RECOVERY--41--PROJECT NUMBER 4207S, ENHANCED FAMILY OF ENVIRONMENTAL CONTROL UNITS (FECUs)

This contract action was accomplished using other than competitive procedures because the procurement is awarded to a sole source under the Test Program for Certain Commercial Items (FAR 13.5). See posted J&A for further information (see below). The Marine Corps Systems Command, 2200 Lester Street, Quantico, Virginia 22134, has awarded a Sole Source Firm-Fixed Price contract with Nordic Air, Inc. of Geneva, OH. This contract action is for USMC fielded models of Environmental Control Units (ECUs) for a total quantity of up to 80 units. These enhanced ECUs are required due to a configuration change necessitated by new Environmental Protection Agency regulations mandating a change to refrigerant gas utilization effective 1 January 2010 and impending operational needs during Spring 2010. In addition to the ongoing deployment operations of these ECUs in the near term, the procurement will also support the American Recovery and Reinvestment Act. The 80 units will be comprised of up to 20 each of the following: 18,000 BTU/hr, 36,000 BTU/hr, 60,000 BTU/hr, and 120,000 BTU/hr. The action encompasses a one time contract award to Nordic Air, Inc. for $1,450,420.00. The Government has awarded a contract to Nordic Air, Inc., under the authority of Title 10 U.S.C. 2304 (g)(1)(B) as implemented by FAR 13.501 (a). "Test Program for Certain Commercial Items." The contract term will be date of award through six months. The NAICS Code for this procurement is 333415 number of employees is 750. MCSC CT 025J&A NO: 13,146JUSTIFICATION AND APPROVAL (J&A)TO PROCURE USING OTHER THAN FULL AND OPEN COMPETITIONUpon the basis of the following justification, I, as the Competition Advocate, hereby approve the issuance of the contractual action(s) described herein using other than full and open competition pursuant to the authority of Title 10 U.S.C. 2304 (g)(1)(B). JUSTIFICATION1. Contracting Activity Marine Corps Systems Command (MARCORSYSCOM)GTES Contract Group (CT025)2200 Lester Street Quantico, VA 22134-6050 2. Nature of Action Being Approved The proposed contract action is to procure 20 each of the 18,000 BTU/hr model Environmental Control Unit (ECU), 36,000 BTU/hr ECU model, 60,000 BTU/hr ECU model, 120,000 BTU/hr ECU model. The proposed action encompasses award of a one time Contract to Nordic Air Inc. of Geneva, Ohio. 3. Description of Supplies/Services This contract action is for USMC fielded models of Environmental Control Units (ECUs) for a total quantity of up to 80 units. These enhanced ECUs are required due to a configuration change necessitated by new Environmental Protection Agency regulations mandating a change to refrigerant gas utilization effective 1 January 2010 and impending operational needs during Spring 2010. In addition to the ongoing deployment operations of these ECUs in the near term, the procurement will also support the American Recovery and Reinvestment Act (ARRA). The 80 units will be comprised of up to 20 each of the following: 18,000 BTU/hr, 36,000 BTU/hr, 60,000 BTU/hr, and 120,000 BTU/hr. The proposed action encompasses award of a one time contract award to Nordic Air, Inc. The articles and planned quantities to be procured are the following: ECU Rating Vendor Model Number Quantity18,000 BTU/hr GS1H43ZAANWY001a 2036,000 BTU/hr GL0343ZAADWYX01a 2060,000 BTU/hr GL0543ZAADWYX01a 20120,000 BTU/hr GL1203ZAADWYX01a 20 4. Identification of Statutory Authority The statutory authority permitting other than full and open competition is Title 10 U.S.C. 2304 (g)(1)(B) as implemented by the Federal Acquisition Regulation (FAR) 13.501(a), "Test Program for Certain Commercial Items." 5. Rationale for Use of the Authority Cited In 2008, MCSC awarded contract M67854-08-A-5023 to Nordic Air, Inc., using justification and approval for limited sources procurement contained in MCSC CT 025 J&A NO: 12,096. Environmental Protection Agency (EPA) regulations contained in 40 CFR Part 82 mandate change to an environmentally compliant refrigerant gas in future ECUs after 1 January 2010. Current ECU models that we procure under our current contract through 2011 must comply after 1 January 2010. Marine Corps Systems Command was funded for $3.5 million under the ARRA to effect changes, procure, test, and field the improved family of USMC ECUs. In support of this effort, Bailment agreement M67854-09-L-5094 was entered into with Nordic Air, Inc., to evaluate the required hardware changes. Under the bailment agreement, the USMC bailed 20 ECUs to Nordic Air, Inc., and Nordic Air has modified them to the future configuration. These ECUs have been returned to the Government for testing in the updated configuration (2010 compliant). This new configuration is to become the new USMC standard configuration, and will continue to be procured for the remainder of the contract life. The MARCORSYSCOM is now ready to procure the initial production run of the next generation of ECUs. The General Services Administration (GSA) will not have these updated ECUs on its GSA Federal Supply Schedule soon enough to meet the USMC's requirement. It is estimated that GSA will not have updated pricing listed on the GSA schedule for these improved ECUs until Spring 2010. If the USMC can not purchase until Spring 2010, it can not expect delivery until Summer of 2010 at the earliest. This delay will result in lack of ability to support Warfighter needs for improved ECUs as the USMC prepares for the summer of 2010 and hot weather operations in Afghanistan. The Marine Corps Systems Command previously documented its need for ECU procurement in J&A NO: 12,096, and subsequently issued contract M67854-08-A-5023 to Nordic Air Inc. The Program Manager and Contracting Officer had fully intended to utilize this contract to procure ECUs with ARRA funding, but has recently been made aware that this mechanism will not support operational requirements. 6. Efforts Made to Solicit Potential Sources Given the special nature of these units due to previous testing, they are only available from the Original Equipment Manufacturer, no other sources were solicited. A sole source notice was published on NECO on 06 August 2009 announcing the Government's intent to procure these goods from Nordic Air, Inc. To date no interested parties have contacted the Contracting Officer. Any expansion of interest received between now and contract award will be adjudicated and addressed appropriately. 7. Determination of Fair and Reasonable Cost In accordance with FAR 15.402, the Contracting Officer, along with the Program Manager, shall ensure that all supplies and services ordered under this contract are fair and reasonable. 8. Description of Market Survey See paragraph 6 above. 9. Other Factors Supporting Use of Other Than Full and Open Competition The US Army solicited in 2008, competed, and awarded in June 2009 two competing contracts to develop ECUs that meet 3 out 4 of our requirements. They will not have production solutions until 2013 at the earliest. Neither the Army nor any other service has contracting opportunities to supply the USMC with necessary product in the interim. Any solicitation of potential sources would yield the same developmental timeframe to reach a fieldable product; the USMC does not have the luxury of a 4-year delay in supporting the warfighters need for ECUs. 10. Listing of Other Interested Sources None 11. Actions Taken to Remove Barriers to Competition See paragraphs 5 & 6 above. 12. Statement of Delivery Requirement The contractor will be required to deliver all items within 180 days. It is anticipated that phased deliveries will start earlier. First ECUs to be delivered will support Production Verification Testing, which is the most urgent requirement of this contract. Later deliveries will support User Evaluations, and subsequent fielding. 13. Estimated Dollar Value of the Acquisition Covered by this Justification and Approval The total estimated value of this procurement is $1.8 million. This effort will be fully funded from ARRA funding already at Marine Corps Systems Command awaiting execution. 14. Acquisition Plan (AP) Not applicable as this acquisition is less than $50,000,000 in accordance with DFARS 207.103(d)(i)(B). 15. Documentation for Spare and Repair Parts Acquisition No additional spares and repair parts are required under this procurement.