FPI SOLE SOURCE JA.pdf

ARKANSAS AIR NATIONAL GUARD

HEADQUARTERS 189TH AIRLIFT WING (ANG)

LITTLE ROCK AIR FORCE BASE ARKANSAS

19 SEP 2024

MEMORANDUM FOR RECORD

SUBJECT: Market Research & Sole Source Justification/ Determination for Acquiring Furniture through Federal Prison Industries, Inc. (FPI) for MXG/OG/SFS.

1. Market research was conducted IAW Federal Acquisition Regulation (FAR) Part 10 and FAR 8.602(a)(1), which states, “before purchasing an item of supply listed in the FPI schedule, conduct market research to determine whether the FPI item is comparable to supplies available from the private sector that best meet the government’s needs in terms of price, quality, and time of delivery.”

a. When comparing FPI’s prices and quality to items in the private sector, they appear to be comparable in both categories. At the present time, FPI’s delivery for many products is not greater than 60 days. In terms of price, quality and time of delivery, FPI best meets the government’s needs for this requirement.

b. According to FAR 8.602(a)(3), if FPI items are comparable, agencies shall purchase from FPI using procedures at https://www.unicor.gov. DFARS 208.602-70 mandates agencies to acquire items in accordance with the policy at FAR 8.602, if the item category does not have a significant market share.

The federal supply classification (FSC) code for furniture is 7110 and it is found on the current (26 April

24) annual letter published by the DOD that list items with a significant market share. This makes FPI a mandatory consideration and not a mandatory source.

c. In regards to publicizing the requirement, UNICOR is not exempt due to the above.

2. Sole Source IAW FAR 13.106-1 (b)- Across the 189th AW campus where the furniture for this requirement is being placed has been sourced with furniture from FPI for several years as a mandatory source by statute. As such, FPI furniture is the current style and make and model of the furniture that exist throughout the buildings. In an effort to match all existing furniture and avoid the need to procure new whole sets of furniture, this requirement is being sole sourced to FPI. This allows the government to receive furniture that matches all existing furniture and can be arranged and re-arranged seamlessly based on the need of the government at this time, and going into the future. In order to achieve this same benefit, the government would have to replace all existing furniture and the cost to do so would far exceed any benefit from not restricting competition.

a. Actions the government may take to remove or overcome this barrier to competition is limited due to FPI being a mandatory source by statute depending on market share. As such, acquisitions for furniture in areas where there is considerable existing furniture from FPI will need to be procured from FPI in order to have same look, functionality, style and allow maximum plug and play flexibility to fit the governments need as mission factors change. When establishing new areas or complete remodels, and FPI is not mandated by statute, full competition can be contemplated.

3. This is a commercial commodity purchase. IAW FPI policy installation of the items includes inside delivery, set-up, and removal of all packing material and trash. This service is incidental to the supply purchase and is not considered a performance based acquisition, according to FAR 37.102(a)(1)(iv).

4. Market research places similar items from several commercial sources in the competitive range when a site visit, CAD drawings, shipping, installation and quality of the products are taken into consideration.

See separate market research documents in the contract file.

Market Prices

a. MXG: $42,126.00

b. OG: $38,451.95

c. SFS: $15,120.00

FPI

$38,553.00 $48,113.00 (furniture only) $16,890.00

5. Based on the market research, referenced regulations and statutory authorities, it is determined that the office furniture be acquired direct to UNICOR via a Purchase Order. The anticipated total price estimate of $115,689.08 has been determined to be fair and reasonable.

RYAN J. BERNAICHE, TSgt, AR ANG 189th MSG/MSC Contracting Officer