JOFOC_-_Cattle_Tags.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

(SOLE OR SINGLE SOURCE – LESS THAN $150,000)

In accordance with the authority granted under FAR Part 13, 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:

APHIS/VS Logistics Support Center

3500 E 149th St. Suite 300 41 Kansas City, MO 64147

Contracting Activity:

USDA, APHIS, MRPBS, ASD

Minneapolis Procurement Branch Butler Square, Fifth Floor 100 North 6th Street Minneapolis, MN 55403

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING

APPROVED:

The United States Department of Agriculture (USDA), Animal and Plant Health Inspection Service (APHIS), Veterinary Service (VS), Riverdale, MD, intends to acquire cattle backtags. The animal backtag program is a program mandated by Congress that APHIS oversees and manages. It is a program designed to aid the USDA in the monitoring and management of animals from farm or ranch to feedlot and slaughter house. The oversight of animal movement is intended to inhibit the spread, and eventually eliminate various animal diseases which threaten American agriculture. The ability of users of these tags to expeditiously order and receive animal backtags is critical.

Therefore, this requirement includes the ability to produce and delivery these tags using a just-in-time (JIT) method.

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

REQUIRED TO MEET AGENCY NEEDS (INCLUDING THE ESTIMATED

VALUE OF THE ACQUISITION INCLUSIVE OF OPTIONS):

Cattle tags with the durability to withstand extreme elements for a minimum of 14 days with degredation. The tags are required to be printed with various bar code and number characters.

The State offices will order backtags directly from the manufacturer. The method to be employed is frequently referred to as “Just In Time”. Using this method, little or no stock of backtags are maintained at the central warehouse. Production is initiated to fill an order at the time the order is placed with the contractor; the tags are produced and delivered in a rapid manner. The contractor is required to have 24 hour turn around delivery time along with on-line ordering and reporting capabilities.

This requirement will be issued as a five-year fixed price IDIQ contract for a total estimated value of $5 million.

4. IDENTIFICATION OF THE STATUATORY AUTHORITY PERMITTING

NONCOMPETITIVE ACQUISITIONS:

The statutory authority is 41 U.S.C. 253( c )(1); FAR 6.302-1 The property or services needed by the executive agency are available from only one responsible source and no other type of property or services will satisfy the needs of the executive agency.

5. A DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES

USE OF THE AUTHORITY CITED:

The previous contract AG-6395-C-10-0152 was advertised competitively. There was only one offeror, EJ Brooks Company. In an effort to determine if the market had changed in the last five years, a sources sought notice was issued from 2/4/15 – 2/17/15. There were vendors that could supply the tags; however, could not facilitate the JIT tracking system. As a result, no capable businesses were found that could successfully fulfil this requirement. EJ Brooks is the only known company that can supply the cattle tags and fulfill the JIT requirements.

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:

As mentioned in #5 above, a sources sought notice was issued for 14 days in an effort to locate qualified contractors who could fulfill this requirement. Subsequently, a Notice of Intent to Sole source was posted on Fedbizopps.gov on 2/20/15 and will remain posted for 30 days.

7. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE, AND THE BASIS FORTHAT DETERMINATION:

Historically speaking, for the exact same items we paid the following prices the past 5 years per thousand tags:

2010:

3 Digit - $21.30 4 Digit - $21.30 2011:

3 Digit - $22.05 4 Digit - $22.05

2012:

3 Digit - $22.75 4 Digit - $22.75 2013:

3 Digit – $23.40 4 Digit - $23.40 2014:

3 Digit - $24.10 4 Digit - $24.10

Tyden Brooks proposes the following annual unit pricing over the next 5 years:

2015:

3 Digit - $24.80 4 Digit - $24.80 2016:

3 Digit - $25.55 4 Digit - $25.55 2017:

3 Digit - $26.30 4 Digit - $26.30 2018:

3 Digit – $27.10 4 Digit - $27.10 2019:

3 Digit - $27.90 4 Digit - $27.90

Ultimately, the price yearly price increase offered by Tydenbrooks is 2.9% which is consistent with what was offered on last contract. It is also reasonable based on overhead, inflation and personnel rate increases.

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:

Historical information and recent sources sought notice indicates that there are no other parties capable of performing this service as outlined in #6 above.

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

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

No

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

INTEREST IN THE ACQUISITON:

None – see #8

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:

None- the market must evolve.

12. I HEREBY CERTIFY THAT THE INFORMATION PROVIDED IN THIS

JOFOC IS ACCURATE AND COMPLETETOTHE BEST OF MY

KNOWLEDGE AND BELIEF.

Lisa Brown Date

USDA-APHIS-NVS

Logistics Chief

Larry Nelson Date

USDA-APHIS

Advocate for Competition