Sole Source Justification - Monaco.pdf

SOLE-SOURCE DETERMINATION AND JUSTIFICATION FOR SUPPLIES AND

SERVICES

No. S-24800-00016719

To: Tod Hyland, State Maintenance Supervisor

From: Oregon Military Department

Agency Analyst/Procurement Specialist: Michelle Johnson, Procurement and Contract Specialist

Date: 4/22/2026

Re: Sole Source Determination pursuant to Oregon Revised Statute (ORS) 279B.075 and Oregon Administrative Rule (OAR) 125-247-0275

Part A

1. Authority to enter into a Sole-Source Contract:

OAR 125-246-0170(2)(c)(H) and DAS Delegation Agreement (sub-delegated by OMD DPO)

2. Estimated Total Value of Contract:

$75,000.00

3. Subject of Contract:

Monaco Fire Detection and Alarm System Equipment and Integration

4. Background:

The Oregon Military Department (OMD) intends to purchase and install Monaco Fire Detection and Alarm panel and transmitter equipment for a project at the Portland Air National Guard Base. The prospective contractor is Monaco Enterprises, Inc.

The current facilities on the base use the Monaco Fire Alarm System. This project requires the integration of new equipment with the existing fire alarm system. The central station receiving equipment is a proprietary Monaco system, and any new transceivers must be fully compatible with this existing infrastructure. The estimated cost of this procurement is $75,000. OMD is seeking this sole source procurement to ensure technical compatibility and avoid substantial costs associated with replacing the entire system.

5. Findings:

A. Market Research Overall Finding:

Market research confirms that the Monaco Fire Detection and Alarm system is a proprietary system. Due to the requirement to integrate with the existing proprietary central station and transceivers, no other vendor can supply fully compatible equipment. Research of other fire alarm system providers indicates that acquiring a different alarm system would not meet the agency’s need for direct integration and would require a cost-prohibitive replacement of the entire existing system.

B. Findings of Fact pursuant to OAR 125-247-0275(2):

1. Pursuant to OAR 125-247-0275(2)(a): Compatibility.

The efficient utilization of existing goods requires the acquisition of compatible goods from only one source. The central station receiving equipment at the Portland Air National Guard Base is a Monaco system, and the new transceivers must be fully compatible with this equipment to ensure operational integrity of the life-safety system.

Monaco Enterprises, Inc. is the only source for this compatible equipment.

2. Pursuant to OAR 125-247-0275(2)(d): Other findings that support the conclusion that Supplies and Services are available from only one source, including Cost of Conversion.

Acquiring a different alarm system would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. These costs include:

• Duplication of Training: The Portland ANGB currently sends three personnel to Monaco-specific training annually at a significant cost. Procuring a different panel would introduce a second, separate training requirement, which would double the annual training expenditure.

• Duplication of Maintenance and Equipment: Maintaining two different fire alarm systems would double the costs associated with maintenance contracts, spare parts inventory, and specialized technician support.

• Cost of Complete System Replacement: The only alternative to a sole-source purchase would be to replace the entire existing Monaco alarm system across the base, the cost of which would be far in excess of this procurement and would be an unreasonable use of public funds.

Part B – Approval

Approved By:

Tod Hyland, State Maintenance Supervisor, Oregon Military Department