P03 - SSJ Attach 1 FAR 12_Metasys BAS_fully Signed-_Redacted.pdf

FAR 12.201-1 Simplified Procedures Attachment 1: Request for Sole Source Justification >SAT-$9M under FAR 12.102(b)

Effective Date: 11/15/24 Page 1 of 4

REVISION: 01

Acquisition ID#: 36C259-26-AP-0296

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 12.102(b)

Acquisition Plan Action ID: 36C259-26-AP-0296 RPOW JOFOC Tracker: FY26 – NCO 19 - 275

1. Contracting Activity: Department of Veterans Affairs, 6162 S. Willow Drive, Suite 300, Greenwood

Village, Colorado 80111, in support of VA Medical Center (VAMC) Cheyenne, WY, 2360 E. Pershing Blvd., Cheyenne, WY 82001. A certified funds memo has been received certifying the availability of for this requirement.

2. Nature and/or Description of the Action Being Processed: This procurement is for a new contract for Metasys Building Automation System (BAS) Services for Cheyenne VAMC in accordance with FAR

12.102 Restricting Competition and specifically FAR 12.102(b), 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 6.103-1. The proposed requirement is for preventative and corrective maintenance and related services as a Firm-Fixed Price (FFP) Indefinite Delivery Indefinite Quantity (IDIQ) contract awarded as a sole source to Johnson Controls Inc. (JCI). This service agreement is critical to maintaining the reliability of the Metasys BAS throughout Cheyenne VAMC.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The Metasys System is an automated, computerized control and monitoring system for operating the Heating Ventilation and Air Conditioning (HVAC) systems as well as recording, logging, and alerting for room environments at the Cheyenne VAMC. Johnson Controls Inc. (JCI) is the original equipment manufacturer (OEM) of the installed Metasys Building Automation System (BAS) at Cheyenne VAMC. The Metasys BAS includes HVAC controllers, sensors, and actuators that digitally track temperature, pressure, and environmental conditions throughout the facility. A Metasys BAS services contract is needed to provide monthly preventative maintenance, troubleshooting, repairs, and software programming services. Metasys is proprietary to JCI, and JCI does not authorize third-party vendors to provide parts or service for the Metasys Building Automation System Servers and Supervisory Network Engines. No other vendor can supply parts or software that are compatible with the JCI Metasys BAS. The monitoring software on the Metasys server is an integral component of the support system and is proprietary software created and supported exclusively by JCI. The proprietary nature of this requirement has been verified with an intent to sole source notice posted 9/12/2025 and closed 10/7/2025 with no responses. Additionally, a proprietary letter from JCI was received, dated 10/09/2025.

This proposed action will be for a Firm-Fixed-Price (FFP), Five (5) Year (60-months), IDIQ contract with a base ordering period of one (1) year plus four (4) 1-year ordering periods of performance that are exercisable at the discretion of the government. The anticipated period of performance is 2/1/2026 – 1/31/2031. The estimated total contract value is Additionally, the resulting contract will include FAR 52.217-8, Option to Extend Services, which can be exercised in increments of one to six months, but for no more than a total of six months during the life of the contract. The cost for this option, if exercised, will be at the same rates as those in effect under the contract at the time the option is exercised.

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4. Statutory Authority Permitting Restricted Competition: The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 12.201-1 is 41 U.S.C. § 1901 and is implemented by FAR 12.102(b) 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

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Johnson Controls Inc (JCI) is considered a large business under NAICS 561210 and is the only authorized company that may provide the software updates and services to the Metasys BAS per market research and the proprietary letter received from JCI. The JCI Metasys BAS installed at the Cheyenne VAMC is unique and highly specialized in its parts and functionality and is critical to the efficient operation of the facility.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: On 9/16/2025, the Small Business Administration (SBA) Dynamic Small Business Search (DSBS) was searched using NAICS 561210; nineteen (19) Service Disabled Veteran Owned Small Businesses (SDVOSBs), twenty (20) Veteran Owned Small Businesses (VOSBs), and thirty-three (33) Small Businesses (SBs) results were returned. On 9/16/2025 www.contractdirectory.gov was searched using the keyword “Metasys”; three (3) results were returned, all of which are awarded to Johnson Controls Inc (JCI), a large business (LB). On 9/18/2025 the General Services Administration (GSA) was searched using the keyword “Metasys”; four (4) Large Businesses (LB), four (4) SDVOSBs, one (1) VSOB, and two (2) Small Businesses (SBs) results were returned. A Notice of Intent (NOI) to Sole Source was posted to contract opportunities on 9/12/2025 and closed 10/7/2025; zero (0) responses were received.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: Pricing will be determined fair and reasonable based on comparison of quoted prices, including current General Services Administration (GSA) Federal Supply Schedule (FSS) pricing and similar awarded contracts within the Department of Veterans Affairs. JCI, an LB, holds FSS GS-07F- 190CA, which includes Firm Fixed Price hourly services and a provision for ordering JCI-manufactured parts from JCI GSA participating dealers. Although there are 35,278 priced JCI-manufactured parts listed on the GSA, the JCI parts are not scheduled in GSA FSS- 07F-190CA. This requirement is for both services and parts/equipment and GSA FSS- 07F-190CA cannot fully meet the requirement.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: JCI provided a proprietary source letter stating that JCI is the sole manufacturer and service provider of the Metasys Building Automation System (BAS) serving the Cheyenne, WY VAMC facilities. JCI does not have any affiliated small business service providers that are authorized to provide maintenance on the equipment. Replacing the equipment would result in unnecessary duplication of costs. No further actions are available to facilitate competition for future acquisitions.

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Acquisition ID#: 36C259-26-AP-0296

Based on market research, the SBA rule of two and the VA rule of two cannot be met. No two or more SBs, DSBS-verified SDVOSBs, or VOSBs were identified or appeared capable of performing the requirement. There were zero (0) responses to the Notice of Intent to Sole Source for this requirement, and JCI provided a letter indicating that Metasys systems are proprietary and maintenance and service can only be performed by JCI. Moreover, should a small business be awarded this requirement, they would need to subcontract with JCI and have JCI perform all the work because they lack the authorization, properly trained technicians, and access to JCI’s proprietary Metasys BAS software. Thus, the small business would not meet the limitations of subcontracting if they were to subcontract 50% or more of the work to JCI. Therefore, to ensure that the Cheyenne VAMC receives OEM standard level maintenance services at the lowest price for their Metasys BAS, it is in the best interest of the VA to award this requirement as a sole source to JCI.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: The JCI Metasys BAS is highly specialized and requires proprietary software, specific diagnostic tools, and specialized electronics to maintain the equipment in accordance with OEM specifications. JCI is the only company that can provide factory-certified technicians and the certified OEM parts required to maintain the Metasys BAS in the Cheyenne, WY area.

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

UEI: CE8MGXAS9KJ6

Business Name: Johnson Control Inc Street Address: 507 E. Michigan Street City, State, Zip: Milwaukee, WI 53202 Phone: 614-787-1909

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 throughout the life of the equipment to ascertain if there are changes in the marketplace that would enable future competitive actions to be completed. The Cheyenne VAMC could search for alternatives to the JCI Metasys BAS to open the requirement to other sources. Unfortunately, other potential sources and OEMs are likely to have similar proprietary requirements for the service, parts, and maintenance of their equipment.

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.

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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.

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.