VHAPG Part 806.3 OFOC Page 1 of 7 Revision: 04 Effective Date: 12/15/25 Acquisition ID#: 36C263-26-AP-2604

Attachment 1: Request for Sole Source Justification Format >SAT

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C263-26-AP-2604

Contracting Activity: Department of Veterans Affairs (VA), Veterans Health Administration (VHA), VISN 23, Nebraska-Western Iowa Health Care System (NWIHCS), Grand Island VA Medical Center (VAMC), in Nebraska. This contract is being requested by the NWI Engineering Department. The purchase number (2237) is 636-26-3-5058-0126.

1. Nature and/or Description of the Action Being Approved:

The VA NWIHCS – Grand Island VAMC intends to award a new, single-award, Firm- Fixed-Price (FFP) contract to Johnson Controls, Inc. (JCI) on a sole-source basis for a Building Automation & Controls Planned Service Agreement covering Metasys Building Automation System (BAS) support, weekly onsite controls technician services, emergency response, operator training, and scheduled software/hardware upgrades to the existing JCI Metasys BAS. The contract action includes one (1) base year and two

(2) option years.

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

This requirement provides continuous maintenance and support of the existing JCI Metasys BAS at Grand Island VAMC, a 253,358 sq. ft. facility, including the following services, activities, and equipment:

• Weekly onsite HVAC JCI controls technician services (8 hours/week) for preventive maintenance/repairs (sensors, actuators, BAS controllers, VFDs, etc.), minor programming and UI changes, documentation, and recommendations.

• Priority controls system emergency response (12 callouts/year, 4-hour response), diagnostics and corrective actions.

• Training: 48 hours/year onsite JCI training + specific JCI Institute courses (on-site, virtual, in-person) enumerated in the PWS.

• Scheduled upgrades: Metasys software subscription, ADS turnkey server, programming tools, and additional JCI CGM09090/XPM09090 controllers for listed AHUs/HEXs—all fully compatible with the current Metasys BAS environment.

Attachment 1: Request for Sole Source Justification Format >SAT

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Additional requirements and contract details:

• Compatibility requirement: All services must be performed by factory-trained JCI Metasys technicians; programming/software are proprietary to JCI and must remain fully compatible with the currently installed and fully functional Metasys BAS system at Grand Island VAMC.

• Estimated Contract Value:

Base Year Option Year 1 Option Year 2

$438,351.00 $214,656.00 $197,776.00

Total Contract $850,783.00

• North American Industry Classification System (NAICS) Code: 561210

• Product or Service Code (PSC): J041

• Required Delivery/Period of Performance (PoP): Base Year: July 15, 2026 – July 14, 2027; Option years one through four: up to July 14, 2031.

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

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

RFO 6.103-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by RFO 6.103-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by RFO 6.103-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by RFO 6.103-4

( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by RFO 6.103-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by RFO 6.103-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by RFO 6.103-7;

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

The use of JCI proprietary descriptions in this acquisition is essential to the Government’s requirements, thereby precluding consideration of products or services provided by another company. JCI is the only responsible source for the

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Grand Island VAMC’s Building Automation & Controls Planned Service Agreement requirement due to the following:

1. Installed System & Compatibility: The Grand Island VAMC is an existing JCI Metasys BAS site, currently comprised of a Metasys server, JCI engines/building controllers, and approximately 311 end devices. Ongoing maintenance, programming, training, and scheduled system upgrades must be Metasys-compatible and performed by factory-trained JCI technicians.

2. Proprietary Software & Licensing: JCI’s Metasys software upgrade and licensing offerings are proprietary. They are only sold and administered directly through Johnson Controls and require a JCI representative for major/minor upgrades and subscriptions. Metasys upgrade/migration software, subscriptions, and licensing are controlled by JCI and administered through JCI license portals.

Software licensing credentials are defined and managed by JCI. Competing vendors would lack access to proprietary licensing keys, activation, portals, and the Metasys Software Manager ecosystem.

3. Server & Platform Dependence: Metasys servers (ADS/ADX) act as BAS System Site Director and handle archival, reporting, UI, and secure communications for Metasys engines/controllers. Their features and licensing are integral to JCI’s platform. The planned ADS turnkey and Metasys UI subscription upgrades, controller programming tools, and controller additions (CGM/XPM families) are Metasys-specific and rely on JCI-hosted licensing, installers, and configuration guidance. These functions are not sold as general-purpose software to third parties for independent installation at VA sites.

4. Factory Authorized Training: JCI is the only authorized contractor to perform JCI factory authorized operator training. Proper training of VA employees in operation of our specific BAS is critical to our mission of serving the healthcare needs of our veterans.

5. Healthcare Mission Risk: Our critical healthcare environments (pharmacy, sterile processing, etc.) cannot be subject to improper or incompatible BAS controls maintenance or delayed access to proprietary software. This would risk unacceptable delays in restoring proper HVAC service to critical areas and could lead to patient care impacts. Multiple VA actions have cited the Metasys proprietary nature and JCI-only service in healthcare contexts (e.g., St. Louis VAMC, Tomah VAMC, Southern Nevada HCS, Minneapolis), affirming market reality that no authorized third parties can fully meet Metasys service and subscription needs.

Accordingly, Johnson Controls, Inc. is the only firm capable of providing the supplies and services described in Section II without VHA experiencing substantial duplication of cost not recoverable through competition and/or unacceptable delays in fulfilling its requirements.

5. Description of Efforts Made to ensure that offers are solicited from as many potential sources as possible (including whether a notice was or will be

VHAPG Part 806.3 OFOC Page 4 of 7 Revision: 04 Effective Date: 12/15/25 Acquisition ID#: 36C263-26-AP-2604 publicized as required by RFO Part 5 and, if not, which exception under RFO Part 5 applies):

• Notice of Proposed Contract Action (Intent to Sole Source): The Contracting Officer (CO) will publish an Intent to Sole Source synopsis (e.g., SAM.gov) stating the proprietary Metasys requirement and inviting capability statements;

several VA postings in 2024–2026 reflect this approach for JCI Metasys support (examples cited in section 4 above).

• Market outreach: In addition to the public synopsis, the CO will document any responses and assess whether any entity is (a) OEM-authorized for Metasys software upgrades/subscriptions, (b) has legal access to JCI licensing portals and software keys for the Grand Island site, and (c) can provide factory authorized Johnson Controls training, as detailed in the PWS. Historical postings indicate no authorized third parties can meet these OEM requirements.

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

The CO will determine the price fair and reasonable using some or all the following techniques:

• Price analysis vs. recent VA awards for JCI Metasys software, BAS support, and equipment upgrades. Other recent contracts will be used as a benchmark, with adjustments for scope, PoP, inflation, and site complexity.

• Comparison to JCI catalog/bulletins for ADS/ADX/Metasys UI software and controller families (CGM/XPM). Comparing and confirming elements of the PWS scope, along with required licensing capabilities, and ensuring consistency with JCI’s standard offerings will facilitate fair and reasonable price determination.

• Offer breakdown & labor mix. Reviewing JCI’s proposed labor categories (factory-trained Metasys technicians), hours, onsite/remote service mix, training courses, and proprietary subscription elements against prior VA and industry norms.

• No certified cost/pricing data anticipated for commercial services; however, the CO may request additional data from JCI and conduct a technical evaluation to substantiate labor hours, materials, and OEM subscriptions as needed.

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

Market research was conducted per FAR Part 10 and VAAR Part 806/819 as follows:

https://www.acquisition.gov/far-overhaul/far-part-deviation-guide/far-overhaul-part-5 https://www.acquisition.gov/far-overhaul/far-part-deviation-guide/far-overhaul-part-5 https://www.acquisition.gov/far-overhaul/far-part-deviation-guide/far-overhaul-part-5

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• Reviewed the installed BAS Metasys architecture and licensing dependencies for server/UI, engines/controllers, and upgrade requirements at Grand Island VAMC, per the PWS.

• Verified JCI’s proprietary upgrade/licensing processes (Metasys upgrade/migration, portals, licensing types). Confirmed OEM control over software and access.

• Surveyed past VA postings and actions showing intent to sole-source Metasys service/subscriptions to JCI due to the proprietary nature of software and OEM authorization constraints.

• SBA VetCert check (VAAR 819.70). The CO will perform a current check of the SBA Small Business Search (SBS) for SDVOSB/VOSB listings under the appropriate NAICS to assess if two or more verified Veteran firms exist with legal OEM authorization to perform Metasys software upgrades/subscriptions. Based on OEM licensing and multiple VA precedents, market research indicates no non-JCI source can lawfully perform the full requirement.

As described in Section 5 above, market research, in accordance with RFO Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.

Conclusion: Market research supports use of FAR 6.302-1.

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

This requirement is brand-specific due to the currently installed and operational JCI Metasys environment and OEM-controlled software/licensing. Neutral “brand-name-or-equal” is inapplicable because Metasys programming/licensing and UI subscriptions are not available to non-JCI providers in a way that preserves functionality, cybersecurity posture, and site compatibility.

JCI specifically restricts software upgrades and factory operator training to Johnson Controls Service, strengthening OEM uniqueness.

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

Johnson Controls

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10. 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:

Actions during PoP: No actions are planned to improve competition for the duration of this contract. The rationale for completely replacing our existing HVAC BAS, given the age of the building (70+ years) and the cost of such a project, does not currently warrant such consideration. Numerous other obstacles, including patient safety, continuity of clinical operations, mission continuity, regulatory compliance, and OEM license constraints lead to the same short-term conclusion.

Long-term approach: Government may evaluate feasibility of open-protocol migrations at natural end-of-life (e.g., BACnet/IP controllers from multiple vendors).

Note that even with BACnet, Metasys servers/UI, licensing, and controller programming tools are proprietary to JCI; migration would require a funded capital project and extensive risk mitigation in our healthcare environment. The government may consider competitive alternatives if/when the current BAS platform is replaced.

11. 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.

Robert Venner Date Chief of Engineering

NWI, VISN 23

12. 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.

Erica Miller Date Contracting Officer

NCO 23 / SST1

https://dvagov.sharepoint.com/sites/vhapromanual/SitePages/VHAPM-Part-806.3.aspx

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b. One Level Above the Contracting Officer (Required over SAT but not exceeding $900K): I certify the justification meets requirements for other than full and open competition.

Curt LaRose Date Branch Chief

NCO 23/ SST1