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-$7M under FAR13.5

PM Part 813.5 SAP for Certain Commercial Items Page 1 of 5 Original Date: 08/30/17 Revision 02 Date: 08/04/2020

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, Hudson Valley Healthcare System (HVHCS), Montrose Campus, 2094 Albany Post Rd, Montrose, NY 10548.

2. Nature and/or Description of the Action Being Processed: This is a request for other than full and open competition for the procurement of services involving the transport, storage and maintenance of Government Property that requires specialized care. Government Property will be transported to a Contractor facility that meets requirements and stored for a period of one year with two option years. Specialized preventive maintenance services will be periodically performed on two diesel engine generators by Contractor personnel while in storage. Estimated contract value is $471,594.00.

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 2 36 x 50 x

85 2,000 $64K

5 Neutral Grounding Resistor Post Glover NG024A400-

DDDAACEK0 3 36 x 50 x 85 350 $10K

6 Current Transformers GE Model 780 6 10 x 4 x

10 30 $0.5K

7 Paralleling Switchgear ASCO 1 36 x 50 x

85 1,500 $707K

8 Automatic Transfer Switches ASCO 7000 Series

7ATB 1 34 x 28 x 86 950 $440K

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Revision 02 Date: 08/04/2020

9 HVAC Equipment (RTU-1) AAON RQ005 1 45 x 100 x

50 899 $23.5K

10 HVAC Equipment (RTU-2) AAON RN013 1 96 x 110 x

48 2071 $23.5K

11 HVAC Equipment

(RTU-5) AAON RQ002

45 x 100 x

50 799 $23.5K

12 NiCAD Battery Crates

SPH Advance Technology SPH320

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

It is in the best interest to ensure the equipment is stored and maintained properly while not in use to preserve the equipment (called “pickling”).

For Government Property items 1, 2, 3, 12, and 13, 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 the 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. This location is the arranged location of the Prime Contractor, H.O. Penn, to the subcontractor. 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

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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 will provide storage for all items listed in paragraph 3 and periodic maintenance for the diesel generators.

The two diesel generators are currently under manufacturer warranty expiring March 2021. Due to the necessity for storage, H.O. Penn will provide the Government with an extended warranty of the two Diesel Generators for 60-months 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. The 60-month warranty shall start immediately after the expiration of the current warranty ending in March 2021 and there shall be no lapse between the original and extended warranties.

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: The anticipated total cost of the contract for base year plus two option years is $471,594.00. The CO made this determination by researching past procurement actions with similar requirements (e.g. equipment pickling, diesel generator maintenance) in the Federal Procurement Database System. “Pickling” is an unconventional term used to describe preservation and conditioning efforts of mechanical equipment placed into long-term storage in order to maintain optimal functioning condition of all major parts or components. For warehouse leasing, the price per square foot for Deer Park, NY was researched on the internet on November 20, 2020, where the website “LoopNet.com” identified two “Industrial Space for Lease” listings on Long Island Ave. with prices for $11.50 per SF/YR and $13.50 per SF/YR.

Other locations in Deer Park, NY were comparable to these two prices.

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

Reasons Market Research Was Not Conducted:

A search in VIP https://www.vip.vetbiz.va.gov/) on November 20, 2020, with keyword “Caterpillar“ and NAICS 811310, yielded one SDVOSB firm, but that firm is not located within 50 miles of the James J. Peters VA Medical Center. A search in the SBA database for small

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Revision 02 Date: 08/04/2020 business firms, with keyword “Caterpillar’, NAICS 811310, and the Metro Statistical Area 5000 for NYC, yielded no results.

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 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

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Revision 02 Date: 08/04/2020

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $700K):

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.