P03 SSJ- Siemens HVACR Signed.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Request for Sole Source Justification >SAT-$7.5M under FAR13.5

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

REVISION: 01

Acquisition ID#: 36C262-25-AP-4469

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C262-25-AP-4469

1. Contracting Activity:

Department of Veterans Affairs, VISN 22, Network Contracting Office 22 (NCO 22), in support of the Greater Los Angeles VA Healthcare System, West Los Angeles VA Medical Center.

2237: 691-25-3-5091-0068

2. Nature and/or Description of the Action Being Processed:

This procurement is for the maintenance and monitoring services for the Siemens Apogee Building Automation Systems located at the Greater Los Angeles VA Healthcare System (GLAVAHCS) in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and Services specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirement of FAR Part 6, but still require a justification using the format of FAR 6.303-2.

The Greater Los Angeles VA Healthcare System- West Los Angeles VA Medical Center, requires continued services from Siemens Industry, Inc. for the Siemens Apogee Building Automation System (BAS). To ensure contuinity of services, the Network Contracting Office 22, Services Branch III, intends to award a new, firm-fixed price contract to Siemens Industry, Inc. for the maintenance and automation services for the Siemens Building Automation Systems for a period of 6 months. The proposed contract action will be awarded with an estimated value of $749,999.00.

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

The Siemens Apogee Building Automation System (BAS) is a critical system that controls the heating, ventilation, and air conditioning (HVAC) systems in multiple buildings at the facility. The BAS is essential for maintaining a comfortable and safe environment for patients, visitors, and staff. The BAS is an integrated system, and all components must work together seamlessly to maintain a stable environment. Failure of the system can result in temperature and humidity fluctuation that can negatively impact patient care and safety.

The services required to maintain the BAS include preventative maintenance, repair services, software updates, and replacement of faulty or obsolete components. Preventative maintenance is essential to ensure the BAS is functioning correctly and prevent unexpected downtime. The contractor must have experience and expertise in maintaining Siemens Apogee BAS systems and be able to respond promptly to service calls. In addition, the contractor must have access to genuine Siemens replacement parts to ensure the BAS remains in excellent condition.

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Acquisition ID#: 36C262-25-AP-4469

The estimated period of performance is April 2025 through September 2025.

The estimated value of the acquisition is $749,999.00.

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

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

Siemens Industry, Inc. has established itself as the sole provider capable of delivering the specialized maintenance services required for the Apogee Building Automation Systems. The existing Apogee systems is a proprietary technological system developed by Siemens, and as a result, Siemens possesses intimate knowledge and expertise in maintaining and servicing this system.

The unique qualifications of Siemens Industry, Inc. are directly related to the specialized bature of the Apogee system and the intricate technical requirements involved in its maintenance. The system comprises advanced automation and control components, requiring specialized skills, technical knowledge, and access to proprietary tools and software. Siemens has been the exclusive provider of maintenance services for the Apogee system at the Greater Los Angeles VA Healthcare System under the current contract.

The contractor’s proprietary knowledge of the Apogee system, accumulated through years of experience and exclusive access to technical information, enables them to deliver high-quality maintenance services efficiently. Their unique qualifications minimize risks associated with system downtime, ensure optimal performance, and reduce potential disruptions to critical healthcare operations. Given the criticality and complexity of the Apogee system, utilizing Siemens’ unique qualifications is necessary to maintain uninterrupted operations and maximize the system’s lifespan.

Accordingly, Siemens Industry, Inc. is the only firm capable of providing the services described in Section III above without the Veteran’s Health Administration experiencing substantial duplication of cost that could bot be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

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

In accordance with FAR Part 10, a review of the previous market research conducted for this same requirement is within the last 12 months. A synopsis of the proposed acquisition was posted to

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Acquisition ID#: 36C262-25-AP-4469

Opportunities within the last 12 months on 06/05/2024 to ensure that offers were solicited from as many sources as practicable. The synopsis provided a clear and concise description of the maintenance services required for the Siemens Building Automation Systems at GLA. The synopsis included relevant information such as the nature of the requirement, the estimated market value of the requirement, and the unique qualifications and certifications necessary for the successful performance. The one response received to this sources sought notice was deemed incapable of meeting the requirements needs. A further review of the acquisition history was conducted on 04/01/2025, for previous procurements of the Siemens Apogee Systems Maintenance and Monitoring Services contracts, and all previous contracts were awarded on a sole source basis.

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

The Contracting Officer has determined the anticipated cost for this acquisition is fair and reasonable based on a thorough price analysis of historical pricing data of past procurements and comparison to the Independent Government Cost Estimate (IGCE).

Historical pricing data revealed the following:

In FY24, NCO 22 awarded contract 36C26224P1498 to Siemens Industry, Inc. for identifical services.

The total contract value was $519,910.15 for a 4-month period. This equates to approximately $129,977.00 per month.

In FY23, NCO 22 awarded contract 36C26223P1679 to Siemens Industry, Inc. for identical services.

The total contract value was $649,888.14 for a 5-month period. This equates to approximately $129,977.00 per month.

It is reasonable to assume the market value for this service requirement is approximately $129,977.00 per month. The proposed estimated monthly cost for these services for this acquisition is $124,999.00 per month.

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

As described in section 6 of this document, market research, in accordance with FAR Part 10, was conducted by reviewing previous market research within the last 12 months for the same type of requirement. A recent review of awarded contracts for identical services was performed and identified contracts were awarded on a sole source basis to Siemens Industry, Inc.

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:

Siemens Industry, Inc. (UEI: JZXZSN3BBL98)

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Acquisition ID#: 36C262-25-AP-4469

1000 East Deerfield PKWY Buffalo Grove, IL 60089

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:

Should a new acquisition be procured for the Siemens Apogee Building Automation Systems Mainteannce and Monitoring Services at the Greater Los Angeles VA Healthcare System in FY26, the agency is committed to taking the necessary action outlined above to remove barriers to competition and ensure a fair and open procurement process for subsequent acquisitions.

12. 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.

Helena Roba Date Service Branch III, Chief

NCO 22

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.

David Chakka Date Chief, Division I (Services)

NCO 22

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