24R0042 LSJ_Redacted.pdf

LIMITED-SOURCES JUSTIFICATION (LSJ)

FOR MULTIPLE AWARD SCHEDULE FAR 8.4

Purchase Request Number:

Upon the basis of the following justification, prepared in accordance with Federal Acquisition Regulation(FAR) 8.405-6(c), the use of sources limited to fewer than those required in FAR 8.405-1, FAR 8.405-2, and FAR 8.405-3 pursuant to the authority of 41 U.S. Code (USC) 251 as implemented by FAR 8.405-6(a)(1)(i)(B) is approved. This acquisition is conducted under the authority of the Multiple Award Schedule program (41 USC251,et seq. and 40 USC 501).

1. Identify the agency and the contracting activity. FAR 8.405(c)(2)(i)

The requiring activity is the Department of Navy (DON) – Naval Supply Systems Command (NAVSUP) Headquarters (HQ) in Mechanicsburg, PA. The contracting activity is NAVSUP Fleet Logistics Center (FLC) Puget Sound.

2. Nature and or description of the action being approved FAR 8.405-6(c)(2)(ii)

Multiple Award Schedule (MAS) order for supplies and services that require a statement of work. The contemplated contract type is firm-fixed-price.

3. Description of the supplies or services required to meet the agency needs (including the estimated value). FAR 8.405-6(c)(2)(iii).

NAVSUP has identified an efficient means of processing personal and official mail/parcel distribution to commands and authorized personnel assigned. By installing the Pitney Bowes Intelligent Lockers, locations will have an efficient means to make available mail/parcels for pick up anytime that is convenient for the command while maintaining full visibility to the chain of custody associated with each piece of mail or package IAW DOD rules and regulations.

Additionally, installation promotes social distancing as a result of unattended package/mail retrieval and distribution. Incorporating Intelligent Locker technology solution with the present delivery system will improve service, tracking and access for optimum efficiency at minimum cost. Lockers are in a multi-column configuration with both Indoor and Outdoor configurations with an additional peripheral(s), with flexibility to accommodate front or back feeding for the deposit of parcels in the lockers. The lockers must accommodate a number of standard configurations, which may include up to 8 columns inclusive of the user-station (Kiosk) with a total of 92 locker compartments. As a standard spanning all configurations, the solution extends inbound package tracking and delivery capabilities by incorporating intelligent locker technology that includes an all-in-one user-station equipped with a

4. The authority cited for the justification FAR 8.405-6(c)(2)(iv) ☐ An urgent or compelling need exists and following the MAS ordering procedures would result in unacceptable delays. FAR 8.405-6(a)(1)(i)(A) ☒ Only one source is capable or responding due to the unique or specialized nature of the work. FAR

8.405-6(a)(1)(i)(B)

☐ The new work is a logical follow on to an original MAS order or BPA, and the order or BPA was laced in accordance with MAS procedures and must not have been issued under sole-source or limited -sources procedures. FAR 8.405-6(a)(1)(i)(C)

☐ An item peculiar to one manufacture is required (i.e. brand name product, or a feature of a product) FAR 8.405-6(b)

Rationale for reason cited above:

Pitney Bowes, Inc. is the only contractor that is capable of meeting all of the requirements due to the unique or specialized nature of the work. Mail systems, specifically postage meters, are regulated equipment by the United States Postal Service (USPS). Pitney Bowes is one of two GSA contractors that are authorized USPS vendors to provide postage meters. The Navy’s Mail Rooms, worldwide, currently operate using Pitney Bowes equipment and software systems. This requirement is for the purchase of new equipment and required yearly maintenance.

NAVSUP under N0018921FR035 obtained SendPro 360 Tracking software and the new lockers will utilize the SendPro 360 Tracking supplied by Pitney Bowes. All equipment and software acquired is required to be compatible with existing hardware and software in order to function as designed. The available market research does not indicate that hardware and software are compatible between vendors. Interchanging equipment and software will cause systems not to function or operate that would lead to the Navy’s inability to operate and process mail.

Effort to Obtain Competition:

For reasons stated in this justification, there are no opportunities for competition in this instance, however, in the future, if more vendors are able to provide the required items and services they will be considered if market research is favorable.

The Government will endeavor to ensure that the prime Contractor obtains as much competition as possible in its subcontracting, if possibilities exist.

In accordance with FAR 5.202(11), this action will not be synopsized

5. A determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 8.404(d) and Class Deviation 208.404. FAR 8.405-6(b)(2)(v)

Fair and Reasonable Cost Determination: GSA has determined the prices of supplies of the schedule contracts to be fair and reasonable for the purpose of establishing the schedule contract. However, GSA’s determination does not relieve the ordering activity contracting officer from the responsibility of making a determination of fair and reasonable pricing for individual orders. Therefore, ordering activities are responsible to make a separate determination of fair and reasonable pricing for individual orders.

Per FAR 8.404(d) DEVIATION 2014-O0011, prior to award using the procedures in FAR 15.404-1, a determination will be made that the prices are fair and reasonable and will document such determination with a level of detail commensurate with the complexity and circumstances of each order.

6. A description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted. FAR 8.405-6(b)(2)(vi)

In accordance with FARS 10.002 market research must be meaningful, complete, and current (within 18 months). In the past 12 months market research was conducted and therefore was not conducted for this new procurement. However, only Pitney Bowes sells the SendPro360 software that is required for the lockers to be compatible in the Navy.

7. Any other facts supporting the justification FAR 8.405-6(b)(2)(vii).

N/A

8. A statement of the actions, if any, the agency will take to remove or overcome any barriers that led to restricted consideration before any subsequent acquisitions for supplies and services made. FAR 8.405- 6(b)(2)(viii)

For the reasons set forth in this document, NAVSUP FLC Puget Sound has no plans at this time to compete future contracts for the types of supplies/services covered by this document unless additional vendors are able to provide the proprietary software.

Due to the unique nature of mail systems and the USPS regulatory authority over postage meters, it is difficult to remove all barriers to competition. For future requirements, NAVSUP will review the available resources that can meet the Navy’s mail requirements at the time and identify if any pre-existing contract vehicles are available. As competition among GSA vendors is limited, NAVSUP will consider for future requirements if competition outside of GSA is viable or beneficial.

9. For an order that is a follow-on to an order or BPA for the same supply and service previously issued based on a limiting sources justification citing the authority at FAR 8.405-6(a)(1)(i)(A, B, or C) additional procedures at DFARS PGI 208.405-6 are required. DFARS 208-405-6

. There were no planned actions to remove barriers to competition included in the previous LSJ. However, the customer confirmed that Pitney Bowes is still the only supplier capable of providing the required Send Pro software for the lockers. Therefore, limiting competition to one source is still appropriate in this instance.