JA - SCO (HVAC Chillers - Brand Name) - JOMPC (Clean).pdf

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 the Joint Operations Mission and Planning Center (JOMPC) project at Scott Air Force Base, Illinois. 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 under a full and open solicitation, using FY21 AF MILCON funding.

3. Description of Supplies/Services: The chillers selected for use on the JOMPC project at Scott Air Force Base, Illinois are Trane chillers. The Trane Chillers Brand Name Specifications will be included in the Design Bid Build Solicitation. Trane has offices around the world, with an office in Fenton, MO. The estimated total cost for the equipment is approximately XXXXXX.

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: As described at FAR 6.302-1(a)(2), when the supplies or services required by the agency are available only from one responsible source 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 that ‘Only One Responsible Source’ authority using the application of FAR 6.302-1(b)(4), which states that “[w]hen 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.”

a) Background: The JOMPC project at Scott Air Force Base is a new construction project utilizing economical design and construction methods. The preliminary building concept design consists of a two-level structure built above grade that is primarily symmetrical and rectilinear in nature with a steel superstructure, reinforced concrete foundation walls and footings, insulated and reinforced concrete exterior walls with embedded thin brick masonry façade and an insulated standing seam metal roof. The project includes classified storage, communications infrastructure, air conditioning, space for uninterruptable power systems, emergency backup power generator, intrusion detection, fire detection / suppression, utilities, area lighting, general site improvements, pavement and all other required supporting facilities to result in a complete and usable facility. The building footprint is approximately 171,802 square feet. This facility will relocate personnel currently working in several substandard or failing facilities throughout the installation.

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) In a memorandum signed on 22 June 2017, the Under Secretary of the Air Force appointed the Deputy under Secretary of the Air Force, Management and Deputy Chief Management Officer as the AF Category Management Accountable Official. On 14 July 2017, the Deputy under Secretary of the Air Force, Management and Deputy Chief Management Officer, appointed the Civil Engineer Center Director (AFCEC/CL) as the Air Force Category Manager for the Facilities and Construction Category. On 16 May 2019, the AFCEC/CL directed the mandatory standardization of HVAC chiller systems and delegated manufacturer selection to the AFCEC Operations Director (AFCEC/CO).

(3) On 3 May 2019, the AFCEC/CO executed a memorandum, Subject: HVAC Chiller System Standardization, Single Manufacturer Selection, which set forth the AFCEC/CL intent to standardize HVAC chiller systems to a single manufacturer at the installation level. The memorandum explained that standardization of all HVAC chiller systems allows the Air Force to significantly reduce the total cost of ownership which includes the initial procurement, subsequent maintenance, and associated training costs to operate the system over its lifecycle. The memorandum went on to provide guidance for the evaluation, recommendation, and subsequent approval of a single manufacturer for HVAC chiller systems at each installation and stated that Base Civil Engineers (BCEs) were to request and provide justification for the recommended single HVAC chiller manufacturer. The memorandum concluded with a requirement to repeat the analysis after five years from the date of AFCEC/CO approval for a single manufacturer. The purpose of this secondary analysis is to document the installation's progress in standardizing HVAC chiller systems, consider any changes in the decision facts, and confirm no external factors exist that may drive a reconsideration of the approved single manufacturer.

(4) On 10 May 2019, the AFCEC/CL signed a memorandum, Subject: Mandatory Standardization of HVAC Chiller Systems. The memorandum directed the mandatory standardization of HVAC chiller systems to a single manufacturer at the installation level and reiterated the process laid out in the above referenced 3 May 2019 guidance. The memorandum also delegated the AFCEC/CL’s approval authority to the AFCEC/CO for the selection of a single manufacturer for HVAC chiller systems.

(5) In a memorandum dated 10 September 2019, Subject: HVAC Chiller System Standardization, Single Manufacturer Selection, the AFCEC/CO approved the selection of specific brands as the single manufacturer for various installations, including Scott Air Force Base. This memorandum specifies Trane Inc. as the selected manufacturer for this installation. This selection, supported by the other memorandums summarized above, satisfies the FAR 6.302-1(b)(4) application of the ‘Only One Responsible Source authority,’ as the Agency Head (delegee) 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.

c) Impact: If this J&A is not approved, USACE will be unable to implement the Air Force’s standardization decision for JOMPC project at Scott Air Force Base. If the HVAC equipment at this installation is not standardized, the Air Force will not be able to realize the efficiencies and reduction of costs that have been targeted in its 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 system failures. If Trane chillers are not utilized in this facility, the Air Force will be required to expend significant resources in additional training for maintenance personnel or in contracts for outside maintenance personnel to perform work on the non-Trane systems, and it would not be able to fully realize the benefits of its standardization decision in gaining efficiencies, decreasing disruptions, and achieving less system down time.

d) Alternatives: The standardization determination executed by the Air Force compels USACE to include the base-specific requirement in the solicitation for the JOMPC. There is no alternative product that meets the AF’s need to standardize this equipment. The only alternative available would be to purchase the HVAC equipment 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, storing, equipment warranty, conveying and managing the GFE was determined to both be inefficient and uneconomical. No other feasible alternatives were identified.

6. Efforts to Obtain Competition: A technical review and evaluation was conducted of the Chillers for all of the Air Force, per Installation, by the Air Force Civil Engineering Command (AFCEC). AFCEC determined TRANE would be the official sole-source provider of Chillers for Scott AFB to provide efficiencies in maintenance support and in savings of training time and money for their maintenance staff.

A Notice of Intent to Sole Source was posted on 09 September 2020. To date, no other sources have written to express interest. If prior to issuance of the solicitation, responses are received expressing interest, the justification will be amended.

7. Actions to Increase Competition: In order to achieve the benefits of the Air Force’s standardization decision competition must 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 technical review and evaluation was conducted of the Chillers for all of the Air Force, per Installation, by the Air Force Civil Engineering Command (AFCEC).

AFCEC determined TRANE would be the official sole-source provider of Chillers for Scott AFB to provide efficiencies in maintenance support and in savings of training time and money for their maintenance staff.

A Notice of Intent to Sole Source was posted on 09 September 2020. To date, no other sources have written to express interest. If prior to issuance of the solicitation, responses are received expressing interest, the justification will be amended.

9. Interested Sources: A Notice of Intent to Sole Source was posted on 09 September 2020. To date, no other sources have written to express interest. If prior to issuance of the solicitation, responses are received expressing interest, the justification will be amended.