W9127821R0048 JA for Trane HVAC_Redacted.pdf

Control #21-0005

(2) USA CE will be the servicing agency for the construction at Eglin AFB. Concurrent with the Acquisition Planning for this effort, the Air Force established standardization requirements for the replacement ofHVAC equipment across all Air Force installations. The Air Force Senior Procurement Executive approved a Class J&A on 7 August 2019 that requires AF procurements to utilize specific makes of HVAC equipment in all their requirements through 2024. The J&A included a spreadsheet that identifies the HVAC makes specified for each of the 77 Air Force installations, and Trane is the make specified for Eglin. The AF Class J&A is valued at $370M and states that "The Air Force is required to use the brand name exception to CICA because the nature of the acquisition as a strategic vehicle for Category Management requires a pre-planned brand name approach to acquiring HVAC chillers." The J&A speaks to estimated cost savings in training expenses and efficiency improvements in mission performance.

(3) FAR 17.503(d)(l) states that if a J&A or a D&F is required by law or regulation, the servicing agency shall execute and issue the J&A or D&F, though the requesting agency shall furnish the servicing agency any information needed to make the J&A or D&F.

Therefore, USA CE, as the servicing agency concluded that J&As in support of Eglin AFB work and other Air Force projects must be executed by Army.

b. Justification:

(1) FAR 6.302-l(b)(4) permits use of the Only One Responsible Source authority when the agency head has determined in accordance with the agency's standardization program that only specified makes and models of technical equipment and parts will satisfy the agency's needs for additional units or replacement items, and only one source is available.

(2) In a memorandum signed on 2 2 June 2017, the Under Secretary of the Air Force appointed the Deputy Under Secretary of the Air Force, Management and Deputy Chief Management Officer as the AF Category Management Accountable Official. On 14 July 201 7, the Deputy Under Secretary of the Air Force, Management and Deputy Chief Management Officer, appointed the Civil Engineer Center Director (AFCEC/CL) as the Air Force Category

Manager for the Facilities and Construction Category. On 16 May 2019, the AFCEC/CL directed the mandatory standardization ofHVAC chiller systems and delegated manufacturer selection to the AFCEC Operations Director (AFCEC/CO).

(3) On 3 May 2019, the AFCEC/CO executed a memorandum, Subject: HVAC Chiller System Standardization, Single Manufacturer Selection, which set forth the AFCEC/CL intent to standardize HVAC chiller systems to a single manufacturer at the installation level. The memorandum explained that standardization of all HVAC chiller systems allows the Air Force to significantly reduce the total cost of ownership which includes the initial procurement, subsequent maintenance, and associated training costs to operate the system over its lifecycle.

The memorandum went on to provide guidance for the evaluation, recommendation, and subsequent approval of a single manufacturer for HVAC chiller systems at each installation and stated that Base Civil Engineers (BCEs) were to request and provide justification for the recommended single HVAC chiller manufacturer. The memorandum concluded with a requirement to repeat the analysis after five years from the date of AFCEC/CO approval for a single manufacturer. The purpose of this secondary analysis is to document the installation's progress in standardizing HVAC chiller systems, consider any changes in the decision facts, and confirm no external factors exist that may drive a reconsideration of the approved single manufacturer.

(4) On 16 May 2019, the AFCEC/CL signed a memorandum, Subject: Mandatory Standardization ofHVAC Chiller Systems. The memorandum directed the mandatory standardization of HVAC chiller systems to a single manufacturer at the installation level and reiterated the process laid out in the above referenced 3 May 2019 guidance. The memorandum also delegated the AFCEC/CL's approval authority to the AFCEC/CO for the selection of a single manufacturer for HVAC chiller systems.

(5) In a memorandum dated 10 September 2019, Subject: HVAC Chiller System Standardization, Single Manufacturer Selection, the AFCEC/CO approved the selection of Trane, Inc. as the single manufacturer for Eglin AFB, along with selections for other installations. This selection, supported by the other memorandums summarized above, satisfies the FAR 6.302-1 (b )( 4) application of the Only One Responsible Source authority, as the Agency Head (delegee) has determined in accordance with the agency's standardization program that only specified makes and models of technical equipment and parts will satisfy the agency's needs for additional units or replacement items, and only one source is available.

c. Alternatives: The standardization determination executed by the Air Force compels USACE to include the requirement for Trane HVAC chillers in solicitations for construction work at Eglin AFB. There is no alternative product that meets the AF's need to standardize this equipment for Eglin AFB. The only alternative considered that would differ from the terms of this J&A was to purchase the HVAC equipment separately and provide it to the construction contractor as government furnished equipment (GFE). This alternative would still involve the purchase of the Trane equipment on a sole source basis. Further, the effort associated with purchasing, storing, conveying and managing the GFE was determined to be both inefficient and uneconomical. No other feasible alternatives were identified.

d. Impact: If this J&A is not approved, USACE's construction contracts will not be executed in accordance with the Air Force CM decision. USA CE will be unable to implement the Air Force's standardization program in the missions at Eglin AFB. If the HVAC equipment is not standardized, the Air Force will not be able to realize the efficiencies and reduction of costs that have been targeted in the category management analysis. Anticipated advantages include reduced training costs for Air Force maintenance personnel, efficiencies in obtaining and storing spare parts, and decreased disruption to mission by rapid resolution of any HVAC system failures.

6. Efforts to Obtain Competition: The Contracting Officer published the notices required by FAR 5.201, as described below.

a. The solicitation for the Munitions Maintenance Facility and Igloos will be issued competitively among small business concerns. Though the brand name requirement for HVAC equipment will be stipulated in the solicitation, this is a small component of the larger construction project. The majority of the construction requirement, in both effort and total dollars will not be subject to limits to competition. Mobile District prepared an AcquisitionPlan that strategized the most effective approach to fulfill this requirement. This J&A will be posted with the solicitation. Potential Contractors will be made aware that the specifications will require the installation ofTrane HVAC Chillers. This coordination alerts them to engage subcontractors that are certified in installing this item.

b. Though the use of specified makes of items cannot be considered competitive regardless of the number of suppliers available, it is anticipated that multiple vendors will be available to provide and install Trane HVAC chillers at the subcontracting level. This sole source will not

11. Technical 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.

Date:

Signature

12. 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.

Signature

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair, reasonable, and realistic based on an analysis that includes comparison with the Government Estimate. In accordance with FAR 15.403(b )(1), Certified Cost & Pricing Data will not be required for this action.

Date:

Signature

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Date:

Signature

Approval

Based on the foregoing justification, I hereby approve the procurement of Trane HVA C Chillers for the estimated amount of $132,000 on an other than full and open competition basis pursuant to the authority ofl0 U.S.C.2304(c)(l) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, subject to availability of funds, and provided that the services or property herein described have otherwise been authorized for acquisition.

Approved By:

Date: