W9127821R0050 - Approved_SAM_Brand Name JA for Trane HVAC_AF_Hurlburt Field FL.pdf

CUI

Control #21-0007

Justification and Approval

For Other Than Full and Open Competition

The following Senior Contracting Official, Atlanta (SCO-ATL) signature indicates concurrence with the contents of this Justification:

SCO-ATL

Counsel:

Date: (See Signature)

(See Signature)

Justification and Approval For

Other Than Full and Open Competition

1. Contracting Activity: U.S. Army Corps of Engineers (USACE), Mobile District (CESAM), Contracting Division 109 Saint Joseph Street, Mobile, AL 36602

2. Description of Action: This Justification and Approval (J&A) is to specify a brand name specification of Heating, Ventilation and Air Conditioning (HVAC) chiller equipment in solicitation W9127821R0050 for the SOF Special Tactics Squadron (23STS) Ops Facility construction project that will be executed at Hurlburt Field, Florida. In accordance with mandatory standardization decisions made by the Air Force (AF), in accordance with their Category Management (CM) Program, HVAC equipment is being standardized throughout the AF on an installation basis and Trane is the make and brand name specified for Hurlburt Field.

The Government will not purchase the Trane equipment directly, but rather the requirement to utilize Trane equipment will be included in the solicitation that will lead to the new construction contract for the project. This construction project will be Design Bid Build (DBB) and a Firm Fixed Price Contract, using FY22 AF MILCON funds. The anticipated Period of Performance (PoP) is 900 calendar days from Notice to Proceed (NTP).

3. Description of Supplies/Services: USACE has received mission requirements to design and construct the single $44,810,000.00 23STS facility. As part of the design and construction effort, new HVAC chillers will be installed in this building and the AF mandated standardized use of Trane, Inc. equipment as a result of its CM determination. This project will construct a single facility totaling 103,700sf with foundation, floor slab, structural framing, insulated walls, sloped roofs, environmental control, fire detection and suppression, and all necessary support.

Functional areas include administrative areas (command, operations, logistics, secure planning, training, simulators, weather, intel, and mission support), team rooms, and equipment, vehicle and watercraft maintenance and storage areas (individual gear cages, weapons/armory, radios, computers, dive shop, medical logistics, war readiness materials), covered storage area, etc.

Unique features include concrete hardstand, rappelling tower, and antenna platforms. In addition, this project will include utilities, site improvements, pavements (roadway, parking, and marshalling yard), communications, passive force protection, and all other necessary support.

Demolition includes buildings 91033, 91065, 91070, 91032, 91037, and 99020. Department of Defense (DoD) principles for high performance and sustainable building requirements will be included in the design and construction of the project in accordance with federal laws and Executive Orders. Low impact development features will be included in the design and construction of this project as appropriate. This project will provide Anti-Terrorism/Force Protection (AT/FP) features and comply with AT/FP regulations and physical security mitigation in accordance with Department of Defense (DoD) Minimum Anti-Terrorism Standards for Buildings. Appropriate cybersecurity measures will be applied to the facility-related control systems in accordance with current DoD criteria. This J&A supports new HVAC chiller units to be incorporated into the construction contract solicited from the approval date of this J&A.

Period of performance is specified at 900 calendar days from NTP. The Government will not purchase these items directly, but will require the construction contractor to provide and install the following:

ITEM PROPOSED MAKE ESTIMATED

AMOUNT

HVAC Chillers Trane Inc. HVAC $1,590,000.00

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.

5. Reason for Authority Cited: As set forth in FAR 6.302-1(a)(2), when the supplies or services required by the agency are available only from one responsible source, or for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other types of supplies or services will satisfy agency requirements, full and open competition need not be provided for. This J&A applies the Only One Responsible Source authority using the application of FAR 6.302-1(b)(4), which indicates that use of FAR 6.302-1 is appropriate "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."

a. Background:

(1) The Air Force Civil Engineer Center Director (AFCEC/CL) serves as the Airforce

Category Manager (CM) for the Facilities and Construction Category and has mandated the standardization of HVAC chiller systems to a single manufacturer at the installation level.

(2) USACE will be the servicing agency for the construction at Hurlburt Field. Concurrent with the Acquisition Planning for this effort, the AF established standardization requirements for the replacement of HVAC equipment across all AF installations. The AF 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 AF installations, and Trane is the make specified for Hurlburt Field. 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)(1) 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, USACE, as the servicing agency concluded that J&As in support of AF projects must be executed by Army.

b. Justification:

(1) FAR 6.302-1(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 22 June 2017, the Under Secretary of the AF 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 2017, the Deputy Under Secretary of the Air Force, Management and Deputy Chief Management Officer, appointed the Civil Engineer Center Director (AFCEC/CL) as the AF Category Manager for the Facilities and Construction Category. On 16 May 2019, the AFCEC/CL directed the mandatory standardization of HVAC 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 AF 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 of HVAC 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 Hurlburt Field, 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 AF compels USACE to include the requirement for Trane HVAC chillers in solicitations for construction work at Hurlburt Field. There is no alternative product that meets the AF’s need to standardize this equipment for Hurlburt Field. 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 AF CM decision. USACE will be unable to implement the AF’s standardization program in the missions at Hurlburt Field. If the HVAC equipment is not standardized, the AF 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 AF 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 FY21 SOF Special Tactics Squadron (23STS) Ops Facility will be advertised competitively as an unrestricted ‘C’ type. 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 a Program Management Plan 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 of Trane 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 affect the overall competition for the construction requirement.

7. Actions to Increase Competition: In accordance with FAR Subpart 5.2, Synopses of Proposed Contract Action, a Notice of Intent (NOI) under NAICS 236220, Commercial and Institutional Building Construction, to include the brand name for HVAC chillers, Trane U.S. Inc.

was posted to beta.SAM.gov on 14 April 2021 and requested responses by 23 April 2021. Two responses were received: CCI Mechanical, LLC (CCI) and SAC Services (SAC). CCI and SAC both provided overall construction experience and no objection to the NOI to sole source HVAC Chillers in construction contracts. Based on responses received, it is apparent that there are adequate numbers of suppliers available to provide the required items and no alternative sources were identified for HVAC equipment that would meet the Government’s requirement. The AF requirement to use one type of HVAC chillers at each installation means that only the standard chillers will be required. Due to this standardization requirement, there are no planned actions to increase competition for future requirements.

8. Market Research: Market research indicated that competition among authorized suppliers for the brand name product, Trane HVAC chillers, will exist since they are readily available in the commercial marketplace and there are multiple companies that are licensed to sell the products.

Because there are multiple sources, it is reasonable to expect that a fair and reasonable price will result from adequate competition at the subcontracting level.

In addition to the above, in accordance with FAR 5.201, the AF posted a Notice of Proposed Contract Action/Special Notice, 238220, HVAC Chillers to FedBizOpps (FBO) on 15 March 2019 when efforts were underway to prepare their Class J&A. This AF J&A included standardization to Trane, Inc, for the requirements of Hurlburt Field, FL. The posting remained open for 15 calendar days. A description of the requirement was included in the FBO notice and advised any interested responsible party that believed it was equally or otherwise uniquely capable of meeting the requirements to submit a capability statement. Two sources expressed interest in the published notice, but neither were chiller manufacturers.

A Notice of Intent (NOI) to sole source procurement of the brand name Heating, Ventilation, & Air Conditioning (HVAC) Chillers was also posted on 14 April 2021 for 15 calendar days under Special Notice ID W91278-21-L-0021 in accordance with FAR 6.302. No responses were received in response to the NOI.

9. Interested Sources: No responses were received in response to the NOI as detailed above.

This J&A will be posted with the issuance of the solicitation in accordance with FAR 5.102(a)(6).

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. Prior to the recent standardization efforts launched by the AF, there is no known history of sole source procurement of HVAC equipment on an AF installation-wide basis.

b. As previously stated, the AF Senior Procurement Executive approved a Class J&A on 7

August 2019 that requires use of brand name HVAC equipment in all requirements procured directly by the AF through 2024. The J&A encompassed all AF installations and specified that Trane is the designated single manufacturer for Hurlburt Field. The AF followed up with a formal HVAC Chiller System Standardization, Single Manufacturer Selection determination on 10 September 2019. This J&A implements the AF standardization determination for this construction project executed at Hurlburt Field.

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.

Name: Hal Kerkhoff Title: Project Manager

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.

Name: Phyllis Smith Title: Chief Military Program and Project Management

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.

Name: Kimberly L. Brackett Title: Contracting Officer

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

Name: Kimberly L. Brackett Title: Contracting Officer

Approval

Based on the foregoing justification, I hereby approve the procurement of Trane HVAC Chillers on an other than full and open competition basis pursuant to the authority of U.S.C 2304(c)(1), as implemented by FAR 6.302-1, in the estimated amount of $1,590,000.00. The approval is subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Approved By:

Kimberly A. Marshall Alternate Advocate for Competition - Atlanta U.S. Army Corps of Engineers