2SP700016M0062_JA_(04272016)_-_Copy_2.pdf

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND

OPEN COMPETITION

1. Identification of agency and contracting activity:

Requiring Activity:

Defense Logistics Agency (DLA) Information Operations (J6) DLA Document Services 53333 Ion St Bldg 321 San Diego CA 92152 POC: Tracy Casey

PH: 619-553-7967

Email: tracy.casey@dla.mil

Contracting Activity:

DLA Contracting Services Office (DCSO-P) 700 Robbins Ave Philadelphia PA 19111

2. Nature and description of the action being approved:

Approval is sought to non-competitively award a contract to Fuji Xerox Co., LTC for a four (4) month base period with up to five (5) one-month options periods.

3. A description of the supplies or services required to meet the agency’s needs (including the estimated value):

This is a short-term, time-sensitive requirement for multifunctional devices (MFDs), full service maintenance, all consumable supplies (excluding paper), key operator training, networking functionality, and security accreditation along with technical and network installation support for the Pacific Region. Specifically, these MFDs must be delivered, installed and up and running in the DLA customers’ spaces by May 1, 2016. Moreover, DLA’s short-term need for these MFDs expires as early as August 31, 2016 but not later than January 31, 2017.

As explained below (see Item 5), the short-term, time-sensitive nature is not due to DLA’s fault or lack of advanced planning.

The estimated value of this proposed contracting action is $1,039,476.78 inclusive of all option periods.

mailto:tracy.casy@dla.mil

4. Identification of statutory authority permitting other than full and open competition:

The statutory authority permitting other than full and open competition is 10 U.S.C.

2304(c)(1), as implemented by FAR 6.302-1 “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of cited authority:

The nature of this acquisition requires DLA to use FAR 6.302-1(b)(1).

DLA has a new short-term, time sensitive requirement for MFDs in the Pacific Region.

Market research shows, while various sources are capable of providing MFDs to the Pacific Region, only one source (Fuji Xerox Co., LTC) can meet the time sensitive portion of DLA’s new requirement.

Until very recently, DLA had a viable contracting vehicle available to fulfill its requirements for MFDs in the Pacific region from May 1, 2016 and beyond.

Specifically, on February 2, 2016, after full and open competition, DLA awarded an indefinite delivery, indefinite quantity (IDIQ) contract (SP7000-16-D-0002) to Fuji Xerox Co., LTC for this purpose.

This competitively awarded IDIQ contract dovetailed with the April 30, 2016 expiration of the previous contract (SP7000-16-M-0059) that DLA used to fulfill its MFD requirements in the Pacific region.1 This expiring contract is also with Fuji Xerox, Co., LTD.

Unfortunately and unexpectedly, on March 7 2016, DLA Document Services’ in-house testing facility informed the IDIQ contract’s contracting officer that the MFDs to be delivered/installed via orders on this IDIQ contract did not meet DISA’s Security Technical Implementation Guide (STIG) & Navy OneNet certification. By the terms of the IDIQ contract, these MFDs cannot be installed until they meet both STIG and Navy OneNet certification. On March 9, 2016 Fuji Xerox Co., LTC provided assurances to DLA that its proposed MFDs would be STIG and OneNet certified no later than April 29, 2016. However, between the further testing and 90-day delivery period allowed for under the IDIQ contract, this means MFD delivery/installation will not be completed until August 31, 2016 [i.e., a 4-month base period from May 1 –August 31, 2016].

Moreover, should there be future unexpected problems with STIG and/or Navy OneNet certification, DLA seeks five 1-month option periods [i.e., January 31, 2017].

This expiring contract was one of a series of non-competitively awarded contracts that continued the original contract with Fuji Xerox, LTD (SA7065-09-C-2002) beyond its September 30, 2014 expiration. The other non-competitively awarded contract include “bridge contracts” SP7000-14-M-0121 (October 1, 2014 to March 31, 2015), SP7000-15-M-0049 (April 1 to September 30, 2015) and SP7000-15-M-0104 (October 1, 2015 to March 31, 2016).

Thus, due to no fault of its own, DLA now has a new requirement for MFDs in the Pacific Region that begins May 1, 2016 and ends as early as August 31, 2016 or as late as January 31, 2017.

Additionally, pursuing a competitive award for this new short-term, time sensitive requirement would result in unacceptable delays, increased performance risks and interruption of services, resulting in a significant impact to mission accomplishment.

Experience shows, it takes DLA a minimum of 225 days to actually receive delivery of operational MFDs through the competitive contract award process. The 225 days includes 135 days for DLA to conduct the competitive procurement itself and an additional 90 days from award for delivery of operational MFDs. In this case, such a 225-day lapse would be a severe and negative impact to DLA’s customers.

6. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable:

In accordance with DFARS PGI 206.303-2(b)(i) a request for information (RFI) was posted on 04/20/2016 closing on 4/22/2016. Three vendors, Trident Engineering, Canon Korea Business Solutions & Procurement and New Tech Solutions, Inc, showed interest in this requirement. While showing interest, none of these vendors can meet the time sensitive element of DLA's requirement (i.e., none can provide MFDs that would be delivered, installed, and up and running by May 1, 2016.

Additionally, the Justification and Approval per FAR 6.302-1 will be synopsized via the Government-wide Point of Entry, Federal Business Opportunities website in accordance with FAR 6.305.

7. Determination by the Contracting Officer that the anticipated cost to the

Government will be fair and reasonable:

The Contracting Officer has determined the pricing fair and reasonable for this action utilizing price analysis techniques in accordance with historical pricing.

8. Description of the market research conducted and the results:

Market research indicates that an adequate competition pool exists for requirements of this type (see Items 6 & 9 for further information). The sole source contract will only be in place long enough to allow DISA STIG & OneNet Certification for these MFDs.

9. Any other facts supporting the use of other than full and open competition:

Attempting to do a short-term contract via competitive procedures would result in unacceptable delays to achieve contract award and delivery/installation of new equipment. The unacceptable delays would entail removal of the 891 devices currently in place, re-competing the short term rental, and delivery of the short term rental, during which the customers would be without devices. A five (5) month sole source contract with four (4), one (1) month options will provide adequate time for DISA STIG &

OneNet certification and for installation of devices.

10. A Listing of the vendor sources, if any, which expressed in writing an interest in the acquisition:

Three vendors, Trident Engineering, Canon Korea Business Solutions & Procurement and New Tech Solutions, Inc, showed interest in this requirement. While showing interest, none of these vendors can meet the time sensitive element of DLA's requirement (i.e., none can provide MFDs that would be delivered, installed, and up and running by May 1, 2016.

11. A statement of actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for supplies or services:

DLA has and continues to exercise competition as often as possible and is required to conduct ongoing reviews to keep abreast of new technology, both within industry and the Government, as a continuing effort within DLA. Furthermore, DLA utilizes a variety of vendors, manufacturers, and contracts to fulfill its requirements and will continue the practice of surveying the market to ensure future full and open competition. Requirements will continue to be posted on FedBizOpps to ensure fair opportunity is given and no other providers are available.

Requirements Certification:

I hereby certify that the support data provided for which I am responsible and which form a basis for this justification are complete and accurate.

Technical Personnel DATE

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer DATE

I have reviewed and approve this justification.

Level Above Contracting DATE Division Chief DLA Contracting Services Office-Philadelphia

I have reviewed and approve this justification.

John M. Fafara DATE DCSO Competition Advocate