J&A_SMCP.pdf

DEFENSE LOGISTICS AGENCY

CONTRACT SERVICES OFFICE

5404 J AVEnue, BLDG 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) Shipboard Multipurpose Copier Program 1641 Morris Street – Bldg. KBB Norfolk, VA 23511 POC: Nancy Cruz

TEL: 757-278-8111

E-mail: nancy.cruz@dla.mil

Contracting Activity:

Defense Logistics Agency Contract Services Office Philadelphia-Harrisburg East

(DCSO P-HE)

5404 J Ave.

Bldg. 404 New Cumberland, PA 17070-5059

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

Justification and Approval for other than full and open competition to support Shipboard Multipurpose Copier Program (SMCP) under an Indefinite Delivery Indefinite Quantity (IDIQ) bridge contract for up-to 12 months.

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

THE AGENCY’S NEEDS/ESTIMATED DOLLAR AMOUNT:

The purpose of the proposed Sole Source IDIQ contract is to give customers the ability to purchase new devices, if needed, while preparing for the award of the new SMCP IDIQ.

This Sole Source IDIQ contract will mirror all the terms and conditions of the Base period under the current IDIQ, but will only be available for a six (6) month base period with six (6) one (1) month option periods. DLA anticipates awarding the follow-on competitive IDIQ by the end of the six (6) month based period. The one (1) month option periods are anticipated for testing approvals in accordance with the awardees approved test plan.

DLA EMS J67E estimates the cost of this bridge action to be $4,000,000.00. This amount will provide for purchases that are needed and which cannot be delayed until award of the follow-on due to mission requirements.

The current IDIQ included the purchase of devices, maintenance, supplies and services (to include training, shipboard riders, installation, relocation and removal of devices), but only during its base period. The base period of the current IDIQ (period of performance was Oct 1, 2013 to Sep 30, 2018) provided for the purchase of devices, as well as supplies and services, whereas the current option period (period of performance of Oct 1, 2018 to Sep 30, 2023) does not include the purchase of new devices, and only provides maintenance/service of existing equipment. It was the government’s intention to re-compete the follow on acquisiton using the same approach as for the current IDIQ, and award a new IDIQ before the expiration date of the base purchasing period of the current IDIQ. However, DLA’s requirements have changed from the previous acquisition, and DLA will now require an approved test plan for electromagnetic interference resistance (EMI), shock and vibration mounting, and network compatibility from all offerors prior to award of the follow-on IDIQ. This is a significant change to DLA’s requirement which has delayed the issuance of the follow on acquisition; this change will reduce the potential for post award mission failure and reduce the risk to the Government.

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:

The current SMCP IDIQ option period has been exercised to provide for maintenance, supplies and services of existing equipment previously purchased under the base period.

The option period does not support the procurement of new devices. DLA anticipates issuing a solicitation for the competitive follow-on IDIQ in 2nd quarter Fiscal Year (FY) 2019. The anticipated timeframe from issuance of the competitive solicitation to award is 180 days. Based on market research conducted to date, three firms have shown interest on the requirement for the competitive solicitation.

The devices procured within this Program are required to be tested, certified and approved for Electromagnetic Interference characteristics (EMI), Shock and Vibration, Power Quality, Military (MIL) Specification/Standards (SPECS), and Network Compatibility before being placed on vessels. Under the current IDIQ, the test plan approval process took place after IDIQ award. This process was very detailed and lengthy and caused delays in product installation. During the follow-on acquisition strategy sessions, changing the post award testing requirements to pre-award was discussed as a means to prevent lengthy delays in product installation and to allow award to a vendor already shown capable of handling the requirement.

Input from the DLA EMS J67E technical team and Naval Surface Warfare Center (NSWC) Philadelphia 333 Engineering team indicated that the testing requirements have further changed and are anticipated to take up to 180 days after award of the competitive IDIQ. Based on these discussions and the changes in testing requirements, a determination was made to require interested vendors to provide commercial test plans, at no cost to the government, at the time of proposal submission. The commercial test plans will be reviewed and approved prior to award of the contract, while all other physical testing requirements will take place post-award. This is a change to the previous requirement as test plans were reviewed only for the awardee post award. The review and approval of the test plans pre-award will mitigate the risks of post-award failure to the Agency and the Services while also placing the responsibility on potential offerors to be compliant with our testing requirements at the time of offer submission.

Currently, the incumbent is the only vendor who has devices approved to support SMCP.

In order to find other possible vendors to provide the required equipment, it has been determined that the Government will provide the testing processes, according to established MIL-SPECS, via the solicitation process. The current and follow-on contracts provide for six (6) classes (models) of Multifunctional Devices, one (1) class of a Black & White multipurpose production printer, and one (1) class of a Color multipurpose production printer for shipboard platforms. The Government will require test plans to be certified and approved, via the technical evaluation process, before award.

Once awarded, the awardee will submit products for EMI, Shock and Vibration and Network Compatibility testing, which can only be performed after the vendor has been cleared to have access to the military Network. Testing of these products can take up to 6 months.

The incumbent, Xerox, is the only vendor with devices which have been previously tested and approved to support SMCP. Xerox is the only company already tested for EMI, shock and vibration mounting, and network compatibility (which encompassed all of the testing requirements under the current IDIQ). The Government estimates it will take up to 180 days for a new vendor to be tested and certified and to be considered capable of providing the required products, as well as the mounting equipment.

Therefore, in order to prevent mission delays to the Navy, Military Sealift Command, afloat elements of the U.S. Fleet Marine Forces and other mobile (water based) activities of the Federal Government, it is necessary to award a Sole Source Contract to the incumbent for up to 12 months (to cover the anticipated time to award of 180 days and the anticipated time for post award testing). The government intends to do everything possible to reduce this timeframe, by ensuring all testing processes in the follow on acquisition are performed expeditiously. Addtionally, since the Sole Source contract is an IDIQ the Government will only be obligated to meet the guaranteed minimum of $1,000,000.00.

By having a Sole Source IDIQ contract in place which allows customers to purchase new devices, the SMCP can maintain the same level of service to the requiring agencies and prevent mission delays or stoppages while DLA works to award the competitive follow-on IDIQ.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE:

Market research was conducted to include issuing Requests for Information to interested parties. Based on the results of the market research the competitive IDIQ requirement will be issued as an RFP posted to the Federal Business Opportunities website in accordance with FAR 5.201(b). The SMCP Performance Work Statement (PWS) has been revised to include the testing criteria for each of the different types of devices and Government vessels. Therefore, DLA also anticipates holding a pre-proposal conference with all interested parties after RFP issuance to discuss all applicable changes.

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 proposals will be analyzed in accordance with one or more of the proposal analysis techniques described in FAR 15.404-1 for the Sole Source contract.

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS

NOT CONDUCTED:

A Request for Information (RFI) was posted on 18 June 2018 and only three vendors (two large and one small) responded with questions related to current contractual requirements and testing protocols.

Due to the information received from the RFI, it was determined that no other vendor could provide devices that meet the testing requirements in the time necessary to allow for continuity of new product support to our customers.

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

OPEN COMPETITION.

None.

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

INTEREST IN THE FUTURE ACQUISITION:

Xerox Corporation 550 Pearl Street Rosemont, IL 60018-5303

Konica-Minolta Business Systems 1595 Spring Hill Rd. Ste 400 Vienna, VA 22182-2228

JTF Business Systems Corp 85 S. Bragg St. 6th Fl Alexandria, VA 22312-2797

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:

The follow-on IDIQ will be conducted competitively. The RFP will be posted to FEDBIZOPPS and a pre-proposal conference will be held to provide information on what is required for this program to potential vendors.

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.

Nancy Cruz DATE SMCP/SMDP Manager, J67E

1/9/2019

Contracting Certifications:

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

Chad R. Spittle DATE Contracting Officer/Team Lead DCSO P-Harrisburg East

I have reviewed and hereby approve this justification.

Assunta Bonanno DATE DCSO Competition Advocate