Sole Source Justification.pdf

United States Department of Agriculture Sole Source/Brand Name Justification Simplified Procedures IAW FAR 13.5

1. Identification of the agency and contracting activity.

The agency is the USDA Forest Service, Engineering, Technology, and Geospatial Services (ETG) in Washington, DC. The contracting activity is Procurement and Property Services, National Procurement Operations, Information Technology Contracting Branch (ITCB).

2. The nature and/or description of the action being approved.

The USDA proposes to enter into a sole source, firm fixed-price contract with Schneider Electric, using the simplified procedures for certain commercial items under Federal Acquisition Regulation (FAR) Part 13.5. Schneider Electric is the manufacturer for the Advanced Metering proprietary software. The contract award will contain one (1) year base period and four (4) annual options.

3. Description of the supplies or services required to meet the agency’s needs (including the estimated value).

The requirements are outlined in the Statement of Work and involve technical support and software application administration for the Forest Service’s Advanced Metering system, including:

o Enterprise software administration and configuring systems.

o Meter commissioning; both assisting field commission and server operation setup for connecting meters to central data logging system.

o Electrical engineering support and documentation of Schneider Electric advanced meter products. Access to factory engineering support for technical references.

o Troubleshooting of hardware / meter programming.

o Report generation.

o Dashboard creation for custom displays.

o Alarm configuration.

The Total Estimated Price (to include all potential option years) is $665,000.00.

4. The statutory authority permitting other than full and open competition.

This Sole Source justification is prepared in accordance with FAR 6.303-2, modified to reflect that the procedures in FAR subpart 13.5 were used in accordance with 41 U.S.C. 1901, Simplified Acquisition Procedures up to $7.5 million, as authorized by FAR 13.500(a) and implemented by FAR 13.501(a). The statutory authority permitting other than full and open competition is FAR 13.106(b)(1) For purchases not exceeding the simplified acquisition threshold.(i) Contracting officers may solicit from one source if the contracting officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand-name or industrial mobilization).

5. Statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority.

Background:

The Energy Policy Act of 2005 requires advanced meters to be installed in Federal buildings by 2012 to the maximum extent practicable. The Guiding Principles for Sustainable Federal Buildings and the Forest Service Handbook require advanced meters and advanced metering systems to be installed in new buildings and major renovations that meet certain criteria per the International Green Construction Code, 2018 version.

The National Technology and Development Program (NTDP) in Missoula, MT evaluated multiple advanced metering systems and published an analysis in 2009 recommending the Schneider Electric system based on several advantages for the Forest Service (see https://fsweb.wo.fs.fed.us/ntdp/products/0973-2821p). The agency created a nationwide system of monitoring consisting of Schneider Electric hardware including over 75 main advanced meters and over 100 submeters. The hardware is integrated with Schneider Electric’s enterprise software application, Power Monitoring Expert (PME). Both the main advanced meters currently installed across the Forest Service and the PME software that supports those meters are proprietary to Schneider Electric. There are no after-market solutions for PME administration.

Software support services for the Advanced Metering system is currently being accomplished by Schneider Electric under contract number AG-3187-D-16-0150, which expires on 30 September 2021.

Current Acquisition:

This action is a logical follow-on to contract AG-3187-D-16-0150 to continue software support services to the Advanced Metering system. Since the existing hardware and software are proprietary to Schneider Electric, this makes them uniquely qualified to provide this continued support to the agency.

6. Description of efforts made to ensure offers are solicited from as many potential sources as is practicable.

No additional effort will be made at this time to seek out alternative solutions to the Government’s requirement. This justification will be made publicly available in accordance with FAR 13.501(a)(iii).

7. Description of the market research conducted and the results or a statement of the reason Market Research was not conducted.

In order to remove or overcome barriers to competition in future acquisitions for this requirement, the program office has been conducting continuous market research on alternative solutions. The Government cannot simply change the software support to a competing vendor since the PME software is proprietary to Schneider Electric. In order to remove or overcome barriers to competition, the Government would have to invest in an entirely new Advanced https://fsweb.wo.fs.fed.us/ntdp/products/0973-2821p

Metering system to replace that which is currently installed and operating nationwide. This will require a significant reinvestment of system architecture. The Government has performed Cost/Benefit and Return on Investment (ROI) Analysis to determine the feasibility and desirability of pursuing competition for a system that would replace the current Advanced Metering system or potentially bringing the services in-house. Shifting to a new system at this time would be a substantial duplication of cost without sufficient ROI from anticipated competition. Bringing services in-house is not an option at this time due to lack of internal agency resources. The Government will continue working with its Chief Information Office to identify potential replacement platforms as the currently installed hardware reaches maturity and end-of-life within the next 5-10 years.

8. Any other facts supporting the use of other than full and open competition.

N/A

9. Listing of the sources, if any, that expressed a written interest in the acquisition.

N/A

10. Statement of actions, if any, the agency may take to remove or overcome any barriers to competition if subsequent acquisitions are anticipated.

The agency’s only way to overcome barriers to competition at this time would be substantial reinvestment in hardware/software. It is not cost-effective, or in the best interest of the Government, to change systems at this time. The Government will continue to monitor the marketplace to locate alternative technology that might eventually replace this hardware/software with another system.

11. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The following steps will be taken to ensure that the anticipated cost of this acquisition will be fair and reasonable. The Contracting Officer will comply with the procedures and criteria contained in the FAR, Part 30 – Cost Accounting Standards, Part 31 – Contract Cost Principals and Procedures, and Subpart 13.106-3(a)(2), to include technical evaluation and audits, as appropriate. The final step is to accomplish a Price Negotiation Memorandum (PNM). This detailed documentation and justification of price reasonableness will be disclosed in the official PNM, to be prepared upon completion of negotiations.

Certifications & Approvals

☒ The information provided for this justification has been reviewed and certified accurate and complete by David Wiley, Program/Technical Personnel.

Contracting Officer (not exceeding $750,000). I have reviewed this justification and certify it to be accurate and complete to the best of my knowledge and belief.

Mary Shinney Contracting Officer

Concur:

The information contained in this Justification for Other Than Full and Open Competition is certified accurate and complete to the best of my knowledge and belief.

James Bailey Branch Chief, ITCB