Sole Source Justification Simplified Acquisitions - Siemens - Final (1).pdf

SOLE SOURCE JUSTIFICATION FOR SIMPLFIED ACQUISITIONS

FAR Part 13.501(a)(1)(ii)

1. Identification of the agency and the contracting activity:

In accordance with Federal Acquisition Regulation (FAR) 13.501(a)(1) in accordance with 41 U.S.C. 1901, the Office of Acquisition Management proposes to award a purchase order on the basis of other than full and open competition with Siemens

Industry, Inc. for building automation system upgrade services on behalf of the

Department of State, Bureau of Administration, Office of Operations, Office of Facilities

Management Services (A/OPR/FMS). The total estimated price is $342,150.

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

The subject requirement applicable to this Justification and Approval is anticipated to be covered by a new, Firm Fixed Price purchase order on a sole-source basis.

The sole-source requirement is anticipated to be awarded to:

Siemens Industry, Inc.

UEI: JZXZSN3BBL98

1000 Deerfield Parkway

Buffalo Grove, IL 60089 USA

The local office is Siemens Industry, Inc. 6435 Virginia Manor Road Beltsville, MD

20705.

The anticipated period of performance is from date of award through September 30, 2024.

3. A description of the supplies or services required to meet the Department’s needs.

The requirement is to provide Building Automation System (BAS) upgrade services at the Harry S. Truman Building (HST) in Washington, DC. The estimated value for the entire period of performance is $342,150. This requirement will not include options. These services require that the contractor upgrade the existing building automation system, including control panels, graphics, and automation software.

This will allow the Office of Facilities Management Services to utilize up-to-date systems and supported control panels and to prevent network vulnerabilities and reduce risk of system failure.

Under this requirement, Siemens will migrate the current Building Automation System to a new platform called the Desigo CC Workstation. The current Siemens system in use at HST has been in existence since 1998 and is nearing end of life and is no longer supported. The upgrade and migration will utilize existing infrastructure that is currently in place.

The scope of the work includes upgrading and migration of existing platforms and databases, upgrading field panel controllers and networks, creating custom reports, converting and upgrading graphics, and providing associated system training for building engineers.

4. An identification of the statutory authority permitting other than full and open competition:

Full and open competition is sought in accordance with FAR 13.501(a)(1)(ii), in accordance with 41 U.S.C. 1901. There is only one source available for this requirement due to the proprietary nature of the existing system.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the action require use of the authority cited.

The Siemens proprietary BAS software currently in use at HST. This upgrade is required to maintain support and continued prevention of network security vulnerabilities. To afford continued building control system compatibility, reliability, and functionality, Siemens must perform the software upgrade and associated work.

Siemens Industry is the proprietary owner of the building automation system software and platform required to upgrade the current BAS system as it is the proprietary owner of the software and platform system that is currently in place. Siemens is the current service provider both domestically and overseas for the Department of State for building automation systems and associated services. Due to the proprietary nature of the current system, only Siemens personnel are able to migrate the system to an upgraded and supported version.

This vendor also has DOS cleared personnel able to work unescorted in HST, and currently follow all security requirements as it pertains to building automation system IT security protocols and rules, which will lead to shorter ramp up times and will reduce increased risk of system failure as it is currently at end of life and unsupported.

6. A description of the efforts made to ensure that offers are solicited from as many potential sources as is practicable, include whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies.

Due to the proprietary nature of the system currently in place, this is a sole-source requirement being awarded directly to Siemens. Therefore, typical efforts to ensure that offers are solicited from as many potential sources as possible are not being pursued.

However, a synopsis (Notice of Intent to Sole Source) was issued in SAM.gov on

February 7 requesting that parties express their interest and submit a capability statement in writing to the Contracting Officer. To date, no responses have been received. The notice closes on February 22, 2024.

7. A determination by the contracting officer that the anticipated cost to the

Government will be fair and reasonable.

The Contracting Officer has determined the anticipated price to the Government for the services covered by this J&A will be fair and reasonable based on historical prices, technical expertise, independent estimate, and market research. The final price will be negotiated directly with Siemens.

The Contracting Officer will not award the planned purchase order unless the Contracting

Officer evaluates and determines that the resultant price is fair and reasonable.

8. A description of the market research conducted (per FAR Part 10) and the results or a statement of the reason market research was not conducted.

Market research was limited in this case. The current system in place, which is the

Siemens Apogee system, is proprietary to Siemens. This requirement is to upgrade the existing system to avoid risk of system failure. Not utilizing Siemens would require that the entire building automation system be replaced by one manufactured by another manufacturer. Market research for this indicates that prices for such a change would cost at least $10M in addition to training DoS and O&M contractors on the entirely new system. A new system would involve removing in excess of 40 controllers and installing more than 100 integration modules and patches through the site.

The Siemens system that is currently in place was acquired in 1998 and performs complex control, monitoring and energy management for building systems including HVAC.

There were no market surveys conducted due because this upgrade requires all proprietary software solely owned by Siemens Industry, Inc.

9. Any other facts supporting the use of other than full and open competition such as:

The statement of work and purchase descriptions are available but require that the current

BAS system be upgraded and migrated to a current and supported version. This requires

Siemens to perform the services as the system is proprietary to Siemens.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

A synopsis will be issued in SAM.gov requesting that parties express their interest in writing to the Contracting Officer. Responses are not anticipated but if there are responses, the responses will be reviewed. The fact that the system is proprietary in nature will be relayed to the submitting company.

11. A statement of any actions the agency will take to remove or overcome any future barriers to competition before any subsequent acquisition for the supplies or services required.

This purchase order is for a one-time requirement to upgrade the existing automation system. It is anticipated that this upgrade will allow the system to last for approximately

15 additional years. At the end of life of the current system, an entirely new building automation system is anticipated, and the requirement will be competed.