USDA_Approved_Tag_Justification.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING

ACTIVITY:

Requesting Agency: USDA AP HIS Veterinary Services (VS) Anhnal Disease Traceability (ADT) Program

Contracting Activity:

USDA, AP HIS, MRP BS

Acq & Asset lvfanagement 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 low frequency (LF) half duplex (HDX) radio frequency identification cattle ear tags to be acquired using a competitive procurement process in suppot1 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 a compelling need to purchase LF HDX RFID cattle ear tags from any company that has the aforementioned official ear tag for sale.

Official identification is required for any animal covered by 9 CFR, part 86. The ADT program provides official identification tags to APHIS Veterinarians for disease program work such as testing affected herds for tuberculosis, brucellosis, etc. Due to previously increased use of LF HDX RFID button tags from the Kansas warehouse, to suppo11 program disease work, APHIS must maintain a supply of these tags for use in cattle. Single requests for tags are often 10,000 tags and can be depleted quickly. This request is in accordance with previously outlined plan to solicit a 3 year fixed price contract for RFID tags this fiscal year.

This request will replenish supplies in the warehouse to be prepared to suppo11 disease program needs in the coming year.

Additionally, companies with identification devices without approval in another country with comparable or more stringent standards must undergo field trials for 3 years in covered species, with the exception of 2.5 years in swine, before

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APHIS will consider fully approving the device. The field trials help ensure the devices are of high quality and meet industry needs while providing traceability;

and provide data on the device's physical performance (application, durability, and retention) and transponder performance (if applicable). Field trials must be supervised by an independent third party who knows the management practices for the species used to test the trial device, and who has no conflict of interest with the trial locations or manufacturer. Field trial supervisors must be on site to monitor each assessment and certify results, and ensure that field trials comply with all State, Tribal, and Territory regulations.

While APHIS is committed to only approving identification devices with a proven history of retention and durability, we also want to encourage new identification devices meeting preliminary standards to enter a controlled marketplace until the remaining requirements are met for full approval. Therefore, the field trial protocol provides for preliminary device approval after 12 months to promote the introduction of new devices and technologies into the market.

ADT program requires tags prior to the minimum time it would take for a new device to receive interim approval therefore only companies with an approved device can apply for this opportunity.

This contract directly supports the following USDA, MRP ai1d APHIS strategic goals: 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 I. 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 ST A TUTORY AUTHORITY PERMITTING

NONCOMPETITIVE ACQUISITIONS:

Citations: 4 I U.S.C. 3304(a)(I ). FAR 6.302 -- Circumstances Permitting Other Than Full and Open Competition. When the supplies or services required by the agency are available from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for. Only USDA approved HDX LF RFID button tags can be used.

5. A DEMONSTRATION THAT THE PROPOSED CONTRACTOR'S UNIQUE

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QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES

USE OF THE AUTHORITY CITED:

Currently there are three manufacturers with USDA approved HDX LF RFID 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. VS has approximately 84,500 HDX LF RFID tags in our inventory for program disease testing. While the average request for RFID tags historically has been for quantities of 10,000, on occasion, we've had requests for 20,000 and 50,000 tags at once. Each of the last two years, APHIS-VS, Texas has submitted a tag request for 50,000 for TB; August 2017 and September 2018. It is possible another large request could be submitted from Texas or another state before the end of the year. 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 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 effo1i 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 compelling nature of this requirement, the Government is publicizing this notice with the solicitation to inform the market of the Governments need for only approved tags. Contractors interested in obtaining further information on the tag approval process can contact APHIS (see website below).

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 and information available in the marketplace, we expect the quotes will be comparable to previous pricing that was found to be acceptable, fair and reasonable in prior awards.

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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 AfN device (RFID LF HDX button cattle ear tag) 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. Based on the requirement for official ID, only those companies can apply for this opportunity.

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:

The government will post justifications with solicitations in an attempt to notify the industry of the requirements along with web-site information (see above link) to provide information if contractors are interested in learning more about the tags and the approval process.

12. I HEREBY CERTIFY THAT THE INFORMATION PROVIDED IN THIS

JOFOC IS ACCURATE AND COMPLETETOTHE BEST OF MY

KNOWLEDGE AND BELIEF.

PATRICIA

SIMON

Digitally signed by PATRICIA

SIMON

Date: 2019.07.2316:47:07 -05'00'

Patricia Simon Date Contracting Officer Minneapolis Procurement Branch

Larry D. Nelson Date

APHIS, MRPBS, AAMD

Acquisition Competition Advocate

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DAISY

WITHERSPOON

Digitally signed by DAISY

WITHERSPOON

Date: 2019.07.23 14:06:00 -04'00'

Daisy M. Witherspoon Date Program Manager Animal Disease Traceability

7/23/2019