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SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5 Acquisition Plan Action ID: 36C248-22-AP-4500, Preventive Maintenance Services for Emerge... SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5 Acquisition Plan Action ID: 36C248-22-AP-4500, Preventive Maintenance Services for Emergency Power Generators at VA Caribbean Healthcare System (VACHS) Contracting Activity: Department of Veterans Affairs, Regional Procurement Office (RPO) East, Network Contracting Office (NCO) 8, VA Caribbean Healthcare System, San Juan, Puerto Rico. Nature and/or Description of the Action Being Processed: This procurement is to acquire non-personal services for the preventive and corrective maintenance of twenty four (24) emergency power generators. The service includes all inspections, labor, personnel, troubleshooting, repairs, equipment, tools, materials and necessary supervision in order to maintain all emergency generators in optimal conditions. This is a firm-fixed-price, follow-on contract. This acquisition is conducted under the authority of FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2. The estimated value of this acquisition is $2,367,344.00. In accordance with the Veterans Health Administration Procurement Manual (VHAPM) Part 806.3, Sole Source acquisition over $750,000 but not exceeding $75 million are to be approved by the VHA Head of Contract Activity. The proposed contractor is: RIMCO LLC 312 Marginal JF Kennedy KM 3. 7 San Juan, PR, 00920 Phone: 787-273-5762 Estimated award date: 10/01/2022 Description of Supplies/Services Required to Meet the Agency s Needs: Contractor shall provide all labor, personnel, equipment, tools, materials, supervision and other items and non-personal services necessary to perform Preventive and Corrective Maintenance Services to maintain a total of twenty four (24) emergency power generators within the VA Caribbean Healthcare System. The detailed estimate amount per period is as follows: The Total estimated value of this acquisition is $2,367,344.00. The requested service is for the following equipment: The anticipated contract schedule of prices will include the following line items in each contract period. Statutory Authority Permitting Restricted Competition: FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement.  Competition is restricted on this procurement for the reason below: (x) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements ( ) Unusual and Compelling Urgency ( )  Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): An official letter from Caterpillar Inc., which is the equipment manufacturer, certifies that Caterpillar products and services are provided through a network of independently owned dealers. RIMCO, LLC is one of such dealers having a "Dealer Agreement" related to the sales and services of products within the service territory of the Commonwealth of Puerto Rico (PR) and the United States Virgin Islands (USVI), which are the locations to be served under this acquisition. The letter also indicates, that RIMCO is the only authorized distributor that have such "Dealer Agreement" with Caterpillar for the service territory that covers PR and the USVI. RIMCO LLC, has trained service personnel and is authorized and responsible to provide all the necessary after-sales support (Caterpillar warranty and Caterpillar parts and services) for the Products in the service territory of PR and the USVI. RIMCO LLC, as the only authorized dealer for PR and the USVI will have access to Caterpillar products and will be able to honor the Caterpillar standard warranty for those products. The risk of not awarding this contract will have an impact on the operational status of the items listed under paragraph 3 of this document. Exclusivity Letter can be found in the acquisition's briefcase. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Competition for this requirement is not possible since RIMCO, LLC. is the only authorized distributor with a service agreement for the service territory of PR and the USVI. Certification Letter from the Caterpillar manufacturer was uploaded to the requirement briefcase. A search on the VA Vendor Information Pages (VIP) revealed that there are no SDVOSB nor VOSB that can fulfill this requirement. A sources sought notice is not needed at this time since there is enough evidence that this is the only company that can fulfill this requirement. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The CO will require the vendor to provide evidence of catalog prices and or other sales receipts or contracts from other customers to validate that the final prices are fair and reasonable. In addition, historical data for similar services will be used to compare the proposed price. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market Research was conducted using VIP, SAM and SBA Dynamic Tool as well as previous acquisition history. Results revealed there are not capable SDVOSBNOSB companies that can fulfill this requirement and be compliant with the limitations of subcontracting requirement. An official letter from Caterpillar Inc., certifies that RIMCO is the only authorized distributor that have a "Dealer Agreement" with Caterpillar for the service territory that covers PR and the USVI. Any Other Facts Supporting the Use of Other than Full and Open Competition: Full and Open Competition is not feasible since RIMCO LLC, is the only company that has a service agreement for the service territory of PR and the USVI. In order to maximize the competition, the government may need to buy/replace existing equipment, with one that is not proprietary and multiple vendors can provide preventive maintenance and repair services utilizing certified personnel and original manufacturer parts. Although Caterpillar has a network of independently owned dealers, RIMCO is the only one with a service agreement for this region. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Only RIMCO, LLC. has demonstrated interest and capability to fulfill this requirement. 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: As previously indicated, in order to foster competition, the government would need to replace existing Caterpillar generators. Nonetheless, that industrial equipment has not reached their life expectancy and replacement of the Caterpillar emergency power generators is not needed at this time. Therefore, the government will continue verifying with the manufacturer, prior to making subsequent acquisitions; if there are other authorized dealers in the region. Requirements Certification: I certify that the requirement outlined in this justification is a Bona Fide Need of the Department of Veterans Affairs and 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. __________________________________ Requesting Service VA Caribbean Healthcare System Approvals in accordance with the VHAPM Part 806.3 OFOC SOP: Contracting Officer or Designee s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief. __________________________________ Contracting Officer One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition. __________________________________ San Juan Services Branch Chief