Environmental Science Center Boiler Replacement Limited Source Justification

Limited Source Justification (LSJ)
In Accordance with FAR 8.4 (RFO DEV), GSAR 538.7104-3 and EPA Policy (EPAAP) Subsection 6.3.1 (Note that this LSJ is drafted in accordance with the EPA FAR Class Deviation, RFO-2025-08)
 

REFERENCE: PR-R3-26-00548 – Environmental Science Center Boiler Replacement

1. Identification of the agency and contracting activity.
Procurement Office: US EPA Mid-Atlantic Region
Agency: Environmental Protection Agency
GSA Schedule Contract Number: Contract GS-21F-058AA primarily SINS 561210FAC
Task Order Number: 68HE0322F0052
Contractor Name: Native Energy & Technology, Inc.
Government Estimate/Estimated Contract Value: $8,071,205.09
Description of Requirement: EPA Region 3 intends to award a Task Order (TO) modification to increase the ceiling of this award by $427,038.68 to allow for the replacement of boiler tubes for three (3) boilers and two (2) boiler controllers for the Environmental Science Center.

2. Nature and/or description of the action being approved.
General Services Acquisition Regulation (GSAR) 538.7104-3(b)(1)(i) Limited sources justification and approval.

An increase of the ceiling to TO 68HE0322F0052 with Native Energy & Technology, Inc. under U.S. General Services Administration (GSA) Federal Supply Schedule (FSS) GS-21F-058AA. This is an urgent and compelling requirement to replace the tubes in three (3) boilers and controllers in two (2) boilers that provide heat to the Environmental Science Center (ESC). Orders placed under Federal Supply Schedules are exempt from the requirements in Part 6. However, an ordering activity must justify its action when restricting consideration in accordance with General Services Acquisition Regulation (GSAR) 538.7104-3.

Circumstance justifying limiting the source: GSAR 538.7104-3(b)(1)(i)
The Government’s need to maintain working building boilers for the ESC represents an unusual and compelling urgency that precludes full and open competition and delay in award of a contract would result in unacceptable delays and serious injury, financial or other, to the Government.

3. Description of the supplies or services required to meet the agency’s needs, including the estimated value.
This requirement is for Operations and Maintenance (O&M) contract support for facility engineering, system maintenance, repair, minor improvements, snow removal, and facility services. This TO was awarded with a one-year base and four (4) one-year option periods. This TO includes an ODC Sub-CLIN for Over and Above Work for materials and supplies and services greater than $500.00 for the base and four (4) one-year option periods.

4. Identification of the statutory authority permitting other than full and open competition.
This acquisition is conducted under the authority of the Multiple-Award Schedule Program (41
U.S.C. 152(3), Competitive Procedures, and 40 U.S.C. 501, Services for Executive Agencies). Specifically, GSAR 538.7104-3, titled “Sole Source Justifications,” GSAR 538.7104-3(b)(1)(i), The need is of such unusual urgency that following the procedures would result in unacceptable delays in filling that need applies.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires using the authority cited.
Using this task order’s ODC Sub-CLIN to perform over and above work would enable the Government to address the urgent and compelling need to replace the boiler tubes and controls before the winter months. Completing this work before winter is necessary to ensure a safe and continuously heated workspace for ESC employees and prevent irreparable damage to the ESC infrastructure.

6. A description of efforts to solicit as many offers as practicable or exception.
An unusually urgent and compelling need for EPA Region 3’s ESC boiler repair services exists for this requirement. Following competitive Federal Supply Schedule ordering procedures would result in unacceptable delays per GSAR 538.7104-3(b)(1)(i). It is anticipated that it would take a minimum of 150 days to conduct a competitive acquisition which would threaten Environmental Science Center operations and jeopardize EPA federal emergency response efforts.

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.
Native obtained multiple informal quotes on behalf of the Government for the services to replace the boiler tubes. Only one (1) vendor, Gary Anderson HVAC was capable of providing the replacement controllers. Below is an abstract of those quotes:
Boiler Tube Replacement
American Combustion Industries:
Rocket Shop LLC:

Gary Anderson HVAC:

Boiler Controller Replacement Gary Anderson HVAC:

The price of redacted for the boiler tube replacement has been determined fair and reasonable due to adequate price competition. The price of $157,896.68 for the replacement of the boiler controllers has been determined fair and reasonable due to historical pricing.

8. The market research conducted and the results or a statement of the reason market research was not conducted.
Market research was conducted to identify available sources capable of performing the required boiler tube and boiler controller replacement services within the timeframe necessary to support the ESC’s operations. The Government reviewed the capabilities of potential vendors and obtained multiple informal quotations for the boiler tube replacement. American Combustion Industries, Rocket Shop LLC, and Gary Anderson HVAC provided quotations for the boiler tube replacement. Gary Anderson HVAC was the only vendor identified as capable of providing the required replacement controllers. The quotations and available historical pricing were also reviewed to support the determination that the anticipated costs were fair and reasonable. Based on the urgent need to complete the work before the winter months and the results of the market research, the Government determined that the proposed approach would provide the required services while avoiding unacceptable delays.

9. Any other facts supporting using other than full and open competition.
All facts supporting the justification are provided above.

10. A listing of the sources, if any, that expressed an interest in the acquisition in writing.
No additional sources expressed an interest in the acquisition in writing.

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.
The Government intends to assess the ESC’s equipment repair and future maintenance needs and incorporate those requirements into ancillary Operations and Maintenance contracts.

Certifications
REGIONAL ACQUISITION MANAGER CERTIFICATION:
This is a $427,038.68 firm-fixed-price task order modification to provide boiler repair support services. Based on the above information, it is hereby determined by the signatories below that the circumstances identified in this document are accurate and complete to the best of our knowledge and represent the best business decision to meet the Government’s need. Therefore, limiting sources under the prescription of GSAR 538.7104-3(b)(1)(i) is fully justified.