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DEPARTMENT OF VETERANS AFFAIRS Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT) Acquisition Plan Action ID: 36C262-23-AP-1315 Contracting Activity: Department of Vetera... DEPARTMENT OF VETERANS AFFAIRS Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT) Acquisition Plan Action ID: 36C262-23-AP-1315 Contracting Activity: Department of Veterans Affairs, VISN 22, Network Contracting Office 22, in support of the Greater Los Angeles VA Healthcare System, West Los Angeles VA Medical Center. 2237: Nature and/or Description of the Action Being Processed: The Greater Los Angeles VA Healthcare System (GLAVAHCS) - West Los Angeles Medical Center, requires the continued maintenance services for the Siemens Apogee Building Automation System (BAS). The current contract, 36C26222C0155, expires on 06/30/2023. To ensure continuity of services, the Network Contracting Office 22, Services Branch 3, intends to award a follow-on contract to Siemens Industry, Inc. for maintenance services for the Siemens Apogee Building Automation Systems. The proposed contract action will be awarded as a follow-on, firm-fixed price contract at an estimated value of for a period of five months. Description of Supplies/Services Required to Meet the Agency s Needs: The Siemens Apogee Building Automation System is a critical system that controls the heating, ventilation, and air conditioning (HVAC) systems in multiple buildings at the facility. The BAS is essential for maintaining a comfortable and safe environment for patients, visitors, and staff. The BAS is an integrated system, and all components must work together seamlessly to maintain a stable environment. Failure of the system can result in temperature and humidity fluctuations that can negatively impact patient care and safety. The services required to maintain the BAS include preventive maintenance, repair services, software updates, and replacement of faulty or obsolete components. Preventive maintenance is essential to ensure that the BAS is functioning correctly and prevent unexpected downtime. The contractor must have experience and expertise in maintaining Siemens Apogee BAS systems and be able to respond promptly to service calls. In addition, the contractor must have access to genuine Siemens replacement parts to ensure that the BAS remains in excellent condition. Statutory Authority Permitting Other than Full and Open Competition: The statutory authority permitting the use of Other than Full and Open Competition for the Siemens Apogee Building Automation Systems Maintenance Agreement at the Greater Los Angeles VA Healthcare System is provided under FAR 6.302-1. This authority allows for the use of other than full and open competition when there is only one responsible source and no other supplies or services will satisfy agency requirements. In this case, Siemens Industry, Inc. has been identified as the sole contractor capable of providing the specialized maintenance services required for the Apogee Building Automation Systems. The conditions described by FAR 6.302-1 are met in this situation. The Apogee system is a proprietary technology developed and manufactured exclusively by Siemens. As a result, Siemens possesses unique knowledge, expertise, and access to proprietary tools and software required for the maintenance and servicing of the Apogee system. The compatibility and integration of the Apogee system within the Greater Los Angeles VA Healthcare System necessitate a contractor with specialized qualifications and familiarity with the system's intricacies. Efforts were made to identify other potential sources capable of providing equivalent services, but no other contractor was found to possess the proprietary knowledge and expertise specific to the Apogee system. The unique qualifications of Siemens Industry, Inc. and their proven track record in successfully maintaining the Apogee system under the current contract further support the use of Other than Full and Open Competition. The justification for using FAR 13.5 procedures under the authority of FAR 6.302-1 is based on a thorough assessment of the unique characteristics of the Apogee system, the lack of alternative sources capable of providing equivalent services, and the criticality of maintaining the system's functionality for the Greater Los Angeles VA Healthcare System. By utilizing Other than Full and Open Competition, the government ensures the continuity of operations, minimizes risks associated with system downtime, and maintains the high level of expertise required for the effective maintenance of the Apogee Building Automation Systems. Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): The Contractor, Siemens Industry, Inc., possesses unique qualifications that require the use of FAR 13.5 procedures for the Siemens Apogee Building Automation Systems Maintenance Agreement at the Greater Los Angeles VA Healthcare System. Siemens Industry, Inc. has established itself as the sole provider capable of delivering the specialized maintenance services required for the Apogee Building Automation Systems. The Apogee system is a proprietary technology developed by Siemens, and as a result, Siemens possesses intimate knowledge and expertise in maintaining and servicing this system. The unique qualifications of Siemens Industry, Inc. are directly related to the specialized nature of the Apogee system and the intricate technical requirements involved in its maintenance. The system comprises advanced automation and control components, requiring specialized skills, technical knowledge, and access to proprietary tools and software. Siemens has been the exclusive provider of maintenance services for the Apogee system at the Greater Los Angeles VA Healthcare System under the current contract. The use of FAR 13.5 procedures is justified under the conditions described by the FAR for other than full and open competition. Specifically, FAR 13.106-1(b)(1) allows for the use of simplified acquisition procedures when the contracting officer determines that there is only one responsible source capable of providing the required services. In this case, Siemens Industry, Inc. is the sole contractor with the unique qualifications and expertise necessary to maintain the Apogee Building Automation Systems effectively. The contractor's proprietary knowledge of the Apogee system, accumulated through years of experience and exclusive access to technical information, enables them to deliver high-quality maintenance services efficiently. Their unique qualifications minimize risks associated with system downtime, ensure optimal performance, and reduce potential disruptions to critical healthcare operations. Given the criticality and complexity of the Apogee system, utilizing Siemens' unique qualifications through FAR 13.5 procedures is necessary to maintain uninterrupted operations and maximize the system's lifespan. This justification is based on a thorough evaluation of the contractor's qualifications, the specialized nature of the Apogee system, and the lack of alternative sources capable of providing equivalent maintenance services. The use of FAR 13.5 procedures is necessary to ensure the continued reliable operation of the Apogee Building Automation Systems at the Greater Los Angeles VA Healthcare System. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: In accordance with FAR Part 10, a synopsis of the proposed acquisition was posted to ensure that offers were solicited from as many sources as practicable. The synopsis provided a clear and concise description of the maintenance services required for the Siemens Apogee Building Automation Systems at the Greater Los Angeles VA Healthcare System. The synopsis included relevant information such as the nature of the requirement, the estimated value of the contract, the contract period, and the unique qualifications and certifications necessary for successful performance. The synopsis was posted on a government-wide point of entry, such as the System for Award Management (SAM) website, to maximize visibility and reach a wide range of potential offerors. Interested parties were invited to submit inquiries and request additional information regarding the acquisition. Furthermore, the Contracting Officer actively reached out to known industry sources and vendors who have previously expressed interest or have provided similar services in the past. This outreach aimed to ensure that all potential sources of supply were made aware of the opportunity and given an opportunity to participate in the acquisition process. Although no responsive and viable offers were received from other sources, the efforts made to publicize the requirement and engage with interested parties demonstrate a genuine attempt to solicit offers from as many sources as practicable. The absence of competitive offers is a result of the unique qualifications and proprietary nature of the services required, which are specific to Siemens Industry, Inc. as the sole provider capable of effectively maintaining the Siemens Apogee Building Automation Systems. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The contracting officer has determined that the anticipated cost for the Siemens Apogee Building Automation Systems Maintenance Agreement at the Greater Los Angeles VA Healthcare System is fair and reasonable. This determination is based on a thorough analysis of historical pricing data from the previous contract, 36C26222C0155, which provided maintenance services for a six-month period at a price of $. Additionally, the current contract under consideration is priced at $ for a five-month period of service. To ensure the fairness and reasonableness of the anticipated cost, the government conducted a comprehensive price analysis comparing the pricing of the current contract with the previous contract. This analysis involved a detailed review of the historical pricing data, including the scope of work, level of effort, and associated costs. By comparing the pricing for similar services provided over different time periods, the contracting officer was able to evaluate the reasonableness of the proposed pricing. The extent of cost or price analysis anticipated for this justification includes a thorough examination of the pricing elements, such as labor rates, materials, and overhead costs. The pricing analysis will also consider any changes in market conditions, industry standards, and economic factors that may have an impact on the cost of the maintenance services. Certified cost or pricing data, as required by FAR 6.303-2(b)(7), is not anticipated for this justification. The proposed contract is within the Simplified Acquisition Threshold, and the nature of the services and market conditions do not necessitate the submission of certified cost or pricing data. No technical evaluations or audits are required as part of the cost analysis process, as the evaluation is primarily focused on the reasonableness and consistency of pricing data. The pricing analysis conducted by the contracting officer provides a comprehensive assessment of the proposed cost, taking into account the historical pricing data, market factors, and the specific requirements of the maintenance services. Based on this analysis, the anticipated cost for the Siemens Apogee Building Automation Systems Maintenance Agreement is determined to be fair and reasonable. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: As described in section 6 above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending procurement and soliciting inquiries from interested parties. However, despite the efforts made to solicit inquiries, it was determined that conducting further market research for this follow-on acquisition was not necessary. The reasons for not conducting market research are as follows: Sole Source Provider: Siemens Industry, Inc. is the sole contractor that can provide maintenance services for the Siemens Apogee Building Automation Systems. They have proprietary knowledge and expertise in servicing and maintaining this specific system. Their unique qualifications and experience make them the most suitable and qualified contractor for this requirement. Brand-Specific Maintenance: The Siemens Apogee Building Automation Systems require specialized knowledge and expertise to ensure optimal performance and reliability. Siemens Industry, Inc. has extensive experience working with this specific system, and their technicians are trained and certified to handle its maintenance and repairs. Their familiarity with the system reduces the risk of errors, downtime, and disruptions in the healthcare facility's operations. Compatibility and Integration: The Siemens Apogee Building Automation Systems are integrated with other critical systems and equipment within the Greater Los Angeles VA Healthcare System. Siemens Industry, Inc. possesses in-depth knowledge of the system's integration requirements, ensuring seamless communication and coordination with other interconnected systems. Engaging a different contractor could introduce compatibility issues, resulting in operational inefficiencies and potential safety risks. Time and Cost Considerations: Conducting market research to identify potential alternative contractors would involve additional time and resources. Given the urgency of maintaining uninterrupted service for critical building automation systems within the healthcare facility, pursuing a competitive procurement process would cause delays that could impact patient care and facility operations. Furthermore, engaging a new contractor may require additional costs for training, system familiarization, and potential integration challenges. Considering the unique qualifications of Siemens Industry, Inc. as the sole provider of maintenance services for the Siemens Apogee Building Automation Systems, as well as the compatibility, integration, time, and cost considerations, it is determined that conducting market research for this follow-on acquisition is not necessary. Any Other Facts Supporting the Use of Other than Full and Open Competition: None. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Siemens Industry, Inc. 1000 Deerfield Pkwy. Buffalo Grove, Illinois 60089 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: In order to remove or overcome any barriers to competition before making subsequent acquisitions for the services required, the agency may take the following actions: Market Research: Conduct comprehensive market research to identify potential alternative sources of supply and determine the availability of other vendors capable of providing the required services. This research will help ensure that the agency has a thorough understanding of the market and potential competition. Industry Outreach: Engage in proactive industry outreach efforts to communicate the agency's requirements and upcoming acquisition opportunities to a wide range of potential offerors. This can include hosting industry days, participating in vendor conferences, and leveraging industry associations to reach a broader pool of interested and capable vendors. Enhanced Competition: Encourage competition by utilizing competitive procedures, such as competitive negotiations, competitive range determinations, or requests for proposals, in subsequent acquisitions. These procedures allow for a more comprehensive evaluation of offers and provide an opportunity for interested vendors to present their qualifications and solutions. Continuous Acquisition Planning: Continuously review and update the acquisition strategy and acquisition plan to reflect lessons learned from previous acquisitions and to incorporate any changes in the agency's requirements. This will help identify any unnecessary barriers or restrictions to competition and ensure that subsequent acquisitions are designed to maximize competition and value for the agency. It is anticipated that a follow-on acquisition for the Siemens Apogee Building Automation Systems Maintenance Agreement at the Greater Los Angeles VA Healthcare System will be procured in FY24 as a base plus four option year contract. The agency is committed to taking the necessary actions outlined above to remove barriers to competition and ensure a fair and open procurement process for subsequent acquisitions. 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.