FRCE JA Stackers-Redact.pdf

J&A Number: F22/24-006

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 2304(c)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

In accordance with FAR 6.302-1(a)(2)(ii)(A), supplies may be deemed available from the original sources in the case of follow-on contracts for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition.

The most recent three medium-sized stackers were procured in December 2013 for $2.6M via Purchase Order Number: M0014614P9005, awarded to Retrotech, which was not competed. The overarching ASKARS, not inclusive of 12 SRMs, has been configured over the past 25 years. Each procurement has been directly awarded to Retrotech, since the initial install.

FRCE needs to procure replacement machines that will integrate with the existing Gold Code facility kitting communication program software of the overarching ASKARS. The current machines communicate with the inventory system via Gold Code software. Dematic Corp. owns the intellectual and proprietary rights to the Gold Code software. In 2016, Dematic Corp. bought out Retrotech., whom is the original creator of the Gold Code software. This software provides all operational functions to the equipment for it to work properly. With this proprietary software, Dematic Corp. has the knowledge and capability to evaluate and program the equipment properly. If another company were to replace the ASKARS system software to become compatible with their equipment if this procurement were to be competed, it will cost the Government at least an extra $2 million to reverse engineer the existing Gold Code.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

Market research was conducted in accordance with FAR Part 10 utilizing various methods to obtain current information in regards to availability and price. After extensive research through SAM.gov, Federal Procurement Data System (FPDS), Google, and online searches, Dematic Corp. was found to be

J&A Number: F22/24-006 the only entity that can provide all necessary actions to complete this requirement. On 10/30/2023, the Government issued a sources sought request for information synopsis as required by DFARS 206.302-1 (d). A total of four (4) responses were received three of which had experience within the industrial environment or were a consultant company, but had no experience with automated storage and retrieval systems. Dematic was the only respondent deemed capable of performing the work. The Government will publicize a pre-solicitation synopsis through SAM.gov to notify of the Government’s intent to solicit and award a contract on a sole source basis pursuant to FAR 5.201(b). If any responses are received, they will be reviewed and retained in the contract file.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in paragraph 5, COMFRC has no plans at this time to compete future contracts for the requirements covered by this document. If another potential source emerges, COMFRC will assess whether competition for future requirements is feasible. As this is a follow-on for supplies previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(S-70)(i), the prior J&A was provided to the approval authority for review. Approval of this J&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(S-70)(ii).