Final_Signed_JA_Bagasse_Guatemala.pdf

JUSTIFICATION AND APPROVAL

TO PROCURE USING OTHER THAN FULL AND OPEN COMPETITION

This sole source justification is being prepared using the format in FAR 6.303-2.

Agency and Contracting Activity:

USDA, APHIS, ASD

100 North Sixth Street Butler Square, 5th Floor Minneapolis, MN 55403

End User/FOB Destination:

USDA, APHIS, Moscamed Program Guatemala Sterile Fruit Fly Rearing facility El Pino, El Cerinal, Barberena, Santa Rosa, Guatemala San Miguel Petapa Guatemala

1. Nature/Description of Action(s).

The Sterile Insect Rearing Facility in El Pino Guatemala uses processed sugar cane bagasse as a bulking agent in the preparation of the larval diet for rearing fruit flies.

The San Miguel Petapa Anastrepha mass rearing facility, uses processed corn cob named as “ Olote C” as bulking agent in the preparation of the larval diet for anastrepha.

In order for the sterile insect rearing production”El Pino” and “San Miguel Petapa” anastrepha production activities can continue, the USDA Moscamed program is awarding a sole source contract for the processed sugar cane bagasse and the process for corn cob named as“ Olote c”.

The period of performance of the contract is date of award through December 1, 2015 – November 30, 2018.

This two products were previously being procured from the company Alvagil through a contract with the Moscamed commission in Guatemala.

3. Description of Supplies/Services.

The processed sugar cane bagasse supplied and “olote "C” are dried, chopped, sifted, and packaged in a specific granulometric composition to conform to the Medfly and Mexfly insect rearing program.

The specifications for these products include, bulk density, moisture content, water absorption capacity, foreign debris and packaging.

The diets for the rearing of the Mediterranean fruit fly and Anastrepha mass rearing process are very specific. The diet bulking agent must meet the exact specifications, and in order to ensure successful rearing, there can be no substitutes in the products or the composition of the product. Any and all new products offered must undergo a controlled testing program by the Moscamed production plants. The testing process takes up to 6 to 12 months to complete testing on all cycles.

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The processed corn cob is chopped, grinding, sifted and packaged in a granulometric composition to conform the required specifications as well.

4. Identification of Statutory Authority.

FAR 6.302-1, Only One Responsible Source and No other Supplies or Services Will Satisfy Agency Requirements.

Citation: 1 41 U.S.C. 253(c)(1)

5. Demonstration of Contractor's Unique Qualifications.

Alvagil is the only known manufacturer that produces the bagasse diet bulking agent and “Olote C”. There are no other known manufacturers of bagasse and “Olote C” due to very specific and proprietary machinery used for the process for both products.

Additionally there are no known sources that can produce the bagasse and Olote "C" that meets the requirements, specifications, and standards.

The vendor using equipment that he invented specifically for the process of making these products.

The Moscamed program tried contracting with another vendor several years ago, but the vendor was not able to produce the bagasse that met the programs specifications.

6. FedBizOpps (FBO) Announcement/Potential Sources.

If another vendor can provide the same product meeting the specifications, the USDA & Moscamed commission would be interested in receiving a proposal for future contracting consideration as well as samples for testing.

Per FAR 5.201 (b) (1) this justification/sole source notice will be posted on the Federal Business Opportunities website.

7. Determination of Fair and Reasonable Cost.

The contract has a ceiling price/not to exceed amount of $2,400,000.00 for the three year contract. This is the maximum amount for both products.

Prior to soliciting for this contract the Moscamed program personnel developed a government estimate. The price of this contract is within the government estimate and reasonable for the product being purchased. Additionally the contractor submitted a cost breakdown so the elements of their cost structure could be reviewed for cost reasonableness.

The technical representative in conjunction with the contracting officer reviewed the detailed cost breakdown. The Guatemalan technical representative commented the prices were in line with commercial pricing in Guatemala and the vendor did not overstate or inflate their pricing.

The profit is a reasonable profit rate for the contract.

The product price is comparable to the contract issued by the USDA in February 2014 and 2015. Although the price is slightly higher, this is due to added expenses to pay for

J&A Contract AG-6395-C-16-0026 Page 2 of 3 security guards and insurance. The price of the finished bagasse product is actually lower priced as a result of lower diesel prices, resulting in a lower cost to operate machinery and transport products.

8. Description of Market Research.

The program personnel have been using this diet bulking agents for years. They also perform general research and experimentation with the diets in an effort to obtain a higher percentage of flies in the rearing process. This also includes evaluating the diet and researching sources and alternatives available for their diet products. To date they haven't found another vendor either internationally or nationally to obtain the bagasse.

Testing other types of corn and rice diets hasn't proved successful in the rearing process.

Although the only vendor for this product is a local Guatemalan source, it should be noted that it is more cost effective approach as opposed to transporting the material to Guatemala from a foreign source.

9. Any Other Supporting Facts.

We have not found another manufacturer that produces the bagasse bulking agent and olote “C” that meets USDA and Moscamed standards and specifications for insect rearing.

10. Listing of Interested Sources.

As far as the USDA is aware, Alvagil is the only manufacturer that makes the bagasse diet bulking agent and olote “ C” that meets the Moscamed rearing facility specifications. No other sources have contacted the USDA or Moscamed displaying an interest in providing the product or with information on another source.

11. Actions Taken to Remove Barriers to Competition.

If other manufacturers are available that can provide this supply item, the Moscamed rearing facilities would be interested in receiving a proposal and testing samples.

This justification is accurate and complete to the best of the contracting officer’s knowledge and belief. In accordance with FAR 13.501 this is the only approval needed for this justification.

Corinne Nygren Contracting Officer, USDA, APHIS

Signature_____________________________________ Date__________

Larry Nelson Competitive Advocate, Contracting Officer, USDA, APHIS

Signature_____________________________________ Date__________

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11/12/2015