44--AIR EMISSION EQUIPMENT

DEPARTMENT OF VETERANS AFFAIRS Justification and Approval For Other Than Full and Open Competition 1. Contracting Organization: Department of Veterans Affairs, VISN 8, 672, VA Caribbean Healthcare System (VACHS). 2. Description of Action: This is request for other than full and open competition for the procurement and installation of a Selective Catalytic Reactor (SCR) system for the four (4) 1750kW Russelelectric/Caterpillar emergency generators to reduce NOx emissions generated from the combustion engines operations. 3. Description of Supplies or Services: The San Juan Medical Center has recognized the need to be in full operation during periods of power blackouts such as would occur during emergency situations. The work contemplated in this project includes the design and installation of a catalytic system for the reduction of emissions from the emergency power generators. Reduction of air pollutants and Greenhouse Gases are required by the Clean Air Act (CAA) Amendments and the new Executive Order (EO 13514). The installation of an air emissions control system is required to continue with the operation of the emergency generators under current permit conditions. Executive Order 13514 requires the reduction of greenhouse gases; a priority pollutant of concern - nitrogen oxide (NOx) is one of the precursors of ozone depletion. Sulfur dioxide (SO2), which is a component of acid rain, is also a primary pollutant and its reduction will have substantial impact under the CAA Title V regulations (major source of air emission permit). In accordance with Executive Order 13514 and the Clean Air Act (CAA) regulations, air emissions reductions of these pollutants are mandated. The proposed project installation of a catalytic control system will ensure conformance with requirements to significantly reduce the air emissions generated from combustion engines during periods of emergency power operations. In addition, it will contribute to more effective and efficient fuel consumption management of the power generators. This system will also support the compliance of VA requirements and specifications for Emergency Generators System Synchronization project and will assist in maintaining the ten (10) continuous days of operations during natural disasters and emergency power outages of the VA Caribbean Healthcare System at the San Juan Facility. If this system fails, the operation of the emergency generators provide power supply may be compromised and consequently negatively impact VACHS’ mission to sustain operations and provide for the safety and health of patients and visitors. Impact to VA Mission: The 2009 VACHS air emission inventory for the San Juan Facility resulted in the identification of NOx (Nitrogen Oxide) emission levels near the permissible threshold limit. Furthermore, construction requirements for FY 2010 included the installation of five (5) new emergency generators and two (2) new boilers units. These installations will cause a significant increase in the NOx emissions, consequently exceeding the allowable air emissions threshold levels. The current air emissions operating permit for the San Juan Medical Facility will be rescinded and no longer applicable. Newer, more stringent and onerous requirement permits and program will have to be implemented to meet these rigorous regulations. The program will be very costly and require continuous monitoring and analyzing of air emission and reporting to the EPA. An emission management program will have to be established with additional workforce requirements. Moreover, the newly implemented Executive Order 13514, Federal Leadership in Environmental, Energy, and Economic Performance, mandates Federal Facilities to engage in sustainable practices and reduction of greenhouse gas emissions. Requirement Delivery Date: The contract period will be for 6 months from September 2010 through March 2010. During this period of performance, the contactor (s) will receive purchase orders/contracts for the contracted requirements. Requiring Document: • CAAA, 1990, 42 USC 7401 at seq. • EO 13514, Greenhouse Gases • Puerto Rico Environmental Quality Board Air Quality Regulations. • Public Law No. 416, 22 September 2004. • 40 CFR 50, National Primary and Secondary Ambient Air Quality Standards • 40 CFR 53, Ambient Air Monitoring Reference and Equivalent Methods • 40 CFR 60, Standards of Performance for New Stationary Sources • 40 CFR 69, Special Exemptions from Requirements of the CAA • 40 CFR 61, National Emission Standards for Hazardous Air Pollutants • 2005 Federal Energy Policy Act (EPAct) Requirements, 4. Statutory Authority: ( ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements; (X) (2) Unusual and Compelling Urgency; ( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability, or Expert Services; ( ) (4) International Agreement ( ) (5) Authorized or Required by Statute; ( ) (6) National Security; or ( ) (7) Public Interest 5. Validity of Use of Statutory Authority: The VACHS has an urgent requirement for the design, procurement and installation of a SCR system for the emergency power generators to comply with Air Emissions at the threshold levels. If VACHS reaches and exceeds the thresholds for NOx Emission, the Puerto Rico Environmental Quality Board will issue a termination of the existing permit for operation of the emergency generators under current conditions. The SCR system will significantly reduce the NOX air emission pollution and allow the VACHS to maintain its air emissions permit of minor source generator. USEPA requires that a certified NOx emissions air pollution control system be installed only if it meets the NOx emissions technology performance with USEPA approval factors on qualifications, experience and USEPA training goals. ATM, as the local distributed for Russelectric equipment, fulfills and exceeds these requirements since this contractor had previously been contracted by the VACHS for the installation and operation of the emergency synchronization project. The use of compatible automatic synchronization system of emergency power generators along with the SCR system will help improve the energy efficiency during periods of power outages or electrical failures such as would occur during disaster situations. In addition, the system will contribute to more effective and efficient fuel consumption management. The SCR system is compatible with the existing emergency generator brand/manufacturer installed at VACHS’ facilities, has the same specifications to maintain the efficiency and uniformity of VACHS’ emergency power generation system. System uniformity and standardization also provides cost-effectiveness in terms of maintenance and service. For the above reasons Russelectric is the only brand/manufacturer source that can meet mission needs to comply with the requirements and specifications of the Emergency Generators System Synchronization Project. Furthermore, this contractor has previous experience with the VACHS emergency generation system, as they worked on the Emergency Generators Synchronization Project and installation of various emergency generators and the electrical switchgear equipment for the San Juan Medical Facility. This contractor has successfully completed procurement and installation numerous generator projects and has established a good history of responsiveness and competence with VACHS. The SCR system and services are readily available, evaluated and installed in several installations throughout the United State, which allows a relatively rapid response to meet the dateline of May 2010. The anticipated price to the Government is $1,000,000. There is an unusual and compelling urgency for the government to comply with EPA, PREQB, and EO 13514 air emissions environmental requirements. Therefore, in accordance with Federal Acquisition Regulation (FAR) 6.3.02-2, Statutory Authority 41 U. S. C. 253 (c)(2) is being cited. 6. Actions to Promote Competition: N/A 7. Determination of Fair and Reasonable Price: N/A 8. Market Survey (FAR 10): Due to unusual and compelling urgency, a minimal Market Survey was completed. The Puerto Rico Environmental Quality (PREQB) issued a permit to VACHS to meet all air emissions to status in accordance with a minor stationary source. Therefore, to meet permit requirements of minor stationary source along with the schedule FY10 new installations, VACHS considers and strongly recommends that only a contractor with previous excellent performance qualifications to VACHS and prompt and competent response such as ATM Sales Co. / Russelelectric can install a system to meet the requirements for the NOx emission reductions. Only one contractor with a proven record of timely and satisfactory performance for previous similar work with the VACHS was contacted. ATM Sales is a small business company. 9. Other Considerations: a. Refer to response on item 8. If the VACHS does not deliver or meet the Air Emissions requirements, it may be subject to fines and penalties that will negatively impact the agency’s performance and mission. 10. Listing of Sources that expressed, in writing, an interest in the acquisition: N/A 11. Statement of Actions to Overcome Barriers to Competition: 12. Requirements Certification: I certify that the requirement outlined in this justification is a bonafide 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. __signed___________________________ ___09/15/2010_____ Name Date Title Facility 13. Approvals in accordance with FAR 6.304 a. Contracting Officer's Certification: (required) I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief. ___Signed_________________ 09/15/2010_____________ Name Date Title Facility b. Legal Review: I certify that the foregoing justification meets all of the statutory requirements for other than full and open competition. ___________________________ ___________________ Name Date Title Facility c. NCM Review: I certify that the foregoing justification meets all of the statutory requirements for other than full and open competition. ___________________________ ___________________ Name Date Title Facility d. SAO Review: I certify that the foregoing justification meets all of the statutory requirements for other than full and open competition. ___________________________ ___________________ Jeffrey Ryan Date Director SAO East e. VHA HCA’s Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and recommend approval for other than full and open competition. *See note below. ______________________ _____________________ VHA HCA Date *Note. Per VAARs 806.304 and 806.501, the HCA will serve as the Contracting Activity Competition Advocate and exercise Approving Authority for all contracts over $500,000 but not exceeding $10 million.