UPS Revitalization Services Limiting Competition Under SAT Redacted.pdf

Control No: HUA-JA-0840

Version – February 2017

Memorandum for Record – Limiting Competition at or below the Simplified

Acquisition Threshold

1. Contracting Activity: ACC-APG Huachuca Division 2133 Cushing St., Bldg 61801, Rm 3412 Ft Huachuca, AZ 85613-7070

2. Description of Action:

Nature: New Requirement Follow-on Requirement

Contract Vehicle: Purchase Order Number _WP124A22P0018______________

Blanket Purchase Agreement (BPA) Number _______________

Order/BPA# _______ against FSS Contract #_____ _________

Order #___________ against Multiple Award IDIQ Contract Name or #______________

Order #_______ against a single award IDC Contract

Modification # _______ to existing PO/TO/DO/Call Order

Pricing/Contract Type: Fixed Price Time & Materials/Labor Hours

Cost Reimbursable Hybrid

Funds: Operations & Maintenance, Army (OMA) Other Funds: Army Working Capital Funds___

FY: __22______

Name of Proposed Contractor(s) and Address:

___Titan Power_____________________________ ___7031 West Oakland Street_________________ ___Chandler, AZ 85226______________________

Brand Name Buy: Yes No

3. Description of Services or Supplies:

The contractor will perform a Modular Power Revitalization Service (MPRS) on the Symmetra PX 40 KW UPS located in Bldg 45001, RM 100-09 09 and perform a MPRS on the Symmetra LX 16kVA UPS located in Bldg. 45001, RM E-1. The revitalization services include:

Services for the Symmetra PX 40 KW UPS:

o MPRS of 4 X SYPM10KF and include an One Year Advantage Ultra

Service Contract o Modular Battery Replacement Service of 4 X SYBT4

X

X X

X

X

X

X

X

X o 1 Year 8HR 7X24 Response Upgrade to Factory Warranty or Existing Service Contract for up to 40 kVA

Services for the Symmetra LX 16kVA UPS:

o MPRS of 4 X SYPM4KP, 4 X SYBT5 o 1 Year 8HR 7X24 Response Upgrade to Factory Warranty or Existing

Service Contract for up to 40 kVA

The vendor quote submitted with the requirements package contains pricing for the revitalization services to the 40 KVa and 16KVa uninterruptible power supplies, battery replacement, factory warranty, shipping costs, and incidental labor. The quote totals $48,370.49.

For Actions without Options:

Period of Performance: __Sep 26, 2022___ to _November 4, 2022__ or (NA) Total Value: $ _48,370.49__________

4. Authority:

FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization.

Or

FAR 8.405-6(a)(1)(i)(B) and 8.405-6(b)(1)Brand Name

FAR 8.405-6(a)(1)(i)(A) Urgency

FAR 8.405-6(a)(1)(i)(B) Only One Source is Capable

FAR 8.405-6(a)(1)(i)(C) Logical Follow-on

Or

FAR 16.505(b)(2)(i)(B) Only One Awardee is Capable

FAR 16.505(a)(4) Brand Name

FAR 16.505(b)(2)(i)(A) Urgency

FAR 16.505(b)(2)(i)(C) Logical Follow-on

FAR 16.505(b)(2)(i)(D) Minimum Guarantee

5. Reasons for Authority Cited: The requirement is to provide a revitalization service to the 40 KVa and 16 KVa uninterruptable power supplies (UPS) providing backup battery power to critical communication closets within Raymond W. Bliss Army Health Center containing data processing equipment vital to the health center maintaining administrative and electronic health record functions.

Titan Power is the prime service provider for preventative maintenance on the current UPS task order GS35F0136Y / W9124A21F0023 and is partnered with the UPS manufacturer, Schneider Electric. Schneider technicians will be teamed with Titan technicians due to the proprietary nature of the manufacturer’s software integral to the proper operation of the 40 KVa and 16 KVa UPS. Titan technicians, through delivery of the preventive maintenance services, possess technical information for both UPS that will assist Schneider technicians in performing the revitalization services.

Titan Power is uniquely positioned to perform the required revitalization services of this procurement. They possess the operational knowledge of both UPS systems and have an established partnership with the manufacturer. To compete this requirement among other UPS service providers, not currently performing the preventive maintenance services, has potential for substantial cost increases and lack of specific technical information of the UPS systems to perform an efficient and effective revitalization service. These shortcomings will negatively affect the Raymond W. Bliss Army Health Center mission to effectively administer electronic health record functions containing personal health information (PHI).

6. Publicizing Contract Actions: For FAR Part 13 actions, the public display and synopsis requirements of FAR 5.101 and FAR 5.203 do not apply due to the $ threshold, apply and will be followed, or do not apply due to an exception at

5.202 ______________________.

Requirement to post justification in accordance with FAR 8.405-6(b)(3), FAR 13.105(c), or FAR 16.505(a)(4)(iii)(A)

Action is NOT a brand name restriction and is under $150K, no posting required

Action is a brand name restriction, under $25K, no posting required

Action is a brand name restriction, over $25K. It will be redacted and posted with the solicitation.

Action is a brand name restriction over $25K but will not be posted due to exception:

FAR 6.305(f)

FAR 8.405-6(b)(3)(iii)(A)

FAR 8.405-6(b)(3)(iii)(B)

FAR 8.405-6(b)(3)(iii)(C)

FAR 16.505(a)(4)(iii(C)

7. Market Research:

American Power Conversion (APC), a subsidiary of Schneider Electric, is the manufacturer of the Uninterrupted Power Supply units to be serviced under this requirement (Symmetra PX 40kw Frame 208V and Symmetra LX 16kVA N+1 Rack-mount Frame 208/240V). The APC website’s (apc.com) Reseller/Partner Locator tool returns 67 authorized resellers within 250 miles of Fort Huachuca, Arizona, including

X

X three in Tucson and 48 in the Phoenix Metropolitan area. A closer review of the APC vendors indicates that not all offer the requested service.

Additional market research identified several other Uninterrupted Power Supply (UPS) providers and servicers in and outside the state of Arizona. The following tables identifies vendors which appear capable of meeting the service requirement described in paragraph 3, above. Table 1 identifies seven providers located within the state of Arizona, six of which are in the Phoenix metropolitan area and one in the city of Tucson.

Table 2 lists seven vendors that are based outside of Arizona.

A search of the System for Award Management (SAM) database was performed for each vendor to determine business size. Notably, none were identified as small businesses. Of the seven Arizona-based vendors in Table 1 that appear capable to meet the Government’s requirements none were identified as small businesses, four do not appear to engage in business with the Federal government because no SAM data exists. Similar results were found for the vendors based outside of Arizona listed in Table 2.

TABLE 1: Uninterrupted Power Supply Service Providers within Arizona

Vendor Web Address Address

Registered as Small Business in SAM.gov?

CNS

Communications www.cnscommunications.com

16631 North 91st Street Suite 107 Scottsdale, AZ

Not found in SAM;

business size cannot be verified

Graybar Electric Company www.graybar.com

Graybar Tucson 3760 E Tennessee St Tucson AZ 85714

No

Gruber Power Services www.gruberpower.com

21439 N. 2nd Ave.

Phoenix, AZ

No

Sommerset Power Systems www.sommersetpowersystems.com

800 E Covey Lane Suite 140 Phoenix, AZ 85024

Not found in SAM;

business size cannot be verified

Titan Power www.titanpower.com

7031 West Oakland St.

Chandler, Arizona 85226

No

Unified Power www.unifiedpowerusa.com Goodyear/Phoenix, AZ Not found in SAM;

business size cannot be verified

Vertigrate Inc. www.vertigrate.com

2 N. Central Ave #1800 Phoenix, AZ 85004

Not found in SAM;

business size cannot be verified http://www.cnscommunications.com/ http://www.graybar.com/ http://www.gruberpower.com/ http://www.sommersetpowersystems.com/ http://www.titanpower.com/ http://www.unifiedpowerusa.com/ http://www.vertigrate.com/

Market research to determine comparable market pricing for the UPS revitalization services of this requirement found prices ranging from $18,339.66 to $39,608.00 for the Symmetra PX 40k Frame and $10,325.99 to $16,773.99 the Symmetra LX. Vendors with listed prices for the revitalization services include CDW, Graybar Electric Company, and DeltaTec Solutions.

Market prices for the Modular Battery Replacement Service (4 x SYBT4) range from $8,425.44 to $13,189.62. Market prices for the 1 year factory warranty upgrade range from $493.59 to $756.77. Vendors listing prices for the battery replacement and warranty upgrade include CDW, Insight, Graybar Electric Company, and DeltaTech Solutions. Based on the market research, the prices quoted by the vendor are considered reasonable compared to the varying market prices found.

Market research was conducted 6 September 2022 – 12 September 2022 by Tammy A.

Brewer, Contracting Specialist ACC-APG.

8. Other Facts:

Procurement History Two previous contracts were found that provided full-service maintenance for the following systems:

APC Symmetra PX 40.0 KVA (serial number PD0719260334) APC Symmetra LX 12.0 KVA (serial number QD0717152668)

W9124A18F0014 was awarded 12 March 2018 and covered one (1) base year and two

(2) option years. Three quotes were received. Gruber Power Services provided the lowest price technical acceptable (LPTA) quote and was awarded this contract. The period of performance for this contract was:

TABLE 2: Uninterrupted Power Supply Service Provides outside of Arizona

Vendor Web Address Registered as Small Business in SAM.gov?

Power Solutions www.power-solutions.com

No

DeltaTech Solutions www.deltatechsol.com Not found in SAM; business size cannot be verified

Gordon Electric Supply www.gordonelectricsupply.com

Not found in SAM; business size cannot be verified

CDW Corporation www.cdw.com Not found in SAM; business size cannot be verified

Genie Group www.geniegroup.com

Not found in SAM; business size cannot be verified

Mitsubishi Electric UPS www.mitsubishicritical.com No

Insight www.insight.com No http://www.power-solutions.com/ http://www.deltatechsol.com/ http://www.gordonelectricsupply.com/ http://www.cdw.com/ http://www.geniegroup.com/ http://www.mitsubishicritical.com/ http://www.insight.com/

Base year: 01 April 2018 through 31 March 2019 OY1: 01 April 2019 through 31 March 2020 OY2: 01 April 2020 through 31 March 2021.

Task order GS35F0136Y / W9124A21F0023 was a follow-on to purchase order W9124A-18-P-0014 and awarded 4 March 2021 and covers one (1) base year and four

(4) option years. Two vendors submitted quotes for this requirement. Of the two, Titan Power, Inc. was the LPTA and was awarded the contract. The period of performance for this contract is:

Base year: 01 April 2021 through 31 March 2022 OY1: 01 April 2022 through 31 March 2023 OY2: 01 April 2023 through 31 March 2024 OY3: 01 April 2024 through 31 March 2025 OY4: 01 April 2025 through 31 March 2026

Titan Power, Inc., is currently contracted to perform maintenance on the two systems specified in the current requirement. The current Performance Work Statement, however, specifically excludes battery replacement and labor and travel associated with battery replacement.

9. Technical/Requirements Certification: I certify 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.

Typed Name: Christina Shay Date: 13 September 2022 Title:

Signature: ___________________

10. Contracting Officer Certification/Approval:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable based upon price analysis per FAR 15.404-1, Proposal Analysis Techniques.

I certify that this justification is accurate and complete to the best of my knowledge and belief, and that completing this purchase as a sole source is in the best interest of the Government. Additionally, I approve this justification to limit competition subject to the availability of funds and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Typed Name: Carlos J. Reed

Date: 16 September 2022 Title: Contracting Officer

Signature: ___________________________