SP_10700-68743_Brand-Specific_HVAC_SuppliesSvcs_Approved.pdf

SP_10700-68742, DAS EAM – HVAC Brand-Specific Supplies & Services Page 1 of 9

(ORS 279B Procurements Only)

REQUEST FOR CLASS SPECIAL PROCUREMENT AND BRAND NAME(S) DETERMINATION

NO. REQ- 10700-00068743

PART A. Requesting Agency must complete Items 1 through 13.

1. Requesting Agency Name: Department of Administrative Services, Procurement Services (“DAS PS”), on behalf of DAS Enterprise Asset Management_(“DAS EAM”)

2. Date of Request: _March 19, 2024_ 3. Agency Number: _10700______

4. Agency Contact Name: _Melissa Esser, State Procurement Analyst_ 5. Phone: _971-283-4439__

6. Type of Request: X Class Special Procurement _____ Contract-specific Special Procurement

7. Time Period Requested: From: __July 1, 2024___ To: __June 30, 2029__

8. Total Estimated Cost: $300,000.00.

9. Title: Supplies and/or Services to be Acquired:

Heating, ventilation, and air conditioning (“HVAC”) Brand-specific Supplies and Services as follows:

Brands

• Schneider Electric – including its EcoStruxure™ Internet of Things (“IoT”)-enabled, plug-and-play, open, interoperable architecture and platform.

• American Auto-Matrix Note: American Auto-Matrix was acquired by Cylon Energy, Inc., a subsidiary of Cylon Controls Ltd., in 2014 and rebranded ‘Cylon Auto-Matrix’. Various parts under the American Auto-Matrix brand are still available through certain resellers.

• Cylon Auto-Matrix Note: Cylon Controls Ltd. was acquired by ABB Ltd. in 2019 and rebranded ‘ABB Cylon®’. Various parts under the Cylon

Auto-Matrix brand are still available through certain resellers.

• ABB Cylon® Note: ABB Ltd. does not support replacement, repair, or spare parts for American Auto-Matrix or Cylon Auto-Matrix systems older than 12-years.

Supplies

• Controls

• Energy Management Systems (“EMS”)

• Equipment (i.e., hardware)

• Maintenance, Repair, and Spare Parts

Services

• Maintenance Services

• Repair Services

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10. Request, Background, Current Need, and Proposed Contracting Procedure:

a. Request:

This Special Procurement Request #10700-68743 (the “SP”) seeks the following:

1. Brand Name Determination approval for Schneider Electric and its EcoStruxure™ product line as the quality, performance, and functionality standards for the HVAC Supplies and Services listed in section 9 above.

2. Brand Name Determination approval for American Auto-Matrix as the quality, performance, and functionality standards for the HVAC Supplies and Services listed in section 9 above.

3. Brand Name Determination approval for Cylon Auto-Matrix as the quality, performance, and functionality standards for the HVAC Supplies and Services listed in section 9 above.

4. Brand Name Determination approval for ABB Cylon® as the quality, performance, and functionality standards for the HVAC Supplies and Services listed in section 9 above.

5. Approval for DAS EAM to conduct multiple procurements of Brand-specific Supplies and Services listed in section 9 above, in accordance with the Proposed Contracting Procedure set out in section 10.d below.

6. Approval for DAS PS to conduct multiple procurements of Brand-specific Supplies and Services listed in section 9 above, in accordance with the Proposed Contracting Procedure set out in section 10.d below.

b. Background:

DAS EAM, through its Operations and Maintenance Program (“O&M”), provides the following installation, maintenance, and repair services to 44 DAS-owned buildings and 9 ‘other agency’-owned buildings (collectively “the Facilities”):

• HVAC Systems

• Electrical

• Carpentry

• Painting

• Signage

• Plumbing

• Custodial

• Landscaping

The Facilities are occupied by 69 agencies and include general government offices, forensic crime and health labs, computer data centers, printing operations, and the Governor’s residence, Mahonia Hall. Consistency of systems and equipment (e.g., HVAC systems) across the Facilities is necessary for DAS EAM to maximize efficiencies (i.e., achieve maximum productivity with minimum wasted effort or expense).

In its management of the Facilities, DAS EAM must comply with Oregon’s Public Contracting Code, which consists of three chapters in the Oregon Revised Statutes (“ORS”):

• ORS 279A, Public Contracting – General Provisions, which sets out policy for all contracting activities.

• ORS 279B, Public Contracting – Public Procurements, which sets out the laws for procurements of goods and services.

• ORS 279C, Public Contracting – Public Improvements and Related Contracts, which sets out the laws for construction, architectural, engineering, photogrammetric mapping, transportation planning, land surveying services, and related services procurements.

o ORS 279A.010(cc) defines “Public Improvement” as “a project for construction, reconstruction or major renovation on real property by or for a contracting agency.”

SP_10700-68742, DAS EAM – HVAC Brand-Specific Supplies & Services Page 3 of 9 o ORS 279A.010(cc)(B) provides that “Public Improvement” does not include emergency work, minor alteration, ordinary repair, or maintenance necessary to preserve a public improvement. For these types of procurements, state agencies are subject to the public procurement laws set forth in ORS Chapter 279B.

Procurement History

On September 25, 1990, in accordance with the exemption requirements and processes set out in ORS Chapter 279C and related Oregon Administrative Rules (“OARs”), DAS State Procurement Office (“SPO”) (now DAS PS) granted DAS EAM an American Auto-Matrix brand name Exemption Order for its public improvement procurements of HVAC controls and energy management systems. The brand name Exemption Order applied to all DAS-owned or maintained buildings with existing American Auto-Matrix products installed.

On February 28, 2005, SPO approved Special Procurement 008-0305, which enabled DAS EAM’s brand-specific procurement of American Auto-matrix HVAC controls, equipment, and parts in accordance with ORS Chapter 279B and OAR 125-247-0200, Sourcing Methods.

• Special Procurement 008-0305 was amended on August 10, 2010, and effectively changed the Special Procurement Number to SP-444-10 and extend the expiration date to February 28, 2015.

• Special Procurement No. SP-444-10 was also amended on January 9, 2015, and extended the expiration date to February 28, 2025.

To maximize efficiencies and ensure coherence, DAS EAM has made the business decision to use Schneider Electric HVAC Supplies and Services, including its EcoStruxure™ Controls and EMS, in the 44 DAS-owned Facilities. This changeover will happen over time as HVAC equipment and control systems need to be entirely replaced or substantially repaired. Until then, DAS EAM will have ongoing need for the Brands, Supplies, and Services listed in section 9 above.

c. Current Need:

• This SP Request seeks approval for multiple brand-specific procurements of Supplies and Services under ORS Chapter 279B only. This would include routine maintenance and repair parts and parts for DAS EAM’s onsite inventory.

• As a separate matter apart from this SP Request, DAS EAM was recently granted a new Exemption Order (“EO”) #10700-70749 for its Public Improvement and Public Works procurements under ORS Chapter 279C, for the Brands listed in section 9 above. This includes new HVAC system procurements, entire HVAC system replacements, and substantial upgrades to existing HVAC systems.

The 44 state-owned Facilities managed by DAS EAM currently have either American Auto-Matrix, Cylon Auto- Matrix, ABB Cylon®, or Schneider Electric EcoStruxure™ Supplies installed.

• Routine HVAC maintenance is essential to support optimal system performance, energy efficiency, indoor air quality, safety, and cost savings. Each HVAC system is a complex combination of components, all subject to damage from regular use. DAS EAM will have ongoing need to procure brand-specific maintenance, repair, and spare parts during the life span of each HVAC system.

• As existing HVAC equipment and control systems age out or otherwise need replacing, DAS EAM will transition them to Schneider Electric equipment and EcoStruxure™ Controls and EMS in accordance with ORS 279C, related administrative rules (OARs), and EO 10700-70749. DAS EAM will have ongoing need for brand-specific Schneider Electric Supplies and Services, including its EcoStruxure™ product line, during the life span of all Schneider Electric replacement systems.

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• New construction of DAS-owned buildings, if any, will have Schneider Electric HVAC equipment and EcoStruxure™ Controls and EMS installed. Again, given the maintenance and upkeep inherent in HVAC systems, DAS EAM will have ongoing need for brand-specific Schneider Electric Supplies and Services, including its EcoStruxure™ product line.

d. Proposed Contracting Procedure:

(i) Special Procurement Public Notice

1. As required by OAR 125-247-0287, DAS PS, on behalf of DAS EAM, will issue a public notice (“Notice”) of the approved SP on OregonBuys, the State’s eProcurement system of record, for a period of seven

(7) calendar days.

2. The Notice will include provisions that any affected party may protest the approval of the SP.

3. DAS PS will respond to and resolve all protest(s), if any.

4. If no protests to this SP are received and sustained, DAS EAM will follow the procurement processes set out in section 10.d.(ii) and 10.d.(iv) below and DAS PS – on behalf of DAS EAM – will follow the procurement process set out in section 10.d.(iii) below.

(ii) DAS EAM Procurements

DAS EAM will adhere to the following procurement processes in the priority order listed.

1. DAS Price Agreements - not exceeding $100,000

DAS EAM will check the availability of DAS-issued Price Agreement(s) (“PAs”) for the brand-specific Supplies or Services, or both.

a. If the procurement need can be met through a PA, DAS EAM will follow the procurement instructions provided in the related PA ‘Buyers Guide’.

b. If the procurement need cannot be met through a PA, DAS EAM will conduct a Small Procurement as set out in the next bullet #2 or advance a Requisition to DAS PS as set out in section 10.d(iii) below.

2. Small Procurements – Three Quote Process – not exceeding $5,000

If Supplies or Services, or both, are not available on existing DAS Price Agreements, DAS EAM will conduct the following process for all procurements of Supplies or Services, or both, up to $5,000:

a. Seek at least three informally solicited competitive price quotes from all known sources (i.e., manufacturers and resellers). If three quotes are not reasonably available, fewer will suffice, but DAS EAM will make a written record of the effort it made to obtain the quotes.

b. keep a written record of the sources of the quotes received.

c. keep a written record of the award, including the basis of the award which may include, but not limited to, considerations of lowest price, availability, experience, and expertise, or any combination thereof.

d. Issue a purchase order (“PO”) contract or work order contract (“WOC”) for each procurement.

(iii) DAS PS Procurements

Procurements of Supplies or Services, or both, that exceed DAS EAM’s procurement authority set out in section 10.d(ii) above, will be conducted by DAS PS on behalf of DAS EAM.

a. DAS EAM will submit a Request for Procurement (“Requisition”) to DAS PS through OregonBuys.

b. DAS PS will conduct all such procurements in accordance with the following laws, rules, and policies as applicable:

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• Methods of Source Selection: ORS 279B.050 and OAR 125-247-0200.

• Buy America: ORS 279C.303 and OAR 125-249-0170.

• Certification Office for Business Inclusion and Diversity Notification: ORS 200.035 and OAR 125-246-0220.

• Office of Enterprise Information Services Approval: ORS 276A.200-236, OAR 125-247-0185, and statewide Policy 107-004-130.

• Attorney General Public Contract Approval: ORS 291.047 and OAR 137-045-0030.

(iv) Tracking and Reporting

DAS EAM will track (e.g., Excel spreadsheet) all procurements, including those DAS PS conducts on its behalf, to ensure that the cumulative total of all procurements does not exceed $300,000 during the 5-year term requested in section 7 above. Information to be tracked for each procurement includes:

a. PO or WOC Number

b. Contractor Name

c. Term of PO or WOC

d. Contract Value

e. Description of Supplies or Services, or both

DAS EAM will submit an Excel report to DAS PS detailing the above information:

• before pursing an extension to the SP Time Period through a Special Procurement Amendment Request.

• upon request of the State Chief Procurement Officer (“CPO”) or delegate.

11. Justification for use of Special Procurement: Describe the circumstances that justify the use of a Special Procurement.

A customized procurement method, such as that outlined in section 10.d above, that is different than any procurement method already established in statute can only be requested and approved through a Special Procurement. In addition, DAS EAM is requesting Brand Name Determination approval for the following brands:

a. American Auto-Matrix

b. Cylon Auto-Matrix

c. ABB Cylon®

d. Scheider Electric and its EcoStruxure™ products

Rather than submitting two different special requests to DAS PS, one for the customized procurement method and one for the Brand Name Determination, both requests have been combined into this SP Request. Findings to satisfy the mandatory requirements for a Special Procurement are documented in section 12. Below.

Brand Name Requirements and Findings

Brand Name or Equal Specification OAR 125-247-0691(2) provides that a brand name Specification may be prepared and used based on one or more of the following determinations:

(a) That use of a brand name Specification is unlikely to encourage favoritism in the awarding of Public Contracts or substantially diminish competition for Public Contracts.

Findings: The Proposed Contracting Procedure detailed in section 10.d(ii) and (iii) promote maximum competition.

(b) That use of a brand name Specification would result in substantial cost savings to Agency.

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Findings: Maintaining existing brand-specific HVAC systems in the Facilities will extend equipment lifespans, preserve the initial capital expenditures, which can be quite substantial, and mitigate or avoid costly repairs.

(c) That there is only one manufacturer or seller of the product of the quality, performance or functionality required.

Findings: Although American Auto-Matrix, Cylon Auto-Matrix, and ABB Cylon® HVAC system Supplies are largely interchangeable, there is currently only one manufacture of this particular HVAC system, ABB Cylon®, and it does not support replacement, repair, or spare parts for American Auto-Matrix or Cylon Auto-Matrix systems older than 12-years. System parts under the American Auto-Matrix and Cylon Auto-Matrix brands, however, are still available from several resellers.

Schneider Electric HVAC systems, including its EcoStruxure™ product line, is manufactured solely by Schneider Electric. Replacement, repair, and spare parts are available directly from Schneider Electric or a number of resellers.

(d) That efficient utilization of existing Goods requires the acquisition of compatible Goods or Services.

Findings: While some HVAC brands allow mixing of systems equipment and parts as a viable option, it is not guaranteed that the different brands will pair well together. Mismatched HVAC systems and systems parts can result in reduced efficiency, less comfort, and potentially more frequent repairs owing to inconsistent performance. Therefore, efficient utilization of existing HVAC systems in the Facilities managed by DAS EAM require the acquisition of brand-specific Supplies and Services.

12. Findings to Satisfy the Required Standards: This proposed Special Procurement:

(a) will be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts because:

In addition to the manufacturers, there are several resellers and installers of the brand-specific Supplies and Services set out in section 9 above. Both DAS EAM and DAS PS will follow the Proposed Contracting Procedures set out in Section 10.d above, which closely align with Oregon’s Public Contracting Code and related Administrative Rules, which will support maximum competition.

and

___ (b)(i) will result in substantial cost savings to the contracting agency or to the public because:

or

(b)(ii) will otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with the requirements of ORS 279B.055, 279B.060, 279B.065, or 279B.070, or any rules adopted thereunder because:

Maintaining HVAC systems in public buildings is important to the State, its employees who staff the buildings, and members of the public conducting business in the buildings. Routine HVAC maintenance utilizing brand-specific Supplies and Services can:

• enhance indoor air quality, supporting occupant and visitor health and wellness.

• ensure HVAC units operate at peak efficiency, reducing energy consumption and lowering utility bills.

• extend HVAC equipment lifespan, preserving the initial procurement and installation costs, which can be quite substantial.

• mitigate or avoid costly repairs.

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• support compliance with indoor air quality regulations and standards.

Additionally, steady temperatures in equipment rooms such as laboratories, print plants, and Information Technology (“IT”) facilities is important for maintaining uptime and reducing chances of equipment overheating and shutting down. A few of the Facilities managed by DAS EAM include:

• Publishing and Distribution, which provides printing and mailing services to state agencies, counties, and cities through its in-house processing center.

• Department of Revenue (“DOR”), which intakes and opens all agency mail in its onsite processing center (approx. 1.8M pieces per year), and electronically captures data from all paper tax returns and banks all check payments (approx. 1.68M transactions and $1.5M in payments each year).

• Data Center Services, the State’s enterprise data center.

• Department of Environmental Quality - Health Laboratory, which uses specialized lab equipment to analyze and monitor air, water, and soil quality to inform public health decisions.

• Oregon State Police – Portland Crime Laboratory, which utilizes specialized lab equipment to conduct forensic analyses to support the criminal justice system, assist in solving crimes, and increase the probability of apprehension and conviction of the guilty.

Overheating equipment in any one of these buildings could severely impact state business and program services delivered to Oregonians.

Approval of this SP, including approval of the requested brand names determinations, will reduce opportunities for O&M errors, mitigate or avoid state business disruptions, provide cost savings opportunities, and substantially support the public’s best interests.

13. Signature: The actual signature of the Agency Head or designee (e.g., Designated Procurement Officer) is not required on the Request if it is submitted through OregonBuys. Agency may elect to attach a signed Request.

Signature: e.g. Electronically in OregonBuys _________________ Type Name: Date:

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PART B. The Department of Administrative Services completes Part B.

STATUTORY AND RULE AUTHORITY:

ORS 279B.085(2) states the Director of the Department of Administrative Services may approve a special procurement if the Director finds that a written request submitted under ORS 279B.085(4) demonstrates that the use of a special procurement as described in the request, or an alternative procedure prescribed by the

Director will:

(a) Be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts; and

(b)(A) Result in substantial cost savings to the contracting agency or to the public; or

(B) Otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with requirements that are applicable under ORS 279B.055, 279B.060, 279B.065 or 279B.070 or under any rules adopted thereunder.

OAR 125-246-0170 delegates the authority of the Director of the Department of Administrative Services to approve special procurements to the State Chief Procurement Officer. OAR 125-247-0285 through 125-

247-0288 implement ORS 279B.085.

OAR 125-247-0700(2) Protests and Judicial Review of Special Procurements designates the State Chief

Procurement Officer as the Contract Review Authority.

FINDINGS: The findings are accepted, adopted, and incorporated by reference herein.

CONDITIONS OF APPROVAL:

1. Notice Period. The Authorized Agency shall post the Public Notice on OregonBuys. The Special

Procurement may not be used until after the completion of the seven (7) day notice period required pursuant to OAR 125-247-0287(4), and either:

a. No Written protests are received by the Contract Review Authority, State Chief Procurement

Officer, from an Affected Person in response to the notice, or

b. If any protest is received during the notice period, then not until:

i. the State Chief Procurement Officer or delegate issues a written disposition of the protest in accordance with ORS 279B.400 and OAR 125-247-0700 and OAR 137-047-0700, and

ii. confirms in writing the first possible date of use of the Special Procurement.

2. ORS 279A.165 Requirements. Agency shall comply with the requirements of ORS 279A.165 and

OAR 125-247-0287(12) regarding a report about this Special Procurement. Agency shall use a form and follow the instructions provided by the State Chief Procurement Officer or delegate.

3. Reporting Requirements. During the term of this Special Procurement, DAS EAM will track the following information for all procurements, including those DAS PS conducts on its behalf, to ensure that the cumulative total does not exceed $300,000.

a. PO or WOC Number

b. Contractor Name

c. Term of PO or WOC

d. Contract Value

e. Description of Supplies or Services, or both

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DAS EAM will submit a report (e.g., Excel report) to DAS PS detailing the above information 1) before pursing an amendment to this Special Procurement and 2) upon request of the State Chief Procurement

Officer (“CPO”), DAS Procurement Policy Officer (“PPO”), or delegate(s).

APPROVED:

Jay Jackson, Procurement Policy Officer Date

Department of Administrative Services

07/02/2024