Sole_Source_Justificiation_-_RFID_tags_FINAL.pdf

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

(SOLE OR SINGLE SOURCE)

In accordance with FAR Parts 6.1 and 13.104, this request for a noncompetitive acquisition is hereby submitted for consideration for acquisition approval.

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING

ACTIVITY:

Requesting Agency: USDA APHIS Veterinary Services (VS) Animal Disease Traceability (ADT) Program

Contracting Activity:

USDA, APHIS, MRPBS

Acq & Asset Management Division Marquette Plaza

250 Marquette Ave Suite 400 Minneapolis, MN 55401

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING

APPROVED:

Due to the circumstances described below, the APHIS, Veterinary Services, Animal Disease Traceability Program requests 80,000 low frequency (LF) half duplex (HDX) radio frequency identification cattle eartags to be acquired using a noncompetitive procurement in support of program mission requirements.

3. A DESCRIPTION OF THE SUPPLIES, EQUIPMENT, OR SERVICES

REQUIRED TO MEET AGENCY NEEDS (INCLUDING THE ESTIMATED

VALUE OF THE ACQUISITION INCLUSIVE OF OPTIONS):

The ADT Program has an urgent and compelling need to purchase 80,000 HDX LF RFID cattle ear tags from Allflex USA for program use when testing affected herds (tuberculosis, brucellosis, etc.). Due to an unexpected increase in the use of RFID LF HDX button tags from the Kansas warehouse, to support program disease work, APHIS is critically low on the supply of these tags for use in cattle.

Single requests for tags are often 10,000 tags and the current inventory in the warehouse is approximately 4000 tags. APHIS plans to solicit a 5 year fixed price contract for RFID tags next fiscal year but needs to replenish supplies in the warehouse to be prepared to support disease program needs in the interim. The reason that AllFlex tags must be purchased is because currently all field staff has AllFlex applicators. To procure tags and applicators of a different brand would be costly for this interim purchase. More importantly, due to the critical need of

Page 2 8/14/2018 these tags to track cattle health, we need to purchase and receive these tags as soon as possible.

ADT has received a quote of $1.55 per tag for HDX LF RFID tags, for a total of $124,000 for 80,000 tags.

This contract directly supports the following USDA, MRP and APHIS strategic goals by enabling the Agency to retire official identification tags: USDA Strategic Goal 1: Ensure USDA programs are Delivered Efficiently, Effectively, and with Integrity and a Focus on Customer Service;

USDA Strategic Goal 2: Maximize the Ability of American Agricultural Producers to Prosper by Feeding and Clothing the World;

USDA Strategic Goal 3: Promote American Agricultural Products and Exports MRP Strategic Goal: Make significant progress in demonstrating and delivering value to producers for complying with ADT framework.

APHIS Strategic Goal 1. Prevent the entry and spread of agricultural pests and diseases; APHIS Strategic Goal 5. Ensure the safe trade of agricultural products, creating export opportunities for U.S. producers; APHIS Strategic Goal 6. Protect the health of U.S. agricultural resources, including addressing zoonotic disease issues and incidences, by implementing surveillance, preparedness and response, and control programs.

4. IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING

NONCOMPETITIVE ACQUISITIONS:

FAR part 6.302-2; 10 U.S.C. 2304(c)(2) or 41 U.S.C. 3304(a)(2).

5. A DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES

USE OF THE AUTHORITY CITED:

Currently there are only three manufacturers with USDA approved RFID LF HDX button tags. VS has purchased over 1 million low frequency radio frequency identification (RFID) tags for cattle and several hundred handheld RFID readers over the past 15 years from them. In addition, our field staff is familiar with these devices and are equipped with the proper tag applicators saving us the need to purchase new or different applicators if moving to a different tag manufacturer. Allflex has the production capability to provide us the requested number of tags within a matter of days. VS has approximately 4,000 LF HDX RFID tags left in our inventory for program disease testing. The last two requests for RFID tags were for quantities of 10,000 tags each to test two dairies. Due the size of modern dairies and the unpredictable nature of the disease it is necessary for VS to have a reasonable stockpile of RFID tags for testing purposes. Inventory, testing and depopulation of herds without RFID requires the use of pen and paper, introduces human error when manually recording animal identification, and creates critical deficiencies and substantial cost for VS, States and producers. If animals are not tracked

Page 3 8/14/2018 and identified correctly, an infected animal could be missed and remain in population spreading disease, also an animal could be depopulated that was not infected. As an example for a disease like TB because of the size of the dairies and the ability for spread between them, we spent 26 million on depopulation in 2016. It is critical we carefully track cattle in an effort to preserve the health of cattle and consumers.

6. A DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS

PRACTICABLE, INCLUDING WHETHER A NOTICE WAS, OR WILL BE,

PUBLICIZED AS REQUIRED BY FEDERAL ACQUISITION REGULATION

(FAR) SUBPART 5.2, AND IF NOT, WHICH EXCEPTION UNDER FAR 5.202

APPLIES:

Due to the urgent and compelling nature of this requirement, the Government is publicizing this notice prior to award.

7. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE, AND THE BASIS FORTHAT DETERMINATION:

Based on historical pricing, Allflex is charging the same price per tag $1.55 that they charged us in 2013 per order AG-32KW-P-13-0142. Further considering the additional expense that would occur if a different tag was procured because additional applicators would have to be purchased which would increase total costs anywhere from $3500 - $7000. The pricing offered is fair and reasonable based on historical pricing.

8. A DESCRIPTION OF THE MARKET RESEARCH CONDUCTED (FAR

PART 10) AND THE RESULTS, OR AN EXPLANATION OF THE REASON

MARKET RESEARCH WAS NOT PERFORMED:

Since a USDA approved AIN device (RFID LF HDX button cattle eartag) is required for this purchase the research we conducted was limited to the approved AIN device list for cattle posted on the APHIS Traceability website:

https://www.aphis.usda.gov/traceability/downloads/ADT_device_ain.pdf

Of the approved devices meeting the program’s needs, there are four manufacturers listed with one manufacturer (Destron Fearing) being a subsidiary of another manufacturer, Allflex USA. Therefore, we limited our search to Allflex and the remaining two manufacturers, Temple Tag and Y-Tex. Based on the immediate need, current use and, an available stock of Allflex tag applicators, and the fact that the company can easily meet the delivery timeline, the ADT Program needs to contract with Allflex as this is a critical need for our program.

https://www.aphis.usda.gov/traceability/downloads/ADT_device_ain.pdf

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9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL

AND OPEN COMPETITION - FAR 6.303-2(a)(9):

NA

10. A LISTING OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THE ACQUISITON:

NA

11. A STATEMENT OF THE ACTIONS, IF ANY. THE AGENCY MAY TAKE

TO REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION

BEFORE ANY SUBSEQUENT ACQUISITION FOR THE SUPPLIES,

EQUIPMENT, OR SERVICES REQUIRED:

This is only an interim order. We are working towards a long term contract that will be competed in accordance with the acquisition plan. Anticipated release date of the solicitation is late September/early October.

12. I HEREBY CERTIFY THAT THE INFORMATION PROVIDED IN THIS

JOFOC IS ACCURATE AND COMPLETETOTHE BEST OF MY

KNOWLEDGE AND BELIEF.

Date Sunny Geiser-Novotny Date Contracting Officer Program Manager Minneapolis Procurement Branch Animal Disease Traceability