Tab 4 - (JOFOC) NCCIPS FY24 Batteries Replacement Brand Name Final_Redacted.pdf

JOFOC-2024-007

Rev.:5/2024

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

NASA SHARED SERVICE CENTER

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

(JOFOC) – BRAND NAME

For 80NSSC24Q0057 FY24 NCCIPS UPS Batteries Replacement

1. Federal Acquisition Regulation (FAR) 6.303-2(b)(1) – Identification of the agency and the contracting activity, and specific identification of the document as a “Justification for other than full and open competition.”

This document is a justification for other than full and open competition prepared by

National Aeronautics and Space Administration (NASA) NASA Shared Service Center (NSSC) for Brand Name Vertiv/Liebert power products and services to Vertiv certified partners. The procuring agency is the National Aeronautics and Space Administration (NASA), and the contracting activity is NSSC.

2. FAR 6.303-2(b)(2) – The nature and/or description of the action being approved:

This justification documents the basis for issuing a standalone purchase order brand name justification to a small business certified partner of Vertiv Corporation. This purchase order will authorize the removal and disposal of 2,120 batteries, the procurement and installation of 1,960 new batteries, and the procurement and installation of four junction cabinets with associated cabling for six Uninterruptible Power Supply (UPS) units located in the National Center for Critical Information Processing and Storage (NCCIPS) facility. This will result in a firm-fixed price award with a period of performance for six months beginning the day of award.

3. FAR 6.303-2(b)(3) – A description of the supplies or services required, to meet the

Agency’s needs (including the estimated value):

The National Center for Critical Information Processing and Storage (NCCIPS) managed by the NSSC provides data center shared facilities to Federal Agency customers. The NCCIPS security system is a highly sophisticated and integrated platform designed to safeguard critical infrastructure. To effectively manage and secure such a system, a comprehensive, in-depth technical knowledge of all installed components is essential. Understanding these components enables professionals to ensure the security, reliability, and operational integrity of the NCCIPS facility, which is critical to protecting the infrastructure from threats. All labor and materials are included for an estimated price of . The below Independent Government Cost Estimate (IGCE) table is the breakout of the estimated price to include the freight cost associated with shipping the new batteries to the installation site and a lead credit for the recycling of the old batteries being removed.

Awarding the work to Vertiv certified partners ensures the continuity of maintenance services. Engaging another vendor could lead to the termination of existing maintenance support by Vertiv, resulting in a potential gap in coverage lasting 12 to 16 weeks. This gap would put the NCCIPS infrastructure at significant risk. Vertiv provides warranties that are non-transferable if the batteries are purchased and installed by another vendor. The non-transferability of Vertiv warranties for batteries purchased and installed by another vendor introduces significant implications for maintenance and support. Vertiv's policy that warranties are non-transferable when batteries are purchased and installed by non Vertiv certified partner vendor means that the original warranty provided by Vertiv is voided if a third-party vendor is involved. This can lead to complications if issues arise with the batteries, as the support from Vertiv would not be available under the warranty. In addition, working through a non-Vertiv certified partner vendor for warranty claims can introduce delays in maintenance and support. The non-Vertiv certified partner vendor may need to coordinate with multiple parties or have limited direct access to Vertiv's resources, which could slow down the resolution process. Also, having to deal with multiple vendors for different aspects of maintenance (e.g., the original installer and Vertiv for non-warranty services) can complicate logistics, making it harder to track and resolve issues efficiently.

The potential for delays and complications in support and maintenance could increase the risk of operational downtime. This is particularly critical in an environment where battery systems are essential for uninterrupted operations, such as data centers like the NCCIPS facility. Given these challenges, it is advantageous to purchase and install the equipment directly from Vertiv or ensuring that any third-party vendors used are authorized by Vertiv and able to offer full warranty support. This will simplify maintenance and support logistics, reduce risks, and ensure that the organization can fully leverage Vertiv’s warranty services.

Should a non-Vertiv certified partner vendor be used, Vertiv would require an onsite technician to oversee the work, incurring an additional in time and material costs.

Additionally, based on historical replacement times and Vertiv's technician rates, the cost per battery string could reach approximately and the facility has 26 UPS systems. This creates a potentially massive expense if a non-Vertiv vendor is used. Currently, Vertiv is responsible for replacing UPS batteries annually, with an estimated value of

. Disrupting this agreement by engaging another vendor would not only result in additional costs but also introduce logistical challenges, such as coordination with Vertiv technicians and potential delays in replacements.

The installation process for the new batteries includes a specialized junction cabinet that must be integrated with the UPS units.

Given the critical nature of the NCCIPS facility and the specialized expertise required to maintain and upgrade its equipment, awarding the project to a Vertiv certified partner is justified due to their intimate knowledge of the existing systems, and their maintenance ensures reliable and efficient service. The potential risks associated with engaging a non- Vertiv vendor, including service discontinuity and loss of warranty coverage, outweigh any perceived benefits. The additional costs associated with using non-Vertiv vendors are not justifiable, considering the increased expenses for oversight and potential disruptions to existing maintenance agreements. The specialized nature of the required installations, particularly the junction cabinets, mandates the use of Vertiv’s expertise to ensure proper integration and functionality.

6. FAR 6.303-2(b)(6) – A description of the 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 Subpart 5.2 and, if not, which exception under 5.202 applies:

A notice was posted on the Government Point of Entry (GPE) website (Sam.gov) on June 3, 2024, and remained open until June 7, 2024, totaling five days in compliance with FAR Subpart 5.2. This notice informed potential vendors of NASA’s intent to award a sole-source contract to Vertiv Corporation. The outcome of this notice is summarized in Section 10 below. Through continued market research it was determined that there is the possibility to obtain this requirement through a certified partner of Vertiv; therefore, the strategy was amended to switch from a sole source to a brand name and competition could be conducted amongst the small business Vertiv certified partners.

7. FAR 6.303-2(b)(7) – A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer’s signature on this document confirms that they have determined the anticipated cost to the government to be fair and reasonable. The contractor will be required to submit a proposal, which will be evaluated and negotiated by the government. Before the contract is finalized, a price analysis will be conducted to ensure that the agreed-upon price is fair and reasonable.

8. FAR 6.303-2(b)(8) – Description of the market research conducted, and the results, or a statement of the reasons market research was not conducted (e.g., urgent, and compelling requirement):

Market research conducted in June 2024 revealed significant challenges in finding vendors capable of integrating with the Vertiv system. The lack of responses to the synopsis suggested that no vendors had readily available, compatible components. As a result, reliance on Vertiv’s certification became necessary for any new components, adding complexity due to the risk of voiding the system’s warranty if uncertified parts were used.

The identification of small business certified partners as potential suppliers created a new opportunity. By adjusting the procurement strategy to encourage competition among eight certified partners and specifying Vertiv/Liebert power products and services as the brand name requirement, the strategy ensures that these small business partners—who specialize in distributing Vertiv-certified products—address both compatibility and warranty concerns effectively.

9. FAR 6.303-2(b)(9) – Any other facts supporting the use of other than full and open competition:

None

10. FAR 6.303-2(b)(10) – A listing of the sources, if any, that expressed an interest in writing in the acquisition:

A notice of NASA's intent to award a sole-source contract was posted on the GPE website (SAM.gov) for five days, in compliance with FAR Subpart 5.2 (see Section 6 above). No responses were received from vendors capable of providing components for integration into the Vertiv system. Subsequent market research identified eight small business certified partners authorized by Vertiv to service and install Vertiv/Liebert power products and services, offering a competitive alternative.

11. FAR 6.303-2(b)(11) – A statement of 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:

The Agency will continue to examine the market in the future for alternative solutions or new sources before executing any subsequent acquisitions for the same requirements.