JA HVAC Chillers (redacted).pdf

LRL_FY20_0056

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Agency: U.S. Army Corps of Engineers (USACE), Louisville District, Post Office Box 59, Louisville, Kentucky 40201-0059.

2. Description of Action: This justification and approval (J&A) is being prepared for the use of a brand name item, Trane HVAC Chillers, in the firm-fixed-price construction contract for Repair FSD-1/HVAC/Interior/Exterior 711HPW F/20441 project at Wright-Patterson Air Force Base, Ohio. The government will not purchase the Trane equipment directly, but rather brand name specifications will be included in the design-bid-build solicitation that will lead to a new firm-fixed-price (FFP) construction contract. The construction contract is planned to be awarded in FY20 using FY20 O&M funding; however, the solicitation is being advertised as Subject to Availability of Funds. If funds do not become available in FY20, the project will be a high priority for award in FY21.

3. Description of Supplies/Services: The chillers selected for use on FSD-

1/HVAC/Interior/Exterior 711HPW F/20441 project at Wright-Patterson Air Force Base, Ohio project are Trane chillers. Trane has offices around the world, with a regional office in Holland, Ohio. The estimated total cost for the equipment is as follows:

Chiller (69 tons): $114,831 Chiller (69 tons): $114,831

4. Authority Cited: 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.” This authority is applicable to brand name justifications in accordance with FAR 6.302-1(c)(1).

5. Reason for Authority Cited:

a) Background: FSD-1/HVAC/Interior/Exterior 711HPW F/20441 project at Wright- Patterson Air Force Base will replace existing chilled water systems that serve this building.

The 711HPW F/20441 building contains many chillers and cooling towers used for summer chilled water production, some of which are near the end of their expected life cycle, and others which are relatively new. Additionally, many spaces in the building require winter cooling, and numerous supplemental cooling systems have been installed to meet this need. The building stands to gain great maintenance and energy efficiencies from the repair of all existing chiller water systems. The facilities currently use Trane chillers, which are proprietary products of the sole manufacturer, Trane.

b) Justification: The expansion of the existing facilities will require synchronization of the current HVAC equipment already installed in the existing facilities with the new equipment to be procured for the project. The existing facilities currently utilize chillers that are proprietary products of the sole manufacturer: Trane. In order to ensure a seamless connection between the current and new equipment, it will be necessary to procure similar HVAC chillers as the ones currently in place. The added complexities and risks associated with mixing various equipment within this system goes beyond providing creature comforts. The chillers used in this system are used for research lab equipment, critical for national security interests. Keeping equipment consistency is critical for reducing risks and minimizing research downtime.

c) Impact: Connecting new HVAC chillers to the current HVAC system is a very complex process. In order to ensure a seamless connection between the current and new equipment, it will be necessary to procure similar HVAC chillers as the ones currently in place. The utilization of full and open competition will result in multiple different types of systems being installed, which will result in costly training, a lack of operations and maintenance proficiency, multiple systems per base requiring contracting out advanced repairs, resulting in more system down-time.

d) Alternatives: None viable to achieve a fully functioning system for the reasons noted above in paragraph 5. b) and c). This project requires compatibility and interoperability with the existing HVAC system, and no other equipment will be compatible within the existing system. The only alternative to the use of Trane equipment in this instance is a total system replacement, which is cost prohibitive. A total replacement would require additional time and effort to re-program the project and obtain Congressional approval.

6. Efforts to Obtain Competition: Technical requirements of various manufacturers were reviewed for compatibility to the current chiller system at WPAFB; however, use of different equipment from what is currently being utilized would result in communication errors with the Chiller system, making it inoperable.

A Notice of Intent to Sole Source was posted on the beta.sam.gov website on 28 July 2020.

To date, no other sources have written to express interest.

7. Actions to Increase Competition: Apart from a complete replacement of the current HVAC chiller system for the 711HPW F/20441 building in its entirety, competition will be limited.

This is a finite requirement with no future needs, and therefore there are no actions to increase future competition.

8. Market Research: A Notice of Intent to Sole Source was posted on the beta.sam.gov website. To date, no other sources have written to express interest. A technical review and evaluation was conducted of the chillers and chillers control system. As discussed in paragraph 6 above, only the Trane equipment will ensure seamless compatibility with the existing system. A Notice of Intent to Sole Source was posted on beta.sam.gov website, which has not produced any responses. In addition, another notice of intent for sole source of Trane chillers was conducted different projects in January 2020 (W912QR20R0002) and July 2020 (W912QR20R0065) and no responses to those postings were received.

9. Interested Sources: N/A; this J&A will be posted with the issuance of the solicitation in accordance with FAR 5.102 (a)(6) and 6.302-1(c)(1)(ii)(C). All responsible sources may submit a capability statement, proposal, or quotation, which will be considered by the agency.

Per paragraph 6 above, a Notice of Intent was issued; however, no responses have been received.

10. Other Factors: None

11. Technical Certification: I certify that the supporting data under my cognizance, which are included in the Justification and Approval, are accurate and complete to the best of my knowledge and belief.

___________________________________DATE ____________

Angela Johnston Project Engineer

12. Requirements Certification: I certify that the supporting data under my cognizance, which are included in the Justification and Approval, are accurate and complete to the best of my knowledge and belief.

___________________________________DATE ____________

John Bock, P.E.

Chief, Engineering Division

13. Fair and Reasonable Cost Determination: I hereby determine that an anticipated cost for the 711HPW F/20441 building at Wright-Patterson Air Force Base, Ohio will be fair and reasonable based upon the estimate outlined in paragraph 3. At time of evaluating proposal price, the overall proposed price will be evaluated for fair and reasonableness. I recommend this approach to the prompt attainment of services for the upcoming construction.

__________________________________ DATE_____________

James Vermillion, P.E.

Chief, Cost Estimating Section

14. Legal Review and Concurrence: I hereby determine that the information herein is legally sufficient and I concur with the sole source procurement.

__________________________________DATE_____________

Elisabeth Dixon Assistant District Counsel

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

__________________________________DATE_____________

Bjorn Hale Contracting Officer