A.02.09 - Single Source Determination-Automated Fee Machines - Signed.pdf

Control Number: NWK-23-06 (SharePoint) Labor Code: 49E8CA

SINGLE SOURCE DETERMINATION

Automated Fee Machine

1. CONTRACTING AGENCY: Kansas City District (NWK), U.S. Army Corps of Engineers (USACE), Contracting Division, 601 E. 12th St., Kansas City, MO 64106.

2. DESCRIPTION OF ACTION: This action is for a new firm fixed price single source requirement using Fiscal Year 2023 Operations and Maintenance funds to supply an Automated Fee Machine to Long Branch Lake Project located in Macon County, MO.

3. DESCRIPTION OF SERVICE: This action is for one (1) Automated Fee Machine (AFM) with incidental installation services required at Long Branch Lake Project. The AFMs allow the lake project to receive payment electronically from patrons for camping fees/other services. The delivery date will be set at 60 days after award which should be sufficient time for the awardee to communicate with the lake project office to schedule delivery and installation services. The total estimated price for this requirement is $14,554.00 for base CLIN; no option CLINs are anticipated.

4. AUTHORITY CITED: FAR 13.106-1(b) Soliciting from a single source. (1) For purchases not exceeding the simplified acquisition threshold, contracting officers may solicit from one source if the contracting officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand name, or industrial mobilization).

5. REASON FOR AUTHORITY CITED:

a. BACKGROUND: Lake projects normally have self-pay services at their beaches and boat ramps. This is a process where the patrons walk up to a vault, put their money into an envelope, drop the envelope into the vault, and then take a permit and attach it to their boat/vehicle. The money is retrieved by lake staff on a weekly basis; if the lake is busier than normal, they have to retrieve the money two to three times a week. This process requires at least two park rangers to collect the money (due to not knowing how much money is in the vault), transport the money to the office, multiple people to audit/count the money to agree on the amount, and then have to convert the money to a money order to send to Financial Center in Millington, TN, to process.

In order to be most effective, the AFMs require specific conditions to ensure they are more valuable than the current process. The AFMs will be able to receive credit card information and transfer funds automatically to the Finance Center in Millington to eliminate the amount of time staff spend on current processes.

Market research shows Caracal Enterprises, DBA: Ventek International is capable of meeting the minimum requirements. Ventek Automated Fee Machines are widely used by other Government agencies and the Army Corps of Engineers nationwide. The machines have the capability to accept credit and debit cards, print thermal receipts, provide paper audit trails, operate under extreme weather conditions, have battery backups, and meet all other general specifications and requirements set forth in the Statement of Work (SOW). The Government reached out to other competitors of Caracal Enterprises, DBA: Ventek International to see what other brands of AFMs are capable of fulfilling the minimum requirements, but no responses were received. Based on market research, VenTek AFMs is the only machine on the market to meet the minimum specifications for this requirement and therefore Caracal Enterprises, DBA: Ventek International is the only responsible source to meet the requirement.

b. JUSTIFICATION: Ventek Automated Fee Machines meet the minimum specifications outlined in the Statement of Work, and due to the lack of responses to sources sought and request for information, the Government cannot determine how many brands or vendors, other than VenTek will be interested in submitting a proposal for this requirement.

c. Impact: An automated fee machine is needed to streamline the process for collecting fees. The machine will allow staff members to spend more time on other priority actions around the lake projects instead of time spent on the current process to collect cash from the vaults. It is in the best interest of the Government to purchase AFMs to relieve most of the administrative burden of manual fee collection.

d. Alternatives: There are no other alternatives for this requirement. Market research shows other brands provide AFMs, but due to the lack of interest and only Ventek responding to the sources sought, there are no other alternatives. Also, no response was received to the request for information from other businesses within the industry, there is zero confidence other vendors will be able to meet all requirements specified in the Statement of Work. The Government has reached out to other competitors, but none have responded with their capability statements or with product information in order to determine there are other alternatives.

e. EFFORTS TO OBTAIN COMPETITION: These are the efforts made to ensure that offers are solicited from as many potential sources as is practicable. On 18 April, a sources sought was posted to Sam.gov for seven days to seek potential offerors for this requirement. Caracal Enterprises, DBA: Ventek International was the only small business to respond to the sources sought indicating ability to meet the requirement. To gain more interest in the requirement, On 4 May 2023, Request for Information (RFI) to all small business competitors of VenTek identified in this market research to see if there are other brand name AFMs that can compete for the requirements needed by our lake projects. The RFI was sent out to Hamilton Manufacturing (small business), Card Concepts (not in SAM), Unitec & DRB Systems (not in SAM), XAC Automation (not in SAM), Jamex (small business, expired SAM), Pacific Parking Systems (small business). No response was received to the RFI.

f. MARKET RESEARCH:

On 13 April a search of all mandatory and non-mandatory sites was conducted. No sources were found that can meet the requirement.

On 17 April, a search of the SBA.gov, dynamic search tool was conducted. The search used NAICS 334514 and keywords “Automated Fee Machines”. This search did not yield any results.

On 17 April, a search on FPDS.gov website was conducted. The filters included: Keywords- “Automated fee machines”, Dates signed- “4/17/22 – 4/4/23”, and Modification Number- 0. This pulled up eight results under four different companies, Integrated Power Generation (Site Preparation/construction), Noble Supply & Logistics, and Caracal Enterprises LLC and RRM-CLM Services, LLC.

On 17 April, a google search for Ventek competitions found the following: Hamilton Manufacturing (small business), Card Concepts (not in SAM), Unitec & DRB Systems (not in SAM), XAC Automation (not in SAM), Jamex (small business, expired SAM), Pacific Parking Systems (small business).

On 18 April, a sources sought was posted to Sam.gov, Caracal Enterprises LLC was the only small business to respond to the sources sought indicating ability to meet the requirement.

On 4 May 2023, a Request for Information (RFI) was sent to all small business competitors of VenTek identified in this market research to see if there are other brand name AFMs that can compete for the requirements needed by our lake projects. The RFI was sent out to Hamilton Manufacturing (small business), Card Concepts (not in SAM), Unitec & DRB Systems (not in SAM), XAC Automation (not in SAM), Jamex (small business, expired SAM), Pacific Parking Systems (small business). No response was received to the RFI.

g. INTERESTED SOURCES: Only Ventek responded to the sources sought posted in SAM.gov. VenTek does supply their own installation services, but since they are in California, they would have to deliver their materials to the lake locations and then have an installer (their own or subcontractor) come at a later date to install the AFMs.

h. Other Facts:

Procurement history: In 2021, NWK awarded contract No. W912DQ21C1026 for 37 automated Fee machines. The solicitation was set aside with a brand name justification, only one offer was received, and awarded to Caracal Enterprises, DBA: Ventek International. Other USACE districts have procured AFMs from this vendor utilizing brand name justifications.

Acquisition data availability: The Contractors had access to the Draft Statement of Work through the sources sought posted to SAM.gov and the RFI emailed to competitors, only Caracal Enterprises, DBA: Ventek International responded.

Subcontracting competition: The Government anticipates no subcontracting opportunities to apply to the installation services of this supply contract.

7. CONTRACT SPECIALIST: I certify that the information supporting this single source determination is accurate and complete to the best of my knowledge based on the supporting data provided by technical or requirements personnel and my research.

Prepared by: Nathaniel Leyba Title: Contract Specialist

8. DETERMINATION: I certify the information supporting this single source determination is accurate and complete to the best of my knowledge based on the supporting data provided by technical or requirements personnel and my research. I hereby determine the circumstances of this contract action deem only one source reasonably available. In accordance with FAR 13.106-3(a)(2)(ii) and (vi) pricing will be determined fair and reasonable based on comparison of the proposed price with prices found reasonable on previous purchases and comparison to the government estimate.

Approved by: Christopher Anderson Title: Contracting Officer

Attachment(s): Market Research Market Research Enclosures