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This document is a Justification for Other Than Full and Open Competition (J&A) from the Defense Logistics Agency (DLA) Distribution for a sole source, firm-fixed price contract modification with Advantaged Solutions, Inc. (ASI). The primary objectives are to modify the Host Interface Specification (HIS) for the Warehouse Execution System (WES) to interface with the Warehouse Management System (WMS) in support of the Electronic Distribution Center (EDC) modernization, and to integrate Dematic iQ Optimize with the new Parcel Robotic System at the tote fill operation of the unloading conveyor in receiving.

The J&A provides rationale for the sole source award, highlighting that ASI is currently developing the WES solution for the EDC, has already established coordination for WMS integration, is on-site and vetted for immediate execution, and is developing the DiQ solution. The modification supports the existing LMIS contract vehicle, and full and open competition would require time-consuming solicitation, site visits, design submittals, cyber security requirements, and NIST certifications. The contract modification must align with the current Integrated Management System (IMS) and be executed no later than March 2025 to avoid schedule risks.

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Revised 9-16-2020 sole source

Firm-fixed price (FFP) contract

Modify the Host Interface Specification (HIS) for the WES to interface with the WMS in support of the EDC modernization. Incorporate those changes of the HIS into the WES software build.

Integrate Dematic iQ Optimize with the new Parcel Robotic System at the tote fill operation of the unloading conveyor in receiving.

DEFENSE LOGISTICS AGENCY

DISTRIBUTION

430 MIFFLIN AVENUE

NEW CUMBERLAND, PENNSYLVANIA 17070-5004

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY:

DLA DISTRIBUTION ACQUISITION OPERATIONS (J7)

430 MIFFLIN AVE, SUITE 3102A

NEW CUMBERLAND, PA 17070-5008

2. NATURE/DESCRIPTION OF ACTION BEING APPROVED: (Inclusive of contract type)

This is a sole source action that will utilize the procedures in FAR and be awarded as an increased scope to a to/with Advantaged Solutions, Inc. (ASI), 1455 Pennsylvania Ave. NW Suite 800 Washington, DC 20004-3024

Use of a contract is in the best interest of the agency concerned.

3. DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET AGENCY’S NEEDS:

Parts 12/15

It would be the best interest of the government to add this requirement to the current EDC Modernization delivery order for multiple reasons.

• ASI is currently developing the WES solution for the EDC and coordination for integration with the WMS has already been established.

• The timeliness of execution is critical to the overall schedule and critical path.

• ASI is already on site and vetted for immediate execution.

• ASI is currently developing the DiQ solution for the EDC and coordination for integration is necessary for the installation and integration of the robotic arms in order to meet required timelines.

• The robotic arm is being incorporated with equipment already installed by ASI and requires direct interface between the hardware and software.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

The statutory authority permitting other than full and open competition is:

(Check the applicable U.S.C. authority from the listing below)

10 U.S.C. 2304(c)(1) or 41 U.S.C. 3304(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements (FAR 6.302-1, DFARS 206.302-1)

10 U.S.C. 2304(c)(2) or 41 U.S.C. 3304(a)(2), Unusual and compelling urgency

(FAR 6.302-2, DFARS 206.302-2)

10 U.S.C. 2304(c)(3) or 41 U.S.C. 3304(a)(3), Industrial mobilization; engineering, developmental, or research capability; or expert services (FAR 6.302-3, DFARS 206.302-3)

10 U.S.C. 2304(c)(4) or 41 U.S.C. 3304(a)(4), International agreement

(FAR 6.302-4, DFARS 206.302-4)

10 U.S.C. 2304(c)(5) or 41 U.S.C. 3304(a)(5), Authorized or required by statute

(FAR 6.302-5, DFARS 206.302-5)

10 U.S.C. 2304(c)(6) or 41 U.S.C. 3304(a)(6), National security (FAR 6.302-6)

10 U.S.C. 2304(c)(7) or 41 U.S.C. 3304(a)(7), Public Interest (FAR 6.302-7, DFARS 206.302-7)

This J&A satisfies the FAR 13.501(a)(2) regulation to justify a sole source (including brand name) commercial item acquisition or portion of a commercial item acquisition requiring a brand name.

Note: Check the above statement applicable if the J&A is for a sole source (including brand name) acquisition for a commercial item(s) with an estimated value greater than the Simplified Acquisition Threshold (SAT) but not exceeding $7million (including options)($13million for acquisitions described in FAR 13.500(c)) that is to be awarded using the simplified procedures for certain commercial items prescribed by FAR 13.5.

This J&A satisfies the DFARS 211.104 regulation to justify use of brand name or equal purchase descriptions when using sealed bidding (FAR Part 14), negotiated acquisition procedures (FAR Part 15), or simplified procedures for certain commercial items (FAR Subpart 13.5).

5. DEMONSTRATION OF CONTRACTOR'S UNIQUE QUALIFICATIONS OR

NATURE OF ACQUISITION THAT REQUIRES USE OF THE CITED AUTHORITY:

http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/13.htm#P424_62043 http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/13.htm#P412_59066

A notice of the Government’s intent to issue a sole source modification as required by FAR 5.201 and in accordance with procedures at FAR 6.302-1(d) will be performed prior to issuance of the modification.

Additionally, notice will be given of the Government's intent to increase the Ceiling Price of the LMIS Pool 1 - Enterprise Facility Modernization, IDIQ Contract SP3300-20-D-0021.

To determine whether the contractor’s proposed price is fair and reasonable, the Contract Specialist and Contracting Officer will review the proposed price against current market pricing information for the same or similar services available.

6. SYNOPSIS ANNOUNCEMENT/POTENTIAL SOURCES:

7. DETERMINATION OF FAIR AND REASONABLE COST:

8. DESCRIPTION OF MARKET RESEARCH:

One estimating method was used in the development of this IGCE.

a. Market Research - Conducted market research of industry leaders for pricing of their commercial off-the-shelf (COTS) products that could be used as sub-components of the system.

For the WES Design updates, market research was conducted to determine average hourly costs for a mid-range programmer and cyber security specialist who could successfully complete the updates to the existing warehouse execution system (WES). Number of hours estimated was based on the complexity of the interface that requires design and development.

For the robotic arm integration, market research was conducted to determine average hourly costs for a mid-range programmer and cyber security specialist who could successfully complete the integration of new equipment into an existing warehouse execution system (WES). Number of hours estimated was based on the complexity of the interface that requires design and development.

A Project Management cost of 25% was applied to the total integration cost; this percentage is based on past experience.

ASI is currently responsible for developing and deploying the new WES (DiQ Optimize) solution to the EDC and is the sole source for adjustments to that solution until it is turned over to the Government.

9. OTHER SUPPORTING FACTS:

Include any other facts supporting the use of other than full and open competition, such as:

Explanation of why technical data packages, specifications, engineering descriptions, statements of work, or purchase descriptions suitable for full and open competition have not been developed or are not available.

When FAR 6.302-1, only one responsible source, is cited for follow-on acquisitions as described in FAR 6.302-1(a)(2)(ii), an estimate of the cost to the Government that would be duplicated and how the estimate was derived.

When FAR 6.302-1, only one responsible source, is cited, as described in DFARS

206.302(d) and DFARS PGI 206.303-2(b)(i)(A), include the results of the request for information (RFI)/Sources Sought Notice posted IAW DFARS PGI 206.302-1 (unless the requirement to post has been waived).

When FAR 6.302-1, only one responsible source, is cited, as described in FAR 6.302-

1(c)(1)(B), indicate that the use of such descriptions (brand-name description or other purchase description to specify a particular brand-name, product, or feature of a product, peculiar to one manufacturer) in the acquisition or portion of an acquisition is essential to the Government's requirements, thereby precluding consideration of a product manufactured by another company.

When FAR 6.302-2, unusual and compelling urgency, is cited, provide data, estimated cost, or other rationale as to the extent and nature of the harm to the Government.

http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/06.htm#P82_10998 http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/06.htm#P82_10998 http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/06.htm#P107_16087

When FAR 6.302-6, national security, is cited, describe how disclosure of the Government's needs would compromise the national security (e.g., would violate security requirements). This authority must not be used merely because the acquisition is classified, or merely because access to classified matter will be necessary to submit a proposal or to perform the contract.

For non-competitive follow-on acquisitions of supplies or services previously awarded on a non-competitive basis, include a copy of the previous justification to assist the approval authority in determining whether the planned actions to remove any barriers to competition cited on the previous justification were completed.

For a sole-source 8(a) contract over $100 million, include such other matters as the head of the agency concerned shall specify for purposes of this section.

Other facts supporting the use of other than full and open competition:

Contract modification award supports existing LMIS contract vehicle. Full and open solicitation to another vendor would require time-consuming solicitation, site visits, design submittals, cyber security requirements, and NIST certifications. Another vendor would require cooperation from the current WES developer, ASI.

http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/06.htm#P186_26740

No sources have expressed interest in writing in the acquisition at this time.

Award and execution of statement of work must align with current IMS that supports go live. Failure to award and execute task NLT March 2025 puts the overall schedule at risk.

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

INTEREST IN THE ACQUISITION:

11. ACTIONS THE AGENCY MAY TAKE TO REMOVE/OVERCOME BARRIERS

TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION FOR THE

SUPPLIES/SERVICES IS REQUIRED:

12. STATEMENT OF DELIVERY REQUIREMENTS:

13. TOTAL ESTIMATED DOLLAR VALUE OF THE ACQUISITION(S) COVERED BY

THIS J&A:

Attempt to know about upcoming requirements in sufficient lead time to allow for a competitive award. We will be more proactive as designs are updated and will ensure the specific DLA SME's are involved to ensure we account for all requirements.

J&A ENDORSEMENT

TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION (FAR 6.303-1(c):

I certify that the facts and representations under my cognizance which are included in this justification and its supporting acquisition plan which form a basis for this justification are complete and accurate.

Technical Cognizance:

(Requirements originator)

Name Title Phone Signature Date

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-1(a)(2):

(Note: Pursuant to FAR 6.304(a)(1) or FAR 13.502(a)(2)(i), this certification also serves as approval of J&A’s not exceeding $700,000)

I certify that this justification, including its supporting acquisition plan, is accurate and complete to the best of my knowledge and belief.

APPROVAL OF THE JUSTIFICATION:

(FAR 6.304, DFARS 206.304, DFARS PGI 206.304, FAR 13.501(a)(2)(i), (ii), (iii) or (iv)):

http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/06.htm#P234_33196

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