SAM #36C26326P0357

Sole Source Security System Maintenance and Upgrade Services for VA Black Hills Health Care System

This opportunity involves a sole source contract for specialized security system maintenance and upgrade services at the VA Black Hills Health Care System. - The Department of Veterans Affairs (NCO 23) seeks ongoing support for the Johnson Controls C-Cure 9000 security system - Includes S300 hardware and P2000 licensing software - Services required: - Scheduled maintenance - Emergency support - Software and hardware updates/upgrades - System optimization - Only Johnson Controls Incorporated (JCI) is authorized to provide these services due to proprietary system requirements - Contract covers both Fort Meade and Hot Springs campuses - Contract structure: base year plus four option years - No other vendors are authorized or capable of servicing this system - Place of performance: VA Black Hills Health Care System (Fort Meade and Hot Springs, SD) - Contracting office: NCO 23, Des Moines, IA

Description

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH RFO 12.201-1

Acquisition Plan Action ID: 36C263-26-AP-0408

Contracting Activity:  Department of Veterans Affairs, Network Contracting Office 23 (NCO 23), 3600 30th St. Des Moines, IA.

Organizational Activity: Department of Veterans Affairs, VA Black Hills Health Care System, 113 Comanche Dr. Fort Meade, SD.  

Nature and/or Description of the Action Being Processed: 

The VA Black Hills Health Care System, Fort Meade and Hot Springs Campuses, require a base +4 option years sole sourced firm fixed price contract to provide highly specialized security system maintenance and upgrade services for the VA Police Department security system. The VA requires services for scheduled maintenance, emergency support, software/hardware updates and upgrades, and system optimization.

Description of Supplies/Services Required to Meet the Agency’s Needs:

This requirement is for security system maintenance & upgrade services for the VA Black Hills Health Care System Police Department’s Johnson Controls Incorporated C-Cure 9000 security system. S300 hardware, utilizing P2000 licensing software, serves as the backbone to the C-Cure 9000 security system. System maintenance and upgrades are required to maintain optimal performance and security for VA personnel and veteran patients. These upgrade and maintenance services include: scheduled maintenance, emergency support, software updates, equipment updates from the current S300 hardware, and system optimization.

Statutory Authority Permitting Restricted Competition: 

RFO 12.201-1 Simplified Procedures for Commercial Products and Commercial Services. The statutory authority for applying the Simplified Procedures for Commercial Products and Services of RFO 12.201-1 is 41 U.S.C. § 1901 and is implemented by RFO 12.102 for restricting competition on this procurement.  Competition is restricted on this procurement for the reason below:

        (X)  Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

        (  )  Unusual and Compelling Urgency

        (  )  Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services

        (  )  International Agreement

        (  )  Authorized or Required by Statute

        (  )  National Security

        (  )  Public Interest

Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): 

The VA Black Hills Health Care System’s C-Cure 9000 security system, which includes S300 hardware and P2000 software, is proprietary to Johnson Controls Incorporated (JCI). The security system is monitored by the police department to ensure the safety of patients and VA personnel. Maintenance and upgrades are required to maintain these security measures. Johnson Controls Incorporated provided a letter verifying they are the sole provider for service, the S300 hardware, the C-Cure 9000 security system, and the P2000 licensed software currently installed at both sites. Therefore, only JCI can provide these security system services and fulfill the needs of the VA to update and maintain security.

Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

No other vendors are authorized to provide these services within the United States, per Johnson Control’s sole source letter. The currently installed S300 hardware incorporated into the C-Cure 9000 security system, along with the P2000 licensed software, is proprietary to Johnson Controls Incorporated. An Intent to Sole Source was posted October 3rd, 2025, with a response required by October 10th, 2025.

Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:  

There was minimal market research conducted due to Johnson Controls Inc. being the sole source supplier of the services requested. The SBA Small Business Search was searched for SDVOSB/VOSB using NAICS 561621. There are not two or more SDVOSB, or VOSB identified and appear capable of performing the requirement. In addition, Johnson Controls Inc, is a large business. No other small businesses were contacted due to not having the authorization to service or maintain Johnson Control’s OEM equipment. This procurement will be awarded on a sole source basis to Johnson Controls Inc.

See Market Research Report for details.

Any Other Facts Supporting the Use of Other than Full and Open Competition:

N/A

Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: 

Johnson Controls Inc.

5757 N Green Bay Ave

Glendale, WI 53209

A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to Competition before Making subsequent acquisitions for the supplies or services required: 

Market research will be conducted for future security system maintenance and upgrades to determine if market conditions have changed to allow for competition. If Johnson Controls Inc. authorizes other vendors to provide service, the Black Hills VA will compete future requirements amongst authorized vendors. While there are multiple companies who manufacture their own security systems, replacing the security system with a system from a new manufacture would duplicate costs not expected to be recouped through competition and the VA would still be in a sole source situation for service and maintenance with the new system manufacturer.

Requirements Certification: I certify that the requirement outlined in this justification is a Bona Fide 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. 

Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

Contracting Officer: I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

One Level Above the Contracting Officer: I certify the justification meets requirements for other than full and open competition.

VHA Advocate for Competition and RPO HCA 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 approve $900K to $20 million for other than full and open competition.

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