SSJ Redacted F.pdf

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SOLE SOURCE

FOR AN ACTION EXCEEDING THE SIMPLIFIED ACQUISITION THRESHOLD

USING SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS

(AUTHORITY: FAR 13.501(a), 41 U.S.C. 1901)

141013-25-0081

1. Agency and contracting activity. Department of Commerce, Acquisition and Grants Office, National Oceanic and Atmospheric Administration (NOAA) and National Ocean Service (NOS).

2. Nature and/or description of the action being approved.

The purpose of this action is to procure two Variable Speed Drives (VSDs) for the two York YMC2 Centrifugal Magnetic Drive Chillers in the Hollings Marine Laboratory. This contract is necessary to restore and maintain critical climate control infrastructure that supports scientific research, laboratory operations, and personnel. The original chillers’ VSDs have failed and the manufacturer has determined the drives are needed not only for functionality but to also extend the lives of the chillers by ten or more years. Based on manufacturer recommendations and operational requirements, replacement of the VSDs is essential to ensure sustained, energy-efficient operation of the chillers.

3. Description of supplies or services required to meet the agency’s needs (including the total estimated value).

This justification supports a sole-source award to Johnson Controls, Inc. (JCI), for the replacement ,installation, and integration of two VSDs for two York YMC2 Centrifugal Magnetic Drive Chillers in the Hollings Marine Laboratory and its’ Building Automation System (BAS). The government requires expedited procurement procedures due to an emergency designation resulting from the building's central chiller system being offline. With the chillers offline, various adverse effects have arisen, including inefficient cooling, increased energy consumption, and the potential for catastrophic loss amounting to millions of dollars’ worth of infrastructure and scientific systems. The estimated value for these supplies is

4. Statutory authority permitting the sole source (including brand name) acquisition.

X 41 U.S.C. 1901, using SAP up to $7.5M as authorized by FAR 13.500(a) and implemented by FAR 13.501(a).

41 U.S.C. 1903, using SAP up to $15M for contingency operations as authorized by

FAR 13.500(c) and implemented by FAR 13.501(a).

5. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited. The contracting officer has determined the following circumstances justify the use of a sole source as supported below:

FAR 6.302-1: Only one responsible source and no other supplies or services will satisfy agency requirements. JCI, 4415 Sea Ray Dr. North Charleston SC 29405, is uniquely qualified to provide, install, and integrate the required VSDs necessary to bring functionality back to the Chillers at Hollings Marine Laboratory and it’s BAS. JCI originally installed the chillers which are also integrated with a JCI Metasys BAS unique to the manufacturer. Additionally, JCI has in-depth firsthand knowledge, experience, and background on this particular system making them uniquely qualified. The VSDs themselves are propriety to JCI, so a certified and authorized JCI installer must replace the VSDs to ensure a timely and cost efficient install that is beneficial to the government. These chillers are a crucial component of the Heating, Ventilation, and Air Conditioning (HVAC) system, currently requiring repair with replacement components to sustain environmental control standards for the occupants and maintain the operational capability of the Hollings Marine Laboratory. Sourcing this requirement to anyone other than JCI will delay what is already a time-sensitive situation and may impact the health and safety of building personnel and impose increased energy use and the potential for catastrophic loss amounting to millions of dollars’ worth of infrastructure and scientific systems.

Compatibility to existing systems or equipment –

A. Proprietary Technology: The York YMC2 chillers utilize proprietary components (e.g., magnetic bearings, Opti View controls, and Original Equipment Manufacturer (OEM) VSD software) that can only be adequately diagnosed and repaired using JCI’s specialized tools and factory-trained technicians.

B. System Integration: The chillers are integrated into a Johnson Controls Metasys building automation system. JCI technicians are uniquely qualified to ensure seamless operation between the chiller and the Building Management System.

Exclusive Licensing Agreement/Restrictive Rights/Authorized Reseller –

A. OEM Parts Requirement: Only JCI can provide guaranteed OEM-certified replacement parts for the York YMC2 model, ensuring long-term performance and compliance with safety and efficiency standards.

B. Technical Expertise: JCI is the original manufacturer of the two York YMC2 Centrifugal Magnetic Drive Chillers, the VSDs and overarching Metasys system. JCI is the sole known source of complete technical documentation, diagnostic software, and historical data for the installed unit.

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

Due to the proprietary nature of the York YMC2 VSD system, JCI is the only known responsible source capable of providing, installing, and integrating the required VSDs This requirement is not for a complete HVAC equipment replacement but rather a manufacturer-specific component replacement to existing JCI equipment. In accordance with FAR Subpart 5.2, a synopsis and solicitation will be posted to the Government Point of Entry (GPE), SAM.gov.

Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The contracting officer determines that the anticipated price will be fair and reasonable based on the Independent Government Estimate and current market rates. Prior to award of the proposed contract, price information shall be obtained from the contractor and a price analysis will be performed and documented to sufficiently determine that the price to the Government of the proposed acquisition will be fair and reasonable.

Description of the market research conducted (see Part 10) and the results or a statement of the reason market research was not conducted.

Market research was conducted by the National Centers for Coastal Ocean Science (NCCOS) to assess the availability of potential sources capable of providing and installing replacement VSDs compatible with the existing York YMC2 centrifugal chillers at the Hollings Marine Laboratory.

This research included:

A review of technical documentation and equipment specifications from the original equipment manufacturer (OEM), JCI/York.

Discussions with industry experts and facility personnel to assess retrofit feasibility and compatibility of third-party components.

Posting of an Intent to Sole Source on the GPE with no responses received on May 20, 2025 through May 27, 2025.

The results of this market research validated that only JCI or its authorized service representatives possess the proprietary technical knowledge, OEM-certified components, and integration capability necessary to ensure safe, reliable, and warranty-compliant replacement of the VSDs. All third-party options reviewed lacked the required compatibility or presented significant operational and financial risk due to nonconformance with system specifications.

Given the critical infrastructure role of the chillers and the failure of prior repair efforts using available non-OEM parts, it was determined that only one responsible source can satisfy the agency’s requirements. Therefore, a sole source procurement under FAR 13.5 is justified.

9. Any other facts supporting the use of a sole source (including brand name), such as:

Because JCI possesses the proprietary hardware, firmware, engineering data, factory calibration tools, and regulatory certifications necessary to perform the VSD upgrade without compromising safety listings, warranties, or mission performance, only this single responsible source can satisfy the requirement.

10. List of the sources that expressed a written interest in the acquisition.

None

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

To promote competition in future acquisitions of similar products or services, the Government will take proactive steps to reduce reliance on sole source providers where feasible. These actions include:

Continuing to conduct comprehensive market research prior to future requirements to identify any emerging vendors or technologies that may provide compatible or interoperable solutions.

Monitoring industry developments and vendor capabilities related to VSDs and chiller system components to assess the potential for standardization or open-system integration.

Engaging with industry through Requests for Information, industry days, and technical outreach to better understand market evolution and promote competition.

Evaluating opportunities to specify open-architecture or non-proprietary solutions in future infrastructure upgrades, where mission requirements and life-cycle considerations permit.

While current system constraints necessitate a sole source procurement, these measures aim to expand the competitive field and reduce future barriers, consistent with the Government’s commitment to promoting full and open competition where practicable.