Redacted_Golf_Course_Pond_Irrigation_Pump_Controls_Repair__Fort_Stewart_Hot____Redacted.pdf

Control No: HNC-15-160529

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Justification and Approval for Exception to Fair Opportunity (EFO)

Contract W912DY-15-D-0006-TBD, UMCS IV

Requirement: Hunter Army Airfield (HAAF) Golf Course Pond Irrigation Pump Controls Repair & Fort Stewart Hot Water Control Valves Repair, Fort Stewart and HAAF, GA

Authority: 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.”

Amount: $430,733.33

Prepared By:

Title:

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Reviews: I have reviewed this justification and find it adequate to support a Task Order that 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.

Program

Phone:

Signature: Date:

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Justification and Approval Exception to Fair Opportunity (EFO)

Contract W912DY-15-D-0006,-TBD UMCS IV

1. Contracting Activity: United States Army Engineering and Support Center, Huntsville, Alabama

(CEHNC).

2. Description of Action: This action is for the Contractor to furnish and install a Utility Monitoring and Control System (UMCS) at Fort Stewart and HAAF. A firm-fixed priced (FFP) task order (TO) under Contract No. W912DY-15-D-0006 to Siemens Government Technologies (SGT) to provide Direct Digital Controls (DDC), UMCS of SGTs proprietary APOGEE ® hardware and software at the golf course and HAAF at Fort Stewart, GA. There is sufficient capacity available for this contract action. The UMCS IV Multiple Award Task Order Contract (MATOC) unrestricted and restricted suite of contracts was awarded in January 2015, with a combined total capacity of $2.5B.

The North American Industry Classification Code (NAICS) for this contract action is 541512, Computer Systems Design Services, with a Small Business Size Standard of $27,500,000.00.

Currently there is approximately $2.4B in capacity remaining for this suite of contracts. The anticipated award value for this task order is $430,733.00.

Historically, the CEHNC Utility Monitoring Control Systems (UMCS) program utilized a Single Award Task Order Contract (SATOC), awarded to SGT (W912DY-10-D-0034) to execute these proprietary requirements, thus negating the need for individual EFO actions. However, the capacity threshold under this SATOC has been exhausted as of the current date. The Product Delivery Team (PDT) is working on a requirement package for a follow-on SATOC, with an anticipated award date of June 2016. Therefore, after a thorough review of the UMCS IV contract scope, the PDT will utilize contracts under the existing MATOCs to satisfy these requirements.

The UMCS program is managed under the Electronic Technologies Branch at CEHNC. The base contract, W912DY-15-D-0006, for UMCS contains all the requirements in paragraph A.1 Objectives:

Contractor shall provide for the procurement and installation of UMCS, Heating, Ventilation, and Air Conditioning (HVAC) Systems to include the integration and/or installation of chiller and boiler systems; Supervisory Control and Data Acquisition (SCADA) Systems, and other automated control systems which include Fire Alarm Safety (FAS) systems, chemical, biological, radiological contaminant detection / filtration / response, and utilities (i.e. electric, gas, water, and steam) metering. Security and/or force protection measures are also required, such as, but not limited to, barriers, fencing, gates, window treatments, hardening, and lighting worldwide. Therefore, the SGT contract from this programmatic MATOC would satisfy this requirement.

3. Description of Supplies/Services: The Contractor shall furnish and install a UMCS at Fort Stewart and HAAF which is compatible with the current Siemens DDC, UMCS of their APOGEE® hardware and software installed. The Contractor shall furnish all labor, material, and supervision to design and upgrade controls and the Hunter Golf Course Irrigation System. In addition, the contractor shall furnish all labor, material, and supervision to design and upgrade the control valves and controls on the Fort Stewart Hot Water Control Valves. The Contractor shall provide a fully

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4. Authority Cited: Pursuant to the authority in 10 U.S.C. 2304c(b)(2) 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 Utility Monitoring and Control System Mandatory Center of Expertise (UMCS-MCX) is required to use Siemens Government Technologies, Inc. to provide DDC and UMCS at Fort Stewart and HAAF for Siemens APOGEE® DDC systems for the reasons stated below.

Siemens Government Technologies, Inc. has installed and expanded on proprietary SGT DDC, UMCS of their APOGEE® hardware and software at the golf course and HAAF and Fort Stewart.

This Siemens APOGEE® DDC monitors and controls the irrigation system for the golf courses at both sites. This work will be directly related to the Siemens APOGEE® DDC Systems Upgrades.

Fort Stewart and HAAF utilize previously installed Siemens APOGEE® Energy Management Control Systems to remotely and locally monitor and control the irrigation system via the proprietary network protocols. Therefore Siemens Government technologies, Inc. is the only vendor capable of providing the equipment and software setup required. All new DDC equipment installed under this Task Order will have a common protocol (Siemens APOGEE) and be compatible with the existing system. Siemens Government Technologies, Inc. is the only vendor that can seamlessly integrate to the existing DDC Systems Upgrades with the Siemens APOGEE® System.

The golf courses at Fort Stewart and HAAF have standardized Siemens Government Technologies, Inc. as a single vendor solution for all DDC Systems, with seamless integration of the existing Siemens APOGEE® System. Fort Stewart has a significant investment in vendor supplied training in hardware and software. Vendor training operators and technicians assists them in troubleshooting;

servicing and maintaining the systems based on single vendor hardware, software, and developed skills.

The system maintenance and operation cost are reduced due to lower parts inventory. Similarly, the software programs such as operating system, database, graphics, and field controller algorithms are integrated and developed by one vendor. This reduces system down time and offers a reduction in loss of controlled services to the users at the facilities.

The existing Siemens APOGEE® equipment located at Fort Stewart is a proprietary system and no other vendor has the intellectual property rights or access to the coding and therefore cannot seamlessly integrate to the existing systems. In order to maintain code compliance, warranty, and reliability of the systems, it is in the Government’s best interest to use the same installation equipment and services 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. This presents a single vendor controls solution, the advantage of reduced inventory of parts, decreased training requirements and operation costs.

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6. Efforts to Obtain Competition: The existing multiple-award UMCS IV contractors were selected using full and open competition. However, due to the existing proprietary SGT UMCS systems at the cited location, SGT is the only contractor capable of performing these efforts.

Moreover, offerors who proposed and subsequently received awards under the subject MATOC pool were informed via the solicitation 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 determination 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: UMCS 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 describes 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) from being forced to return to the original installer, thus allowing a more “Open System”. 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 Unified Facilities Guide Specifications (UFGS) 25-10-10, LonWorks Network Services System (LNS) Utility Monitoring and Control System, and UFGS 23-09-23, LonWorks 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 of USACE 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) published a revised UFGS 25 10 10, Utility Monitoring and Control System (UMCS) Front End and Integration in November 2012. This update expands the control protocol from only LonTalk to BACnet, Modbus, OPC and Niagara Framework. The inclusion of these additional major control protocols greatly increased the competitive pool of acceptable vendors for front ends.

UFC 3-470-01, LonWorks Utility Monitoring and Control System (UMCS), was published in May 2012. This document supersedes UFC 3-401-01FA and provides the criteria for the industry standard communications protocol that permits communications 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 January 2016. 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 LonWorks technology to ensure an open system. However, once the new “Open” BACnet specification is published, stakeholders can choose either LonWorks or BACnet and integrate into a front end if installed in accordance with (IAW)

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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 original installing controls vendor for any expansions, modifications, or updates.

The UMCS Product Delivery Team (PDT) closely scrutinizes each of our customer’s requirements to determine how much of any given requirement is truly 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 separate a requirement between proprietary and competitive requirements. If the preponderance of a requirement can be competed, then we will make every effort to compete the acquisition, 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 APOGEE ® proprietary SGT system. However, due to the proprietary nature of the system configurations described in paragraph 5 above, the Government will not take additional action to increase competition for this requirement.

8. Market Research: Strategic market research is continually performed in order to identify any additional sources that could fulfill the Government’s requirement to interface to SGT’s proprietary system. Several methods of market research (detailed in paragraphs below) are utilized by the UMCS PDT to search for break-out businesses that have the expertise, capability, and access to SGT’s UMCS proprietary systems, and necessary personnel to maintain that system. The Government 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 LinkedIn.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 APOGEE® system and SGT as the sole provider of APOGEE®.

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

a. Contractor Knowledgeable Personnel - The Government contacted knowledgeable Government employees (CEHNC UMCS-MCX Engineers) who have had experience with this requirement and were involved in previous acquisitions for UMCS contracts.

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UMCS-MCX Engineering Branch Chief US Army Corps of Engineers – Huntsville Center:

The UMCS-MCX for the Corps of Engineers 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 of UMCS systems have come and gone; each with its own proprietary requirement. The Technical Deputy of HNC’s UMCS-MCX, is presently serving on the LonMark International Board of Directors, an organization made up of many of the worlds’ UMCS manufacturers, for the promotion and expansion of open UMCS systems. This board is involved in the promotion of open protocols such as LONTALK, which has revolutionized the UMCS industry, particularly at the field level. However, there still remains the proprietary nature of each manufacturer’s front end computers. 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.

b. In addition to canvassing knowledgeable Government employees, product capabilities from the following UMCS-IV MATOC contracts were reviewed (see Table below); results of this review reveal that only SGT has the capabilities to meet the Government’s requirements. Due to the proprietary nature of the system, all other MATOC pool contractors do not have capability to successfully interface with SGT APOGEE ® system without partnering with SGT.

List of UMCS-IV Action Unrestricted & Restricted Pool Contractors and Contract Numbers

Contractor Name Contract Number Business Type

c. Publicizing Contract Actions - 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 task orders. However, in accordance with FAR

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16.505(b)(2)(ii)(D), this EFO will be posted to Federal Business Opportunities (FedBizOpps) within fourteen (14) days after award

9. Interested Sources: Based upon ongoing strategic market research, and validation of current market conditions through tactical market research, no other known sources other than SGT are available to fulfill this requirement, due to the proprietary nature of the APOGEE® system. See section 7, 8a and 8c for more information regarding efforts to increase competition for future acquisitions.

10. Other Facts:

a. Procurement History. In 2009 and 2010 (until April), the UMCS program submitted approximately five (5) Exceptions to Fair Opportunity (EFO) to award sole source work to Siemens. These EFOs provided approval to award sole source orders against the program’s previous MATOCs (UMCS II and III). In order to address these Apogee® requirements, the government awarded a $77.5M SATOC to Siemens in April of 2010. The existing Siemens SATOC originally included one base year with one option year. Due to the amount of unused capacity, three additional one-year ordering periods were added to the contract in 2012 based on increasing demand and awareness of the SATOC. The SATOC expired on 30-April-2015.

b. Acquisition data availability. Technical data packages, specifications, engineering descriptions, performance work statements or purchase descriptions suitable for Full and Open Competition are not available for this proprietary system. Although market research is ongoing as described in section 8 (Market Research) 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 Contracting Officer will ensure that the contractor will maximize competition for subcontracts to the maximum extent practicable in accordance with FAR Clause 52.244-5.

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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.”

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APPROVAL

Apogee – Exception to Fair Opportunity

Based on the foregoing justification, I hereby approve the issuance of Firm-Fixed price task order under contract W912DY-15-D-0006 with a total value of $430,733.00 to SGT at Fort Stewart, GA as described above pursuant to authority in 10 U.S.C. 2304c (b)(2) as implemented by FAR 16.505(b)(2)(i)(B), whereas “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,” subject to availability of funds and provided that the services herein described have otherwise been authorized for acquisition.

Amount: $430,733.00, Name:

Title: