JA DLA spt to COMFRC Transformation_Redacted.pdf

DEFENSE LOGISTICS AGENCY

CONTRACTING SERVICES OFFICE

6090 STRATHMORE ROAD

RICHMOND, VIRGINIA 23237

CUI SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

CUI

Justification for Other than Full and Open Competition

(1) Identification of the agency and contracting activity:

Requiring Activity: DLA Aviation

Contracting Activity: DLA Contracting Services Office – Richmond

(2) Nature and/or description of the action being approved:

In accordance with FAR 13.501(a) and 10 U.S.C. 2304(c)(1), this justification authorizes and approves the acquisition to be limited to one source utilizing simplified acquisition procedures. The service required is a new requirement with Boston Consulting Group, Inc. (BCG) to assist DLA support of Commander, Fleet Readiness Centers (COMFRC) transformation.

The resultant order will be awarded on a sole source basis to BCG in accordance with the procedures in FAR subparts 13.5.

(3) Description of the supplies or services required to meet the agency’s needs (including the estimated value):

This requirement is to secure non-personal services to assist DLA in implementing Reform initiatives to ensure optimal support to COMFRC customers. DLA is committed to providing leading support for its customers and recognizes that needs change as the customers’ objectives and business plans change. As such, DLA intends to pilot a reformed, customer centric approach to industrial support with one Navy FRC. Service required includes minimizing material-related work stoppages, identifying ways to systematically reduce material costs for its customer, improving quality and transparency of on-site operations and industrial support at customer locations and verifying KPIs and targets that support the customer’s end goals. The agency intends to award a contract with a performance period of 10 months.

The total estimated value of the resultant contract is $ .

(4) Identification of statutory authority permitting other than full and open competition:

10 U.S.C. 2304(c)(1), One source or limited sources.

(5) Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:

Over the past three years, the Naval Aviation Enterprise has been developing a more integrated supply chain management arena to increase effectivity and efficiencies for the US Navy. DLA’s support to the Navy’s Industrial Fleet Readiness Centers plays a paramount role in the Navy’s ability to have healthy supply support and ensure aircraft readiness goals are achieved. The contextual understanding of the Navy’s integrated supply chain management approach is the foundation for COMFRC Reform. BCG has the inherent knowledge of this requirement as the contractor that assisted in developing and

CUI SOURCE SELECTION INFORMATION – SEE FAR 2 101 AND 3.104

implementing strategic initiatives under Task order HQ003420F0557 issued in 2020 and SP4703-21-P- 0013 issued in 2021 based on the terms of Washington Headquarters Services (WHS) BPA HQ03416A0003, Reform initiatives. For that reason, BCG is uniquely positioned to perform this requirement. If BCG is not selected as the vendor for this requirement, there would be substantial duplication of cost, as explained below, that the Government would not expect to be recovered through competition and would result in unacceptable delays in fulfilling the requirement.

Awarding to a different vendor will negatively impact both DLA and DLA’s end customers as it will take significantly more time and money to achieve the same desired outcome. Specifically, another entity would need to spend approximately 6-12 months learning how the DLA enterprise operates. The task of re-learning the DLA Enterprise’s operations would approximately cost an additional $ . Likewise, a different vendor would need to spend approximately another 2 years learning how each of the key entities within the Naval Aviation Enterprise operates. These actions would include learning how the Navy’s Maintenance Operations Center conducts operations, learning how NAVAIR’s PMAs and TYCOMs manage aircraft flying hour programs, learning how NAVSUP inducts repair components into COMFRC’s three Depot-Level Industrial Support Activities, and learning how the Industrial Support Activities function and send DLA the Gross Demand Plan Signal. The task of re-learning the Naval Aviation Enterprise activities would approximately cost an additional $ . BCG has already spent the last three years completing these actions and learning the aspects of both the DLA HQ Enterprise and the NAE. BCG is the only vendor who can perform on this requirement without substantial time delay and substantial additional costs that could be completely avoided with award to

BCG.

(6) Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies:

The contracting officer intends to publicize a notice as required under FAR Subpart 5.2 upon approval of this sole source J&A via a combined synopsis/solicitation.

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

The Contracting Officer determines the anticipated cost to the government will be fair and reasonable, and that the resulting contract represents the best value to the Government, by utilizing one or more of the price analysis techniques at FAR 13.106-3.

(8) Description of market research conducted and results or a statement of the reason market research was not conducted:

Limited market research was conducted due to the nature of the strategic plan implementation. The contracting officer did conduct market research to determine commerciality of the services. Regardless of the outcome of market research, BCG having developed the DLA strategic plan, is uniquely positioned to consult on the implementation of the plan. No other vendor is as knowledgeable of the plan or positioned to consult on DLA’s implementation at this point.

CUI SOURCE SELECTION INFORMATION – SEE FAR 2 101 AND 3.104

(9) Other facts supporting the use of other than full and open competition:

Not applicable.

(10) Listing of sources that expressed, in writing, an interest in the acquisition:

Not applicable.

(11) Actions, if any, the agency will take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

Based on the reasons set forth in Paragraph 5, DLA has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, DLA will assess whether competition for future requirements is feasible