JA -SMCP SP700013D0013 Ceiling Increase HCA signed_Redacted.pdf

DEFENSE LOGISTICS AGENCY

CONTRACT SERVICES OFFICE

5404 J A VENUE, 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 (J67) 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 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:

On August 19, 2013, DCSO awarded an Indefinite Delivery Indefinite Quantity (IDIQ) contract SP7000-13-D-0013 to Xerox Corporation in supp01tofDLA's Shipboard ultipurpose Copier Program (SMCP). This contract had a 5-year base ordering period, October 1, 2013 through September 30, 2018, to acquire devices, supplies, technical services, pa1ts, and to provide device training for Navy personnel. Additionally, this contract has a 5-year option period, October 1, 2018 through September 30, 2023, which does not include acquiring devices. This option was established for orderingjust supplies, technical services, parts, and providing device training to support previously purchased/government-owned SMCP devices. The contract's overall maximum award value inclusive of the 5-year Base and 5-year Option period is $94 Million.

As of December 6, 2019, DLA has obligated the entire maximum award value of$94 Million against contract SP7000-13-D-0013, which suppo1ts 12 Navy Carriers, 178 vessels between four (Type Commands) TYCOMS, 152 vessels in Military Sealift

Command, the Marine Expeditonary Forces, the (Submarine Force, Atlantic) SUBLANT and (Submarine Force, Pacific) SUBPAC, and the U.S. Coast Guard (USCG), leaving a zero balance. When the IDIQ was awarded in 2013, the ceiling value was estimated using the available information at that time, and included an estimated allocation of $60 Million for the Base ordering period, and $27 Million for the option ordering period.

In December 2013, the Navy alerted the SMCP program office of additional requirements not placed on the IDIQ during the time of the IDIQ award. The December 16, 2011 agreement between DLA-Document Services and the Navy clearly out-lined DLA Document Services's way forward, and a modification (P00005) was executed on December 18, 2013 for the purpose of adding Contract Line Item Number 0331. On December 19, 2013, a subsequent modification (P00008) was executed placing 1350 desktop multifunctional printers on the contract at a price of $60.00 per device, or $81,000.00 per month.

During December 2013 - September 2014, all Navy vessels were in the process of transitioning from the the former Integrated Shipboard Network Systems (ISNS) platf01m to the the current Consolidated Afloat Networks and Enterprise Service (CANES) platform. SMCP determined coordination with the Shipboard Riders would be necessary to accurately capture the remaining Navy desktop printers that needed to be replaced to meet CANES requirements. This resulted in the identification of 5060 total devices (including the original 1350) that the Navy needed to transition to CANES. By the 2nd year of the contract, these additional 5060 devices had increased the monthly estimated cost from $81,000.00 to $303,600.00. Today, SMCP suppo1ts 7865 devices that the Navy has transitioned to the CANES network platform, resulting in a significant monthly cost of $471,900.00 compared to the anticipated monthly cost of $81,000.00 when the contract was first awarded. The addition of all these devices equates to a total annual cost of $5,662,800.00, an amount the SMCP program had not accounted for when preparing the Independent Government Estimate. Overall, the total cost to support the Navy's transition to its CANES platform resulted in an unanticipated expenditure of approximately $33 Million.

The IDIQ support also includes Shipboard Riders on the Carriers in suppo1t of all Navy Carriers. Shipboard Riders provide repair services on board carriers and large amphibious assault combat ships. However, all Carriers and the type of suppo1t for these Carriers were not fully identified on contract until the issuance of modification (P00005) on December 18, 2013. This modification required that on ce1tain Carriers there would be two Shipboard Riders instead of only one, as originally believed at the time of award.

This increased the amount of Riders by 19, for an additional monthly cost of $266,000.00, an annual cost of $3,192,000.00 or a total cost of $19,152,000.00. When this total cost of $19,152,000.00 was combined with the additional CANES support of $33 Million, the total additional unanticipated cost of $53,128,800.00 drawn from the $94 Million ceiling quickly depleted funds needed for the SMCP program.

In summary, the modifications to the IDIQ contract detailed above added a s ignificant amount of government owned shipboard devices that require ongoing support (i.e., supplies, technical services, parts, and device training) and additional Shipboard rider suppo1t to reside on the Navy carriers. This added support resulted in an overall total increase of $53,128,800.00 to the SCMP program which originally was estimated at $94 Million. In order to continue seamless support to all customers until the follow on acquisition is awarded, a non-competitive ceiling increase of $40 Million to Xerox Corporation under contract SP7000-13-D-OO 13 is needed. This ceiling increase will increase the maximum contract value of SP7000-13-D~0013 from $94 Million to $134 Million.

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

THE AGENCY'S NEEDS/ESTIMATED DOLLAR AMOUNT:

DLA J67E's mission includes providing maintenance and support to the SMCP for all afloat customers ' government-owned shipboard devices while at sea or in ports around the world. These customers include the U.S. Navy, Military Sealift Command, afloat elements of the U.S. Fleet Marine Forces, U.S. Coast Guard and other mobile, water based activities of the Federal Government. SMCP requires the ongoing ability to purchase supplies, technical services, paits, and device training to suppo1t previously purchased/government-owned SMCP devices through September 30, 2023. DLA SMCP estimates $40 Million will provide the necessary funding to support the existing government-owned SCMP devices through September 30, 2023.

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)(l) as implemented by Federal Acquisition Regulation 6.302-l(a)(2). The supplies or services required by the agency are available from only one responsible source.

5. DEMONSTRATION THAT THE PROPOSED CONTRACTOR'S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES

USE OF THE CITED AUTHORITY:

In accordance with FAR 6.302-l(b)(l)(i), DLA's minimum needs can only be satisfied by unique supplies and services available only from one source (Xerox Corporation).

Xerox Corporation limits the ability to sell its devices, supplies (to include replacement parts) and consumables to only itself and its world-wide network of authorized dealers.

Additionally, Xerox Corporation's devices cannot use other manufacturers' supplies, parts and/or consumables. Moreover Xerox Corporation will not provide service documentation, training, manuals and/or proprietary tools to enable non-Xerox authorized technicians to service or provide training on its equipment. Thus, only Xerox Corporation is capable of providing supplies, technical services and/or parts for Xerox manufactured equipment and provide device training.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE:

DCSO has already issued its Request for Proposals (RFP) SP7000-19-R-0001 for a Shipboard Multipurpose Device Program (SMDP) IDIQ contract to follow-on the SMCP/SP7000-19-D-0013 contract. This RFP was posted to the Federal Business Opportunities website in accordance with FAR 5.201(b) and uses full and open competition procedures to solicit proposals from as many potential sources as practical.

The RFP closed on September 19, 2019. Proposals are currently under evaluation.

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 of IDIQ SP7000-13-D-0013, which was competed and found to be fair and reasonable on the basis of competition.

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS

NOT CONDUCTED:

On October 15, 2019, a Request for Information (RFI) was posted and three vendors, including the incumbent vendor (Xerox Corporation) responded to the RFI. The information received from the RFI further confirmed, as demonsh"ated in § 5 above, that only Xerox Corporation, and no other vendor, can provide devices, supplies, technical services, parts, and device training to support the government-owned SCMP devices.

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 (Responded to RFI) 550 Pearl Street Rosemont, IL 60018-5303

HP Federal LLC (Responded to RFI) 1299 Pennsylvania Ave Washington, DC 20005

CACI Acquisition Support Group (Responded to RFI) 110 N. Glebe Road Arlington, VA 22201

Konica-Minolta Business Systems (Responded to RPI re Follow-On IDIQ Contract) 1595 Spring Hill Rd. Ste 400 Vienna, VA 22182-2228

JTF Business Systems Corp (Responded to RFI re Follow-On IDIQ Contract) 85 S. Bragg St. 6th Fl Alexandria, VA 22312-2797

Trident Engineering and Procurement, P.C. (Submitted Proposal re Follow-On IDIQ 320 Circle of Progress Dr. Ste 1 Contract) Pottstown, PA 19464-3800

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:

As previously stated, DCSO has issued and closed an unrestricted, full and open competition Request for Proposals SP7000-19-R-0001 for continued support of the Shipboard Multipurpose Device Program (SMDP) and anticipates award October 2020.

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.

For Nancy Cruz SMCP/SMDP Manager, J67E

DATE

Contracting Certifications:

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

SPITTLE.CHAD.R.12907 Digitally signed by

SPITTLE.CHAD.R.1290709470

09470 Date: 2020.02.12 10:21 :49 -05'00'

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

I have reviewed and concur with this justification.

BONANNO.ASSUNTA.122909

Assunta Bonanno DCSO Competition Advocate

Digitally signed by

BONANNO.ASSUNTA.1229097675

Date: 2020.02.12 13:05:05 -05'00'

I have reviewed and concur with this justification.

GARDNER LILLIA' Digitallysignedby

• GARDNER.LILLIAN.J.1229014010

N.J.122901401 O ~~~~~~020.02.1214:25:36

Lillian J. Gardner DCSO Chief of the Contracting Office

I have reviewed and concur with this justification.

MODESZTO THOMAS ' Digitally signed by

• • MODESZTO.THOMAS.CHARLES.1030487

CHARLES.1030487148 ~:~e:2020.02.2011:16:34 -05•00·

Office of General Cousnel

DATE

DATE

DATE

Defense Logistics Agency

I have reviewed and approve with this justification

Head of the Contracting Activity DLA Acquisition