations and

Strategic Acquisition Center (SAC)

A notice of the proposed action will be publicized via the Government Point of Entry (GPE) IAW FAR section 5.201, and the agency will make publicly available the justification within 14 days after task order award.

(7) The anticipated dollar value of the proposed acquisition, including options if applicable, and a determination by the contracting officer that the anticipated cost to the government will be fair and reasonable. [Note: dollar amounts may not exceed statutory limitations for use of the simplified procedures under FAR 13.5.]

No award shall be made until the Contracting Officer determines the cost to the Government to be fair and reasonable. This determination will be based on a comparison of current contract pricing, past proposal submissions (if available), other information made available, and an Independent Government Cost Estimate (IGCE).

(8) A description of the market research conducted and the results or the reason market research was not conducted.

In accordance with VAAR 810.001-70, the VA conducted a NAICS code search of the SBA VetCert database and identified a potential 2647 SDVOSB/VOSB operating under NAICS code 238210 Electrical Contractors and Other Wiring Installation Contractors.

On June 30, 2025, a query of the GSA eLibrary using the keyword “EcoStruxure” was conducted. This resulted yielded “0” potential contractors capable of providing the services to upgrade existing Schneider Electric.

A search was conducted on DSBS.SBA.Gov using the search keywords NAICS 238210 Electrical Contractors and Other Wiring Installation Contractors. TISSA Enterprises and Idea4Networks LLC profiles were found matching these NAICS code as potential vendors for services to upgrade existing Schneider Electric. However, neither of these profiles had an active SBA certification, rendering them ineligible as potential suppliers for the contract under the specified criteria.

A Federal Procurement Data System (FPDS) query was conducted by searching for NAICS 238210, Product Service Code (PSC) J059 (Maintenance, Repair, and Rebuilding of Equipment

- Electrical and Electronic Equipment Components), and the keyword “Control”. This query identified four vendors, all of which were classified as “Other Than Small Business”.

(9) Any other facts supporting the use of sole source.

The Schneider system in use was custom-commissioned and integrates with life safety, HVAC, and energy management functions. Unauthorized upgrades by a non-certified vendor would void warranties, compromise system security, and result in non-compliance with VA directives.

(10) A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

Strategic Acquisition Center (SAC)

To date, no other sources have expressed interest or capability to perform this work with Schneider’s proprietary equipment.

(11) A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

All future requirements will be handled on a case-by-case basis. Should it be determined that the Office of Information Technology has a future requirement for this type of service, the Contracting Officer will conduct market research to determine if any business can provide this same service and consideration will be given as to whether the future acquisition should be competitive.

Future upgrades may consider open-source platforms or BACnet-native systems. For this phase, compatibility and continuity of operations are a critical concern.

(12) Evidence that any supporting data that is the responsibility of technical or requirements personnel (e.g., verifying the Government’s minimum needs or requirements or other rationale for an exception to fair opportunity) and which form a basis for the justification have been certified as complete and accurate by the technical or requirements personnel.

I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

(13) Contracting officer certification that the justification is accurate and complete to the best of the contracting officer ’s knowledge and belief.

I certify that this justification is accurate and complete to the best of my knowledge and belief.

As this action does not exceed $750,000, the certification below required by FAR 13.501(a)(2)(i) serves as approval.