CECT-NWO-24-04-JA_HVAC Chillers_Grand Forks Bldg 649_Redacted.pdf

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Control No. CECT-NWO-24-04

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Justification Review Document for Other than Full and Open Competition - FAR Part 6

Program/Equipment: TRANE HVAC CHILLER SYSTEM

Authority: 10 U.S.C. 2304(a)(1), as implemented by FAR 6.302-1, gives DoD the authority to set aside requirements when there is only one responsible source, and no other supplies or services will satisfy agency requirements. FAR 6.302-1(a)(2)(iii) states: “For DoD, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in— (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition.”

Amount:

Prepared by:

Typed Name: Michele Renkema DSN:

Title: Contract Specialist Date: 20 December 2023

E-mail:

Contracting Officer:

Typed Name: Shawn A. Adkins DSN:

Date Reviewed: 21 December 2023 E-Mail:

Technical/ Requirements Representative:

Typed Name: Charles “Chuck” Newman DSN:

Title: Project Manager Date: 20 December 2023

Reviews

I have reviewed this justification and find it adequate to support other than full and open competition.

Legal Counsel

Typed Name: Thomas J. Tracy DSN:

Signature: Date: ___________

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FAR Part 6 Justification and Approval for

Other than Full and Open Competition

1. Contracting Activity: U.S. Army Corps of Engineers (USACE), Omaha District, 1616 Capitol Ave, Omaha, NE 68102.

2. Description of Action: This Justification and Approval (J&A) is requested to specify make for the HVAC Chiller Equipment System in the contract specifications for the renovation/construction of the Aircraft Operations Facility (AOF) and the Aircraft Maintenance Facility (AMF) to be executed at Grand Forks, North Dakota. In FY24 USACE Omaha District will compete and award the renovation/construction of the AOF and AMF Bldg. 649 project as a Firm-Fixed-Price (FFP), Two-Phase Design-Build construction contract utilizing Operations and Maintenance (Air Force) (OMAF) funding.

In accordance with mandatory standardization decisions made by the Air Force in accordance with their Category Management (CM) Program, HVAC Chiller Equipment System is being standardized throughout the Air Force on an installation basis and Trane is the make or brand name specified for Grand Forks AFB. The government will not purchase the Trane equipment directly, but rather the requirement to utilize Trane equipment will be included in the solicitation.

3. Description of Supplies/Services: USACE received the mission to renovate existing Building 649, Aircraft Operations Facility (AOF) and the Aircraft Maintenance Facility (AMF) to accommodate the Disaster Resiliency Program (DRP). As part of the design and construction effort, new HVAC Chiller Equipment System are needed with the modification/renovation of the facilities. This J&A supports new HVAC chiller units to be incorporated into the renovation/construction contract at Grand Forks AFB solicited from the approval date of this J&A. Periods of performance will be specified in the contract.

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 Chiller Equipment

System

Trane

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

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Responsible Source authority using the application of FAR 6.302-1(b)(4) and FAR 6.302-1(c)(1). FAR 6.302(b)(4) 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." FAR 6.302-1(c)(1) indicates that use of FAR 6.302-1 is appropriate for “An acquisition or portion of an acquisition that uses a brand-name description or other purchase description to specify a particular brand-name, product, or feature of a product, peculiar to one manufacturer.”

a. Background:

(1) USACE will be the servicing agency for the renovation/construction of the Aircraft Operations Facility (AOF) and the Aircraft Maintenance Facility (AMF) at Grand Forks AFB, Grand Forks, North Dakota. The Air Force is establishing standardization requirements for facility HVAC Chiller Equipment system across all Air Force installations. The Air Force Head of Procuring Activity approved a Class J&A on 7 August 2019 that requires AF procurements to utilize specific makes of HVAC Chiller Equipment System in all their requirements through 2024. The J&A speaks to estimated cost savings in training expenses and efficiency improvements in mission performance.

(2) 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 Grand Forks AFB work and other Air Force 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) FAR 6.302-1 (c)(1) allows for the acquisition or portion of an acquisition that uses a brand-name description or other purchase description to specify a particular brand-name, product, or feature of a product, peculiar to one manufacturer.

c. Alternatives: The standardization determination executed by the Air Force compels USACE to include the requirement for Trane HVAC Chiller Equipment System in solicitations for construction work at Grand Forks AFB. There is no alternative product that meets the AF's need to standardize this equipment for Grand Forks AFB. The only alternative considered that would differ from the terms of this J&A was to purchase the HVAC Chiller Equipment System 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, uneconomical. No other feasible alternatives were identified.

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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. USACE will be unable to implement the Air Force’s standardization efforts of limited HVAC Chiller Equipment System manufacturers to continue the mission at Grand Forks AFB. If the HVAC Chiller Equipment System manufacturer are not limited at each installation, 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 Chiller Equipment System failures.

6. Efforts to Obtain Competition: Based on information in paragraph 5 above, and the sources sought information, competition for this action is best obtained through competition in sourcing the systems and equipment. Competition will be possible in the acquisition of the items. Each item is available from multiple suppliers. Proposals received shall be considered.

7. Actions to Increase Competition: Future acquisitions will continue to seek sources sought to identify other name brands which are compatible with the current systems.

8. Market Research: Market research indicated that competition among authorized suppliers for the brand name product, Trane HVAC Chiller Equipment System 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 Air Force 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 HVAC systems, for the requirements of Grand Forks AFB. The posting remained open for 15 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.

9. Interested Sources: A Sources Sought and NOI were posted 29 November 2023 in support of this J&A, under NAICS 333415, Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing, with a Small Business Standard of 1,250 employees for a period of 15 days. The response indicated that one (1) firm was interested in submitting a proposal for the project, one that is a general contractor that subs out the HVAC work, and two (2) that provided information that their firm were Trane dealers that related to the Trane HVAC Chiller systems.

10 Other Facts: Reasonable efforts were made to retrieve other facts from computer

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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 Air Force, there is no known history of sole source procurement of HVAC Chiller Equipment System on an Air Force installation-wide basis.

b. As previously stated, the Air Force Senior Procurement Executive approved a Class J&A on 17 December 2021 that requires use of brand name HVAC Chiller Equipment System in all requirements procured directly by the Air Force through 2025. The J&A encompassed all Air Force installations and specified that Trane HVAC systems are the designated single manufacturer for Grand Forks AFB. The Air Force followed up with a formal HVAC chiller Standardization, Single Manufacturer Selection determination on 10 September 2019. This Class J&A implements the Air Force standardization determination for all renovation/construction projects executed at Grand Forks AFB.

c. The J&A will be posted with the issuance of Phase 2 solicitation in accordance with FAR 5.102(a)(6).

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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.

Typed Name: Charles “Chuck” Newman Date: ____________________

Title: Project Manager

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.

Typed Name: Charles “Chuck” Newman Date: ____________________

Title: Project Manager

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 Independent Government Estimate. In accordance with FAR 15.403(b)(1), Certified Cost & Pricing Data will not be required for this action as competition is expected.

Typed Name: Shawn A. Adkins Date: ____________________

Title: Contracting Officer

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

Typed Name: Shawn A. Adkins Date:

Title: Contracting Officer

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Approval

Based on the foregoing justification, I hereby approve the procurement of Trane HVAC Chiller systems for the Aircraft Operations Facility (AOF) and the Aircraft Maintenance Facility (AMF) at Grand Forks AFB, Grand Forks, North Dakota on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(a)(1) 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.

Date: __________________ Signatur

SHAWN A. ADKINS

Contracting Officer