Page 2 of 2 DEPARTMENT OF VETERANS AFFAIRS Justification and Approval (J&A) For Other Than Full and Open Competition (>$150K) Acquisition Plan Action ID:VA69D-17-AP-7261 Alarm Inspection and Maint. Contracting Activity: Department of Veterans Affairs, NCO 12, Great Lakes Acquisition Center, Suite 101, Milwaukee, WI 53214-1476. Transaction 607-18-1-6023-0002, Fire alarm system maintenance for the William S. Middleton VA Hospital. Nature and/or Description of the Action Being Processed: The procurement is for testing, inspection, maintenance and monitoring of the fire alarm system. The procurement is a new requirement for a firm-fixed price base plus four option year contract 36C25218C0095. This procurement is 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. Description of Supplies/Services Required to Meet the Agency s Needs: The contractor shall provide, monitoring, testing, inspection and repair of the fire alarm system. The total estimated value of the task order including four (1) year options is $400,009.30 to begin approximately February 15, 2018 February 14, 2019. Ultimate completion date of the contract is February, 14, 2023. Statutory Authority Permitting Other than Full and Open Competition: FAR13.5 Simplified Procedures for Certain Commercial Items: The authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. 1901 and is implemented by for restricting competition on this procurement via FAR 13.106-1(b)(2). Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): The vendor must have the capability of complete access to software monitoring and real-time visibility of the operation functionality of the fire alarm system. The system contains partitioned monitoring which separates all campus buildings to allow for appropriate response from the fire department without delay. The vendor does not authorized other vendor access to their proprietary software program. There are no commercially available education manuals available to a non-SimplexGrinnell technician that could qualify to field edit programs, change labels or functionality or operate the system as required to service and test properly. The software is retained in read only memory and only SimplexGrinnell technicians have the appropriate passwords to edit software. Components are manufactured by SimplexGrinnell and are not commercially available from other electrical suppliers. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: An intent to sole source (36C25218Q0465) was posted to FBO from January 29, 2018 February 2, 2018 (zero responses were received) to inform the public of the decision to sole source to SimplexGrinnell. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: SimplexGrinnell is providing discounts to the government from their commercial price listing. The average discount pricing per year is $11,500 for a total of $57,355.20 leaving the base price of $88,005.26. The pricing was also compared to the previous contract (option year four) of $121,518.69 (which included full maintenance), the new contract will include repair, but not full maintenance. A comparison was done of the base year pricing and option year four. Both service years contain a 5-year flow test on the Standpipe Systems which is not on the other contract years. From the base year to option year four there is a 1.32% increase which has been determined fair and reasonable by the Contracting Officer. Option year two and three are discounted and cost $70,155.26 per year with no adjustment. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: The Contracting Officer did query Vetbiz and three matches met the search criteria however, one vendor works on burglar alarms, but does not inspect test and maintain fire alarms, the other vendor specializes in program consultation and design and the third vendor was general contstruction. The Contracting Officer also administered the previous contract and noted the proprietary software, parts and monitoring are unique to SimplexGrinnell and no other vendors are able to work with the alarm system. The Contracting Officer reached out to SimplexGrinnell and the representative stated that they do not have authorized service providers and do not sell manufacturer parts to other electrical supply vendors. Gray market parts are not authorized for use on this system. Under the authority of FAR 6.302-1, only one responsible source is available. 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 acquisition and soliciting inquiries from interested parties. Any Other Facts Supporting the Use of Other than Full and Open Competition: Specifications, engineering descriptions, statements of work, statements of objectives, or purchase descriptions suitable for full and open competition have not been developed, are not being developed, are not being used, and are not available. The current system is fully functional and the cost of replacing said system would be very costly and not in the best interest of the government funds. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: SimplexGrinnell. 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: No other actions for competition are being contemplated at this time. To overcome barriers for competition the fire alarm system would have to be completely removed and a new system purchased and installed. The cost would be great and not in the governments best interest. The fire alarm system is a vital patient and staff safety requirement and must be carefully monitored and serviced to ensure proper functionality. The current system is in good working order and a new system is not warranted at this time.
