CHP maintenance - ANN arbor 506-C70254

Added: May 04, 2017 11:42 am Modified: Jun 07, 2017 4:06 pmTrack Changes Chapter VI: Other Than Full and Open Competition (OFOC) SOP

Attachment 3: Request for Sole Source Justification Format >$150K



OFOC SOP Revision 05 Page 4 of 4

Original Date: 03/22/11

Revision 05 Date: 05/02/2016

DEPARTMENT OF VETERANS AFFAIRS



Justification and Approval (J&A)

For

Other Than Full and Open Competition (>$150K)



Acquisition Plan Action ID:_506-17-2-522-0079_________________________



Contracting Activity: Department of Veterans Affairs, VISN 10, VA Ann Arbor Healthcare System, Station 506. This acquisition supports transaction #: 506-17-2-522-0079 to acquire a maintenance contract to support that facilities existing 1 MW (megawatt) natural gas fired Combined Heating and Power plant.



Nature and/or Description of the Action Being Processed:



This action shall procure a maintenance contract to support the facilities existing 1 MW combined heating and power plant. This power plant requires specialized maintenance that only specific vendors with very specific training and tools are able to provide.



The VA does not possess these specialized tools nor do we have staff that has been trained to the level required to properly perform this work. Given the nature of this work, specialized and ongoing training is an absolute requirement. Additionally, working at a detailed level on this type of equipment on a regular basis is required to keep your maintenance skills at an appropriate level. The workload with a system of this type at this one VA facility is not enough to keep our maintenance staff current and up to date on all required maintenance activities.



GEM Energy, the vendor being sought for in this contract action, has the staff, tools and training necessary to maintain our system. This makes them one of a few specialized companies able to perform this type of work generally. The following are specific reasons that make this company uniquely qualified for this contract and why the VA is required to sole source to GEM Energy for this contract.



GEM Energy is the contractor who performed a large part of the work to install this system.

GEM Energy has technicians with active certification from the CHP Manufacturer for maintenance and repairs.

Without this certification, technicians working on our plant are specifically unqualified to perform the work.

GEM Energy is the only known company in this region of the country certified to maintain and/or repair our Capstone CHP plant.

Without this certification, a company performing the work on our plant is specifically unqualified to perform the work.



Description of Supplies/Services Required to Meet the Agency s Needs:



The supplies and services to be provided under this contract are as follows:

Provide maintenance and repair services for the facilities existing 1MW Capstone CHP plant.

The existing plant consists of 5 200 kW natural gas fired turbine engines/generators. The electric power from the CHP plant is tied into the facility main bus.

The existing plant has a small boiler as part of the thermal heat recovery and is providing in excess of 3,084 lbs of medium pressure steam directly into the facility steam header at the boiler plant.

All scheduled maintenance, per manufacturer s recommendations, is specifically included in this contract per the SOW.

Unscheduled repair services are specifically required in this contract per the SOW.

Training on the operation and some general maintenance for VA staff on an annual basis is specifically required under this contract per the SOW.



Estimated value

Year 1: $145,000.00

Year 2 Option year 1: $149,350.00

Year 3 Option year 2: $153,830.50

Year 4 Option year 3: $158,445.42

Total value of this acquisition: $606,625.92



Delivery dates: May 30 2017 start year 1

Maintenance per schedule in SOW

Repairs as needed

Training per SOW



Statutory Authority Permitting Other than Full and Open Competition:



(X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements per FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability

or Expert Services per FAR 6.302-3;

( ) (4) International Agreement per FAR 6.302-4

( ) (5) Authorized or Required by Statute FAR 6.302-5;

( ) (6) National Security per FAR 6.302-6;

( ) (7) Public Interest per FAR 6.302-7;





Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):



Only One Responsible Source (FAR 6.302-1)

GEM Energy, the vendor being sought for in this contract action, has the staff, tools and training necessary to maintain our system. This makes them one of a few specialized companies able to perform this type of work generally. The following are specific reasons that make this company uniquely qualified for this contract and why the VA is required to sole source to GEM Energy for this contract.



GEM Energy is the contractor who performed a large part of the work to install this system.

GEM Energy has technicians with active certification from the CHP Manufacturer (CAPSTONE) for maintenance and repairs.

Without this certification, technicians working on our plant are specifically unqualified to perform the work.

GEM Energy is the only known company in this region of the country licensed and certified to maintain and/or repair our Capstone CHP plant.

Without this certification, a company performing the work on our plant is specifically unqualified to perform the work.



Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:



Sources Sought Synopsis: Not published



Other Actions:

Contacted Capstone, the manufacturer of the CHP plant at our facility, directly for engineering and maintenance support. After verifying our address, they directed us to call GEM Energy for all maintenance and repair action needed for our equipment as GEM Energy is the licensed and certified representative covering maintenance, repairs and other engineering concerns, for Capstone in our region of the country.

Contacted DeMaria, the General contractor who installed our system. They informed us that the only company they were able to find was GEM Energy.



Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: Pricing quoted by GEM Energy is commensurate with the award made at this at facility for similar services.



Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:



Internet searches. No other licensed and certified companies were found to service this equipment in our region.

Direct contact with the manufacturer of the equipment by phone. We were specifically directed to GEM Energy.

Direct contact with the General contractor who installed our CAPSTONE CHP plant, by phone and e-mail. The GC specifically stated the GEM Energy is the only company able to provide maintenance and repair services in this region.



Any Other Facts Supporting the Use of Other than Full and Open Competition:



N/A









Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:



GEM Energy Rudolph Libbe Group

Factory Protection Plan



A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to Competition before Making subsequent acquisitions for the supplies or services required:



N/A