Sole Source Justification (Redacted).pdf

VHAPM Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-$7.5M under FAR13.5

PM Part 813.5 SAP for Certain Commercial Items Page 1 of 4 Original Date: 08/30/17 Revision 03 Date: 02/11/2021

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C242-21-AP-0284

1. Contracting Activity: Department of Veterans Affairs, VISN 2, James J. Peters VA Medical Center located at 130 W. Kingsbridge Road, Bronx, NY 10468 Engineering Office submitted purchase request number 526-21-1-350-0006 to Network Contracting Office (NCO) 2, James J. Peters VA Medical Center located at 130 W. Kingsbridge Road, Bronx, NY 10468.

2. Nature and/or Description of the Action Being Processed: Contractor awardee submitted a Request for Equitable Adjustment due to mistakes identified in the Statement of Work. This modification action is to provide the equitable adjustment. Referencing the table at paragraph 3: Item No. 7 quantity is changed from 1 to 8 and the dimensions are changed from 36”W x 50”D x 85”H to 38”W x 100”D x 85”H; Item No. 8 quantity is changed from 1 to 14 and the dimensions are changed from 34”W x 28”D x 86”H to 38”W x 60”D x 86”H; Item No. 14 is added with a quantity of 2 and the dimensions measuring 48”W x 40”D.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The James J. Peters VA Medical

Center (JJP VAMC) will accept the transfer of various Government Property from the VA New York Harbor Healthcare System Manhattan campus for future installation. The following Government Property is identified for this requirement:

No. Equipment Manufacturer Model Number QTY Size (WxDxH) inches

Weight Approx.

each (lbs)

Approx.

Value per

Item

1 Diesel Engine Generator Caterpillar C175-16

(60Hz) 2 84 x 238 x 93 44,000 $570K

2 Diesel Gen Loose Crate Caterpillar Gen Parts 2 30 x 51 x 35 370 Included above

3 Battery Chargers La Marche ESCR-10- 24V-AV1 2 8 x 7 x 12 25 $1.7K

5kV Circuit Breakers Cubicle 1200 Amp

Eaton

VCP-TR

Fixed CB

36 x 50 x 85

2,000

$64K

Neutral Grounding Resistor

Post Glover

NG024A400-

DDDAACEK0

36 x 50 x 85

$10K

6 Current Transformers GE Model 780 6 10 x 4 x 10 30 $0.5K

7 Paralleling Switchgear ASCO 8 38 x 100 x 85 1,500 $707K

Automatic Transfer Switches

ASCO

7000 Series

7ATB

38 x 60 x 86

$440K

PM Part 813.5 SAP for Certain Commercial Items Page 2 of 4

Revision 03 Date: 02/11/2021

HVAC Equipment (RTU-1) AAON RQ005 1 45 x 100 x 50 899 $23.5K

HVAC

Equipment

(RTU-2)

AAON

RN013

96 x 110 x 48

$23.5K

HVAC

Equipment

(RTU-5)

AAON

RQ002

45 x 100 x 50

$23.5K

12 NiCAD Battery Crates

SPH Advance Technology SPH320 2 48 x 40 x 20 800 $21.7K

13 JW/AC Radiator (Custom)

Diesel Radiator Co. DR4214 2 114 x 87 x 128 6,800 $63K

14 Paralleling Switchgear Batteries for Controls Crate 2 48 x 40

Is it in the best interest to ensure the equipment is stored and maintained properly while not in use, to preserve the equipment.

For Government Property items 1, 2, 13, and 14, the Contractor shall be responsible for receiving the Government Property at the warehouse owned by Brothers & Company, Inc. (830 Long Island Ave., Deer Park, NY 11729) for storage. For item 1, receiving the Government Property entails special equipment (e.g. rigging, crane) to accomplish offloading from vehicles and placing into the warehouse. The warehouse has been inspected for acceptance by a Government representative in order to meet manufacturer requirements for equipment storage, which is required before award. While in storage, the Contractor shall perform periodic maintenance of the two Diesel Engine Generator Caterpillar Model Number C175-16 (60Hz) units. Diesel Generators require specialized care while not in use (i.e. storage).

For Government Property items 4 through 11, the Contractor shall be responsible for moving the Government Property from current storage location at Able Rigging Contractors (1050 Grant Blvd, Deer Park, NY 11729) to a warehouse owned by Brothers & Co. Inc. (830 Long Island Ave., Deer Park, NY 11729) and provide warehouse storage. Periodic preventive maintenance services are not needed for these items.

4. Statutory Authority Permitting Restricted Competition: FAR 13.5 Simplified Procedures for Certain

Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement. Competition is restricted on this procurement for the reason below:

(X) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert

Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

PM Part 813.5 SAP for Certain Commercial Items Page 3 of 4

Revision 03 Date: 02/11/2021

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 two (2) Diesel Engine Generators manufactured by Caterpillar Model Number C175-16 (60Hz) require specialized care and maintenance while in storage for a period longer than three months. The original equipment manufacturer is Caterpillar Inc., which restricts maintenance services to authorized maintainers. H. O.

Penn Machinery Company, Inc., (hereinafter H.O. Penn) is an authorized Caterpillar Inc. retailer and maintenance provider covering the New York City georgraphical area. H.O. Penn provides storage for all items listed in paragraph 3 and periodic maintenance for the diesel generators. The two diesel generators are currently under a 60-month extended manufacturer warranty effective April 2021 that will cover any damage or failures due to workmanship and shall be in accordance with Caterpillar Limited Warranty SELF5731. No other company can provide this guarantee and protection of the two Diesel Engine Generators. Only Caterpillar-certified technicians can perform this service with certainty that the equipment will work properly after installation and without risk to the terms and conditions of the warranty.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Due to the limitations of the warranty terms and conditions and the availability and geographical distribution of manufacturer-ceritifed technicians for maintenance services, no other firm is capable of providing the services.

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

As a result of this modification, Purchase Order value is changed from $488,611.00 to $611,371.00, an increase of $122,760.00. Proposed modification prices are considered fair and reasonable. For the transportation price increase, the original job effort intended for one truck at a price of $3,500.00, but the Contractor has provided a discounted price of $2,340.00 per truck for the use of four additional trucks. For the storage space, the square footage increase is from 681.81 SF to 1,122.14 SF, a 65% increase of 440.33 SF. Proportionately, the requested monthly price increase for the storage is changed from $6,460.00 to $9,610.00, a 49% increase of $3,150.00.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted: This action is a post-award action not seeking new sources.

Market Research on price was conducted before original award and determined to be fair and reasonable. The price changes due to the equitable adjustment were compared to the original market research findings on price and found to be consistent with contract prices and thusly determined fair and reasonable.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None.

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

H.O. Penn Machinery Company, Inc.

122 Noxon Rd Poughkeepsie, NY 12603-2940

11. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to

Competition before Making subsequent acquisitions for the supplies or services required: In this situation, it is difficult to remove barriers to competition because the OEM restricts technical

PM Part 813.5 SAP for Certain Commercial Items Page 4 of 4

Revision 03 Date: 02/11/2021 capability to authorized dealers and maintainers certified to perform maintenance services on its own specialized equipment, as well as limitations of existing warranty terms and conditions that is extendable for an additional 60 months. Market conditions will be monitored by technical personnel to determine if other viable sources for the required service become available in the future.

12. Requirements Certification: I certify that the requirement outlined in this justification is a Bona Fide

Need of the Department of Veterans Affairs and 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.

Supervisor, General Engineer James J. Peters VA Medical Center

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer or Designee’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer VA Network Contracting Office 2

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Services Team 2 Branch Chief VA Network Contracting Office 2

No other signatures are required.