6_-_J_A_Morningstar_(Redacted).pdf

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

SOURCE SELECTION SENSITIVE

25 May 2018 SOURCE SELECTION SENSITIVE Page 1 of 4

NOTE: If a Justification was approved for the preceding acquisition, a copy of the approved Justification for the predecessor action must be included in the staff package for approval of the instant Justification. This applies to Justification staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor Justification will be used as a reference document by the approving official.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: >SAT and < $700K > $700K and < $13.5M

Contracting Activity: AFLCMC/PZIEC

Purchase Request / Local ID Number:

Program / Project (and PE, if applicable): Morningstar

Program Type (PEO or Other Contracting): Other Contracting

Authority: AFFARS 5313.501 - 10 U.S.C. 2302b, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901)

AFFARS 5313.501 - 10 U.S.C. 2304a, Special Emergency Procurement Authority (41 U.S.C. 1903)

Estimated Contract Cost (including options): Justification Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

09 Jul 2018

Project Lead / Program Mgr / Requiring Activity

Signature

APPROVAL (AFFARS 5306.304(a) )

Date

08 Aug 2018

Contracting Officer

Signature

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

25 May 2018 SOURCE SELECTION SENSITIVE Page 2 of 4

I. Contracting Activity.

This justification and approval to request authority for Other Than Full and Open Competition supports requirements generated for the Air Force Libraries. The contracting activity for this requirement is the Air Force Life Cycle Management Center (AFLCMC), Specialized Contracting Section (AFLCMC/PZIEC).

II. Nature and/or description of the action being processed.

Due to circumstances described herein, the activity requests authority to renew electronic access to Morningstar database using Other Than Full and Open Competition as prescribed by FAR 13.106-1(b), Soliciting from a single source, and 13.501(a), Sole source acquisitions. This individual action will result in the award of a new Firm Fixed Price Contract. This sole source requirement will be acquired from the following organization:

Morningstar

III. Description of supplies/services required to meet agency needs.

The proposed effort covered by this individual J&A is for a 12-month subscription to Morningstar for DoD Libraries and Military OneSource. This is a national financial and investing publisher providing an internet-based investing reference and research database; a vital reference tools for DoD personnel. Morningstar Investment Research Center provides access to Morningstar Ratings for Funds, Morningstar Analyst Rating for Funds, Morningstar Rating for Stocks, Morningstar Stewardship Grade for Funds, Morningstar Rating for ETFs, Morningstar Rating for Bonds, Morningstar Style Box, and Morningstar Credit Rating. The Morningstar database collection provides information that enhances quality of life and to further the financial educational goals of DoD personnel.

IV. Statutory authority permitting other than full and open competition.

13.106(b)(1)(i), Soliciting from a Single Source 13.501(a), Sole Source Acquisitions

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

Morningstar is a unique resource for the DoD Library Program, with nuances not available from any other source, and supplements the financial educational materials collection. The main emphasis of Morningstar is individual investments; something that is not a part of it's competitors product offerings. This database collection provides information that covers nearly 21,000 stocks and 29,000 mutual funds, 1,750 exchange traded funds, and 700 closed end funds. It also reports on over 2,600 securities, offering in-depth background and analyst opinions on top investments. Morningstar analysts' independent opinions guide patrons to what's worth buying, what should be avoided or sold, and what types of securities are best for different types of investors.

Morningstar also rates stocks, funds, and ETF's. Morningstar's stock-star rating helps patrons find undervalued stocks. The fund star-ratings help patrons narrow their mutual fund choices to a manageable few. Morningstar has the exclusive rights to provide these database collections to libraries and other educational institutions. A failure to acquire this product creates inefficiency through an increased need of library resources and creation of unproductive processes. In addition, buying these materials on-demand instead of using Morningstar's subscription-based database would greatly increase the cost. Accordingly, Morningstar is the only firm capable of providing the supplies described above without the DoD personnel experiencing unacceptable delays and substantial duplication of cost that could not be recouped through competition.

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

25 May 2018 SOURCE SELECTION SENSITIVE Page 3 of 4

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

A Sources Sought notice (FA8604-18-Q-5051) was posted from 12 June 2018 - 02 July 2018 requesting any interested firms to submit a capabilities package indicating their capability to provide these required publications, either separately or as one consolidated package. The only response received was from

, referencing their product This product was evaluated by the technical team and deemed unable to meet this specific requirement.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

In accordance with FAR 13.106-3(a), the Contracting Officer shall determine that the proposed price is fair and reasonable. The basis of this determination is anticipated to be based on FAR 13.106-3(a)(2)(ii) and FAR 13.106-3(a)(2)(iii). The price shall be verified against Morningstar's price lists, catalogs, or advertisements and by comparison to prices previously paid.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

As described in Section VI above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. Only one response was received and was deemed unacceptable.

Additionally, staff from the AFRL D'Azzo Research Library surveyed the market for vendors to obtain competition. The library used publisher's advertisements and new publication reviews in conducting its surveys, and was unable to identify publishers providing electronic journals equivalent in scope and quality to those published by Morningstar.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

None

X. List of any sources that expressed, in writing, an interest in the acquisition.

At this time, only has expressed an interest. However, they did not submit a proposal that could meet the Government's needs. The proposed sole source is the only known source that can satisfy the government's requirements.

Morningstar

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

The contracting activity posted the Intent to Award Sole Source notice on FedBizOpps from 12 June 2018 - 02 July 2018 in order to obtain competition. No capable responses were received.

AFSVA/SVPL will attempt to obtain competition whenever possible by use of professional journals and trade exhibits. The AFSVA/SVPL personnel will continue to keep up-to-date and review new research databases to determine if another source will meet the needs of the students, faculty, and staff. They will also keep an open

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

25 May 2018 SOURCE SELECTION SENSITIVE Page 4 of 4 dialog with patrons and usage statistics to determine the necessity for future purposes.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my signature above, I certify that any supporting data contained herein, which is my responsibility, is both accurate and complete.