Siemens Justification FAR Part 8 FINAL.pdf

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Control Number: MVN-25-0025

JUSTIFICATION REVIEW DOCUMENT

FAR Part 8 Limited Sources Justification

Program/Equipment: Access Control and Camera Service for USACE, New Orleans District

Authority: Title 41 United States Code (U.S.C.) §4106(c)(2) as implemented in Federal Acquisition Regulation (FAR) 8.405-6(a)(1)(i)(B), Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

Amount: Approximately $545,000.00, Base plus 4 Option Years, 52.217-9, "Option to Extend the Term of the Contract".

Prepared by: Taylor Brandon Contract Specialist

Phone: 504-862-1009 Date: 18 AUG 2025

E-mail: taylor.h.brandon@usace.army.mil

Contracting Officer: Karen D. Hargrave Contracting Officer

Phone: 504-862-1561 Date: 18 AUG 2025

E-mail: karen.d.hargrave@usace.army.mil

Technical: Kevin J. Calico Facilities Operation Specialist

Phone: 504-812-6891 Date: 19 AUG 2025

E-mail: kevin.j.calico@usace.army.mil

Requirements: Kevin J. Calico Facilities Operation Specialist

Phone: 504-812-6891 Date: 19 AUG 2025

E-mail: kevin.j.calico@usace.army.mil

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AUG 2025

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Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Program Manager/Program Executive Officer:

James E. Syrdal Chief of Facilities E-mail: james.e.syrdal@usace.army.mil SYRDAL.JAMES. ����t�1!���

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Small Business:

Demetric T. Erwin Deputy, Office of Small Business Programs E-mail: demetric.erwin@usace.army.mil ERWIN.DEMETRIC. Digitally signed by

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Legal Counsel:

E-mail:

Phone: 504-862-2008

Phone: 601-631-5951

Phone:

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FAR Part 8 Limited Sources Justification

1. Requiring Activity:

U.S. Army Corps of Engineers, New Orleans District Logistics 7400 Leake Ave.

New Orleans, LA 70118

2. Contracting Activity:

U.S. Army Corps of Engineers, New Orleans District Contracting, Projects West Branch 7400 Leake Ave.

New Orleans, LA 70118

3. Description of Action:

This Justification and Approval (J&A) requests approval to award a new firm-fixed price contract, on a sole-source basis, for a new Base Year plus four (4) option year contract for comprehensive maintenance and repair of the access control and security camera systems located throughout the New Orleans District headquarters buildings and grounds located at 7400 Leake Avenue, New Orleans, Louisiana. Revolving funds will be used to fund this requirement. As discussed below, the one responsible source capable of providing requirement services is as follows:

Company Name: Siemens Industry Inc.

Unique Entity ID: JZXZSN3BBL98 CAGE Code: 1 HLQ3 Address: 1000 E Deerfield Pkwy, Buffalo Grove, IL 60089

4. Description of Supplies/Services:

The New Orleans District requires comprehensive service and repair of both the access control and the security camera systems (to include all cameras, card readers, control systems, monitors, UPS, Computers and servers connected to or associated with the camera and access control system) located throughout the New Orleans District buildings and grounds located at 7400 Leake Avenue, New Orleans Louisiana. This contract will cover both routine maintenance on all equipment and software associated with the systems and all repairs on hardware and software required to maintain the systems in a mission acceptable operational status at all times for a base year plus four (4) option years for an estimated total value of $545,000.00. Work will be sole sourced to Siemens Industry, Inc.

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FEDCON 3

Period Base

Option 1 Option 2 Option 3 Option 4

Period of Performance (POP) 01 October 2025 to 30 September 2026 01 October 2026 to 30 September 2027 01 October 2027 to 30 September 2028 01 October 2028 to 30 September 2029 01 October 2029 to 30 September 2030

Estimated Overall Total Price

Estimated Value $102,586.70 $105,664.30 $108,834.23 $112,099.26 $115,462.24 $544,646.73

5. Authority Cited: The statutory authority requested for use of other than full and open competition is Title 41 U.S.C. §4106(c)(2) as implemented in FAR 8.405- 6(a)(1)(i)(B), Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized. The New Orleans District intends to utilize Siemens Industry, Inc. to perform the inspecting, maintenance and repair of the access control and the camera systems located on the New Orleans District headquarters facility due to the proprietary software used in the computer system and server that control both systems.

6. Reason for Authority Cited:

Background: All access control and security camera systems located throughout the New Orleans District buildings and grounds are controlled by proprietary software in the computer system and server. There is a requirement of using certified Siemens technicians to perform the maintenance and repair of the systems, to include the newly updated system and newly installed CAC Readers, and to maintain the warranty of the installed cameras and associated equipment due to the proprietary software. Only current employees of Siemens Industry, Inc. are certified technicians and have the required permissions and access to maintain the proprietary software for the systems.

Additionally, Siemens holds the warranty on all card readers on the installation. This would possibly be a conflict between the service contractor and Siemens if something were to go wrong with one of the items in warranty or the system where one contractor could claim the other contractor was responsible for the issue.

Justification: The existing access control and security camera systems are controlled by proprietary software. Although the physical equipment associated with the access control and security camera systems are not proprietary, all parts need to be compatible with each other and the software system. The newly updated control system and CAC Readers are currently under warranty with Siemens. If the work was to be completed by a company other than Siemens it would necessitate the replacement of the software system, which are unique to each company, and would potentially void the warranty for the new equipment. Special consideration is also given to AR 190-13 and AR 190-51 throughout the process of awarding an annual maintenance and repair contract for the access control and security cameras systems at the New Orleans District to ensure operability with the proprietary software.

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Siemens is the only responsible source for this action because they are the only source for access to the propriety software that controls the access control and security camera systems at the New Orleans District. Additionally, Siemens certified technicians are the only technicians permitted to access the software needed for comprehensive maintenance and repair.

a. Alternative: Replacement. The only alternative is to completely replace the hardware and software systems for the access control and security cameras systems.

This action would require the government to purchase services and equipment in excess of its minimum needs and the cost would far exceed the budget limitations for the maintenance and repairs because estimates are currently based solely on annual maintenance and repairs not the cost of replacement of the hardware and software system for the access control and security cameras systems. In addition to costs far exceeding the amount budgeted for annual maintenance and repairs, the replacement of the hardware and software systems for the access control and security cameras systems would take an unknown amount of time to redesign and several years to execute. Given the special consideration of safety and compliance with AR 190-13 and AR 190-51 a delay in the award on the service contract is unacceptable. Given the extended time, increased budgets, and current access control and security cameras systems, it is not feasible to implement the Alternative.

b. Impact if not approved: Siemens is the only responsible source for this action because they are the only source for the comprehensive service and repair of the access control and security camera systems throughout the New Orleans District buildings and grounds because Siemens certified technicians are the only technicians permitted to access the software that controls the access control and security camera systems that were installed by Siemens under different contracts. As discussed above, no other supplies or services will satisfy agency requirements. Failure to procure Siemens' services for the five years of maintenance and repair of the hardware and software system for the access control and security cameras systems will result in a lack of compliance with AR 190-13 and AR 190-51. This lack of compliance could result in an unsafe facility as well as disciplinary actions including prosecution in US District Court, be barred from post, or other actions. Failure to approve the J&A would force MVN to procure all new the hardware and software system for the access control and security cameras systems, which is not only significantly more expensive and exceeds budget limitations but also far exceeds the government's minimum needs for annual maintenance and repair of the access control and security cameras systems.

7. Efforts to Obtain Competition:

Previous contracts awarded to Siemens Industry, Inc. for similar services did not include opportunities for subcontracting.

In accordance with the exception at FAR 5.202(a)(11 ), the Contracting Officer will not publish a synopsis. In accordance with, FAR 8.405-6(a)(2) the Contracting Officer will

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publish a Notice of Intent to Sole Source and the approved Justification and Approval.

The Government intends to negotiate and award a sole source contract through GSA eBuy. The J&A will be included within the RFQ. If any other offers are received, they will be considered; however, it is the Governments' intent to award a sole source contract to Siemens Industry Inc. J&A will also be posted within 14 days of award, IAW FAR 8.405-6(a)(2)

8. Actions to Increase Competition:

Market research will continue annually prior to the exercise of option years to determine if there are opportunities to increase competition.

9. Market Research:

Market research was conducted by Kevin Calico, Facilities Operation Specialist, and Taylor Brandon, Contract Specialist. Requirement is a commercial service valued at approximately $545,000.00 and will be procured through FAR Part 12 -Acquisition of Commercial Products and Commercial Services and FAR Part 8-Required Sources for Supplies and Services.

• NAICS Code: 561210 - Facilities Support Services

• PSC: J063 - Maintenance/Repair/Rebuild of Equipment-Alarm, Signal, and

Security Detection System

Techniques and methods utilized to conduct Market Research include:

• Historical acquisition information

• Review of Government and commercial databases

• Review of catalogs

• Review of source lists

• Contact with the req uestor

As a result of this market research, MVN concluded that only a Siemens Certified Technician can be utilized for the annual maintenance and repair of Siemens installed hardware and software for the access control and security camera systems as only these technicians can access the proprietary Siemens software.

Siemens is the only responsible source for this action because they are the only source for the annual maintenance and repairs of the access control and security camera systems because they currently have the warranty for the equipment and limit access to the current proprietary software to Siemens Certified Technicians, which are only Siemens employees. No other supplies or services will satisfy agency requirements.

10.Other Facts:

a. Procurement history.

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1. All computers, software, and servers used in the current systems were purchased and installed by Siemens Industry, Inc. The computer and servers were upgraded to use Siemens proprietary software to increase speed and reliability of the system.

2. Technical data and specifications have been developed to award a contract servicing, inspection and repair of the access control and the camera systems used on the district running Siemens proprietary software.

3. Security of the facility and the protection of district personnel is of the highest priority the current system is controlled by proprietary software from Siemens Industry, Inc. Any disruption of the system could cause a potential safety hazard for the district and its personnel.

Contractor Amount (est.) Procuremen t Method

SIEMENS Sole Source INDUSTRY FAR 6.302-1 $436,324.96

INC.

SIEMENS Sole Source

Contract Action Number

W912P820C0067

W912P816C0012 INDUSTRY FAR 6.302-1 $350,804.25

INC.

Period of Performance

01 October 2020 through

30 September 2025 01 October 2016 through 30 September 2020

b. Other facts.

Siemens Industry, Inc. has provided reliable service to MVN for many years with no safety issues or performance concerns under past service contracts such as W912P820C0067 and W912P816C0012 which were all awarded to Siemens via sole source due to Siemens Certified Technicians being the only source authorized to access their propriety control software.

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11. Technical Certification: I certify 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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12. Requirements Certification: I certify 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. Fair and Reasonable Cost Determination: I hereby determine that the anticipated price/cost to the Government for this contract action represents the best value and will be fair and reasonable consistent with DoD Class Deviation 2014-00011- Determination of Fair and Reasonable Prices When Using Federal Supply Schedule Contracts, dated March 13, 2014. This determination will be made using price analysis in accordance with FAR 15.404-1 (8)(2)(v) Comparison of proposed prices with independent Government cost estimates.

Karen D Hargrave Contracting Officer

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Karen D Hargrave Contracting Officer

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