Intent to Sole Source - Continuation of Boiler Rental

Closed Special Notice Posted

Solicitation number
TB26-001
Agency
Responses due
Set-aside
No set-aside

Opportunity facts

Place of performance
Arizona 86503, United States

Notice details come from SAM.gov. Updated .

About this opportunity

The Navajo Area Indian Health Service, Chinle Comprehensive Health Care Facility (CCHCF) in Chinle, Arizona has issued a Notice of Intent to Award under a sole source procurement. The Special Notice, posted on October 29, 2025, announces the agency's intention to award a non-competitive contract to Year Out Mechanical LLC for the rental of one hospital-grade boiler. This procurement falls under NAICS code 238220 (Plumbing, Heating, and Air-Conditioning Contractors) with a small business size standard of $19 million. The notice is issued in accordance with FAR 13.106-1(b)(1)(i) and represents a continuation of existing boiler rental services at the facility.

The objective of this sole source contract is to ensure continued heating operations and uninterrupted patient care at CCHCF by maintaining the rental boiler already installed and operational at the facility. The contract period is one year from the date of award. The rationale for sole sourcing to Year Out Mechanical LLC is based on the contractor's unique qualifications, including the correctly sized boiler already in place and fully integrated into the facility's heating system; switching vendors would result in operational downtime and provide no cost savings to the government. The notice indicates that in 2024, two of CCHCF's three original boilers became inoperable, prompting the November 2024 rental of the current boiler as a temporary measure while replacements are being procured separately. Interested parties have until October 30, 2025 to submit protests or objections to this sole source award determination.

Notice text

2 versions

Update #2 · Latest ·

Notice of Intent to Award / Sole Source

In accordance with (FAR) 13.106-1(b)(1)(i), the Navajo Area Indian Health Service, Chinle Comprehensive Health Care Facility located in Chinle, AZ 86503 intends to award a non-competitive, sole sourced contract to Proposed Contractor, Year Out Mechanical LLC, 8501 Washington ST NE, Albuquerque, NM 87113, to provide rental for one (1) hospital grade boiler at the Chinle Comprehensive Health Care Facility (CCHCF).  This boiler rental contract is a follow-on contract, because the Proposed Contractor currently has a boiler on site and fully installed providing heat to the entire hospital, rented boiler is semi-permenant.  The continued services ensure the continuity of direct patient care and operation of the entire hospital.  CCHCF needs the extra boiler to meet the heating demands for the entire hospital, given the colder winter months.

The Proposed Contractor is the only organization uniquely qualified to provide the required services to ensure that there is no interruption in services that could negatively impact direct patient care at CCHCF.  The Proposed Contractor already has a correctly sized boiler in place at CCHCF.  Reconnecting a new boiler or finding another vendor would mean downtime and there would be no cost savings to the Government. Also, there would be a learning curve for a new vendor to size another boiler.

The anticipated period of performance is a one one-year from the date of award through 12 months. The applicable North American Industry Classification System (NAICS) code assigned to this procurement is 238220 with a small business size standard of $19 million.

Background: In 2024, two of the three hospital boilers became inoperable and obsolete, leaving CCHCF with one operable boiler.  Thereby CCHCF began renting a one boiler in November 2024 while working on replacing the two damaged boilers.  This notice is not for replacement, but for renting the one extra boiler.  I am not overseeing the replacement procurement.

This notice of intent to award a sole source contract is not a request for competitive proposals. There will be no solicitation available for competitive quotes. Any response to this notice must show clear and convincing evidence that competition would be advantageous to the Government. Respondents are advised that the Government is under no obligation to acknowledge receipt of the information received or provide feedback to respondents with respect to any information submitted.

A determination by the Government not to compete the proposed procurement base upon responses to this notice is solely within the discretion of the Government. Information received will be considered solely for the purpose of determining whether to conduct a competitive procurement in the future.  Any solicitation resulting from the analysis of information obtained will be announced to the public in Federal Business Opportunities in accordance with the FAR Part 5. However, responses to this notice will not be considered adequate responses to a solicitation. No proprietary, classified, confidential, or sensitive information should be included in your response. The Government reserves the right to use any non-proprietary technical information in any resultant solicitation(s).

Update #1 ·

Notice of Intent to Award / Sole Source

In accordance with (FAR) 13.106-1(b)(1)(i), the Navajo Area Indian Health Service, Chinle Comprehensive Health Care Facility located in Chinle, AZ 86503 intends to award a non-competitive, sole sourced contract to Proposed Contractor, Year Out Mechanical LLC, 8501 Washington ST NE, Albuquerque, NM 87113, to provide rental for one (1) hospital grade boiler at the Chinle Comprehensive Health Care Facility (CCHCF).  This boiler rental contract is a follow-on contract, because the Proposed Contractor currently has a boiler on site and fully installed providing heat to the entire hospital.  The continued services ensure the continuity of direct patient care and operation of the entire hospital.  CCHCF needs the extra boiler to meet the heating demands for the entire hospital, given the colder winter months.

The Proposed Contractor is the only organization uniquely qualified to provide the required services to ensure that there is no interruption in services that could negatively impact direct patient care at CCHCF.  The Proposed Contractor already has a correctly sized boiler in place at CCHCF.  Reconnecting a new boiler or finding another vendor would mean downtime and there would be no cost savings to the Government. Also, there would be a learning curve for a new vendor to size another boiler.

The anticipated period of performance is a one one-year from the date of award through 12 months. The applicable North American Industry Classification System (NAICS) code assigned to this procurement is 238220 with a small business size standard of $19 million.

Background: In 2024, two of the three hospital boilers became inoperable and obsolete, leaving CCHCF with one operable boiler.  Thereby CCHCF began renting a one boiler in November 2024 while working on replacing the two damaged boilers.  This notice is not for replacement, but for renting the one extra boiler.  I am not overseeing the replacement procurement.

This notice of intent to award a sole source contract is not a request for competitive proposals. There will be no solicitation available for competitive quotes. Any response to this notice must show clear and convincing evidence that competition would be advantageous to the Government. Respondents are advised that the Government is under no obligation to acknowledge receipt of the information received or provide feedback to respondents with respect to any information submitted.

A determination by the Government not to compete the proposed procurement base upon responses to this notice is solely within the discretion of the Government. Information received will be considered solely for the purpose of determining whether to conduct a competitive procurement in the future.  Any solicitation resulting from the analysis of information obtained will be announced to the public in Federal Business Opportunities in accordance with the FAR Part 5. However, responses to this notice will not be considered adequate responses to a solicitation. No proprietary, classified, confidential, or sensitive information should be included in your response. The Government reserves the right to use any non-proprietary technical information in any resultant solicitation(s).

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