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VHAPM Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification >SAT-$7.5M under FAR13.5 PM Part 813.5 SAP for Certain Commercial It... VHAPM Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification >SAT-$7.5M under FAR13.5 PM Part 813.5 SAP for Certain Commercial Items Page 1 of 9 Original Date: 08/30/17 Revision 03 Date: 02/11/2021 DEPARTMENT OF VETERANS AFFAIRS SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5 Acquisition Plan Action ID: 36C250-20-AP-4934 Contracting Activity: Department of Veterans Affairs, VISN 10, Station 610, Northern Indiana Healthcare System (NIHCS) submits to Network Contracting Office (NCO) 10, located at 8888 Keystone Crossing, Suite 1100, Indianapolis, IN 46240 a single source procurement request for Building Management System (BMS) and Heating, Ventilation, and Air Conditioning (HVAC) preventative maintenance services to Shambaugh & Sons dba Havel Bros. Funding is available on 2237# 610-21-2-6091-0011. Nature and/or Description of the Action Being Processed: The Department of Veterans Affairs requires a service contract at both the NIHCS VAMC s located in Marion and Ft. Wayne, Indiana. The contractor will provide technical support at each facility to implement the preventative maintenance and support services outlined in the Statement of Work (SOW). This sole source procurement will be for a service contract in accordance with 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 contract shall be for a one-year base period, with four one-year options. Base year period of performance is 5/1/2021 to 4/30/2022. The total estimated cost of the contract is $1,487,655.00. Description of Supplies/Services Required to Meet the Agency s Needs: The NIHCS has campuses in Marion and Ft. Wayne, Indiana. These VA Medical Centers (VAMC) provide inpatient and outpatient services to Veterans. NIHCS has a requirement for preventative maintenance services for the Government owned Schneider Electric BMS and HVAC systems for both campuses. A preventative maintenance contract will decrease downtime and increase reliability of the systems by repairing components and programming. It will also directly affect patient comfort, decrease costs, and improve efficiency of the systems. 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): Only One Responsible Source Schneider Electric provided a letter that they distribute systems products through a network of factory authorized independent field offices by geographical territories. Central Indiana, to include Marion and Fort Wayne VA campuses, specifically use Shambaugh & Sons, dba Havel an EMCOR Company, Inc as the sole representative who is certified and authorized by Schneider Electric Buildings Americas, Inc. for design, installation, start-up, warranty support, programming and service of their building maintenance systems. It is a common practice with BMS systems in the commercial market place for the OEM to designate only their authorized representatives to perform services. These services are highly specialized and require a special skill set in order to appropriately provide services. Certification is required to service and program the Schneider Electric System, which can only be obtained in partnership with the OEM. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A search was conducted on the Small Business Administration (SBA) Dynamic Small Business Search (DSBS) website https://web.sba.gov/pro-net/search/dsp_dsbs.cfm and Vendor Information Pages (VIP) website https://www.vip.vetbiz.va.gov/ however, there were no Service Disabled Veteran Owned Small Business (SDVOSB), Veteran Owned Small Business (VOSB), or Small Business (SB) concerns found that could provide the long term service and maintenance on the BMS HVAC. A letter was provided by the OEM that states that Havel Bros is the only company that is authorized to provide services in the area of Northern Indiana. It was determined that a firm fixed priced sole sourced award be made to Havel Bros. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: An informal quote was obtained from the recommended contractor by the contracting officer. The informal quote was priced at $1,487,655.00 for the base and all options. Subsequently, the CO anticipates the pricing will be fair and reasonable. The IGCE was developed using information provided by the Battle Creek VAMC BMS Service Contract VA250-17-C-0222 which is very similar to the requirements needed for this procurement. Campus size, system functions, square footage, age of systems, and geographic location all played a part in determining the IGCE for NIHCS. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market Research was conducted in an effort to find a suitable SDVOSB/VOSB/SB source capable of providing the services asked. Emails were sent out to sources found however, there were no responses. A determination was made that there were no contractors capable of providing maintenance and services for the BMS system. Any Other Facts Supporting the Use of Other than Full and Open Competition: Previous services have been procured on an as needed basis. Over the past 20 years, services have been performed by the OEM authorized contractor Shambaugh & Sons dba Havel Bros. Usually on an emergent or after-need basis by using a combination of logistics procurements, government purchase cards, and contracting vehicles. This normally adds significat costs to the medical center to acquire services at such short notice with no previous preventative maintenance services. It is very common in the commercial market place to be contracted to an authorized company to provide services due to contractor knowledge and capability to have trained staff in the OEM requirements to maintain the systems. Most facilities do not have the manpower whether commercial or Government to maintain both the BMS and HVAC systems on a regular basis. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Emails were sent out to sources retained from the VIP and SBA DSBS website however, there were no responses. Shambaugh & Sons dba Havel Bros, located at 7525 DiSalle Blvd., Fort Wayne, IN 46825 did provide a formal quote on 12/22/2020 quote number 20-12-12KB. Contractor point of contact is Kelly Boocher, Building Automation Manager, 260-497-1546, KBoocher@shambaugh.com. 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: A special notice will be posted to beta.sam.gov for the Sole Source Justification (SSJ) as required by FAR 6.305 Availability of the Justification. By posting the SSJ this could spark interest or provide additional market research that will be used to ensure that if the contractor adds additional authorized companies or additional companies are authorized to provide services, that a fair opportunity will be provided prior to awarding of option periods and new contracts. At this time there is no reasonable expectation that a SDVOSB/VOSB will be able to provide the required services in the statement of work at a reasonable price or with authorization from the OEM. 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. _____________________________ ________________________ Zachary I. McDaniel Date Assistant Chief of Engineering Northern Indiana 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. _____________________________ ________________________ Sally L. Leitch Date Contracting Officer Services Team 3 Network Contracting Office (NCO) 10 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. _____________________________ ________________________ Toni Waggoner-Boykin Date Brach Chief, Services Team 3 Network Contracting Office (NCO) 10 _____________________________ ________________________ Jonathan S. Latson, Division Chief Date Healthcare and General Services Network Contracting Office (NCO) 10 _____________________________ ________________________ Marie L. Smith Date Director of Contracting Network Contracting Office (NCO) 10 VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition. _____________________________ ________________________ Terry L. Spitzmiller Date Executive Director Regional Procurement Office Central (VHA)