Justification and Approval for Site E Redacted.pdf

FEDSIM is a Client Support Center housed within GSA, FAS, AAS Version 06/23/2020 for Site E. The Government was in the process of finalizing its acquisition planning to recompete a follow-on procurement when the pandemic began spreading across the country, and the reprioritization was necessitated. For strategic reasons, the client still requires managed service support of its inventory at Site E, however the impacts of COVID-19 are still being analyzed and may affect the requirements for the follow-on procurement in the medium-to-long term.

With this in mind, the Government plans to issue a sole-source, follow-on contract to the incumbent contractor, LSL. The Government contemplates awarding a Firm-Fixed Price (FFP) contract to LSL at Site E, with Contract Line Item Numbers (CLINs) for Surge Response on a Labor Hour (LH) basis, and Other Direct Costs (ODCs) on a Not-to- Exceed (NTE) basis. The period of performance for this contract is a 12-month base period with two, six-month options. The total cost is not expected to exceed $16,000,000.

3) A Description of Supplies/Services Required to Meet Agency’s Need:

The Government requires a 3PL vendor to provide logistics and overall management support for the Government Inventory. The logistics support includes validation of product transaction and movement between facilities, as well as full-scale, 100 percent inventories. Ensuring accuracy of product count is paramount, which the 3PL vendor will ensure through its own inventory control process, including input into a national system of record to ensure product remains undamaged and ready for response. The 3PL vendor, as a managed service provider, is able to effectively validate inputs and outputs into the stockpile, maintain accurate conditions including temperature regulation for products, coordinate the location of product throughout the multiple sites within the stockpile, as well as meet stringent quality control standards. The Government will perform independent verification and validation to ensure an increased level of quality control over all facets of the inventory. Forecasting, scheduling, and coordinating with the 3PL vendor will help the Government seamlessly execute movement of product, minimize damage, and update inventory records.

The contractor shall provide a fully managed service solution to provide the necessary expertise in conjunction with suitable storage, management/maintenance of the medical products, monitoring, logistics, reporting, and emergency delivery of Government-provided medical supplies to the site of a national emergency (e.g., hurricane, earthquake, man-made disaster, public health emergencies, etc.). The contractor may be required to prepare product for shipping, store and document specialized packing, storage, and shipping preparation for some hazardous materials (i.e., hand sanitizer). These products are used to supplement state and local resources during a large-scale public health emergency.

a. Location – The facility shall be located at the incumbent site currently servicing this client’s requirement for managed services at this location. The facility will be used to store medical equipment and medical related items.

b. Ambient warehouse temperature between 60 – 80 degrees Fahrenheit is required.

Current Good Manufacturing Practice (cGMP) requirements will still be required for pest control, electronic management, sanitation, cleanliness, and training, etc. An emergency generator is required.

c. Stringent security requirements shall remain as they are currently being administered at this site. The Government will provide security staff for the facility. The contractor shall ensure that the security staff has convenient access to entry points to the facility as part of its response to security requirements.

d. Quality control mandates an adherence to all applicable cGMP requirements and Government quality assurance requirements.

e. Surge requirements are still in place at 200 pallets per hour. Staff needs to be trained for this purpose.

The Government will manage transport of medical materials and other stock to and from the facility; the contractor will be required to stage, sort, prepare inventory for shipping, and load inventory on site. The contractor shall provide all personnel, necessary licensing, support, and space to manage the inventory requirements. The contractor shall ensure that all Government products stored in the contractor-provided facilities remain viable based on the requirements provided. The Government will periodically monitor the environment to ensure compliance. The contractor shall also ensure that surge requirements, whereby larger than normal quantities of product are received for storage or require packaging and distribution, can be met based on the requirements.

4) An Identification of the Statutory Authority Permitting Other Than Full and Open

Competition:

The authority under which this J&A is made is pursuant to FAR 6.302.

a. FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements

This sole-source contract will be awarded pursuant to the authority of 41 United States Code (U.S.C.) 3304(a)(1) as implemented by FAR 6.302-1.

5) A Demonstration that the Proposed Contractor’s Unique Qualifications or the

Nature of the Acquisition Requires Use of the Authority Cited:

As part of this Managed Service requirement, the Government has two unique requirements that market research has proven contractors are unable to meet without conditioning a new site at considerable expense to the Government. First, the Government requires that cGMP be executed in the management of the facility. This requires potential offerors to take this into consideration as they propose a storage solution for the inventory they will manage and secure.

Additionally, the client provides a series of very specific security requirements. Along with the cGMP, this expense provides a large up-front cost to the Government to initiate a new contract with any new offeror. FEDSIM manages a large portfolio of contracts with similar requirements, and through it’s market research for this specific site, as well as its other engagements with industry across it’s portfolio, the Government has concluded that no other offerors in this market would be able to meet both the cGMP and security requirements without a substantial up-front expense to the Government. As LSL is currently the servicing contractor at the existing site, they already have a facility that meets both the cGMP and Security requirements of the client This contractor has proven that they are able to provide the necessary services at this site, and the services being requested are an extension of those services. Additionally, LSL has established Standard Operating Procedures (SOPs) in place at the existing facility. For this reason, they are the only responsible source (as defined in 41 U.S.C. 113(2),(7)) able to meet the Government’s requirements in the short term.

The Government intends to issue a sole-source contract for a 12-month base period and two, six-month option periods to the 3PL vendor currently under contract at this location.

In response to the COVID-19 pandemic and related public health emergency, FEDSIM will work with its client to assess the long-term need of this strategic increase, and will work to include any longer-term requirements to increase the capacity of the managed services currently managed by FEDSIM into re-competes in the coming years, as existing contracts expire.

6) A Description of Efforts Made to Ensure that Offers are Solicited From as Many

Potential Sources as Practicable:

As described in the market research section below, the Government intended to compete this procurement, however the impacts of the COVID-19 pandemic on FEDSIM and resources threw off the schedule for this procurement. As a result, the decision was made to sole source this requirement.

7) A Determination by the Contracting Officer that the Anticipated Cost to the

Government will be Fair and Reasonable:

The Contracting Officer has determined that the anticipated cost to the Government will be fair and reasonable. The expectation of reaching a fair and reasonable price will be to compare the existing firm-fixed pricing on the previously competed existing contract and formulate an Independent Government Cost Estimate (IGCE) based on current market factors. With this managed service, there is usually an initial up-front cost to “condition” the facility to meet the Government’s specifications regarding security and storage. As the requirements of the follow-on contract will closely mirror the existing contract, the Government will not have to incur this cost element for this short-term contract. The total amount of funding required for the total estimated period of performance of one base year, with two, six-month options is not expected to exceed $16,000,000.

8) A Description of the Market Research Conducted and the Results or a Statement of the Reason Market Research was not Conducted:

FEDSIM posted and received responses to an RFI for this requirement to do Market Research for a separate competitive requirement in January 2020. The Government received responses to the RFI from two industry partners that currently support the existing contract portfolio. Both industry partners were deemed to be technically acceptable and capable of supporting this effort. The Government was prepared to move forward with a competitive procurement when the Client’s focus turned to the COVID-19 response in March 2020.

In support of the Client’s mission and its response to the COVID-19 pandemic, the client and FEDSIM focused their collective resources for this procurement and a second procurement in a different location on awarding up to four new sites in May 2020. Upon award of three contracts supporting the Client’s response to COVID-19, FEDSIM and management met, and in order to allow for time to see the impacts of COVID-19 on the mission and logistical support necessary from , it was determined that it would be in the Government’s best interest to create a sole source, follow-on contract at Site E to the incumbent. This would allow the client sufficient time to analyze the impacts of COVID-19 response and ways it may need to adjust its requirements as it pertains to managed services, and incorporate those changes into a recompeted solicitation, presently projected in FY23.

9) Any Other Facts Supporting the Use of Other Than Full and Open Competition:

The need to exercise the authority under FAR 6.302-1 arose in response to the client’s response to COVID-19. In support of the Government’s response to this national health emergency, the Government required increased inventory management and logistical support of a 3PL vendor at new sites, at a time when market research at Site E was being conducted. As such, the Government had to adjust its plans from a competitive procurement at this site, to award additional sites to accommodate the existing and future managed service requirements and meet the client’s needs to meet its mission as it responded to COVID-19. In an effort to give additional time to analyze the impacts of COVID-19 to its logistical support and ability to respond across its portfolio, it is in the Government’s best interest to continue providing support at this location as future requirements continue to evolve.

This decision to do so is further buttressed by the high first-year costs of facility conditioning costs that would allow for the contractor to and meet the security and storage requirements in the first year of the contract. As the existing contractor has a facility that meets the government’s requirements already, this will allow for the government to save taxpayer dollars in the short term while it affirms the client’s needs in the next 12-18 months, as lessons are learned from the client’s COVID-19 response and potentially incorporate changes to the existing requirements.

10) A Listing of the Sources, if any, That Expressed, In Writing, An Interest in the

Acquisition:

To date, the Contracting Officer has received statements of interest regarding the proposed sole-source effort at sites across the country from the following firms:

Life Science Logistics, Inc.

2600 Regent Blvd.

Dallas, TX 75261

Metro Logics, Inc.

10635 Marina Dr.

Olive Branch, MS 38654

11) A Statement of the Actions, if Any, the Agency May Take to Remove or Overcome Any Barriers to Competition Before Any Subsequent Acquisition for the Supplies or Services Required:

FEDSIM will keep in close contact with its client regarding any organizational priority changes that come up as a result of the COVID-19 pandemic in the next 12-18 months as we prepare for a competitive procurement. As the client’s mission is to respond to such things as a public health emergency, FEDSIM feels this plan is in the best interest of the Government in that it fills a short-term need, while planning to phase it into a longer-term, competitive solution.

12) Contracting Officer Certification that the Justification is Accurate and Complete to the Best of the Contracting Officer’s Knowledge and Belief:

I certify that this justification is accurate and complete to the best of my knowledge and belief, and I determine on the basis of the findings above that an other than full and open competition approach is in accordance with the requirements and is in the best interest of the Government.

BRENDAN MILLER Digitally signed by BRENDAN MILLER

Date: 2021.01.28 13:21:37 -05'00' 28 JAN 2021 Brendan Miller Date Contracting Officer FEDSIM Acquisition, Civilian

Technical and Requirements Personnel Assertion:

The Technical and Requirements Personnel assertion is provided as an Attachment.

Final Approval I certify that this justification is accurate and complete to the best of my knowledge and belief, and I determine on the basis of the findings above that an other than full and open competition approach is in accordance with the requirements and is in the best interest of the Government.

Digitally signed by CHRISTOPHER BENNETHUM Date: 2021.02.02 08:36:51 -05'00'

Christopher Bennethum Date Head of Contracting Activity

CHRISTOPHER BENNETHUM