The Department of Veterans Affairs intends to award a set-aside, firm-fixed-price contract for two AO Smith 119-gallon gas water heaters (model BTH 500A 300) with a three-year warranty. These commercial condensing water heaters feature a modulating burner, 95% thermal efficiency, an intelligent control system with LCD display, and durable powered anodes. Performance and delivery will be at VA Palo Alto Health Care System, 3801 Miranda Ave., Bldg. 9, Palo Alto, CA. Vendors must be the OEM or an authorized dealer, distributor, or reseller and must provide documentation proving Gray Market compliance. The solicitation will be posted on SAM.gov, and responsible sources may submit capability statements for consideration in deciding whether to proceed with the set-aside.