JA - Redacted.pdf
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- Solicitation number
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Defense Logistics Agency Distribution
About this file
This Justification for Other Than Full and Open Competition (J&A) document addresses a six-month contract extension for Warehouse and Distribution Support Services at DLA Distribution Cherry Point, North Carolina. The current contract with Synergy Logistics Services II, LLC (SLSII) is set to expire on 30 April 2025, and the modification will extend the ordering period through 31 October 2025. The extension is necessary to allow sufficient time to finalize evaluations of the follow-on solicitation, award the new contract, and support a transition period.
The contract is a hybrid-type Indefinite Delivery Indefinite Quantity (IDIQ) agreement with Fixed Price Incentive Firm (FPIF) pricing, covering services such as warehouse management, personnel supervision, transportation, and support materials. The extension is being processed as a 100% Small Business Set Aside, with DLA Distribution citing that only SLSII can provide uninterrupted services during this transition period. The modification will increase the contract ceiling to support the extended ordering period, with cost realism analysis conducted to ensure fair and reasonable pricing based on existing labor categories and rates.
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7. DETERMINATION OF FAIR AND REASONABLE COST:
Increasing the ceiling amount is the most advantageous method of fulfilling the Government’s need for uninterrupted support. The additional ceiling is determined fair and reasonable as the Government will utilize the same labor categories and labor rates negotiated under base modification P00031 and the current task order SP3300-24-F-5027, as well as included in Attachment J.6 of the base contract SP3300-20-D-5001.
Cost realism analysis was conducted on CR CLINs. The rates utilized in the below CLINs were previously determined to be fair and reasonable based on adequate competition in accordance with FAR 15.404- 1(b)(2)(i) on contract SP3300-20-D-5001. Cost realism analysis was accomplished by reviewing and evaluating specific elements to determine whether the estimated proposed cost elements are realistic for the work to be performed; reflect a clear understanding of the requirements; and are consistent with the unique methods of performance and materials described in the technical proposal. For evaluation purposes, SLSII was provided a Government Estimated Cost in the original competitive solicitation. SLSII was instructed to apply their G&A, Material Handling Rate, or other Indirect Rate supported by their accounting system to this estimated cost to derive a Not-to-Exceed (NTE) amount. During contract performance, the contractor will be reimbursed for costs that are actual, allowable, and allocable to the contract. No fee is allowed under these CLINs. SLSII proposed and awarded capped G&A rate is
8. DESCRIPTION OF MARKET RESEARCH:
Market research was conducted for the follow-on solicitation SP3300-24-R-5003 and this follow-on solicitation is currently undergoing evaluations. The award timeframe has been delayed due to a solicitation protest which elongated the receipt of proposals.
While there is competition available for the follow-on effort, extending the current contract ordering period will enable sufficient time to finalize evaluations, award the follow-on contract, support a transition period, and enable necessary training for the awardee.
9. OTHER SUPPORTING FACTS:
Not applicable.
10. LISTING OF INTERESTED SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN
INTEREST IN THE ACQUISITION:
Multiple offers have been received in response to the follow-on solicitation. Additional market research does not have bearing on the extension of the Performance Year Five period of performance, as the need is immediate and no other potential sources for this additional work can support in the timeframe and duration required.
11. ACTIONS THE AGENCY MAY TAKE TO REMOVE/OVERCOME BARRIERS BEFORE ANY
SUBSEQUENT ACQUISITION FOR THE SUPPLIES/SERVICES IS REQUIRED/MADE:
The action is for an extension modification of existing contract SP3300-20-D-5001, task order SP3300-24-F- 5027, pursuant to FAR 52.217-8 Option to Extend Services (Nov 1999). The recompete, follow-on action is currently in progress and is being processed as a 100% Small Business Set Aside. Contract SP3300-20-D- 5001 was competed and awarded under full and open competition after the exclusion of sources (100% Small Business Set Aside) procedures.
File details come from the government source that posted it. Updated .