SS PC235924 - SS Justification.pdf

Department of Enterprise Services – C&P Page 1 of 7 June 2024

Sole Source CONTRACT Filing Justification Template

Use the following justification template for preparing to file sole source contracts in the Sole Source Contracts Database (SSCD). Once completed, copy and paste the answers into the corresponding SSCD question and answer fields. You will also need to include a copy of this completed form in the documents you post to your agency website and in WEBS.

What is a sole source contract?

"Sole source" means a contractor providing goods or services of such a unique nature or sole availability that the contractor is clearly and justifiably the only practicable source to provide the goods or services. (RCW 39.26.010)

Unique qualifications or services are those which are highly specialized or one-of-a-kind.

Other factors which may be considered include past performance, cost-effectiveness (learning curve), and/or follow-up nature of the required goods and/or services. Past performance alone does not provide adequate justification for a sole source contract. Time constraints may be considered as a contributing factor in a sole source justification, however will not be on its own a sufficient justification.

Why is a sole source justification required?

The State of Washington, by policy and law, believes competition is the best strategy to obtain the best value for the goods and services it purchases, and to ensure that all interested vendors have a fair and transparent opportunity to sell goods and services to the state.

A sole source contract does not benefit from competition. Thus the state, through RCW 39.26.010, has determined it is important to evaluate whether the conditions, costs and risks related to the proposal of a sole source contract truly outweigh forgoing the benefits of a competitive contract.

Providing compelling answers to the following questions will facilitate DES’ evaluation.

Specific Problem or Need

• What is the business need or problem that requires this contract?

The Washington State Patrol Fire Training Academy has a critical need to ensure a safe and healthy environment for both recruits and staff during training exercises, https://sscd.des.wa.gov/Logon/Logon.aspx?ReturnUrl=%2f https://sscd.des.wa.gov/Logon/Logon.aspx?ReturnUrl=%2f https://pr-webs-customer.des.wa.gov/

Department of Enterprise Services – C&P Page 2 of 7 particularly those involving diesel-powered vehicles and equipment. These training scenarios often result in the release of harmful diesel exhaust fumes, which contain hazardous materials such as carbon monoxide, particulate matter, and carcinogens.

Prolonged exposure to these pollutants poses serious health risks, including respiratory issues, cardiovascular diseases, and long-term cancer risks.

In response to this need, the Fire Training Academy is required to implement a diesel exhaust filtration solution to mitigate these risks. The No Smoke 2 vehicle-mounted exhaust system by Ward Diesel Filter Systems is the only available solution that can provide the necessary filtration and compliance with health and safety standards.

By acquiring the No Smoke 2 system, the Academy will be able to filter out harmful diesel exhaust emissions, significantly improving air quality and safeguarding the health of training personnel. This purchase directly supports the Academy’s mission to provide high-quality, realistic, and safe training, and ensures compliance with FEMA Assistance to Firefighter Grant (AFG) objectives to protect first responders from environmental hazards.

Sole Source Criteria

• Describe the unique features, qualifications, abilities or expertise of the contractor proposed for this sole source contract.

Ward Diesel Filter Systems is the sole manufacturer and distributor of the patented No Smoke 2 vehicle-mounted exhaust filtration system. The No Smoke 2 system is specifically designed to filter hazardous materials from diesel engine exhaust, providing critical health protection for personnel working in and around training environments, especially in fire and emergency services. The system is covered by Patent Number 4,803,838, granted by the United States Government, and is the only product of its kind authorized for distribution. No other manufacturer produces or sells an equivalent or similar system with the same patent-protected technology. This unique and proprietary nature of the No Smoke 2 system makes Ward Diesel Filter Systems the only company capable of providing the required product.

• What kind of market research did the agency conduct to conclude that alternative sources were inappropriate or unavailable? Provide a narrative description of the agency’s due diligence in determining the basis for the sole source contract, including methods used by the agency to conduct a review of available sources. Use DES’ Market Research Template if assistance is needed.

Department of Enterprise Services – C&P Page 3 of 7

A comprehensive market research effort was undertaken to identify alternative sources for a diesel exhaust filtration system that would meet the health protection requirements outlined in the FEMA Assistance to Firefighter Grant (AFG) award.

The agency conducted the following research:

• A detailed web search of companies specializing in vehicle-mounted diesel filtration systems.

• A review of manufacturers and distributors for similar systems that could meet the specific health and safety requirements for fire training facilities.

• Direct contact with vendors who offer diesel filtration products for firefighting vehicles.

The research concluded that there are no alternative sources that offer a system with the same patented technology or capabilities as the No Smoke 2 system. No other companies have the licensing or patent to manufacture a comparable filtration system for diesel exhaust, making Ward Diesel Filter Systems the exclusive provider.

• As part of the market research requirements, include a list of statewide contracts reviewed and/or businesses contacted, date of contact, method of contact (telephone, mail, e-mail, other), and documentation demonstrating an explanation of why those businesses could not or would not, under any circumstances, perform the contract; or an explanation of why the agency has determined that no businesses other than the prospective contractor can perform the contract.

A search was conducted within the Washington State Department of Enterprise Services (DES) Statewide Contracts for vehicle-mounted diesel filtration systems.

No vendors were identified that offer the specific technology required to meet the health and safety standards for the fire training academy.

• Per the Supplier Diversity Policy, DES-090-06: was this purchase included in the agency’s forecasted needs report?

Yes

• Describe what targeted industry outreach was completed to locate small and/or veteran-owned businesses to meet the agency’s need?

NA – As Ward Diesel Filter Systems is the sole manufacturer and distributor of the No Smoke 2 system, there were no other vendors or manufacturers to contact. The purchase was driven by the specific need for a system designed to meet the health protection requirements for staff and recruits at the Fire Training Academy. Market

Department of Enterprise Services – C&P Page 4 of 7 research did not identify any alternative sources, so outreach to small or veteran-owned businesses was not applicable in this case.

• What considerations were given to unbundling the goods and/or services in this contract, which would provide opportunities for Washington small, diverse, and/or veteran-owned businesses. Provide a summary of your agency’s unbundling analysis for this contract.

The No Smoke 2 system is a unique, patented product, and there are no other manufacturers or distributors authorized to provide this specific system. Therefore, there is no opportunity to unbundle this purchase into smaller contracts or components. Since Ward Diesel Filter Systems is the sole provider, unbundling is not feasible.

• Provide a detailed and compelling description that includes quantification of the costs and risks mitigated by contracting with this contractor (i.e. learning curve, follow-up nature).

Ward Diesel Filter Systems is the sole manufacturer and distributor of the No Smoke 2 diesel filtration system. This system is specifically designed to mitigate health risks associated with diesel exhaust exposure. OSHA measures Permissible Exposure Limits (PELs) over a time weighted average 8 hour day. PELs – Carbon Monoxide 35 PPM, Sulfur Dioxide 5 PPM, PNAs 1 PPM, Diesel Particulate Matter 1 PPM, Nitrogen Oxide 25 PPM, Nitrogen Dioxide 5 PPM. WARD DIESEL NO SMOKE systems meet and exceed OSHA, NIOSH and NFPA. By contracting with Ward Diesel Filter Systems, the agency ensures compliance with safety standards while protecting the health of training personnel and recruits.

• Is the agency proposing this sole source contract because of special circumstances such as confidential investigations, copyright restrictions, etc.? If so, please describe.

Yes. The vehicle mounted diesel exhaust filtration system is the only system that is allowed for purchase under our FEMA AFG award and WARD Diesel Filter Systems is the only manufacturer of such a system. As no other manufacturer or distributor is authorized to provide an equivalent product, this purchase is being made under special circumstances due to the unique and exclusive nature of the technology.

The system is essential for meeting air quality standards and protecting the health of staff and recruits during training.

• Is the agency proposing this sole source contract because of unavoidable, critical time delays or issues that prevented the agency from completing this acquisition using a competitive process? If so, please describe. For example, if time constraints are applicable, Department of Enterprise Services – C&P Page 5 of 7 identify when the agency was on notice of the need for the goods and/or service, the entity that imposed the constraints, explain the authority of that entity to impose them, and provide the timelines within which work must be accomplished.

• No. This sole source contract is not being proposed due to time delays or constraints. The purchase of the vehicle mounted direct source filtration system is part of a FEMA Assistance to Firefighter Grant (AFG) award, which was a planned initiative for the Fire Training Academy to improve health and safety standards.

There were no specific time constraints or emergency conditions that prevented the agency from pursuing a competitive process, as the need for this specialized filtration system has been clearly established and documented.

• What are the consequences of not having this sole source filing approved? Describe in detail the impact to the agency and to services it provides if this sole source filing is not approved.

If this sole source filing for the No Smoke 2 diesel filtration system is not approved, the Fire Training Academy will not be able to implement the health and safety measures necessary to protect staff and recruits during training exercises.

Specifically, the No Smoke 2 system is designed to filter out harmful diesel exhaust fumes, which pose serious long-term health risks, including respiratory problems and exposure to carcinogens. Without this system, the Fire Training Academy would be unable to comply with health and safety standards, and training activities would risk exposing personnel to hazardous conditions.

Moreover, without this system, the Fire Training Academy’s ability to provide high-quality, safe training for emergency personnel across Washington State would be severely compromised. This could have significant repercussions for the academy's mission, the safety of its recruits, and the effectiveness of its training programs.

Additionally, failure to secure the No Smoke 2 system would impact the agency's compliance with the FEMA AFG grant requirements, potentially leading to funding issues or delays in training operations.

Sole Source Posting

• Sole Source Posting on Agency Website - Provide the date in which the sole source posting, the draft contract, and a copy of the Sole Source Contract Justification Template were published on your agency’s website.

- If failed to post, please explain why.

Department of Enterprise Services – C&P Page 6 of 7

• Provide the date in which the sole source posting, the draft contract, and a copy of the

Sole Source Contract Justification Template were published in WEBS.

- If failed to post, please explain why.

• Were responses received to the sole source posting in WEBS?

- If one or more responses are received, list name of entities responding and explain how the agency concluded the contract is appropriate for sole source award.

Reasonableness of Cost

• Since competition was not used as the means for procurement, how did the agency conclude that the costs, fees, or rates negotiated are fair and reasonable? Please make a comparison with comparable contracts, use the results of a market survey, or employ some other appropriate means calculated to make such a determination.

Ward Diesel Filter Systems is the sole manufacturer and distributor of vehicle-mounted diesel filtration systems. This system is patented under U.S. Patent Number 4,803,838, and Ward Diesel Filter Systems is the exclusive provider of this specialized equipment. The No Smoke 2 system is designed to filter out harmful diesel exhaust emissions during training exercises, ensuring the health and safety of recruits and staff at the Fire Training Academy and is compatible with our fleet of fire apparatus.

The cost for the No Smoke 2 system, including installation and warranty, is approx.

$10,815 per unit, with four (4) units being purchased. This price is consistent with other similar sole-source contracts for specialized, patented safety equipment. The pricing reflects the unique nature of the product and the fact that no other vendor can provide a comparable system. Additionally, the FEMA Assistance to Firefighter Grant (AFG) that funded this purchase requires an evaluation of the equipment’s cost, ensuring that it meets the reasonable cost standards set by the grant. FEMA also set their own allowable price range calculated from market research and prior awards of the same items. Based on this review, the cost of the No Smoke 2 system is deemed fair and reasonable for the technology and safety benefits it provides.

Department of Enterprise Services – C&P Page 7 of 7

The purchase will be made directly from Ward Diesel Filter Systems, the sole authorized distributor, ensuring that the Fire Training Academy receives the correct, patented system without the need for competitive bidding.