P03 Sole Source Justification 36C24823P1685_Redacted.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification under FAR13.5

Effective Date: 02/01/2022 Page 1 of 8

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C248-22-AP-4501, Preventive Maintenance Services for Russelectric Automatic Transfer Switches and Electrical Substations.

1. Contracting Activity: Department of Veterans Affairs, Regional Procurement Office (RPO) East, Network Contracting Office (NCO) 8, VA Caribbean Healthcare System, San Juan, Puerto Rico.

2. Nature and/or Description of the Action Being Processed: This procurement is for Preventive Maintenance Services for Russelectric Equipment at VA Caribbean Healthcare System. FITARA approval is not required since PSC J059, Maintenance, Repair, and Rebuilding of equipment – Electrical and Electronic Equipment Components is not listed as IT Product Service Codes (PSC) Requiring FITARA Approval (see VA OIT PSC Codes). The service includes preventive maintenance for the following switchgears and Automatic Transfer Switches (ATS):

a. SO # 33760 - Generator Paralleling, Utility Close Transition Transfer and Distribution Switchgear 5KV.

b. SO # 33760 - South Bed Tower Double Ended Close Transition Transfer and Bypass Switchgear 5KV.

c. SO # 33760 - Main Building Double Ended Close Transition Transfer and Bypass Switchgear 5KV.

d. SO # 36182 - Double Ended 5KV Substation Switchgear.

e. SO # 31339 - Chiller Switchgear 5KV.

f. ATS –N and Battery Banks.

g. Twenty-two (22) Automatic Transfer Switches 480V.

h. Fourteen (14) Automatic Transfer Switches 5 KV.

i. Seven (7) Electrical Substations and ancillary equipment located at OPA Basement, OPA Penthouse, Administrative Penthouse, Main Building, South Bed Tower, CLC and MRI Substation.

j. 38KV GIS Switchgear and auxiliary equipment.

This acquisition is conducted under the authority of FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation

Effective Date: 02/01/2022 Page 3 of 8

VACHS as defined in the Performance Work Statement (PWS), section three (3.0) except for those items specified as Government-furnished property and services. The contractor shall perform to the standards of the PWS.

0001AA PM SO # 33760 - Generator Paralleling, Utility Close Transition Transfer and Distribution Switchgear 5KV.

1 Each

0001AB PM SO # 33760 - South Bed Tower Double Ended Close Transition Transfer and Bypass Switchgear 5KV.

1 Each

0001AC PM SO # 33760 - Main Building Double Ended Close Transition Transfer and Bypass Switchgear 5KV.

1 Each

0001AD PM SO # 36182 - Double Ended 5KV Substation Switchgear

1 Each

0001AE PM SO # 31339 - Chiller Switchgear 5KV. 1 Each 0001AF PM ATS –N and Battery Banks. 1 Each 0001AG PM Twenty-two (22) Automatic Transfer Switches

480V.

1 Each

0001AH PM Fourteen (14) Automatic Transfer Switches 5 KV. 1 Each 0001AJ PM Seven (7) Electrical Substations and ancillary equipment located at OPA Basement, OPA Penthouse, Administrative Penthouse, Main Building, South Bed Tower, CLC and MRI Substation.

1 Each

0001AK PM 38KV GIS Switchgear and auxiliary equipment. 1 Each

1001 First Option. The contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary to perform the required service at VACHS as defined in the Performance Work Statement (PWS), section three (3.0) except for those items specified as Government-furnished property and services. The contractor shall perform to the standards of the PWS.

1001AA PM SO # 33760 - Generator Paralleling, Utility Close Transition Transfer and Distribution Switchgear 5KV.

1 Each

1001AB PM SO # 33760 - South Bed Tower Double Ended Close Transition Transfer and Bypass Switchgear 5KV.

1 Each

1001AC PM SO # 33760 - Main Building Double Ended Close Transition Transfer and Bypass Switchgear 5KV.

1 Each

1001AD PM SO # 36182 - Double Ended 5KV Substation Switchgear

1 Each

1001AE PM SO # 31339 - Chiller Switchgear 5KV. 1 Each 1001AF PM ATS –N and Battery Banks. 1 Each 1001AG PM Twenty-two (22) Automatic Transfer Switches

480V.

1 Each

1001AH PM Fourteen (14) Automatic Transfer Switches 5 KV. 1 Each 1001AJ PM Seven (7) Electrical Substations and ancillary 1 Each

Effective Date: 02/01/2022 Page 4 of 8 equipment located at OPA Basement, OPA Penthouse, Administrative Penthouse, Main Building, South Bed Tower, CLC and MRI Substation.

1001AK PM 38KV GIS Switchgear and auxiliary equipment. 1 Each

2001 Second Option. The contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary to perform the required service at VACHS as defined in the Performance Work Statement (PWS), section three (3.0) except for those items specified as Government-furnished property and services. The contractor shall perform to the standards of the PWS.

2001AA PM SO # 33760 - Generator Paralleling, Utility Close Transition Transfer and Distribution Switchgear 5KV.

1 Each

2001AB PM SO # 33760 - South Bed Tower Double Ended Close Transition Transfer and Bypass Switchgear 5KV.

1 Each

2001AC PM SO # 33760 - Main Building Double Ended Close Transition Transfer and Bypass Switchgear 5KV.

1 Each

2001AD PM SO # 36182 - Double Ended 5KV Substation Switchgear

1 Each

2001AE PM SO # 31339 - Chiller Switchgear 5KV. 1 Each 2001AF PM ATS –N and Battery Banks. 1 Each 2001AG PM Twenty-two (22) Automatic Transfer Switches

480V.

1 Each

2001AH PM Fourteen (14) Automatic Transfer Switches 5 KV. 1 Each 2001AJ PM Seven (7) Electrical Substations and ancillary equipment located at OPA Basement, OPA Penthouse, Administrative Penthouse, Main Building, South Bed Tower, CLC and MRI Substation.

1 Each

2001AK PM 38KV GIS Switchgear and auxiliary equipment. 1 Each

3001 Third Option. The contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary to perform the required service at VACHS as defined in the Performance Work Statement (PWS), section three (3.0) except for those items specified as Government-furnished property and services. The contractor shall perform to the standards of the PWS.

3001AA PM SO # 33760 - Generator Paralleling, Utility Close Transition Transfer and Distribution Switchgear 5KV.

1 Each

3001AB PM SO # 33760 - South Bed Tower Double Ended Close Transition Transfer and Bypass Switchgear 5KV.

1 Each

3001AC PM SO # 33760 - Main Building Double Ended Close 1 Each

Effective Date: 02/01/2022 Page 5 of 8

Transition Transfer and Bypass Switchgear 5KV.

3001AD PM SO # 36182 - Double Ended 5KV Substation

Switchgear 1 Each

3001AE PM SO # 31339 - Chiller Switchgear 5KV. 1 Each 3001AF PM ATS –N and Battery Banks. 1 Each 3001AG PM Twenty-two (22) Automatic Transfer Switches

480V.

1 Each

3001AH PM Fourteen (14) Automatic Transfer Switches 5 KV. 1 Each 3001AJ PM Seven (7) Electrical Substations and ancillary equipment located at OPA Basement, OPA Penthouse, Administrative Penthouse, Main Building, South Bed Tower, CLC and MRI Substation.

1 Each

3001AK PM 38KV GIS Switchgear and auxiliary equipment. 1 Each

4001 Fourth Option. The contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary to perform the required service at VACHS as defined in the Performance Work Statement (PWS), section three (3.0) except for those items specified as Government-furnished property and services. The contractor shall perform to the standards of the PWS.

4001AA PM SO # 33760 - Generator Paralleling, Utility Close Transition Transfer and Distribution Switchgear 5KV.

1 Each

4001AB PM SO # 33760 - South Bed Tower Double Ended Close Transition Transfer and Bypass Switchgear 5KV.

1 Each

4001AC PM SO # 33760 - Main Building Double Ended Close Transition Transfer and Bypass Switchgear 5KV.

1 Each

4001AD PM SO # 36182 - Double Ended 5KV Substation Switchgear

1 Each

4001AE PM SO # 31339 - Chiller Switchgear 5KV. 1 Each 4001AF PM ATS –N and Battery Banks. 1 Each 4001AG PM Twenty-two (22) Automatic Transfer Switches

480V.

1 Each

4001AH PM Fourteen (14) Automatic Transfer Switches 5 KV. 1 Each 4001AJ PM Seven (7) Electrical Substations and ancillary equipment located at OPA Basement, OPA Penthouse, Administrative Penthouse, Main Building, South Bed Tower, CLC and MRI Substation.

1 Each

4001AK PM 38KV GIS Switchgear and auxiliary equipment. 1 Each

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

Effective Date: 02/01/2022 Page 6 of 8 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): As described in the Market Research Report, A.T.M. Sales or Service Incorporated is the exclusive and only authorized sales representative and service provider for Russelectric equipment in Puerto Rico. A letter from Russelectric confirming this information can be found in the Acquisition Plan briefcase. The risk of not awarding this contract will have an impact on the operational status of the items listed under paragraph 3 of this document. In addition, only certified personnel shall perform services on Russelectric equipment; otherwise, warranties may be voided.

Moreover, only authorized companies have access to purchasing replacement parts with the manufacturer.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Competition for this requirement is not possible since A.T.M. Sales or Service Incorporated is the only certified/authorized local vendor to provide maintenance services for Russelectric Equipment in Puerto Rico. If the government competes this requirement, all interested vendors will be required to subcontract A.T.M. Sales or Service Incorporated. A search on the VA Vendor Information Pages (VIP) revealed that there are no SDVOSB nor VOSB that can fulfill this requirement. A sources sought notice is not needed at this time since there is enough evidence that this is the only company that can fulfill this requirement.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: This acquisition is approved under FAR 13.501(a). Since there will be no competition, the government will seek to compare the contractor's quoted price with other similar services paid in the past. In addition, the government has many resources to determine that prices are fair and reasonable such as comparing labor prices with the applicable wage determination, other contracts/purchase orders paid by another agencies, the contractor to provide evidence of sales receipts in the commercial sector, etc.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: The market research demonstrated that only A.T.M. Sales or Service Incorporated can fulfill this requirement. A.T.M. Sales or Service Incorporated is a small business located in San Juan, PR.

Effective Date: 02/01/2022 Page 7 of 8

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

Full and open competition is not feasible since only A.T.M. Sales or Service Incorporated can fulfill this requirement. The salient characteristics of Russelectric equipment are unique. For VACHS, survival depends on power. A loss of power at VACHS would be disastrous, which may result in loss of life and will jeopardize VACHS as the only VA Medical Center in Puerto Rico. Replacing the equipment would be inefficient and unnecessary at this time since the equipment has not reach its useful life.

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

Several vendors participated in a previous solicitation; however, all were required to subcontract A.T.M. Sales or Service Incorporated. Thus, at this time, A.T.M. Sales or Service Incorporated is the only vendor that has demonstrated interest and capability to fulfill this requirement.

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: As previously indicated, in order to foster competition, the government will need to buy/replace existing equipment, which may be cost prohibitive and which has not been budgeted, since the life remaining in the existing equipment has not been reached. In addition, if the government opt to replace the system, such new equipment needs to have the capability to integrate system all primary components such as emergency generators, paralleling switchgears, automatic transfer switches, SCADA, etc. Therefore, the best course of action is to award this requirement to A.T.M. Sales or Service Incorporated.

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.

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.

Effective Date: 02/01/2022 Page 8 of 8

b. One Level Above the Contracting Officer (Required over ): I certify the justification meets requirements for other than full and open competition.

c. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for acquisitions described in FAR 13.500(c)) for other than full and open competition.