LimitingCompetitionunderSAT_19Q0008_20190617_Redacted.pdf

Control No: BU19-005

Version – February 2017

Memorandum for Record – Limiting Competition at or below the Simplified

Acquisition Threshold

1. Contracting Activity: Mission and Installation Contracting Command (MICC) Fort Buchanan.

2. Description of Action:

Nature: New Requirement Follow-on Requirement

Contract Vehicle: Purchase Order

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

Funds: Operations & Maintenance, Army (OMA) Other Funds: ________

FY: 19

Name of Proposed Contractor(s) and Address:

Johnson Controls International (JCI)

45 Diana Street Amelia Industrial Park

Guaynabo, Puerto Rico 00968

Brand Name Buy: Yes No

3. Description of Services or Supplies:

The work shall include all tools, labor, management, materials, equipment, supplies and all related to perform emergency maintenance services to A/C chillers located at Building 700, DoDEA Elementary School, Fort Buchanan, Puerto Rico. Contractor shall be required to commence work immediately and complete entire work within five (5) calendar days.

Total Estimated Value: $16,875

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.

Control No: BU19-005

Version – February 2017

5. Reasons for Authority Cited:

a. The AC Chiller Water Cooling Tower System, model York of 280 tons, was installed by the Authorized Dealer and Maker in Puerto Rico, Johnson Controls International (JCI), during the construction of the new DoDEA Elementary School at Fort Buchanan. This new school begin academic services in August of 2016.

b. The AC Chiller was selected during the implementation of the USACE contract for the construction of the new DoDEA Elementary School. The AC Chiller still under warranty as a direct result of this new construction. However, routine preventive maintenance is not cover under this warranty, but is mandatory in accordance with manufacturer’s manual to prevent voiding of the warranty. During the week of 20 May 2019 Directorate of Public Works in-house personnel reported the need to obtain diagnostics of the AC Chiller system after a shutdown. On 23 May 2019 JCI technician reported the condenser heat exchanger and cooling towers has gone critical.

Refrigerant pressure inside condenser has gone too high to the point that compressor motor is overheating, VSD drive is protecting itself reaching excessive temperatures causing the chiller to constantly shutting down. He highly recommended to take the chiller out of service until the condenser cleaning and cooling tower cleaning is complete.

c. Failure to provide subject emergency maintenance services will impact the normal operation of the AC Chiller resulting in no AC service to the DoDEA Elementary School.

On 25 May 2019 the Contracting Officer authorized the emergency maintenance services to JCI.

6. Publicizing Contract Actions:

In accordance with FAR 13.105(c) although the action is a brand name restriction it is under $25K, therefore no posting is required.

7. Market Research:

Market research was conducted to identify potential companies and their socio-economic groups that can fulfill this requirement. The results of the Dynamic Small Business Search on 16 Jun 2019 showed 119 companies available in Puerto Rico under all socio-economic groups. Also a Special Notice with the government’s intent to negotiate a sole source contract with JCI was posted on FBO from 15-24 Jun 2019 with only one response received. Although a significant number of small business companies were identified, MICC Fort Buchanan is considering negotiating a sole source contract with JCI because JCI is the authorized dealer for installation and services of York equipment in Puerto Rico. In addition, these are emergency services required to be completed immediately to prevent disruption of DoDEA Elementary School operations.