Single Source Justification.pdf

VHAPG Part 813.106 Simplified Acquisition Procedures: Soliciting from a Single Source Attachment 1: Single Source Justification for SAP under the SAT

Last Updated: 02/01/22 Page 1 of 2

DEPARTMENT OF VETERANS AFFAIRS

Justification for Single Source Awards IAW FAR 13.106-1 For

Over Micro-Purchase Threshold but Not Exceeding the SAT ($250K)

Acquisition Plan Action ID: 36C242-24-AP-3120

1. Contracting Activity: Department of Veterans Affairs, VISN 02, Syracuse Medical Center.

2237 Number: 528-24-4-7896-0460.

2. Brief Description of Supplies/ Services required and the intended use/Estimated Amount:

The Syracuse VA Medical Center requires an air-source domestic water heat pump to boost the 124 Fahrenheit (F) (+/-5F) domestic hot water recirculation return water. Vendor shall include a BMS Gateway and factory startup.

Estimated Amount is $70,850.00.

3. Unique characteristics that limit availability to only one source, with the reason no other supplies or services can be used:

The air-source domestic water heat pump must be able to produce 140F domestic water with 124F (+/- 5F) recirculation return water from an 80F air source at a rate of approximately 25 Gallons Per Minute (GPM). These requirements are based on the VA’s policy that domestic hot water is produced at 130-140F and its return water temperature average is 124F in an effort to minimize the potential for legionella bacteria. These specific requirements are typical in hospitals where immunocompromised patients reside and legionella can be life-threatening to such patients, but would not be typical in most other applications. This policy is detailed in VHA Directive 1061(2), Prevention of Health Care-Associated Legionella Disease and Scald Injury from Water Systems, dated February 16, 2021.

Hospitals are likely the only entities with such specific temperature requirements, which limits the number of vendors in the market who are willing and able to manufacture this equipment.

Based on market research, only the C250A model air-source domestic water heat pump manufactured by Nyle Systems – the original equipment manufacturer (OEM) - is capable of meeting the Government’s requirement for an air-source domestic water heat pump capable of producing 140F domestic water with 124F (+/- 5F) recirculation return water. None of the other air-source domestic water heat pumps that have been reviewed will be suitable as they cannot operate within the VA’s domestic hot water temperature requirements. J.W. Swanson is the only authorized distributor servicing the upstate New York region, as confirmed by Nyle Systems.

4. Description of market research conducted and results or statement why it was not conducted:

Market research was conducted between June and July 2024.

https://www.acquisition.gov/?q=/browse/far/13

VHAPG Part 813.106 Simplified Acquisition Procedures: Soliciting from a Single Source Attachment 1: Single Source Justification for SAP under the SAT

Last Updated: 02/01/22 Page 2 of 2

Michael Arnold, Energy Manager at the Syracuse VA Medical Center - contacted representatives at several HVAC companies, including Modular Comfort Systems (Chris Miller), R.F. Peck (Jim Walker), and J.W. Swanson (Brad Bauer), to determine if any of them offered an air-source domestic water heat pump capable of meeting the Government’s requirement.

Michael contacted J.W. Swanson because they are a representative of Water Furnace brand heat pumps. The representative stated that Water Furnace did not have a suitable product, as they only offer water-to-water domestic water heat pumps. However, he recommended Nyle Systems as they do offer air-source domestic water heat pumps that would meet the Government’s requirements.

Contract Specialist searched the VetCert database using NAICS code 333414. 89 SD/VOSBs were identified under this NAICS code.

Contract Specialist posted a Request for Information (RFI) to SAM.gov on 14 June 2024. RFI notice included the required specifications from the Statement of Work. “SECTION 23 81 43 AIR-SOURCE DOMESTIC WATER HEAT PUMPS” document also attached to notice which detailed further specifications. No responses were received, including from any of the SD/VOSBs found on VetCert.

Michael Arnold and the Contract Specialist conducted Google search for “air source domestic hot water heat pump” which returned the following results:

(1) Nyle

(2) Lochinvar, who states they are out of production on their website

(3) Raypack, Aegis A, Arctic Heat Pumps, Trane, and Daikin North America - none of these brands offer air-source domestic water heat pumps which can accept 124 Fahrenheit (F) +/-5 entering domestic water temperature.

Only the air-source domestic water heat pumps manufactured by Nyle Systems were found to meet the Government’s requirement. Colmac is the brand that is the primary competitor to Nyle, but Colmac uses a different refrigerant and will shut down when the return water temperature reaches 125F, which is less than the Government’s need of 124F, +/-5F. It was determined that only Nyle’s air-source domestic water heat pump can meet the Government’s requirements.

Nyle Systems confirmed to this office that J.W. Swanson is their only authorized distributor servicing the upstate New York area where the Syracuse VA Medical Center is located.

5. Contracting Officer's Certification: Purchase is approved in accordance with FAR13.106-1(b). I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Sam DeMuzio Date Contracting Officer https://acquisition.gov/far/current/html/Subpart%2013_1.html#wp1125466