A04._JOFOC_-_Gemba_License_Fully_Signed.pdf

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ACQUISITION

DIRECTORATE

DEPARTMENT OF DEFENSE WASHINGTON

HEADQUARTERS SERVICES

1155 DEFENSE PENTAGON

WASHINGTON, DC 20301-1155

Date: 28 AUG 2014

Justification for Other Than Full and Open Competition/Sole Source

(in Accordance with FAR Part 6.303-2 Content Structure)

Brand Name Justification > SAT, FAR 13.106-1(b)(2) & 13.501(a)

I. Agency and Contracting Activity:

Agency:

Department of Defense Office of the Deputy Chief Management Officer (DCMO) Mark Center, Suite 08F25 Alexandria, VA 20301

Contracting Activity:

Department of Defense Washington Headquarters Services – Acquisition Directorate 1155 Defense Pentagon Washington, DC 22301-1155

II. Nature of Action Being Approved:

The proposed course of contractual action is to make a firm fixed price, sole source award to Gemba Academy LLC for its Gemba Academy Global License Software product. Such action will be made based on market research and the unique characteristics of the product needed to fulfill DCMO’s requirement.

III. Description of Supplies:

The requirement is for a commercial supply/product. Specifically, the Office of the Deputy Chief Management Officer (DCMO) requires the Gemba Academy Global License, provided by Gemba Academy LLC. Gemba Academy LLC provides high quality computer-based, online Lean and Six Sigma training. The Gemba Academy Global License through this contract provides access to online training for all employees Department of Defense (DoD) wide. This is extremely cost effective training. In Fiscal Year (FY) 2013, DCMO spent over $300K and tied up two (2) DoD Civilians and one (1) contractor to train approximately 500 students. The Gemba Academy online capability will achieve twice the student load with less than 1/10 the costs. The Navy provided the $50,000.00 in funding for the base year and a period of performance (PoP) of 30 September 2014 to 29 September 2015. Additionally, three (3) option years at $50,000 per year are being

2 J&A – Gemba Licenses proposed to give a total potential contract cost of $200,000 and a period of performance ending 29 September 2018.

IV. Authority permitting Other Than Full and Open Competition:

The authority permitting other than full and open competition is implemented by FAR Part 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, and accordingly documented and formatted by FAR 6.303-2, Justification for Other than Full and Open Competition. Additionally, this justification has been modified to reflect an acquisition under the statutory authority of the FAR Part 13.501, Test Program for Certain Commercial Items, at 41 U.S.C. 428a.

V. Reason for Authority Cited:

DCMO has a requirement to renew and repurchase its Gemba Academy Global License, which provides computer-based and online Lean and Six Sigma training. DCMO currently uses the Gemba product and has touted its significant savings and need to renew the product. Gemba Academy LLC is the manufacturer and sole provider of all software, maintenance and training related to the required license, thus presenting a unique qualification for the requirement. Gemba Academy LLC has no authorized resellers, is the owner of all content and has proprietary rights to the software, as confirmed by the company’s business managers.

VI. Publicizing Efforts

A “Notice of Intent to Sole Source” was posted on the Government Point of Entry (GPE), FBO.gov, on August 19th, 2014.

No responses were received in response to the notice before it closed on August 25th, 2014 at 9:00AM ET. Otherwise, the only other action to publicize the requirement will be once the award is made in accordance with FAR 5.3- Synopsis of Contract Awards.

VII. Price Fairness and Reasonableness

The Contracting Officer will determine whether the cost of the aforementioned requirement is fair and reasonable per FAR Part 13.106-3(a)(2)(i) and 13.106-3(a)(2)(ii). The Gemba Academy Global License Software was procured in FY13 under purchase order HQ0034-13-P-0232 for $50,000.00. Additionally, the proposed pricing is in line with DCMO’s independent government cost estimate (IGCE).

VIII. Description of Market Research:

The Gemba Academy Global License was procured at the end of FY13 and has been on contract during FY2014 through contract HQ0034-13-P-0232. DCMO has requested that the requirement continue through a new contract with a base year plus three (3) option years. To ensure adequate competition could be reached prior to deciding on a sole source route, market research was conducted on GSA Advantage, as well as other required federal supply schedules (DoD ESI, Army Chess, NASA SEWP, etc.); the software/license was not found. Additionally, a search on SBA’s Dynamic Small Business Search (DSBS) database was conducted and found no other small business vendors, aside from Gemba Academy LLC, that provided the software/license in question. A general internet search of the product was conducted, as well, and did not query any other additional sources or vendors.

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Moreover, to confirm there were no authorized resellers or other sources of the product in question, Washington Headquarters Services, Acquisition Directorate contacted Gemba Academy LLC directly via email. Gemba Academy LLC was able to confirm there are no authorized resellers of its product and that Gemba Academy LLC has proprietary rights to the software and owns all of the associated content.

IX. Other Facts Supporting the Use of Other Than Full and Open Competition:

There are no other facts at this time to support the use of other than full and open competition. Gemba Academy LLC is the sole provider of the Gemba Academy Global License Software, it has no authorized resellers of the software and is the sole owner and has proprietary rights to the software, as confirmed by the company’s business managers. Additionally as aforementioned, no responses or objections were received in regards to the “Notice of Intent to Sole Source” posted on FBO.gov, further solidifying lack of competition and the need to sole source the requirement.

X. Other Interested Sources:

No other interested sources have been found or will be anticipated, as the Gemba software does not have any authorized resellers and is exclusively offered by Gemba Academy LLC. Although other companies may offer online training for Lean and Six Sigma, they do not offer the breadth of services and overall reach as Gemba Academy’s software can provide.

XI. Actions Taken To Remove Competition Barriers:

DCMO plans to have the Gemba product potentially for four (4) years with creating a contract with one (1) base year plus three (3) option years. Following this potential time frame, the requirement will be reevaluated and the program office will determine if another product can satisfy the required needs.

However, at this time, the Gemba product satisfies DCMO’s requirement is provided at a fair and reasonable price.

XII. Technical and Requirements Certification:

I certify that the facts and representations under my cognizance which are included in this justification and which form a basis for this justification are complete and accurate.

Douglas Ellmore (Signature) John Weber (Signature)

Contracting Officer’s Representative (COR), DCMO Acquisition Analyst, DCMO

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XIII. Contracting Officer’s Certification:

a. I certify that this Justification for Other than Full and Open Competition is accurate and complete to the best of my knowledge and belief.

Florence Kasule

Contracting Officer, WHS/AD