JA HMMS_Redacted.pdf

DEFENSE LOGISTICS AGENCY

DLA CONTRACTING SERVICES OFFICE - PHILADELPHIA

700 ROBBINS AVENUE

PHILADELPHIA, PENNSYLVANIA 19111-5092

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. IDENTIFICATION OF THE AGENCY AND CONTRACTING ACTIVITY.

Requiring Activity:

DLA Information Operations 74 Washington Ave N Battle Creek, MI 49037 POC: Amber Gentry-Upston, FLIS Portfolio HAZMAT PM

Contracting Activity:

DLA Contracting Services Office - Philadelphia (DCSO-P) 700 Robbins Avenue Philadelphia, PA 19111

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED.

This justification approves award of a sole-source Indefinite Delivery Indefinite Quantity (ID/IQ) contract to Sphera Solutions, Inc. (Sphera) to provide multiple Department of Defense (DoD) Components with brand name Hazardous Material Management System (HMMS) Software and Sustainment Services Support for the Inventory, Environmental, Safety, Occupational and Disposal Requirement (IESOD) Program. Sphera is the only responsible source capable of providing the required software and sustainment support. Accordingly, this requirement will be awarded on a sole source basis to Sphera as provided in more detail below.

The required HMMS Software and Sustainment Services support ensures compliance with the rules and regulations for the safe handling and use of hazardous materials and hazardous waste (HM/HW), to include transporting and tracking, warehousing (stocking, storing, issuing packaging and labeling), and disposing of HM/HW. HM/HW are materials that are heavily regulated through various Federal Rules and Regulations imposed by the Code of Federal Regulation (CFR); Occupational Safety and Health Administration (OSHA); Department of Transportation (DOT); and Resource Conservation and Recovery Act (RCRA). The HMMS is the single proprietary software housing the DoD Repository of Record, as identified in DoD HAZCOM 313, for OSHA Safety Data Sheet, Global Harmonization System (GHS) of international labeling, which is a mandatory requirement for movement of Military Services property necessary to support the war fighter mission.

DLA Contracting Services Office - Philadelphia SUBJECT: Justification and Approval for Other Than Full and Open Competition

Source Selection Information See FAR 2.102 and 3.104

On September 28, 2015, DLA took over contract administration oversight of the HM/HQMS program from the United States Air Force, and has since managed the HM/HW program for multiple DoD Components, using the HMMS software, to include the United States Marine Corps, the Department of the Navy, the United States Coast Guard, the United States Army and the Defense Logistics Agency (DLA), as well as other Federal Government agencies and international organizations including, but not limited to, the National Aeronautics and Space Administration (NASA) and United Nations Partners.

The HMMS software is a turnkey solution that includes various software capabilities that were proprietary to IHS Global Inc. (IHS Global). In May 2017, IHS Global was acquired by Sphera Solutions, Inc. (Sphera). The current IDIQ contract (SP4701-18-D-0001) for HMMS Software and Sustainment Support was awarded to Sphera Solutions, Inc on December 29, 2017. The IDIQ contract ended on September 29, 2020. The final Task Orders issued under the IDIQ prior to its expiration will end on February 28, 2021 and April 23, 2021.

This action is a long-term acquisition for the continuation of HMMS Software and Sustainment Services with Sphera utilizing an ID/IQ contract vehicle against which task orders will be issued for required services. The Government anticipates that the ID/IQ contract will include a 12-month base period and four (4) 12-month option periods, with an estimated dollar value of

3. A DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE

The scope of this effort includes providing HMMS Software Licenses and Software Sustainment Support for multiple DoD and Federal Government organizations, through the following tasks:

TASK 1: PROGRAM MANAGEMENT SUPPORT: The Contractor shall provide program management support under the contract. This task includes the management and oversight of all activities performed by contractor personnel, including subcontractors, to satisfy the requirements identified in the Performance Work Statement (PWS). The Contractor shall identify a Project Manager (PM) by name that shall provide management, direction, administration, quality assurance, and leadership under the contract.

TASK 2: LICENSING AND SUPPORT PACKAGES: The Contractor shall provide licensing and support packages for each participating HM/HW site. Each package shall include site licensing, technical expertise, a help desk, site visits as necessary, software releases, software release forum, report support, web site support, application rationalization support, and cyber security accreditation support.

Source Selection Information See FAR 2.102 and 3.104

TASK 3: ON-SITE IT APPLICATIONS SUPPORT: The Contractor shall provide permanently assigned on-site application support personnel for the sites identified when required and may include data input/retrieval, functional assistance and report writing on hazardous management in the warehouse or office setting as necessary to support the functional group.

4. IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING OTHER

THAN FULL AND OPEN COMPETITION.

The authority of 10 U.S.C 2304 (c)(1) as implemented by FAR 6.302-1(a)(2), permits the acquisition of these services by other than full and open competition because the services are available from only one responsible source and no other supplies or services will satisfy the

The HMMS software was developed by IHS Global, which provided the services to the DoD for over 24 years until IHS Global was acquired by Sphera in 2017. The software is now proprietary to Sphera. While DCSO-P has identified a few firms that offer similar HMMS software capabilities, Sphera is the only known firm capable of providing the required software and sustainment services detailed in paragraph 3 above.

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF

THE AUTHORITY CITED.

In accordance with FAR 6.302-1, brand name HMMS software licenses and support are use the supplies and services required by the agency are available from only one responsible source, and no other type or supplies or A brand name, whether available on one or more contracts, is an item particular to one manufacturer and may be procured by brand name requirements. The required HMMS software and support is a brand name item peculiar to one manufacturer. The HMMS brand name rements, thereby precluding consideration of products manufactured by another company. Furthermore, Sphera is the only known firm capable of providing the required HMMS Software and Maintenance Sustainment support detailed in paragraph 3 above.

The HMMS software is a vibrant, robust, and efficient system that manages materials and waste effectively. The continuation of this system is considered to be the most advantageous s for managing materials and waste because the software has been configured and customized to meet specific DoD regulations and requirements. The HMMS software is proprietary to Sphera and there are no authorized and Maintenance Sustainment Support.

Source Selection Information See FAR 2.102 and 3.104 clude the following requirements:

- A single software program capable of housing the DoD Repository of Record, as identified in DoD HAZCOM 313 and CFR 29 for Safety Data Sheet and Global Harmonization System (GHS) of international labeling. This information is necessary to meet European and other foreign government shipping regulations and is mandatory for movement of Military Services property to support the war fighter mission.

- Capable of containing and feeding the Federal Logistics Information System and the Hazardous Material Indicator Code.

- Capable of providing information to Electronic Turn-In

- Capable of tying Safety Data Sheet Information to Wide Area Workflow contractual information and to warehousing information at the Disposal Turn-In Document and then to LIIN/NIIN level for Tier II reporting with National Stock Number (NSN) data.

- Capable of tracking and supplying United Nations Standard acceptable packaging at the NSN level with the international shipping labels at the NSN level.

- Capable of exchanging real-time DML 4000.25, Defense Logistics Management Standards (DLMS), Volume 1, dated October 3, 2017, Electronic Data Interchange (EDI) regulations for multiple global government and military agencies supported on three hosting configurations for attaining Authority to Operate.

- Pre-Acquisition Process a systematic control in place before hazardous product purchase.

This requirement ties a safety plan to the chemical level ensuring unsafe chemicals or chemicals that are not capable of being handled are not brought onto the base.

As explained in Section 8 below, while there are other hazardous material and waste management systems available in the marketplace, none of these systems can fulfill all of the nally, purchasing another hazardous material and waste management system at this time would impact the continuity of support and would require it to be integrated into the DoD Information Technology infrastructure and tailored and configured for DoD acceptance and use. Therefore, it is imperative that Sphera be retained to continue the HMMS software system support services, as it is the only source capable of providing the required HMMS software and Maintenance Sustainment Support.

6. A 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.

Market research has demonstrated that there are no authorized reselle software and no authorized resellers of third party maintenance. Sphera is the only known firm that provides the necessary HMMS software and authorized maintenance support. Therefore, the proposed HMMS Software and Maintenance Sustainment Support shall be awarded on a sole source basis to Sphera. A notice will be publicized in accordance with the Federal Acquisition

Source Selection Information See FAR 2.102 and 3.104

Regulation (FAR) Subpart 5.2. A Request for Proposal (RFP) will be issued via the Federal Business Opportunities (FedBizOpps/beta.SAM.gov) website informing industry of the accordance with FAR 6.305(c).

7. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE.

The Contracting Officer hereby determines that the anticipated cost to the Government will be fair and reasonable based on utilizing various price analysis techniques including, but not limited to, the following: (1) comparison of the proposed prices to historical prices paid, whether by the Government, for the same or similar items (FAR 15.404-1(b)(2)(ii)); (2) comparison with the independent Government cost estimate (FAR 15.404-1(a)(2)(v)); and/or (3) comparison of proposed prices with prices obtained through market research of the same or similar items (FAR 15.404-1(b)(2)(vi)).

8. A DESCRIPTION OF THE MARKET RESEARCH CONDUCTED (SEE FAR PART

10) AND THE RESULTS OR A STATEMENT OF THE REASON MARKET

RESEARCH WAS NOT CONDUCTED.

The following market research techniques were used:

Sources Sought Announcements via JETS Sources Sought Announcements via FedBizOpps/beta.SAM.gov Sources Sought Announcement via GSA E-Buy

Industry Day

Information was posted through JETS vendor on April 25, 2019 but no responses were received.

Sources Sought via FedBizOpps/beta.SAM.gov - The Request for Information was posted throughFedBizOpps/beta.SaM.gov on June 5, 2019. The government received one response from interested vendors, .

Sources Sought via GSA E-Buy - The Request for Information was posted through GSA E-Buy on June 18, 2019. The government received one response from interested vendors, the only interested vendor to provide a demonstration of their software capability for the Government on July 10, 2019 through July 11, 2019.

Only one vendor provided a Announcement via JETS, FedBizOpps/beta.SAM.gov, and GSA E-Buy.

responded to the Source Sought Announcement with a response to demonstrate the capability of their Software. The

Source Selection Information See FAR 2.102 and 3.104

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

INTEREST IN THE ACQUISITION.

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.

DLA has and continues to exercise competition as often as possible and is required to conduct ongoing reviews to keep abreast of new technology, both in industry and in the Government.

DLA uses a variety of vendors, manufacturers and contracts to fulfill its requirements and will continue its practice of surveying the market to ensure full and open competition to the maximum extent practicable.

DLA will continue to attend trade meetings and participate in industry demonstrations to ensure the most effective and cost-efficient solution is be This continuous effort will include meeting bi-annually with the DLA J62 HAZMAT PMO to understand improved capabilities and hosting methodologies as this application matures. In the event the DLA becomes aware of another HMMS management software product that can satisfy the requirements, a competitive acquisition will be conducted to determine the best value to the Government.

12. CERTIFICATIONS.

Requirements/Technical Certification:

I hereby certify that the support data provided for which I am responsible and which form a basis for this justification are complete and accurate.

Source Selection Information See FAR 2.102 and 3.104

Contracting Certification:

I hereby certify that this justification is accurate and complete to the best of my knowledge and belief.

I have reviewed and concur with this justification.

I have reviewed and concur with this justification.

I have reviewed and concur with this justification.

Source Selection Information See FAR 2.102 and 3.104

9 DLA Contracting Services Office - Philadelphia SUBJECT: Justification and Approval for Other Than Full and Open Competition

I have reviewed this justification and hereby determine it to be legally sufficient.

I have reviewed and approve this justification.