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Ductless Mini-Split System HVAC Units

Waiver type - Procurement: Nonavailability

Agency: PUBLIC BUILDINGS SERVICE (4740) • Product Service Code (PSC) : Y1 | Last Modified: 07/01/2024

Procurement Summary

GSA PBS Region 4 awarded a Contract to Brasfield & Gorrie, LLC (Contractor) (47PE0321C0003) for the bridging design build services for the construction of the new federal courthouse in Huntsville, Alabama. The contract was awarded on August 10, 2021 Given the nature of the bridging design build delivery method, the specific requirements had not yet been designed at the time the contractor submitted its proposal. Therefore, the Contractor did not seek a pre-award exception to the Buy American statute for any of the inverter-driven ductless mini-split systems needed for the project. The Contractor is requesting a post award waiver for the procurement of four (4) ductless mini-split system HVAC units, in accordance with FAR Clause 52.225-9 “Buy American-Construction Materials.” The specific product requested is the Daikin Ductless Mini-Split System HVAC units. These ductless mini-split system HVAC units consist of individual and multiple-unit usage components which include: · Four (4) outside compressors · Five (5) selector boxes · Twenty-Three (23) indoor units (15 wall units, 3 cassette units, 5 ducted) and a · The control system for this product involves manufacture in multiple countries for individual parts to the system. The individual parts of Daikin systems are manufactured in the United States, Japan, Thailand, China, France, and Belgium. A price preference is not contemplated for this procurement in accordance with FAR Provision 52.225-12 “Notice of Buy American Requirement- Construction Materials”. The ductless mini-split system HVAC units are not mined, produced, or manufactured in the United States of America (USA) as a whole system. The Contractor’s market research provided to GSA includes surveying its own supplier/market base, internet research, and historical information on the “nonavailability” posted in the Federal Register from other agencies (such as FTA). The HVAC mini-split air conditioning systems are required. The facility cannot use a standard split system unit, as an alternative to the ductless split system, because a standard system is incapable of treating ventilation air. Furthermore, standard split systems will not work for confined spaces such as server rooms and security/AV/telecom closets because standard split systems require space outdoors for the unit that houses the condenser and compressor in addition to indoor spaces that house the evaporator coil, air handler, and HVAC ductwork Standard split systems cannot be installed in confined locations that need temperature control to ensure continuity of operations for multiple tenants throughout the building. There is no domestic manufacturer that would satisfy the project needs for ductless mini-split system HVAC units. Based on the historic cost information currently available, the contracting officer has adequate information to ensure that the cost to the Government for this acquisition will be fair and reasonable. The attached BAA Waiver email request and submittals provided by the Contractor detail the equipment to be purchased. The total value of the four (4) Daikin ductless mini-split system HVAC units is $112,000.00.

Waiver Rationale Summary

Based on the findings, mini-split system HVAC units are not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality. No other companies in the United States manufactures ductless mini-split system HVAC units with the required specifications and operating capacity to fulfill this requirement. Therefore, it is hereby determined, consistent with FAR 25.202(a)(2) and GSAM 525.202(b), that these items are nonavailable.

Did / Will the solicitation include one of the standard BAA provisions announcing the agency’s intention to provide a price preference for domestic end products and construction material?

No

Was a sources sought or Request for Information issued?

Yes

OMB Determination

Consistent with Policy

Product

CONSTRUCTION OF BUILDINGS

NAICS

236220 - Commercial and Institutional Building Construction

Date Submitted

06/24/2024

Procurement Instrument Identifier (PIID)

47PE0321C0003

Solicitation ID

47PE0321C0003

Procurement Stage

Post-solicitation

Expected Maximum Duration of the Proposed Waiver

Instant Delivery Only

Waiver Coverage

Individual Waiver

Funding Agency

PUBLIC BUILDINGS SERVICE