Attachment 1 - 47QFNA23K0056-57 Class LSJ Forgeline Items BPAs.pdf

1 Date: 18 July 2023

Limited-Sources Justification

Identification (ID) Number: 47QFNA23K0056, 47QFNA23K0057

1. Identification of the agency and contracting activity (FAR 8.405-6(c)(2)(i)).

Client/Mission Partner: United States (US) Army Program Management for Protection and Integration (PM-PI) formerly known as Program Management Office for Special Operations Forces, Survival, Support and Equipment Services (PM-SOF SSES). Notification of client name change from PM-SOF SSES to PM-PI provided on 6/21/2023.

Contracting Office Activity: General Services Administration (GSA) Federal Acquisition Service (FAS), Region 1.

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

The release of solicitation and award of two Blanket Purchase Agreements (BPAs) to Forgeline Solutions (doing business as Lost Arrow, Inc) and Atlantic Diving Supply (ADS) to cover Forgeline brand items.

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

This Limited-Sources Justification and associated two BPAs will cover PM-PI required Forgeline brand name items. The ordering period associated with this action is five (5) years. The total ceiling value is $150,000,000.00, which will be split as $130,000,000.00 on the Forgeline BPA and $20,000,000.00 on the ADS BPA.

4. Identification of the agency and contracting activity (FAR 8.405-6(c)(2)(i)).The authority and supporting rationale and, if applicable, a demonstration of contractor’s unique qualifications to provide the required supply or service (FAR 8.405-6(c)(2)(iv)).

The authority for this Limited-Sources Justification is FAR 8.405-6(b)(1) as the particular brand name (Forgeline) is essential to the Government’s requirements, and market research indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the agency’s needs.

The majority of Forgeline brand name specific items that will be purchased on the two BPAs associated with this document are military uniforms and/or uniform related clothing/equipment. By definition, military uniform and supporting clothing/equipment must all look and function in the same way. The required Forgeline brand name specific items enhance the survivability, readiness and mobility of individual SOF operators. The Special Operations Forces require highly

2 Date: 18 July 2023 specialized brand name equipment to perform their missions effectively. SOF testing and operational use has demonstrated that only these brand names are capable of meeting the associated requirements of the Special Operator. The requiring agency maintains the test reports, Acquisition Decision Memoranda (ADMs), Program Executive Officer (PEO) directives and other various documents justifying the certain specific brand name items in the catalog.

The Forgeline brand name items are known to perform under the stresses caused by the full spectrum of special operations and under a wide range of climatic conditions. Such operations routinely include activities such as reconnaissance, patrol, airdrop, search and rescue, and combat actions. As such, special operators require “tried and true” equipment, known to function and endure under the toughest circumstances. Substitution of untested or unproven items is not acceptable, and could result in failure of Special Operations Forces “no fail” mission which could result in life and death consequences.

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

Market research shows that only the original equipment manufacturer, Forgeline Solutions (doing business as Lost Arrow), and Atlantic Diving Supply (ADS) can provide the required Forgeline items to meet PM-SOF SSES’s requirement in accordance with a Federal Supply Schedule

(FSS).

Forgeline Solutions and ADS have an agreement in place that allows ADS to include key Forgeline items on their FSS but only to be sold at levels below Forgeline’s minimum order quantities (MOQs). All other Forgeline items and/or orders at or above Forgeline’s MOQs are only available for sale in accordance with Forgeline Solutions/Lost Arrow’s FSS. There is no circumstance where Forgeline Solutions/Lost Arrow and ADS would be competing for the same order. For every order, the quoted price for each item will be reviewed against the appropriate FSS to ensure the quoted prices are in line with or below the current FSS pricing. Discounts will be requested by the ordering activity. FSS pricing have already been established as fair and reasonable, to support a best value determination.

Although market research indicated that there are other companies that may be capable of providing Forgeline items on an open market basis, Forgeline Solutions/Lost Arrow as the OEM and ADS as the only authorized distributor with FSS pricing will always have the lowest possible prices and very likely to be the only bidders on future orders of Forgeline products if solicited on the open market as other companies would need to mark up prices to remain profitable.

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(c)(2)(vi).

Market research was conducted by first considering the mandatory sources listed in FAR 8.002 and 8.003, none of which apply. Next FAR 8.004 was considered, specifically use of supplies under Federal Supply Schedules (FSS), Government-wide acquisition contracts (GWACs), etc.

Market research indicated that only the OEM, Forgeline Solutions/Lost Arrow, and agreement partner Atlantic Diving Supply can provide this equipment in accordance with a FSS.

3 Date: 18 July 2023

Results of RFI A RFI was posted to the SAM website on 12/15/2022 under various NAICS codes. The same RFI was also posted to GSA eBuy! on 12/19/2022 under various MAS categories. Both postings closed on 1/6/2023. Respondents were requested to fill out a questionnaire and also indicate which items in a Sample Catalog that their company could provide. The sample catalog included 959 Forgeline items. It is noted that an additional 2,482 items other than brand name Forgeline were included in the Catalog but these items will not be included in the contracts associated with this document.

The RFI stated that there could be changes to the sample catalog in the future as a result of technological changes and client needs, but any changes would include other similar commercial items and fall within the scope of the contract. Respondents were asked to fill out the following information:

1. Identify which of the items in the catalog that their company can and cannot provide.

2. Of the items the company can provide, identify whether those items are available via a FSS or open market.

3. Respondents were given the option to suggest similar items to be reviewed by the

Government for possible inclusion in the catalog.

The RFI postings resulted in responses from twenty-seven (27) companies, with twenty-four

(24) companies providing completed catalogs. Eleven (11) respondents stated that they could provide Forgeline items. Only one (1) respondent, Forgeline Solutions/Lost Arrow, stated that their company could provide the items via a FSS. After the RFI closed, Forgeline Solutions/Lost Arrow came to an agreement with one of the open market respondents (ADS) that allowed ADS to carry key Forgeline items on their GSA schedule under Forgeline’s minimum order quantity (MOQ) levels. Forgeline Solutions stated that they have no intention to extend this agreement to any other business entities.

A summary of the companies that stated in their RFI response they could provide Forgeline items is below: Redacted

*ADS provided an “Open Market” response to the RFI as the agreement to carry Forgeline items on their FSS was not yet in place.

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

All facts supporting the justification are provided above.

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

PM-PI requires highly specialized equipment. The client agency for this order, PM-PI, acquires specific items that are validated for use by USSOCOM. However, PM-PI performs research and development and continually monitors the market, subjecting new potential technical solutions to

4 Date: 18 July 2023 the rigorous testing required to validate new items, as well as to invalidate obsolete products and prevent their further use. New vendors are also being sought at the GSA MAS level to provide additional competition for future requirements.

9. TECHNICAL CERTIFICATION (FAR 8.405-6(c)(2)(x).

Any supporting data (e.g. verification of Government’s minimum needs or requirements or other rationale for limited sources) which form the basis for this justification have been certified as complete and accurate by the technical or requirements personnel.

10. ORDER ACTIVITY CERTIFICATION (FAR 8.405-6(c)(2)(ix))

The undersigned certified that this justification is accurate and complete to the best of their knowledge and belief.