Ft.HoodJARedacted.pdf

Justification Review Document For Exception to lt,air Opportunity (EFO)

Control No: HNC-13-16241

Requirement: Provide Operation and Maintenance (O&M), the Ft. Hood, Johnson Controls, Inc. (JCI) Metasys® Front-End Software and associated Direct Digital Control (DDC) systems, strictly following Unified Facility Guide Specifications (UFGS) 25 10 10. This requirement will be met by a Task Order Award to Johnson Controls Building Automation Systems (JCBAS) on contract W912DY-13-D-0006.

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FAR 16.505(b)(2)(i)(B)

$7,500,000.00

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Reviews: I have reviewed this justification and find it adequate to suppot1 an exception to fair opportunity.

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Control No: HNC-l 3-16241

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Justification and Approval for Exception to Fair Opportunity (EFO)

Control No: HNC-13-16241

Task Order Award to Johnson Controls Building Automation Systems (JCBAS) Contract W912DY-13-D-0006, Task Order TBD

$7,500,000.00

1. Contracting Activity: United States Army Engineering and Support Center, Huntsville, Alabama (CEHNC), 4820 University Square, Huntsville, Alabama 35816-1822.

2. Description of Action: This action contemplates the award of a new finn-fixed price (FFP) task order (TO) to Johnson Controls Building Automation System (JCBAS) under contract W912DY-13- D-0006 to provide Operation and Maintenance (O&M) for the Ft. Hood, Johnson Controls, Inc. (JCI) Metasys® Front-End Software and associated Direct Digital Control (DDC) systems, strictly following Unified Facility Guide Specifications (UFGS) 25 10 10. There is sufficient capacity available for this contract action. The Access Control Point (ACP)/Electronic Security Systems (ESS)!Utility Monitoring and Control Systems (UMCS) Maintenance and Services Multiple Award Task Order Contract (MATOC) unrestricted suite of contracts were awarded in December 2012 with a combined capacity of $315,000,000.00. Cunently, there is $314,900,000.00 in capacity remaining for this suite of contracts. The anticipated total award value for this TO is $7,500,000.00, and includes one (1) base year with four (4) option years.

3. Description of Supplies/Services: The Contractor shall provide all labor, equipment, tools, transpmiation, supervision, and any other items necessary for the O&M, of the Ft. Hood, JCI Metasys® Front-End Software, Building Automation System (BAS), and associated DDC) systems, strictly following UFGS 25 10 10. This effort includes all required preventative maintenance (PM) and also provides for non-routine conective maintenance (CM) of failed control systems located on Ft. Hood and integrated to the Metasys®. The Contractor shall provide the administrative suppoti, labor, supervision, materials and equipment necessary for PM and CM activities. The scope of the work is limited to the existing proprietary Metasys® front-end monitoring and control software. The North American Industry Classification Code (NAICS) for these services is 811219, Other Electronic and Precision Equipment Repair and Maintenance, with a Small Business Size Standard of $19,000,000.00. The TO period of performance will be for one (1) base year and four (4) option years after initial award date. O&M funds will be utilized for this requirement. The Government estimate indicates the total value of this effort to be approximately $7,500,000.00.

4. Authority Cited: Pursuant to the authority in 10 United States Code (U.S.C.) 2304(c)(l) as implemented by Federal Acquisition Regulation (FAR) 16.505(b )(2)(i)(B) "Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized."

5. Reason for Authority Cited: The existing Metasys® BAS is a proprietary system. No other vendor has the intellectual property rights or access to the Metasys® system, and therefore cannot seamlessly integrate to the existing systems. The JCI Metasys BAS is cunently in place and operating at Ft. Hood as result of previous UMCS competitions conducted under Sections 803 and

Control No: HNC-13-16241

863 of the National Defense Authorization Act (NDAA) for initial UMCS system installations at Ft.

Hood. These legacy control systems are proprietary and require teclmicians licensed and trained in the tools and software necessary to configure the system (System Configuration Tool (SCT)). No other sources possess the requisite licenses, access, tools, technical knowledge and/or expertise to maintain the Metasys® software, database, programming, and controllers. Using a source other than JCBAS would not only result in inefficiencies, but would also result in an unmanageable level of system reliability risk.

In order to maintain code compliance, waJTanty, and reliability of the systems, it is in the Government's best interest to use the same equipment and service of the organization that knows the operational features, communication, software, and specifics of the existing systems. Additionally, this will provide for a single point of responsibility for any defects or integration problems. A single vendor controls solution also allows Fort Hood to maintain a reduced inventory of parts, decreases training requirements, and lowers operation costs.

Energy Management personnel at Fort Hood have used JCBAS to upgrade existing mechanical, controls, and electrical work that are intercom1ected with the existing Metasys® building BAS system. To date, JCBAS has integrated over 600 facilities located on the Fort Hood Gamson into the Metasys® building automation system, equaling approximately $3,700,000.00 dollars. Fort Hood is projected to spend another $1,800,000.00 to integrate 70 more facilities before the end ofFY13. The Energy Management personnel at Fort Hood require operation and maintenance for the Metasys® BAS to insure the continued functionality and efficiency of the system. Furthermore, any requirement to retro-fit to an open-protocol UMCS in an effort to increase sources of supply/service for these requirements would require extensive changes to system design and software configuration.

This would be a waste of the resources recently put in place, and ultimately is not in the best interest of the Govemment. Using the same contractor and equipment, the Government achieves cost efficiencies by eliminating the proprietary interface concems, custom integration requirements, and waJTanty disputes.

6. Efforts to Obtain Competition: The existing multiple-award ESS Maintenance & Services contractors were selected using full and open competition. However, due to the proprietary nature of the UMCS systems at Fort Hood, JCBAS is currently the only contractor capable ofperfonning these efforts seamlessly without causing inherent risk to the existing Metasys® system and/or increased costs to the government due to lack of intellectual knowledge or long lead times. Moreover, offerors who proposed and subsequently received awards under these subject MATOC pools were informed via the solicitation, resultant contracts, and in the post-award debriefings that the Contracting Officer may award one or more contractors more work than the other awardees. Specifically, contractors were informed that each order for services exceeding $3,000.00 must be made on a competitive basis, unless the contracting officer waives the requirement on the basis of a written detennination that one of the circumstances described at FAR 16.505(b )(2)(i) through (ii) applies to the order; or if a statute expressly authorizes or requires that the purchase be made from a specified source.

7. Actions to Increase Competition: Utility Monitoring and Control Systems utilize software to display graphical information such as status of equipment, temperatures of spaces, etc. These software systems are generally called "Head-End'' or "Front-End" systems. Each name is synonymous and describe the same software. Most manufacturers' legacy head end UMCS systems remain proprietary throughout the industry, including civil and Government. For many years each manufacturer utilized unique software "twists" (usually done via network protocols) that required the end user to return to the original installer to expand or alter the system, thus making them fully proprietary. Open systems were later developed to prevent the end user (in this case, the Government) fi"om being forced to return to the original installer, thus allowing a more "Open System". However, the UMCS Corps of Engineers, Mandatory Center of Expertise (UMCS-MCX) leaders have been working with industry to move toward an open Lonworks Operating Network (LON) system at the building level controllers and head end systems. In 2004, the U.S. Army Corps of Engineers (USACE) published UFGS 25-10-10, Lon Works Network Services System (LNS) Utility Monitming and Control System, and UFGS 23-09-23, Lon Works Direct Digital Controls for Heating, Ventilation, and Air Conditioning (HVAC) and other building control systems. When implemented, these specifications will create open protocol control systems in concert with the overall vision ofUSACE to encourage competition and non-proprietary systems. All new construction projects funded by Military Construction (MILCON) are urged to utilize these specifications.

The Corps of Engineers, Mandatory Center of Expertise (MCX) puhlished a revised UFGS 25 10 10, Utility Monitoring and Control System (UMCS) Front End and Integration in November 2012. This update expands the conh·ol protocol from only LonTalk to BACnet, Modbus, OPC and Niagara Framework. The inclusion of these additional major contr·ol protocols greatly increased the competitive pool of acceptable vendors for front ends.

UFC 3-4 70-01, Lon Works Utility Monitoring and Control System (UMCS), was published in May 2012. This document supersedes UFC 3-401-0lFA and provides the criteria for the industry standard communications protocol that permits conununications data exchange between different manufacturers' control systems.

USACE is currently writing an "Open" BACnet specification for use at the building control level. This will be published in June 2014. Additionally, we are developing a protocol agnostic instrumentation specification that will be used in concert with any Open controls implementation.

UFGS 23 09 23 was revised and published in May 2011. It still requires only the use of Lon Works technology to ensure an open system. However,· once the new "Open" BACnet specification is published, stakeholders can choose either Lon Works or BACnet and integrate into a fi"ont end if installed in accordance with (IA W) UFGS 25 10 10. As long as all the proprietary configuration tools are provided as required, the Government is now free from further need of the miginal installing controls vendor for any expansions, modifications, or updates.

The UMCS Product Delivery Team (PDT) closely scmtinizes each of our customer's requirements to determine how much of any given requirement is tr·uly proprietary; e.g. how much is related to proprietary UMCS, and how much is related to general requirements. As such, we make determinations on a case by case basis as to whether we can split a requirement between prop1ietary and competitive requirements. If the preponderance of a requirement can be competed, then we will make every effort to compete, calling out those portions of a Performance Work Statement (PWS) that may need to be subcontracted to a proprietary provider. However, if the preponderance of a requirement is proprietary, then we will typically seek justification to enter into a sole-source contract. The requirements called out in this EFO fall into the latter category, whereas the preponderance, if not all of these integration and maintenance activities are tied directly to the Metasys® proprietary JCBAS system. However, due to the proptietary nature of the system configurations described in paragraph 5 above, the Government will not take additional action to increase competition for this requirement.

8. Marl<:et Research: Strategic market research is continually perfmmed in order to identify any additional sources that could fulfill the Government's requirement to interface to Jolmson Controls' proprietary system. Several methods of market research (detailed in paragraphs below) are u tilized by the UMCS PDT to search for break-out businesses that have the expertise, capability, and access to JCBAS's U1v1CS proprietruy systems, and necessary personnel to maintain that system. More specific to this requirement, the Government has considered the need to meet the IA TO/ ATO accreditation for the control systems being installed tmder these TOs. The ability of vendors to meet the requirements for IATO/ A TO accreditation further limits the field of qualified vendors. The accreditation process requires that vendors perfonn security testing on their system configurations to identify any network securit y weaknesses. The UMCS METASYS systems that are acquired under this contract are a non-commercial product in that they are unique and specifically configured systems that are designed to meet Government specifications and criteda. In addition, the Iuformation Assurance requirements are dictated by the Army and require the implementation of the Army Golden Master (AGM) operating system, proper certifications and approvals from NETCOM, and infonnation assurance controls that restrict ports, protocols and services. Products that meet the government standards cannot be pm·chased on the conunercial market. Most recently, a market report, dated 2 March 2012, was completed for the fo.llow-on UMCS-IV MA'f OC. This report identified qualified v~ndors fo1· design and installation of UMCS that could potentially be utilized in the upcoming competition. However, the Govemment is ever cognizant of the fact that films continue to develop proprietary control systems. This industry practice is critical for success in the commercial marketplace for these systems, which are the same systems the government utilizes for their applications. The downfall is that these proprietary systems will not effectively interfac.e with other UMCS systems.

In accordance with FAR 10.002(b)(2), the following market research methods were utilized in order to detenrune capable vendors:

a. Contacting Knowledgeable Pers01mel: The Government contacted knowledgeable Govermnent employees listed below (CEHNC UMCS-MCX Engineers) who have had experience with this requirement and were involved in previous acquisitions for UMCS contracts.

FOR OFFICIAL USE ONLY

Procurement Sensitive - TAW FAR 3.104

In addition to Government employees, product capabilities from the following ESS M&S contractors were reviewed (see Table 1); however, only JCBAS had the capabilities to meet the Government's requireme11ts.

Table 1: List of UMCS, ACP and ESS M&S Conb·acts Contractor Name Contract Number

InDyne Inc. W912DY-13-D-001 1 Williams Elechic Company, Inc W912DY-13-D-0010 Smith & Wesson Secw:ity Solutions W912DY -13-D-0009 Siemens Government Teclmologies Inc. W912DY -13-D-0008 MC Dean, Incorporated W912DY-13-D-0007 Johnson Controls Building Automation Svcs W912DY-13-D-0006 Honeywell HBS Solutions LLC W912DY -13-D-0005 BAE Systems Technology Solutions & Svcs W912DY-13-D-0004 American Systems Corporation W912DY-13-D-0003 SAIC (Science Applications Inti.) W912DY -13-D-0002

The UMCS-MCX for USACE is located at CEHNC. The UMCS-MCX maintains a staff of engineers whose daily work is on UMCS projects. Each engineer is regularly involved in the testing of installed systems and understands the operations and interface restrictions of these systems. The UMCS-MCX team has updated and maintained the UMCS specifications since they were issued. New generations ofUMCS systems have come and gone; each with its own proprietary requirement. The technical manager ofHNC's UMCS-MCX, is presently serving on the LonMark International Board ofDirectors, an organization made up of all of the worlds' UMCS manufacturers, for the promotion and expansion of"open" non-propreitary UMCS systems. This board is involved in projects that utilized the application of new software protocols such as ProfiBus and FND, as well as the development of the communication protocols, BACnet and LONTAUC, which have revolutionized the UMCS industry, particularly at the field level.

However, there still remains the proprietary nature of each manufacturer's front end software systems, such as the JCI Metasys®. They are working together in an attempt to reach a more open system approach. On a continuing basis, each member of the UMCS-MCX staff attends trade shows, technical presentations, web seminars, and other data gathering opportunities to stay current on the latest technologies of each manufacturer's systems to see if this has been accomplished. However, at the current time there is not a single UMCS that can interface to another UMCS without degradation of functions.

This market research confirmed that there are a limited number of vendors expected to propose on the U1\11CS-IV solicitation that will meet the requirements for designing and installing UMCS.

a. Publicizing Contract Actions: Pursuant to FAR 5.202(a)(6), transmittal of a notice of this proposed contract action through the Government wide point of entry (GPE) is not required for

TOs. However, FAR 16.505(b )(2)(ii)(D) requires public disclosure of justification documents for task or delivety orders, greater than the Simplified Acquisition Threshold and awarded without providing fair opportunity must be posted to the Federal Business Opportunities (FEDBIZOPPS) database within 14 days of award.

b. Posting Sources Sought Notification: CEHNC posted a Sources Sought Notice on FedBizOpps on 19 June 2012 to determine whether a Sole Source Procurement is viable. The notice closed on 29 June 2012 with two responses- one from Johnson Controls and the other from Bironas, a small business. Johnson Controls submitted a 3-page document answering the questions posted. Bironas sent an email stating they had the capability to meet our requirements;

however, they failed to respond to the questions. As a result, the PDT determined that no other firm existed besides Johnson Controls.

c. The Govermnent reviewed online industry catalogs and other generally available product literature published by manufacturers, distributors, and dealers. The team reviewed content on general business content sites such as WSJ.com and FinancialTimes.com, social media industry pages on sites such as Facebook.com and Linkedln.com as well as industry content aggregation sites such as ESMagazine.com and AutomatedBuildings.com. Each of these properties offered not only a wealth of information on UMCS Services, but confirmed the market position of the Metasys® system and J CI as the sole provider of Metasys®. Even though market research was conducted more than twelve months ago, it is the most current information and is still valid per on-going communications with the lASED.

9. Interested Sources: Based upon ongoing strategic market research, and validation of current market conditions through tactical market research, no known sources other than JCBAS are available to fulfill this requirement, due to the proprietary nature of the Metasys® system. See sections 7 and 8 for more information regarding efforts to increase competition for future acquisitions. The Government issued a sources sought notice on the Federal Business Opportunities website in December 2010. The notice invited perspective contractors to indicate their ability to meet the following criteria: (a) substantial experience successfully providing like maintenance and services, for similar equipment and electronic systems requirements described above at Depmtment of Defense (DoD) facilities; (b) demonstrated success performing as a prime contractor for electronic systems that include access control point equipment, electronic security systems and utility monitoring control systems; (c) capacity to dedicate a single point of contact for this work; (d) ability to accomplish maintenance and services to equipment and electronic systems throughout the United States and overseas. Acceptable responses were received from a total of 10 vendors. JCBAS was the only vendor that responded with a capability to perfonn M&S on the Metasys® system. Pursuant to FAR 5.202(a)(6), synopsis of this proposed conti·act action through the Government wide point of entry (GPE) is not required for TOs. However, FAR 16.505(b )(2)(ii)(D) requires public disclosure of justification documents for task or delivery orders greater than the simplified acquisition threshold and awarded without providing fair oppmtunity must be posted to FEDBIZOPPS within 14 days of award.

10. Other Facts:

a. Procurement History. In 2008 and 2009, the UMCS program submitted approximately sixty

(60) Exceptions to Fair Opportunity (EFO) to award sole source work to JCBAS. These EFOs provided approval to award sole source orders against the program's previous MATOCs (UMCS II and III). In order to address these Metasys® requirements, the Government awarded a $77.5M SATOC to JCBAS in Nov of2009.

(1) Contract numbers and dates of the last several awards: W912DY- 10-D-0007 November 23, 2009 (SATOC).

(2) Competitive status of these actions: Sole source

(3) Authority previously used for less than full and open competition: Statutory Authority is 10 U.S.C. 2304(c) (1). FAR Citation is FAR 6.302-1, "Only one responsible source and no other supplies or services will satisfy agency requirement."

(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: Same justification as Para 7 above was used.

(5) If any prior award was accomplished by full and open competition, a detailed explanation of the changed circumstances: N/A, prior requirements were awarded sole source

(6) An explanation of any unusual patterns which may be revealed by the history, e.g., several consecutive, urgent buys. Prior to award of the previous SATOC (W912DY -1 0-D- 0007), these sole-source activities were executed via Exception to Fair Opportunity (EFO) IA W FAR 16.505(b) (2). Once the SATOC was awarded on 23 Nov 2009, the need for EFO's (against the UMCS contracts) for Metasys proprietary requirements was essentially eliminated. However, the burn rate of the SATOC greatly exceeded expectations, and capacity was depleted on the 2-year contract in August 2011, which was 3 months ahead of the scheduled expiration. Meanwhile, the need for this capability continues to steadily grow as more and more Metasys UMCS are installed tln·ough competitive actions under the UMCS contract. Between August 2011 and August 2012, the CEHNC UMCS PDT has processed approx. 100 EFOs for Metasys proprietary requirements against the UMCS and ESS MATOC's. In fiscal year 2012, there were a total of forty-two ( 42) actions totaling $76.1 million dollars that sought EFOs for the Metasys proprietary requirements. Currently for fiscal year 2013, there are a total of twenty-nine (29) actions totaling $29 million dollars that seek EFOs for the Metasys proprietary requirements.

(7) If a justification was prepared to support the procurement made before this one, briefly describe the circumstances justifying the buy and whether there have been any significant changes: Yes, the justification for the previous SATOC was based on the fact that many installations already had the proprietary Metasys® UMCS installed; therefore, with consideration to the significant investment on the part of the government for tl1ose Metasys control infrastructures it was detennined to be in the govemment' s best interest to address the expansion and maintenance of those existing proprietary Metasys systems rather than the design and installation of new open protocol systems. There have been no significant changes either within industry or the UMCS program since award of the previous SATOC that reduces the need or a follow-on contract.

b.Acquisition data availability. Teclmical data packages, specifications, engineering descriptions, perfmmance work statements or purchase descriptions suitable for full and open competition are not available for this proprietary system. Although market research is ongoing as desc1ibed in paragraph 8 above, the industry continues to manufacture and market proprietary systems, which do not interface with each other.

c. Unusual and compelling urgency. Not applicable

d. Subcontracting competition. The target vehicle for this acquisition is contract W912DY -13-D- 0006, which is in the unrestricted pool on the ESS M&S MATOC. In accordance with this contractual vehicle, contractors were required to develop and submit a subcontracting plan for the base contract. As part of TO proposal evaluations, prime contractors are required to show how they plan to maximize subcontracting opportunities while utilizing and mentming small businesses in the execution of that requirement.

11. ·Technical Certification: "I certify that the supporting data under my cognizance, as included in the subject Exception to Fair Opp01tunity are accurate and complete to the best of my knowledge and belief."

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12. ll.cquirements Certitication : "I certify that the supporting data under my cognizance, as included in the · Exception to Fair Opportunity, are accurate and complete to the best of my knowledge and belief."

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13. Fair and Reasonable Cost Determination: "I determine that by applying cost and price analysis techniques described at FAR 15.404 to the price proposal which will be required from the task order contractor, the Government will obtain a fair and reasonable price for the requirement described herein."

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14. Conb·acting Officer Certification: "I certify that this justification is accurate and complete to the best of my knowledge and belief., Typed Name:

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APPROVAL

Based on the foregoing justification, I hereby approve the issuance of a film fixed-price task order under a ESS M&S Unrestricted MATOC witl1 a total task order value of$7,500,000.00 to Johnson Controls Building Automation System (JCBAS) under contract W912DY-13-D-0006 under Contract W912DY-l3-D-0006,for the above described efforts pursuant to the authority in 10 U.S.C. 2304c (b)(2) as implemented by FAR 16.505(b )(2)(i)(B) subject to availability of funds and provided that the services and property herein described have otherwise been authorized for acquisition. The Contracting Officer must ensure that each contract action taken is pursuant to the authority of the Exception to Fair Oppmtunity and shall document the contract file for each contract action accordingly.

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