Z--Project 09-126 Station Electrical Infrastructure and Utility Service Upgrade VOSB Sole Source IAW IL-049-07-08 POSTING OF REQUIRED JUSTIFICATION AND APPROVAL

Justification and Approval For Other Than Full and Open Competition: 1. Contracting Organization: Department of Veterans Affairs, VISN 20, VAMC, Walla Walla (Jonathan M. Wainwright Memorial Medical Center). 2. Description of Action: This is a request for other than full and open competition for the procurement of design-build construction services from O'Neill Electric, Inc. (O'Neill) a veteran-owned small business (VOSB). 3. Description of Supplies or Services: The Contractor will be required to design and construct the necessary upgrades to the station electrical utility service to support a minimum of 2 new medical facilities and realignment of the remaining facilities to accommodate leasing out buildings not needed by the VAMC, Walla Walla. 4. Statutory Authority: This justification is in accordance with 41 U.S.C. 253(c)(5) Authorized or Required by Statute. 5. Validity of Use of Statutory Authority: O'Neill is a VOSB and is listed on the VA's www.vetbiz.gov website. Authority to sole source acquisitions up to $5,000,000 to VOSB firms is granted by 38 U.S.C. 8127(c). The estimated cost of this acquisition is $1,810,500, well under the $5,000,000 threshold. 6. Actions to Promote Competition: Not applicable to this acquisition. 7. Determination of Fair and Reasonable Price: The anticipated price to the Government is $1,810,500. This estimate was developed by an architect-engineer firm contracted to perform a study of the current situation and to provide a SOW, the specifications and an estimate of costs to upgrade the service. 8. Market Survey (FAR 7.102): In accordance with 38 U.S.C. 8127(c) and IL 049-07-08 Veterans First Program, this action will be sole sourced to O'Neill. O'Neill is a VOSB and is listed on the VA's www.vetbiz.gov website. A search of this website for all firms in Idaho, Oregon and Washington showing a NAICS Code of 237130 found eleven (11) firms; however, only four (4) firms (Columbia West, Inc.; O'Neill Electric, Inc.; J.B. Federal Energy Systems, LLC; and Pacific Federal Energy Systems, LLC) provide any indication that they are capable of performing design-build work in the area of electrical utility service. Of these four (4) firms, two (2) are SDVOSBs and two (2) are VOSB. Please see attached spreadsheet. Columbia West, Inc. (VOSB) indicates that NAICS 237130 is a primary code; however, no bonding capacity is provided nor is a capability narrative provided; O'Neill Electric, Inc. (VOSB) includes NAICS 237130, has sufficient bonding capacity of $5,000,000, and their capability narrative clearly provides and indication of their ability to support tenant improvement projects (enhanced use lease) and electrical distribution systems; J.B. Federal Energy Systems, LLC (SDVOSB) provides no indication of bonding capacity and no capability narrative is provided; Pacific Federal Energy Systems, LLC (SDVOSB) includes NAICS 237130 provides a bonding capacity of only $1,000,000, which is less than the estimated amount of the project. In discussion with local Facility Support personnel and with VA personnel located in Portland, Oregon, and Vancouver, Washington, the firm receiving the highest recommendation was O'Neill Electric, Inc. As such, O'Neill has been selected as the contractor for this effort. 9. Other Considerations: Not applicable to this acquisition. 10. List of Sources: See attached. 11. Statement of Actions to Remove Barriers to Competition: Not applicable to this acquisition. All appropriate and required approval signatures were obtained.