Boiler Interface Display - Minneapolis VA Health Care System

AWARD NOTICE Award Notice Page 4 of 4 AWARD NOTICE *=Required Field Award Notice Page 1 of 4 The Department of Veterans Affairs, Network Contracting Office 23 has awarded a sole source contract under the authority of RFO 12.201-1 Only one responsible source and no other supplies or services will satisfy agency requirements, to Simoneau and Sterling Midwest Corporation.

Contractor shall provide all equipment and accessories and installation services for four Boiler Interface Displays for the Energy Center at the Minneapolis VA Health Care System (MVAHCS). This is a brand specific procurement for four (4) boiler interface displays specific to the boilers that are installed at the MVAHCS.

This is a sole source supply purchase to Simoneau and Sterling Midwest Corporation for VA procurements as they are the only authorized provider of the Boiler Interface Displays for the Midwest Region including Minnesota for Preferred Utilities.

Additionally, a search of Small Business Administrations Small Business Search (SBS) was conducted utilizing NAICS code 334512 and although the search populated 145 SDVOSB entities and 160 VOSB entities that provide Automatic Environmental Control Manufacturing for Residential, Commercial and Appliance Use none are authorized providers of the Boiler Interface Displays by the manufacturer Preferred Utilities.

The place of performance is for the Minneapolis VA Medical Center, One Veterans Dr., Minneapolis MN 55417-2309. The NAICS code is 334512 with a size standard of 650 employees. This action will result in a Firm-Fixed Price contract with a period of performance of a Base year with no option years. The point of contact for this action is Contract Specialist Brian Whalen, who can be reached at brian.whalen-crichton@va.gov. The Network Contracting Office 23 address is:

Department of Veterans Affairs, 1303 5th St Ste 300, Coralville, IA 55241. DEPARTMENT OF VETERANS AFFAIRS Justification for Single Source Awards IAW FAR 13.106-1 For Over Micro-Purchase Threshold but Not Exceeding the Simplified Acquisition Threshold Acquisition Plan Action ID: [REDACTED]

Contracting Activity: Department of Veterans Affairs, Network 23 Contracting Office, 1303 5th Street, Suite 300, Coralville, IA 52241 Requesting Activity: Department of Veterans Affairs, VISN 23, Minneapolis VA Health Care System, One Veterans Drive, Minneapolis, MN 55417 2237: [REDACTED] Brief Description of Supplies/ Services required and the intended use/Estimated Amount: The Minneapolis VA Health Care System (MVAHCS) requires the purchase of four Preferred Instruments Operator Interface Terminal Displays BMU-OIT15X-W used on the Cleaver Brooks model DL-68-RH and DL-72-RH boilers. Purchase is to include technician travel; installation, programming, and operations checks of equipment; training; and a 1-year warranty on the equipment purchased.

Estimated Amount: [REDACTED] Unique characteristics that limit availability to only one source, with the reason no other supplies or services can be used: The current displays are currently non-functional and need to be replaced. Preferred Utilities Manufacturing Corporation is the manufacturer of the boilers that are installed at the MVAHCS. The boilers are proprietary equipment for which the manufacturer only allows their designated vendor to provide supplies and installation.

The only alternative would be to purchase new boiler equipment, which is cost prohibitive and will not be considered until the life of the current equipment is past, and new equipment needs to be purchased as a replacement. Preferred Utilities Manufacturing Corporation has designated the small business Simoneau Sterling Midwest Corp as their vendor for the Midwest region including Minnesota. Third party interface displays are not allowed due to their proprietary nature.

See the P02 Sole Source letter in the eCMS Acq-Plan briefcase. These supplies will be purchased under a sole source award to Simoneau Sterling Midwest Corp. Neither the VA Rule of Two nor the SBA rule of two could be met. Description of market research conducted and results or statement why it was not conducted: Although there are 160 VOSBs and 145 SDVOSBs identified through the SBA Small Business Search website as performing work under NAICS 334512, the existing equipment is proprietary.

Preferred Utilities Manufacturing Corporation is the manufacturer of the boilers that are installed at the MVAHCS. The boilers are proprietary equipment for which the manufacturer only allows their designated vendor to provide supplies and installation. Preferred Utilities Manufacturing Corporation has designated Simoneau Sterling Midwest Corp as their vendor for the Midwest region including Minnesota. A sole source letter stating this information is filed in the eCMS briefcase. A sources sought was issued with only Simoneau Sterling Midwest Corp responding. [REDACTED]