JA NMCI Sole Source 9-23-2020.pdf-FINAL.pdf

DEFENSE LOGISTICS AGENCY

CONTRACTING SERVICES OFFICE

5404 J AVENUE, BUILDING 404

NEW CUMBERLAND, PENNSYLVANIA 17070-5059

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY:

Requiring Activity:

Defense Logistics Agency (DLA) Strategic Data Services Equipment Management Solutions (J67E) 5404 J Ave Bldg. 404 New Cumberland, PA 17070-5059 POC: Tammy Mcnamara

TEL: 717-770-8537

E-mail: Tammy.McNamara@dla.mil

Contracting Activity:

Defense Logistics Agency Contract Services Office P-New Cumberland (DCSO P-New Cumberland) 5404 J Ave.

Bldg. 404 New Cumberland, PA 17070-5059

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING REQUESTED:

This justification for other than full and open competition requests approval for a sole source contract to Xerox Corporation in the amount of $3,981,264.32. The purpose of this sole source contract is to maintain DLA’s requirement for the continued leasing support of existing multifunctional devices (MFDs) for the Department of Navy, specifically the Navy Marine Corps Intranet (NMCI) customers. This sole source contract will mirror pricing and have its own terms and conditions based on previously awarded IDIQ orders SP7000-12-D-1003-0318, SP7000-12-D-1003-0319 and SP7000-12-D-1003-0326 and subsequent sole source orders SP7000-20-P-0015, SP7000-20-P-0018, SP7000-20-P-

0022, SP7000-20-P-0025, SP7000-20-P-0039, SP7000-20-P-0039, SP7000-20-P-0044,

SP7000-20-P-0046, SP7000-20-P-0051, SP7000-20-P- 0062, SP7000-20-P-0080, and SP7000-20-P-0098 which were issued for the purpose of continuing the leasing support of the current 3499 NMCI MFDs in place. This request is for a period of performance of eleven (11) months (inclusive of a five (5) month base period with up to three (3) two (2) month option periods).

Previous sole source contracts were approved by the contracting officer from February 2020 to August 2020 based on the expiration of their respective month and included a base and options that extended the period of performance to the end of fiscal year 2020. It is DLA’s plan to replace MFDs when the GSA PRISM vendors successfully pass NMCI testing and then will compete the follow-on requirement using the GSA PRISM. The reason for waiting to compete the follow-on action is delivery of the devices cannot occur until successful testing is completed for the PRISM apparent awardee(s).

This sole source contract action was unavoidable because of the NMCI device testing requirement involved in the acquisition. The NMCI testing process is a Navy process (conducted by Perspecta) that DLA J67E has no control over and there are strict guidelines by the Navy to include being permitted access or influence for device testing submission.

In November 2019, NMCI began testing of all vendors on GSA’s PRISM BPA’s however:

the NMCI testing and certification process has faced many challenges since that time such as 1) the actual time needed to process 2) the ongoing backlog for testing of other devices which require the same NCMI testing certifications and 3) space constraints on amount of devices to be tested at one time. . In late February 2020, the global pandemic COVID-19 started waging a concern of magnanimous proportion. There were closures of the testing facility for months, vendors’ doors were shut for weeks while the testing facility waited for fixes to issues. Once the testing facility re-opened in April 2020, it was for limited personnel only and they had to adhere to social distancing, enhanced safety rules in place, and regimented cleaning schedules that disrupted the ability to efficiently test devices in a timely manner.

The NMCI certification of the PRISM contract device models are still ongoing and have encountered many issues related to vendor device/software configurations, shipment issues, and most importantly the COVID-19 Pandemic which started in February 2020.

Together this has exacerbated the delays in getting the devices NMCI tested and certified.

NMCI’s testing and certification completion is now targeted for 31 October 2020, but Perspecta cannot guarantee this date. As a result of this, a sole source contract to continue the leasing support of the MFDs which are currently in place on the contracts cited is required. This request will cover the period until the PRISM contract vehicle is available to use for competitive orders after the NMCI device certification is completed by Perspecta.

The following issues occurred in the certification process for the new PRISM contract devices:

RICOH

J67E sent a list of eleven MFD families to the NMCI Lab for testing. The first devices tested were Ricoh’s families of MFDs. These MFDs were sent to the Lab on 09 January 2020 and subsequently placed on the NMCI’s certified device list (CDL) on 22 May 2020.

The testing of the Ricoh devices started but was delayed because of COVID19 pandemic.

XEROX

Xerox’s families of devices arrived at the Lab at the end of March 2020, which was when COVID started to impact companies in the United States with shutdowns. On 28 April 2020, J67E was notified of an issue, the devices did not have the capability to scan or command share scan with the Xerox VersaLinks devices. Unfortunately, this issue hit during the heart of the COVID19 Pandemic and it was delayed. Xerox has personnel all over the world and the personnel needed to solve this issue were located in Japan. Japan was shut down due to the Pandemic and this has delayed the fix to the capability to scan or command share scan. Additionally, this delay caused a halt to the Xerox testing until Xerox in Japan re-opened in June 2020. At this time, Xerox began to find a fix for the command share scan capability but this ultimately delayed Xerox’s NMCI device certification by several months. On 02 September 2020, a firmware fix has been completed by Xerox and is being sent to the NMCI lab to install on the devices. Overall, the certification process was on hold for the Xerox devices for over two months due to the COVID19 Pandemic.

KONICA MINOLTA

The Konica Minolta families of devices were shipped to the NMCI Lab in June 2020 and are currently going through the certification process. It is estimated the Konica devices testing will be completed by 30 September 2020. The Konica devices weren’t sent until June 2020 because 1) Perspecta was waiting for a solution with the Xerox devices, that were delayed due to COVID-19, and 2) waiting for resolution due to spacing limitations.

Ultimately, Perspecta decided to bring the Konica devices to the lab before the Xerox devices were completed because Xerox personnel in Japan were shut down, and to not further delay testing all the devices.

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

THE AGENCY’S NEEDS/ESTIMATED DOLLAR AMOUNT:

The purpose of this sole source contract action will be to continue to give DLA’s NMCI customers the ability to lease existing MFDs that have already been tested, approved and certified for use while testing occurs on NMCI devices through the PRISM BPA.

As explained below (see Item 5), the time sensitive nature of this requirement is not due to DLA’s fault or lack of advanced planning.

DLA J67E (Equipment Management Solutions) estimates that $3,981,264.32 will provide for mission essential leases that cannot be delayed. This $3,981,264.32 amount was determined by using the current pricing on the sole source orders for the up to eleven (11) months required for the sole source contract action.

4. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER

THAN FULL AND OPEN COMPETITION:

The Statutory authority permitting other than full and open competition is Title 10, U.S.C. 2304 (c) (1) as implemented by the Federal Acquisition Regulation 6.302- 1(a)(2)(iii)(B) – Only one responsible source and no other supplies or services will satisfy agency requirements.

5. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE

OF THE CITED AUTHORITY:

DLA has a short-term, time sensitive requirement for the leasing of NMCI MFDs throughout CONUS and non-foreign OCONUS locations. Market research shows, while various sources are capable of providing MFDs to these locations, only one source (Xerox) can meet DLA’s time sensitive portion of DLA’s requirement for the leasing of existing MFDs.

Pursuing a competitive award for this time sensitive requirement would result in unacceptable delays, increased performance risks and interruption of services, resulting in a significant impact to the Navy’s mission accomplishment. Experience shows, it takes a minimum of 225 days to actually receive delivery of operational MFDs through the competitive contract award process. The 225 days includes the 135 days for DLA to conduct the competitive procurement itself and an additional 90 days from award to delivery of operational MFDs. In this case, such a 225 day lapse would be severe and negatively impact DLA’s Navy customers. Additionally, the 225 days does not account for the additional time that will be required to get devices NMCI tested and certified, which has proven to be a lengthy process that is only exacerbated by the COVID19 Pandemic.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE:

In accordance with DFARS PGI 206.303-2(b)(i) a request for information (RFI) was posted on 14 August 2020 and closed on 18 August 2020. Microtech Inc., Ricoh USA, Ameritel Corporation and Metropolitan Logistics LLC showed interest in the RFI, but none of the vendors can meet the time sensitive element of DLA’s requirement (i.e., none can provide MFDs that would be delivered, installed, and up and running by 01 October 2020.

DLA currently has Blanket Purchase Agreements competed by General Services Administration for DLA to use. The vendors that have contracts for PRISM are currently undergoing testing for NMCI certification. Once the testing is completed, DCSO – P New Cumberland will run a reverse auction with the BPA holders for competing the follow-on requirement.

In accordance with FAR 6.305, this Justification and Approval will be synopsized via the Government-wide Point of Entry, Beta.Sam.Gov’s Federal Business Opportunities website.

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT REPRESENTS THE BEST

VALUE TO THE GOVERNMENT BASED ON RECOMMENDED ACTION:

As the Contracting Officer, I hereby determine that the anticipated cost to the Government will be fair and reasonable. Price will be determined fair and reasonable using previous award SP7000-12-D-1003 and the sole source orders, which was determined to be fair and reasonable based on competition from the original orders.

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS

NOT CONDUCTED:

Market research indicates that an adequate competition pool exists for requirements of this type (see Items 6 & 9 for further information). This sole source contract shall only be in place long enough to provide for the continued testing, NMCI certification, and award of new orders to include the delivery and installation of devices.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION.

It is necessary to continue to support the customer through the leasing support arrangement. Attempting to do a short-term contract, at this time, via competitive procedures would result in unacceptable delays to achieve contract award and delivery/installation of new devices. The unacceptable delays would entail the removal of the 3,499 devices currently in place, recompeting the short-term lease, testing and NMCI certification of the devices and delivery of the short-term lease devices, during which DLA’s customers would be without devices.

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

INTEREST IN THE FUTURE ACQUISITION:

Microtech, Inc.

1425 Highland Ave Cheshire, CT 06410

Ricoh USA, Inc.

300 Eaglewiew Blvd Ste 200 Exton, PA 19341

Ameritel Corporation 15010 Broschart Road Rockville, MD 20850

Metropolitan Logistics, LLC 3820 Marquis Pl Woodbridge, VA 22192

All the above vendors showed interest in the RFI, but none of these vendors can meet the time sensitive element of DLA’s requirement (i.e. none can provide MFDs that would be tested, NMCI certified, delivered, installed and up and running by October 1, 2020).

While Ricoh, who has certified devices, was interested in the requirement, they are unable to provide devices for this requirement. Their interest was in the sixty (60) month follow-on requirement. Also, if a vendor were able to provide devices that are NMCI certified and delivery by 01 October, 2020, the vendor would not be able to provide pricing that is fair and reasonable and competitive with the current pricing based on the contracting officer’s knowledge. The reason for this is because the vendor would be amortizing the devices over an up to eleven (11) month period, instead of over a sixty (60) month period that vendors are accustomed to doing.

11. STATE THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR

OVERCOME ANY BARRIERS THAT PRECLUDE THE AGENCY FROM

MEETING FUTURE REQUIREMENTS FOR COMPETITION:

Barriers to competition will be removed when all the devices are approved to be on the NMCI network through the PRISM BPA.

Also, DLA has and continues to exercise competition as often as possible and is required to conduct ongoing reviews to keep abreast of the new technology, both within industry and the Government, as a continuing effort within DLA. Furthermore, DLA utilizes a variety of vendors, manufacturers, and contracts to fulfill its requirements and will continue the practice of surveying the market to ensure future full and open competition.

Requirements will continue to be posted on Beta.Sam.Gov’s Federal Business Opportunities website to ensure fair opportunity is given and no other providers are available.

12. CERTIFICATIONS:

Requirement/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.

Tammy McNamara DATE DLA NMCI Specialist, J67E

Contracting Certifications:

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

For Timothy Danowski DATE

Contracting Officer/Team Lead DCSO P-New Cumberland East

I have reviewed and concur with this justification.

Assunta Bonanno DATE Competition Advocate DLA Contracting Services Office