Canon_Korea_LSJ_final.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 21 San Diego CA 92152 POC: Tracy Casey

PH: 619-553-7967

Email: tracy.casy@dla.mil

Contracting Activity:

DLA Contracting Services Office (DCSO-P-HW) 5450 Carlisle Pike, Bldg 09 Mechanicsburg PA 17055-0788

2. Nature and description of the action being approved:

Approval is sought to non-competitively award a contract to Canon Korea for a three (3) month base period with no options.

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 01/01/2017. Moreover, DLA’s short-term need for these MFDs expires on 12/31/2016.

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 $534,858.00.

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 (Canon Korea) can meet the time sensitive portion of DLA’s new requirement.

The current devices in place expire on December 31, 2016. Solicitation SP7000-16-R-0002 was issued on April 4, 2016 and closed on May 17, 2016 to replace the devices in place. The solicitation was issued with enough time to have the devices tested and delivered for an October 1, 2016 period of performance. The subsequent follow on award was made on August 29, 2016. Additionally, Government and vendor delays were experienced during testing which have caused the need for this three (3) month sole source contract. The contracting officer, John L. Lingrel, received notification from Mr. Pu Hyon In on September 7, 2016 that the devices could be delivered on September 12, 2016 to the test facility in South Korea. Samsung ran into issues with customs and they were subsequently delivered on September 23, 2016. During the testing time, Mr. Schmitt, ran into multiple issues with losing network connectivity. Mr. Schmitt is located in Mechanicsburg PA and he was testing devices which were physically located in South Korea. Additionally, on November 10, 2016 Mr. Lingrel was notified by Terra Nguyen that a test item was not being resolved by Samsung in a timely manner. The same day Mr. Lingrel issued a cure notice to Samsung stating this issue had to be fixed by December 1, 2016.

Samsung successfully fixed this issue within the timeframe allotted and all devices unofficially passed testing on November 23, 2016 with the official notification being sent on December 1, 2016. On December 9, 2016 Mr. Lingrel was notified by Samsung that deliveries had been started with all devices planned to be delivered by December 30, 2016. On December 15, 2016 Ms. Nguyen notified Mr. Lingrel that the 8th Army needed a three (3) month sole source contract starting on January 1, 2017. The sole source contract is needed because the 8th Army will not let Samsung install the devices on their network until they complete their own review of DLA Document Services’ testing results which they expect will take up to two weeks.

Worth noting actions that occurred within the above paragraph, on November 8, 2016 and November 16, 2016, Mr. Lingrel sent emails to the EMS program office requesting a three (3) month sole source contract. The EMS program office provided the DCSO-P-HW contracting office their official response on December 15, 2016.

As noted in the above paragraphs multiple delays were incurred which were attributed to both the Government and the vendor.

Due to the above reasons, Samsung who was issued the follow on order won’t be able to have all devices installed until March 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 08/2/2016 closing on 8/4/2016. KVG and Advanced IT Solutions showed interest in the RFI, but neither 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 October 1, 2016 which would also make them unable to have the devices fully installed by January 1, 2017).

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 will use price analysis techniques, prior to award, in order to determine pricing fair and reasonable for this action utilizing price analysis techniques.

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 finish the contract award, provide for testing and delivery of devices.

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 1,919 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.

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

KVG and Advanced IT Solutions showed interest in the RFI, but neither 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 October 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

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

Contracting Officer I have reviewed and approve this justification.