J_A__FedBid__11-2015_for_FedbizOpps_posing.docx

JUSTIFICATION AND APPROVAL (J&A)

FOR OTHER THAN FULL AND OPEN COMPETITION

SAQMMA09C0113

1. Identification of the agency and the contracting activity:

The U.S. Department of State (DOS), Office of Acquisition Management (AQM) provides acquisition support to the Bureau of Information Resource Management (A-LM-AQM-WWD-FBSB).

2. Nature and/or description of the action being approved

The Office of Acquisition Management is requesting an additional 6-month extension to the period of performance for Contract Number SAQMMA09C0113. Contractor is FedBid, Inc. (“FedBid”). The estimated cost for this extension is 0.

3. A description of the supplies or services required to meet the Department’s needs.

FedBid offers commercially available online procurement services through its website, www.FedBid.com. Its major offering of reverse auction services provides internet-based marketplace in which public sector buyers and commercial sellers are able to buy and sell commodities and simple services in a reverse auction forum. FedBid reverse auction service operates by enabling buyers to publicize, or post, items needed by their organization and then notify potentially sellers of the opportunity. Once notified, sellers are able to submit decreasing bids through a “sealed” reverse auction process, which provides real-time competition among sellers. Bidders are informed whether they are in the “Lead” or “Lag” position thus allowing sellers the ability to re-bid at any time during the reverse auction process.

4. An identification of the statutory authority permitting other than full and open competition - 41 USC 3304(a)(2), FAR 6.302-2, Unusual and compelling urgency.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

FedBid has been providing reverse auction services to DoS prior to 2009 and has been successful in delivering rapid and effective competition to the procurement of commercial and simple services. Based on memo issued by AQM, procurement and contracting personnel are to give first consideration to using FedBid for the acquisition of all non-complex commodities, especially those amenable to electronic acquisition.

FedBid is utilized by multiple divisions within DoS such as IRM, INL, International Program Division, National Foreign Affairs Training Center and Worldwide Operations Division. Number of Buys for DoS fiscal Year 2015 was 1254 with 93% of award dollars to small business.

It is AQM’s intent to compete a follow on contract. A request for information was issued on FedBizOpps on September 17, 2015 with responses due October 5, 2015. Market analysis is in progress to assess business size set aside determination.

Pending continuation and completion of procurement activities for reverse auction services, an extension to the current FedBid contract is imperative and will be advantageous to the government in terms of efficiency, cost savings and a mechanism for DoS to meet small business contracting goals.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

A request for information (RFI) on reverse auction was posted on FedBizOpps on September 17, 2015 with responses received October 5, 2015.

7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

FedBid receives a transactional fee, consisting of not more than 3% of the transaction, but only if the buyer determines that the reverse auction has met the competition, savings and other criteria for the procurement and buyer selects a winning bid. Once the buyer selects a seller, it issues an order to the selected seller for delivery of the commodity or service. When the buyer receives the procured items or services, it pays to the selected seller the total bid amount, which includes the transactional fee. FedBid then collects from the selected seller the transactional fee. FedBid caps transaction fee at $10,000 per transaction.

FedBid indicated in 2014 that they will not impose a transaction fee when there is only one bidder for a transaction. Percentage of transaction fee can also be negotiated on a transactional basis.

8. A description of the market survey conducted and the results or a statement of the reasons a market survey was not conducted.

An analysis is in progress to assess vendor capabilities, past performance and features of the reverse auction tool.

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required. Include a statement that this J&A for other than full and open competition will be published on FedBizOpps in accordance with FAR Section 6.305 within 14 days of award (or within 30 days if the J&A is for unusual and compelling urgency.)

This J&A for other than full and open competition will be published on FedBizOpps in accordance with FAR Section 6.305 within 30 days on the basis of unusual and compelling urgency.

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