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This document is a Justification for Other Than Full and Open Competition from the Defense Logistics Agency (DLA) Distribution for a sole source modification to an existing contract. The document seeks to extend the contract period of performance and increase the scope for an Automated Guided Vehicle (AGV) solution at the Enterprise Distribution Center (EDC). The key justification points include reducing operational risk by maintaining a single integrated system of equipment and software, ensuring timely execution of the modernization project, and leveraging the current contractor's (ASI) existing infrastructure and on-site presence.

The modification will address AGV pathway and drop station configuration improvements within the ATLS/ALOC pallet build area, with the goal of reducing AGV and pathway requirements while creating additional warehouse floor space. The contract will be extended to complete Critical Line Items (CLINs) associated with Automated Material Handling Equipment (AMHE) installation and system integration with the Government Warehouse Management System (WMS). The modification is being pursued under the statutory authority of 10 U.S.C. 2304(c)(1), which allows for a sole source action when only one responsible source can satisfy agency requirements. The total estimated dollar value is redacted, and the planned award and execution must occur no later than September 2025 to avoid schedule risks.

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CUI

3. DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET AGENCY’S NEEDS:

ASI simplifies the AGV pathway and drop station configuration within the ATLS / ALOC pallet build area. Reduces the AGV and pathway requirements while providing additional warehouse floor space for manual forklift operations associated with ALOC pallet build processes.

Contract PoP extension required to complete CLINs associated with Automated Material Handling Equipment (AMHE) installation and CLINs associated with system and software integration with Government Warehouse Management System (WMS) software in order to provide a complete and functioning AMHE environment.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

The statutory authority permitting other than full and open competition is:

(Check the applicable U.S.C. authority from the listing below)

_X_ 10 U.S.C. 2304(c)(1) or 41 U.S.C. 3304(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements (FAR 6.302-1, DFARS 206.302-1)

10 U.S.C. 2304(c)(2) or 41 U.S.C. 3304(a)(2), Unusual and compelling urgency (FAR 6.302-2, DFARS 206.302-2))

10 U.S.C. 2304(c)(3) or 41 U.S.C. 3304(a)(3), Industrial mobilization; engineering, developmental, or research capability; or expert services (FAR 6.302-3, DFARS 206.302-3)

10 U.S.C. 2304(c)(4) or 41 U.S.C. 3304(a)(4), International agreement (FAR 6.302-4, DFARS 206.302-4)

10 U.S.C. 2304(c)(5) or 41 U.S.C. 3304(a)(5), Authorized or required by statute (FAR 6.302-5, DFARS 206.302-5)

10 U.S.C. 2304(c)(6) or 41 U.S.C. 3304(a)(6), National security (FAR 6.302-6)

10 U.S.C. 2304(c)(7) or 41 U.S.C. 3304(a)(7), Public Interest (FAR 6.302-7, DFARS 206.302-7)

41 U.S.C. 1901 or 41 U.S.C. 1903, This J&A satisfies the FAR 13.501(a)(1) and (2) regulations to justify a sole source (including brand name) commercial item acquisition or portion of a commercial item acquisition requiring a brand name. Note: Check the above statement applicable if the J&A is for a sole source (including brand name) acquisition for a commercial product or service with an estimated value greater than the Simplified Acquisition Threshold (SAT) but not exceeding $7million (including options)($13million for acquisitions described in FAR 13.500(c)) that is to be awarded using the simplified procedures for certain commercial items prescribed by FAR 13.5.

This J&A satisfies the DFARS 211.104 regulation to justify use of brand name or equal purchase descriptions when using sealed bidding (FAR Part 14), negotiated acquisition procedures (FAR Part 15), or simplified procedures for certain commercial items (FAR Subpart 13.5).

This justification satisfies the FAR 8.405-6 regulation to justify when restricting consideration IAW FAR 8.405-6(a) or (b). This acquisition is conducted under the authority of the Multiple-Award Schedule Program. The circumstances (i.e. authority) justifying the action is:

An urgent and compelling need exists, and following the procedures would result in unacceptable delays (FAR 8.405-6(a)(1)(i)(A))

Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized (FAR 8.405-6(a)(1)(i)(B))

In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule (FSS) order provided that the original order was placed IAW the applicable FSS ordering procedures (FAR 8.405-6(a)(1)(i)(C))

Item(s) peculiar to one manufacturer (FAR 8.405-6(b))

5. DEMONSTRATION OF CONTRACTOR'S UNIQUE QUALIFICATIONS OR NATURE OF

ACQUISITION THAT REQUIRES USE OF THE CITED AUTHORITY:

It would be the best interest of the government to add this requirement to the current EDC Modernization D.O for multiple reasons.

Reduced operational risk at go-live to have a single integrated system of equipment and software.

The timeliness of execution is critical to the overall schedule and critical path.

Incorporating the modification with the current modernization plan is integral to the effective flow of material processing and needs a seamless integration of equipment and software.

Team ASI and subcontractors have already created the infrastructure and requirements for the equipment to be tied into the DLA approved network.

The ASI contractor is already on site and vetted for immediate execution of the work.

The current Dematic IQ system that controls all equipment within the EDC is owned and proprietary to Dematic. A third party would not be able to integrate processes into the existing framework, which ultimately would require re-work, additional funding, and would not align to the overall schedule and critical path.

6. SYNOPSIS ANNOUNCEMENT/POTENTIAL SOURCES:

A notice of the Government’s intent to issue a sole source modification as required by FAR

5.201 and in accordance with procedures at FAR 6.302-1(d) will be performed prior to issuance of the modification.

Additionally, notice will be given of the Government's intent to increase the Ceiling Price of the LMIS Pool 1 - Enterprise Facility Modernization, IDIQ Contract SP3300-20-D-0021.

7. DETERMINATION OF FAIR AND REASONABLE COST:

To determine whether the contractor’s proposed price is fair and reasonable, the Contract Specialist and Contracting Officer will review the proposed price against the current market pricing information for the same or similar services available.

8. DESCRIPTION OF MARKET RESEARCH:

One estimating method was used in the development of the IGCE.

SME Consultation – Consulted with DLA SMEs to utilize their knowledge and expertise in industry standards, best practices, and past experiences to generate requirements and estimates for hardware and other costs.

A comparison was conducted between the currently contracted scope and the proposed adjustment in scope to determine the overall impact regarding cost. With the help of SMEs, the currently scoped level of effort (LOE) was determined for the AGV solution and the contract PoP extension.

9. OTHER SUPPORTING FACTS:

Include any other facts supporting the use of other than full and open competition, such as:

Explanation of why technical data packages, specifications, engineering descriptions, statements of work, or purchase descriptions suitable for full and open competition have not been developed or are not available.

When FAR 6.302-1, only one responsible source, is cited for follow-on acquisitions as described in FAR 6.302-1(a)(2)(ii), an estimate of the cost to the Government that would be duplicated and how the estimate was derived.

When FAR 6.302-1, only one responsible source, is cited, as described in DFARS 206.302(d) and DFARS PGI 206.303-2(b)(i)(A), include the results of the request for information (RFI)/Sources Sought Notice posted IAW DFARS PGI 206.302-1 (unless the requirement to post has been waived).

_X When FAR 6.302-1, only one responsible source, is cited, as described in FAR 6.302- 1(c)(1)(B), indicate that the use of such descriptions (brand-name description or other purchase description to specify a particular brand-name, product, or feature of a product, peculiar to one manufacturer) in the acquisition or portion of an acquisition is essential to the Government's requirements, thereby precluding consideration of a product manufactured by another company.

When FAR 6.302-2, unusual and compelling urgency, is cited, provide data, estimated cost, or other rationale as to the extent and nature of the harm to the Government.

When FAR 6.302-6, national security, is cited, describe how disclosure of the Government's needs would compromise the national security (e.g., would violate security requirements). This authority must not be used merely because the acquisition is classified, or merely because access to classified matter will be necessary to submit a proposal or to perform the contract.

_ For non-competitive follow-on acquisitions of supplies or services previously awarded on a non-competitive basis, include a copy of the previous justification to assist the approval authority in determining whether the planned actions to remove any barriers to competition cited on the previous justification were completed.

For a sole-source 8(a) contract over $100 million, include such other matters as the head of the agency concerned shall specify for purposes of this section.

_X Other facts supporting the justification:

10. LISTING OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THE ACQUISITION:

No sources have expressed interest in writing in the acquisition at this time.

11. ACTIONS THE AGENCY MAY TAKE TO REMOVE/OVERCOME BARRIERS

BEFORE ANY SUBSEQUENT ACQUISITION FOR THE SUPPLIES/SERVICES IS

REQUIRED/MADE:

Attempt to know about upcoming requirements in sufficient lead time to allow for a competitive award. We will be more proactive as designs are updated and ensure the specific DLA SME's are involved to ensure we account for all requirements. The AGV incident for the pathway and drop station configuration was made aware to us as during testing of the AGV solution.

12. STATEMENT OF DELIVERY REQUIREMENTS:

Award and execution of statement of work must align with current AGV configuration and the requirements for the contract PoP extension that supports go live. Failure to award and execute task NLT September 2025 puts the overall schedule at risk.

13. TOTAL ESTIMATED DOLLAR VALUE OF THE ACQUISITION(S) COVERED BY

THIS JUSTIFICATION:

File details come from the government source that posted it. Updated .