Sole Source Justification Switchgear Repair v3 Redacted.pdf

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J061--EMERGENCY Switchgear Repair Services - Urgent and Compelling
Solicitation number
36C25625P1107
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This document is a Sole Source Justification under Simplified Procedures for a critical emergency switchgear repair service for the Department of Veterans Affairs (VA) Central Arkansas Veterans Health Care System. The VA Network Contracting Office 16 is awarding an urgent, sole-source contract to Venergy Group, LLC (a Service-Disabled Veteran-Owned Small Business) for emergency repairs to Building 1's electrical infrastructure at the Eugene J. Towbin Healthcare Center in North Little Rock, AR. The Medium Voltage Switchgear A experienced interior electrical arcing that damaged cables and bus bars, compromising one of two electrical feeds to the hospital.

The emergency contract is valued at $429,188.00, with a Notice to Proceed issued on 06-09-2025 and repair completion required by 07-26-2025. The justification emphasizes the urgent and compelling nature of the repair, highlighting potential risks to patient safety and medical center operations if the switchgear is not quickly repaired. The VA conducted limited market research and determined that Venergy Group is the only source capable of performing the timely emergency repairs. The contract is for approximately thirty calendar days and aims to ensure continued medical treatment and patient care without interruption.

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Effective Date: 11/15/24 Page 2 of 4

REVISION: 01

Acquisition ID#:

by FAR 13.106-1(b)(2) for restricting competition on this procurement. Competition is restricted on this procurement for the reason below:

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

(X) 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

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

Given the immediate urgent need to ensure the medical center campus building 1 are properly conditioned and have electricity to ensure the stability of care to the Veterans who are currently be provided direct care from VA staff at these campuses/buildings. It is imperative the current level of care is maintained and to maintain patient care standards to ensure there is no affect to patient safety. Awarding to Venergy Group, LLC will ensure these emergency switchgear repairs for building 1 on the campus will be addressed timely.

Existing Medium Voltage Switchgear A (MVSG-A) experienced interior electrical arcing that damaged existing cables, buss bar and other associated items and has been taken out of service. This is one of two (2) electrical feeds to the hospital. The facility is operating on the redundant feed. If not repaired quickly, failure of the redundant switchgear is an immediate concern which places the facility's ability to continue operations in jeopardy. With the criticality of the system, the repairs must be completed as expeditiously as possible.

The need for this emergency purchase order contract is determined to be the best available option to ensure patient safety is not affected. If not pursued, harm to the patients and the government would have included the following: degenerative concern with the patient’s current health factors, not receive the needed care in the time frame required to positively affect the health of the veteran, and rescheduling appointments is not an option due to the nature of the patient’s medical complications. Due to these facts, if this requirement is not sole sourced under Unusual and Compelling Urgency, repair services to ensure the stability of care to Veterans would affect patient safety and harm Veterans by effecting medical center operations.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

As noted in section four (4) above, this is an Unusual and Compelling Urgency and only one source, Venergy Group, LLC, is available to provide the continued repair services in a timely manner. Due to the urgent need, it was determined that an emergency repair contract would be the best available option. Venergy Group, LLC is a verified Service Disabled Veteran Owned Small Business (SDVOSB).

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

Reasonable:

Effective Date: 11/15/24 Page 3 of 4

REVISION: 01

Acquisition ID#:

An informal price analysis was conducted by the Contracting Officer and in accordance with FAR 13.106-3 it is anticipated that overall pricing will be considered fair and reasonable for the

Due to the urgent need for emergency repairs, an emergency Notice To Proceed (NTP) was issued to the contractor on 06-09-2025 by the Contracting Officer to move forward with the emergency repair service for completion no later than 07-26-2025 in the amount of $429,188.00. It was determined by the Contracting Officer that the emergency award amount of $429,188.00 is fair and reasonable after conducting a price analysis based on comparing the vs the emergency contractor pricing of $429,188.00. IGE shows a higher difference in the amount of which is a cost savings to the Government of . Due to this fact the award amount of $429,188.00 is determined fair and reasonable.

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

Market Research Was Not Conducted:

In accordance with FAR 10.001(a)(2), market research was conducted appropriate to the circumstances; market research was conducted by examining the acquisition history of the current contract and reviewing its trends.

In addition, market research was conducted on a limited basis as this is an urgent and compelling requirement where it was determined the best interest of the Government to ensure there is no break in medical treatment plan at the Veterans being housed and seen on the campuses due to not having electricity to ensure normal medical center operation.

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:

Venergy, LLC 3130 Seminole Road Fort Pierce, FL 34951

Contractor Unique Entity ID: NWJ1Z3M5EAE5

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:

The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be competed.

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.

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