CBO-_CUP_-_Siemens_Brand_Name_J&A.pdf

Control No.: SPK19-04

Justification for Other than Full and Open Competition

US Army Corps of Engineers, Sacramento District

FAR 6.302-1(c) Application for Brand Name Descriptions

W91238-18-R-0056

The Department of Veterans Affairs Palo Alto Health Care System’s Livermore Project, Phase B-

Construction of a Community Based Outpatient Clinic and Central Utility Plant, Stockton, CA

1. Contracting Activity: U.S. Army Corps of Engineers (USACE), Sacramento District

(CESPK), 1325 J Street, Sacramento, CA 95814-2922

2. Description of Action: USACE Sacramento District is requesting approval for the usage of several brand name items for a new contract in support of Solicitation W91238-18-R-0056, Department of

Veterans Affairs (DVA) Palo Alto Health Care System Livermore Phase B, Construction of a

Community Based Outpatient Clinic (CBOC) and Central Utility Plant (CUP), Stockton Campus, Stockton, CA (hereafter referred to as the Livermore Phase B – CBOC and CUP). This solicitation will result in a design-bid-build firm fixed price construction contract that will be funded by the

DVA using Office of Construction and Facilities Management (CFM) funds.

3. Description of Supplies/Services:

The DVA Palo Alto Health Care System's Livermore Project consists of 6 (six) phases of constructing new buildings over multiple years. Of the total phases, this Justification and

Approval (J&A) is applicable to Phase B. Phase B is a new construction project, however, it is part of VA Palo Alto Health Care System (VAPAHCS), which is responsible for maintaining and staffing all its facilities. As a result, the below proposed brand name items must be compatible to the existing system to be connected to the main control system at the

VAPAHCS to be monitored and maintained by the VAPAHCS. The Government will not purchase these items directly, but will require the construction contractor to provide and install the following:

ITEMS

PROPOSED BRAND NAME

ESTIMATED

AMOUNT

Automatic

Building

Monitoring and

Control System

Siemens Apogee

$ 450,000.00

Estimated Total Amount $ 450,000.00

4. Authority Cited: The statutory authority permitting acquisition of the requirement by other than full and open competition is 10 United States Code (U.S.C.) 2304(c)(1), as implemented by Federal

Acquisition Regulation (FAR) 6.302-1(a)(2) “Only One Responsible Source and No Other Supplies or

Services Will Satisfy Agency Requirements”. This authority is applicable to brand name justification in accordance with FAR 6.302-1(c)(1).

5. Reason for Authority Cited: Maintainable connectivity and system integration are the basis for the authority cited in paragraph 4. Brand name item iisn the Paragraph 3 comprised of proprietary technology that cannot be substituted.

a. Siemens Apogee Facility Monitoring and Control System.

(1) (1) Use of the Siemens Apogee Facility Monitoring and Control System (SAFM and CS) is essential to the Government’s requirements for maintainable connectivity and system integration; thereby precluding consideration of a product manufactured by another company. The SAFM and CS is a building automation system that allows for the central direct control of heating, ventilation and air conditioning (HVAC) systems for the facility in which it is installed. The SAFM and CS will enable the installation of thermostats for each room providing reliable zone comfort and enhanced energy economy via remote monitoring and temperature set point management. The estimated cost of the Siemens Apogee exclusive of labor is $450,000.00. This portion of contract is approximately 0.15% of the total estimated contract value.

(2) The SAFM and CS is comprised of proprietary technology that cannot be substituted. The

Livermore Phase B – CBOC and CUP are approximately 160,300 gross square feet. It is comprised of Patient Aligned Care Team (PACT) Model Exam and Consult Rooms, Audiology, Dental and Eye Clinics, Prosthetics, Mental Health, Radiology, Wellness

Center, Pharmacy, Physical Medicine and Rehab, Education, Cantenn, Business Office and associated support service spaces. The integration of the HVAC systems is critical to the operations, management, comfort and treatment of Veterans being treated by the VA Palo

Alto Health Care System.

(3) The VA Palo Alto Health Care System currently utilizes the SAFM and CS throughout existing campuses. Due to the proprietary nature of the Siemens Apogee, no other manufacturer’s control products are capable of interfacing with the current system that exists on the campus. If another manufacturer’s controls were to be installed in the new

Livermore Phase B – CBOC and CUP, it would require additional software and hardware integration components that could potentially jeopardize the HVAC system’s ability to distribute energy efficiently in accordance with FAR 23.703(b)(2). An inefficient HVAC system over the life cycle of the facility would increase utility costs that would outweigh the potential cost savings of utilizing an alternative system in accordance with FAR

23.703(b)(5).

(4) In addition to increased utility costs, utilizing an alternative system would increase the cost of installation and maintenance as no other manufacturer’s controls are capable of interfacing with SAFM and CS without the addition of integration components (e.g.

adaptors, converter boxes, etc.). The installation of an alternate system (other than SAFM and CS) would increase cost by approximately $160,000 which includes multiple gateways

(because of the size of this project), another head-in device and the programming associated with making the two systems communicate ($70,000), as well as an entirely separate monitoring control area ($50,000) and additional yearly expense of the personnel to run and monitor the separate control area ($40,000). Furthermore, by installing the

SAFM and CS, the Government would eliminate any future compatibility issues that could arise from mandatory and periodic software upgrades.

6. Efforts to Obtain Competition: Adequate competition is highly anticipated for the acquisition of these brand name items, as market research indicates there are multiple companies that are licensed to sell each of the products. Market research was conducted to ensure there were no other products available and compatible. See paragraph 8 below for further description of the market research effort. Also, in an effort to increase subcontracting competition, the Contracting Officer will include

FAR clause 52.219-9 in the RFP, Solicitation No. W91238-18-R-0056, to increase subcontracting opportunities for small businesses, commensurate with the efficient and economical performance of the contract.

7. Actions to Increase Competition: Sources Sought Notice Number W91238-18-R-0056, Brand

Name Justification, was posted to FedBizOpps (https://www.fbo.gov) on 04 May 2018 with a response date of 15 May 2018 (Attachment 1). No response was received. Due to the proprietary nature of the item described above, the long term effects of these sole sources will potentially place the Government into a perpetual sole source environment for future expansions, maintenance and/or upgrades to the VA Livermore Stockton Campus. Although it is not possible to compete the current acquisition, a breakout of the brand name subsystems for full and open competition can be done before any subsequent acquisition of these supplies or services in the future to increase competition.

This will mitigate and possibly eliminate the effects of this sole source by allowing a full replacement of these systems in their entirety as opposed to seeking only integration. As mentioned above in paragraph 5, alternative systems could be installed, but would not be capable of interfacing with the current systems that exists on the campus. The resulting inefficiencies, safety and security concerns, as well as the increased facility costs far outweigh the potential cost savings of utilizing an alternative system.

8. Market Research: Additionally, a Sources Sought Notice -- Number W91238-18-S-0095 -- for

Livermore Phase A which also included Siemens Apogee Facility Monitoring and Control System, Brand Name Justification, was posted to FedBizOpps (https://www.fbo.gov) on 13 August 2018 with a response date of 31 August 2018 (Attachment 2). No response was received. The items listed above are required to maintain compatibility and consistency with existing infrastructure of the

VAPAHCS’ campuses. In the last 12 months, market research was conducted using several of the techniques prescribed under FAR 10.002(b)(2), such as working with knowledgeable individuals in the industry regarding market capabilities to meet requirements, and reviewing the results of recent market research undertaken to meet similar or identical requirements. Also, the Designer of Record, preparing the designs and specifications for the facility, conducted additional market research for the cost for utilizing the current brand name items for the new facility, as well as the estimated cost if an alternate product was used, and the cost difference exceeds that of procuring and installing the name https://www.fbo.gov/ https://www.fbo.gov/ brand items. Based on the research, the increase in cost for using non-brand name items is driven by the need to hire a third party company to integrate the two different products which may not function as desired. In order to alleviate the issue, the use of brand name products is highly recommended. In addition, market research indicates that competition for the brand name products will exist since they are readily available in the commercial marketplace and there are multiple companies that are licensed to sell the products.

9. Interested Sources: To date, no other sources have written to express an interest.

10. Other Facts: Reasonable efforts were made to retrieve other facts from computer records, contract files, and other sources to support the use of other than full and open competition, as follows:

A. Procurement history:

1) Contract numbers and dates of the last several contracts for these same requirements:

None known.

2) The competitive status of these actions: Not Applicable.

3) Authority previously cited if less than full and open competition was used: Not

Applicable.

4) If a justification was prepared to support the procurement made before this one, a summary of the contents of paragraph 7 of the justification for that procurement and an explanation of the results: Not Applicable.

5) If any prior contract for this requirement was accomplished using full and open competition, include a detailed explanation of the changed circumstances causing this action to now limit the sources: Not Applicable.

6) An explanation of any unusual patterns that may be revealed by the history, e.g., several consecutive, urgent buys: Not Applicable.

7) If a justification was prepared to support the procurement made before this one, briefly describe the circumstances justifying the procurement and whether there have been any significant changes: Not Applicable.

B. Other facts: None known.

Approval

Based on the foregoing justification, I hereby approve this brand name specification for those items mentioned above in support of the Department of Veterans Affairs Palo Alto Health Care System’s

Livermore Project, Phase B – Construction of Community Base Outpatient Clinic and Central Utilities

Plant, Stockton, CA project on an other than full and open competition basis pursuant to the authority of

10 U.S.C. 2304(c)(1), FAR 6.302-1 in the total estimated of $450,000.00. This approval is subject to the availability of funds and provided that the services and property herein described have otherwise been authorized for acquisition.

Approved By:

________________________________ Date: ____________________

LEAH M. CALDWELL

Contracting Officer