Redacted SSJ.pdf

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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Agency: Department of the Air Force (US Space Force) Contracting Activity: 21st Contracting Squadron/PKB Space Base Delta 1, Peterson Space Force Base

The Government intends to solicit a sole source requirement and award a new firm-fixed price/time and materials contract for the requirement outlined in Section III below.

In this requirement the Contractor shall furnish all personnel, equipment, tools, materials, supplies, transportation and labor necessary to perform inspections, repair, troubleshooting, maintenance, emergency services, back-ups, technical support, panel drawings, and training in support of System Hardware of the Delta Controls Building Automation System at Cheyenne Mountain Space Force Station (CMSFS), Colorado.

Additionally, all Firmware and Software upgrades shall be maintained by the contractor to ensure 100% system reliability. Cheyenne Mountain is a standalone Operational Maintenance Controls System (OMCS) and all updates/upgrades will have to be done using 21st Civil Engineer Squadron (CES), Operating Location - Cheyenne Mountain access on-site. The type of Delta and other vendor specific controls that are installed and to be maintained in the Building Automated Control System at CMSFS. This performance-based service acquisition has a total estimated value of which includes a base year and two (2) one-year options. The need for option years is to provide continuity and uninterrupted mission essential service for the Delta Controls Automation System. An optional CLIN for future DSC panel upgrades is also included in this requirement. If and when funding is received for DSC panel upgrades, a SLIN will be added to CLIN X003 at a

FFP.

PR# F3L3503350AW01 in the amount of (FY24 3410 Funds) has been provided to fund the base period of this requirement.

BASE: Delta Controls (Period of Performance 9 June 2024- 8 June 2025)

CLIN 0001 System Hardware, Firmware, Operator Training and Software Support

Qty: 12 Months/ Total: $

CLIN 0002: Service Calls, Material, and Repair

Qty 1 Job / Total $10,000.00 (T&M)

Sub-Total Base Year Cost:

Option Year One Delta Controls (Period of Performance 9 June 2025- 8 June 2026)

CLIN 1001 System Hardware, Firmware, Operator Training and Software Support

Qty 12 Months/ Total $

CLIN 1002 Service Calls, Material, and Repair

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Qty 1 Job / Total $10,000.00

Sub-Total Option Year One Cost: $

Option Year Two Delta Controls (Period of Performance 9 June 2026- 8 June 2027)

CLIN 2001 System Hardware, Firmware, Operator Training and Software Support

Qty 12/ Total $

CLIN 2002 Service Calls, Material, and Repair

Qty 1 Job/ Total $

Sub-Total Option Year Two Cost: $

Optional CLIN for DSC Panel Upgrades (Period of Performance 9 June 2024- 8 June 2027)

*Note: The period of performance can occur at anytime during the entire contract and will negotiate and determine the period of performance at the time, if funded.

CLIN X003 DSC Panel Upgrades

Qty 1 Job/ Total: $

Sub-Total Optional CLIN Cost: $

Total Contract Cost: $

Statutory Authority: DAFFARS 5313.501 - 10 U.S.C. 3572, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901).

FAR 13.501(a)(1) authorizes sole source acquisitions conducted under simplified acquisition procedures, which are exempt from the requirements in Part 6.

This requirement is to fulfill a recurring Government need for Delta Controls OMCS support with Setpoint Systems Corp, a certified Delta Controls dealer.

There are two certified Delta Controls dealers within the greater Colorado Springs area. These vendors are Setpoint Systems Corp and ATS Rocky Mountain. Setpoint currently services the equipment at Cheyenne Mountain SFS. Due to a master agreement between the certified Delta Controls dealers and Delta Controls, each dealer has an agreement mandating they can not engage any work on a current installed Delta system, currently being serviced by another certified Delta Controls dealer. Therefore, Rocky Mountain is unable to service the equipment located at Cheyenne Mountain SFS.

Setpoint Systems Corporation is the only Delta Controls dealer who can upgrade and service the current Delta Controls System. Setpoint Systems is currently servicing the Cheyenne Mountain complex, who services, Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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Setpoint has engineered this network and provides the Government continuity where constant replacement would create costly upgrades. If another company were to provide these products/services outside of Delta Controls, they would still need Setpoint to gain access and modify all the current programming to the panels.

A new contractor would need to provide a complete overhaul of all new software, equipment and panel configurations in order to complete this requirement, therefore, costing the Government approximately four years in re-acquisition and over $3M in replacing the systems that are already in place.

Market research was conducted to try and find as many sources for this requirement as possible; however, only Setpoint Systems Corp and ATS Rocky Mountain were identified. ATS Rocky Mountain was contacted to confirm if Delta Controls OMCS services specific to the CMSFS location had changed. They did confirm they were still not authorized to provide any sort of support services. Additionally, a sources sought was posted on 18 July 2023 for a similar Delta Controls requirement (FA251723P0094) to which there were no responses received. This information is less than 12 months old and used to support this action.

The CO will determine price fair and reasonable in accordance with one or more techniques identified in FAR 13.106-3. The Government will request other than certified cost or pricing data, should it be needed.

Given the anticipated analyses described here and the historical record or pricing compiled from Setpoint, the coordinating contracting officer anticipates the price will be fair and reasonable.

Mandatory Sources (FAR Part 8):

IAW FAR 8.002, Priorities for use of Mandatory Sources. None of the required mandatory sources were found capable of satisfying this requirement. Below is a review of FAR 8.002(a)(2)(i) through FAR 8.002(a)(2)(iv).

Ability One: A review of the Ability One procurement list revealed there is no DSC Panels and UPS Alarming products with install, for CMSFS.

FSS (GSA): A review of GSA revealed there are currently no GSA schedules that provide DSC Panels and UPS Alarming products with install that can meet the needs of this requirement.

Federal Prison Industries (FPI) Inc.: FPI's website was reviewed. FPI currently does not offer products/services that can support this requirement.

Small Business: The Small Business Administration (SBA) Small Dynamic Search by the NAICS code 238210 indicates multiple local Small Businesses under this NAICS code; however, none capable of fulfilling the need of the requirement with Delta Control Systems.

A recent contract action (FA251723P0094) was also for Delta Controls related systems work. A sources sought was issued on 23 July 2023 for this requirement. No other vendor responded to this public notice. Market research has confirmed that market conditions remain the same as they have seven months ago in that only two authorized Delta Controls Systems dealers exist and of those only one has authorization to work at the CMSFS location.

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Setpoint has engineered this network and provides the Government continuity where constant replacement would create costly upgrades. If another company were to provide these products/services outside of Delta Controls, they would still need Setpoint to gain access and modify all the current programming to the panels.

A new contractor would need to provide a complete overhaul of all new software, equipment, and panel configurations in order to complete this requirement, therefore, costing the Government approximately four years or re-acquisition time and over $3M in replacing the systems that are already in place. As Setpoint Systems is the current certified dealer for CMSFS, there is no other certified dealer that is authorized by Delta Controls Inc. to accomplish the requirement.

Barriers limiting competition could be removed, however; once competed the government would then be in a new sole-source environment with the new vendor and the duplicated costs (Est. $3M) would not be recovered that is not expected to be recovered through competition. At the time of the new acquisition, additional market research must be conducted to determine if another certified dealer could take over or if they would have to reconfigure all the delta control panels providing a cost the Government could not recover from. Given the propriety nature of Delta Controls Inc. and their certified dealer agreements, it is not likely that future iterations of the requirement can be competed among other dealers.

In addition, the agency would need to replace the OMCS to a universal system that may interface with several other vendor's systems. Funding to replace the current system is not currently available. For future requirements there will be additional market research, including a sources sought notice to see if industry has changed or if limiting sources is still required. Given the proprietary nature of the Delta Controls Inc, and their certified dealer agreement, it is not likely that future iterations for the requirement can be competed among other dealers.

In accordance with DFARS PGI 206.303-2(b)(i)(B), the previous justification's planned actions to remove barriers to competition was reviewed. Actions stated within that justification were stated as follows: "For future requirements there will be additional market research, including a sources sought notice to see if industry has changed or if limiting sources is still required". Both actions have been completed with no impact or change to the anticipated vendor pool.

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