S02 - Att5 JA 585-25-103 - Redacted.pdf

Attachment 1: Request for Sole Source Justification Format >SAT

VHAPG Part 806.3 OFOC Page 1 of 5 Revision: 03 Effective Date: 04/15/24

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C252-26-AP-0724

1. Contracting Activity:

Department of Veterans Affairs, VISN 12 Requesting Hospital: Oscar G. Johnson VA Medical Center 2237: 585-26-2-6955-0001 Project: 585-25-103 - Upgrade Facility Generator Controls Construction Contracting Agency: Great Lakes Acquisition Center (GLAC)

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

This justification and approval is for Cummins brand name generator controls systems to be used in this construction project. This will allow for proper operation of the generators and remain in compliance with the healthcare facility requirements set forth by the Joint Commission and NFPAs 99 and 110. The new contract will be solicited, but some materials and software need to be Cummins specific to be compatible with the Facility’s existing Cummins generators. These items will be sole-sourced as a brand-name item requirement.

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

The following Cummins equipment will be needed for successful completion and implementation of the project:

(1) - Cummins Digital Master Control 8000 enclosure with associated hardware

(1) - Cummins DMC 8000 Version 3.3 system network controls software

(3) - Cummins DMC 8000 Version 3.3 individual generator controls with cabinets

(15) - Cummins Automatic Transfer Switch network communications cards

The period of performance will be 430 calendar days upon issuance of notice to proceed.

The estimated value of this equipment is

4. Statutory Authority Permitting Other than Full and Open Competition:

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.

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

The Facility has three (3) existing 1250kW Cummins generators. These generators were installed between 12-15 years ago as part of a competitive bid solicitation. The controls system serving the generators is no longer supported by Cummins and needs to be updated to

VHAPG Part 806.3 OFOC Page 2 of 5 ensure the equipment maintains supportability and viability for the foreseeable future. The only equipment that will function and communicate correctly with these generators is Cummins’ proprietary equipment and software. The generators need to be updated with their current Version 3.3 controls software and Digital Master Control 8000 enclosure because other brands of equipment cannot communicate with the Cummins generators. The only other alternative would be to organize a project to replace the generators and associated equipment. Unfortunately, a new project could cost more than $15M to complete and commission. It is in the best interest of the government to move forward with the existing Cummins generators.

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

A sources sought notice (36C25226B0003) was published on SAM Nov 17, 2025, looking for interested Service-Disabled Veteran-Owned Small Business (SDVOSB) vendors. The response deadline was Dec 01, 2025, at 04:00 pm CST and two vendor responses were received:

1) BHPE LLC on November 18, 2025, – an SDVOSB based in Oklahoma City, OK

2) Critical Wave on November 28, 2025 – SDVOSB and authorized Cummins dealer located in Miami, FL

Of the two contractors, only one contractor (Critical Wave) submitted the required documentation and deemed qualified. The second vendor only responded to email but did not provide any information requested. Therefore, another sources sought notice was posted on SAM on December 2, 2025, inviting interested verified Small Businesses to respond by deadline of December 9, 2025. Two responses were received:

1) Delta USA Inc. – SBA Certified, SDVOSB based in Michigan

2) Armcorp. Construction, Inc.– SBA Small Business and SDVOSB based in Ohio

A technical review was conducted to assess whether any of the responses received demonstrate the technical capability to fulfill the project requirements. The only exceptions are materials, software, and programming related to Cummins products, which will be sole-sourced due to their proprietary nature concerning the facility's electrical distribution, control, and monitoring systems. The technical review suggests the two companies, Delta USA and Armcorp, do not appear to possess pertinent experience related to this project.

Delta USA primarily lists generator maintenance and repair contracts for municipalities, which does not align with the scope of this project. Armcorp mainly lists commercial electrical work, with no experience in generator programming or controls. Given the critical nature of this infrastructure and the tight timeline, neither of these firms appears to offer the best likelihood of project success.

Thus far, the only contractor demonstrating relevant qualifications is Critical Wave Energy Solutions, a SDVOSB out of Miami, FL. They hold certification from Cummins and possess a proven track record of programming and installing the same control systems we are implementing.

To ensure all bases were covered another source sought was posted on SAM inviting all VOSB vendors to respond by December 18, 2025.

Responses received:

VHAPG Part 806.3 OFOC Page 3 of 5

1) Centennial Electric – Large Business based in Michigan

2) BHPE LLC on November 18, 2025, – an SDVOSB based in Oklahoma City, OK

The technical review suggests that only one of the two companies appears to possess some experience related to this project. However, there were no references demonstrating experience working in operational hospitals, as their references pertain solely to new construction projects. Also, no evidence of familiarity with NFPA or TJC standards was provided. The SDVOSB vendor (BHPE LLC) had already responded to the first sources sought notice and responded again but did not provide any technical capability information that shows they are capable to fulfill the project requirements

Based on the responses from the sources sought notices and with Iron Mountain being in a remote location, the CO recommends this solicitation be unrestricted. The CO doesn’t believe the rule of two was met. There were four responses received from SDVOSBs but based on the technical reviews only one was determined to fulfil the project requirements based on their information submitted. Also, one large business responded, Centennial Electric, provided information showing they possess some experience but no familiarity with NFPA or TJC standards which is imperative.

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

IAW FAR 15.404-1(b)(i) & (iii) a proposal analysis will be conducted in comparison of proposed prices received in response to the solicitation. If only one proposal is received, the CO will work with the technical expert to discuss the proposal and compare prices to the independent Government cost estimate.

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

SAM & SBA was searched to find SDVOSBs and the results showed:

SBA – SDVOSB using NAICS Code 23810 MI/WI resulted in 573 SBA - SDVOSB using NAICS Code 23810 – 68 SAM - SDVOSB using NAICS Code 23810 MI/WI resulted in 571 SAM - SDVOSB using NAICS Code 23810 – 12

FPDS - Search criteria; 238210, Veterans Affairs Department, Veteran Electric, and word search (generator) resulted in 18 during 2012 – 2015.

Due to the limited number of contractors in the Iron Mountain area, a publicized source sought notice was posted on www.SAM.gov Contract Opportunities to find capable SDVOSB, VOSB and Small Businesses that are willing to bid on this project and provide a fair and reasonable price.

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

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