PM_Part806.3_Atch5_FAR6_JA_OVER_SAT signed by cor -2.pdf

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 5: Request for Sole Source Justification Format >SAT

OFOC SOP Revision 11 Page 1 of 4 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID:______ 36C242-21-AP-2753_____________________________________

1. Contracting Activity: Department of Veterans Affairs, VISN 2, Syracuse Medical Center at 800 Irving

Ave, Syracuse, NY 13210

2237# 528-22-1-7896-0003

2. Nature and/or Description of the Action Being Processed: This is a request for other than full and open competition for the procurement for a service maintenance agreement for eight (8) Capstone C65 GC ICHP microturbines and gas packs located at Syracuse Medical Center at 800 Irving Ave, Syracuse, NY 13210. The proposed open market purchase order shall be provided by to RSP SYSTEMS, 175 CITY ISLAND AVENUE, BRONX, NY 10464 to include four option years. The service agreement shall include: scheduled preventative maintenance, unscheduled repairs, and telephone support services for a consideration of $

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

The contractor shall provide a service maintenance agreement for eight Capstone C65 GC ICHP microturbines and gas packs located at the Syracuse VA Medical Center 800 Irving Avenue, Syracuse, NY 13210-2716 from 11/01/2021 through 10/31/2022 to include four option years. The service agreement shall include scheduled preventative maintenance services, telephone support, unscheduled repairs and 48,000hr overhauls for all eight microturbines.

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(1), as implemented by FAR 6.302-1. The specific paragraph must be cited. Most likely, only the -1 or -2 authorities will be cited. Please be aware that failure to adequately plan for future requirements does not constitute appropriate use of the unusual and compelling urgency statutory authority.

( 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 FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4 ( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7;

OFOC SOP Revision 11 Page 2 of 4

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

Due to patents and copyrights associated with the Capstone Microturbines located at the Syracuse VA Medical Center, only vendors authorized by the Original Equipment Manufacturer (OEM), Capstone Green Energery can provide OEM certified technicians to service the equipment and provide new OEM parts. RSP SYStems is the only vendor authorized by Capstone Green Energy to service Capstone microturbines in the state of New York.

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

A search was conducted on VIP using NAICs code 811310 and Keywords “Capstone Microturbines”. The search did not identify any SDVOSB or VOSB vendors that could meet the requirements of this procurement.

A search was conducted using the SBA DSBS search engine using NAICs code 811310 and Keywords “Capstone Microturbines”. The search did not identify any small business vendors that could meet the requirements of this procurement.

A search on GSA eLibrary using keywords Microturbines” did not identify any GSA contracts that could meet the requirements of this procurement.

An Intent to Sole Source notice was posted on beta.sam.gov (36C24221Q1287) from 08-20- 2021through 09-03-2021 and received no responses

A letter was provided by Capstone Green Energy states that RSP Systems is the sole authorized service provider for Capstone systems in New York State.

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

Reasonable:

Price reasonableness shall be determined through comparison of the quoted price to an industry benchmark. The industry benchmark for the cost of servicing the Capstone microturbines is $ per kilowatt/hour over a 20-year period. Based on the total output of all eight generators, which is 4,176,000kwh, the annual cost of servicing these generators is

The microturbines require an overhaul every 48,000 run hours, which is approximately every 7.5 years (there are 8,760 hours per year, but turbines are run about 6,500 hours/year/turbine, on average). Contractor proposes $ per year, plus $ for the overhaul of the eight microturbines. Total proposed cost is $ for the 5-year contract. Since the $ covers 7.5 years, it can be estimated that the annual overhaul cost is approximately $ /year. By adding the annualized overhaul cost and the routine maintenance cost, the total annual cost of the service agreement is $ per year.

OFOC SOP Revision 11 Page 3 of 4

The difference between the estimated annual amount and the adjusted quote adjusted annual price from the quote is $ or 8% more than the estimated annual cost of servicing the microturbines based off the industry benchmark of per kwh. As a result, the proprosed price has been determined fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted: See section 6.

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:

RSP Services, Small business

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: None, as the reason for this sole source are patents and copyrights associated with the Capstone microturbines.

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.

Michael Arnold Date Energy Manager Syracuse VA Medical Center

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.

Michael Spivack Date Contracting Officer NCO 2, Services Team 1

09/20/2021

09/20/2021

Michael Arnold 154437

Digitally signed by Michael Arnold 154437 Date: 2021.09.20 08:29:30 -04'00'

MICHAEL A.

SPIVACK 336645

Digitally signed by MICHAEL

A. SPIVACK 336645

Date: 2021.09.20 14:41:55 -04'00'

OFOC SOP Revision 11 Page 4 of 4

Revision 11 Date: 02/11/2021

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.

Cheryl Brimmer Date Branch Chief NCO 2, Services Team 1

Cheryl M Brimmer 113171

Digitally signed by Cheryl M Brimmer 113171 Date: 2021.09 20 15 20:23 -04'00'