Justification and Approval IQS_Redacted.pdf

FEDSIM is a Client Support Center housed within GSA, FAS, AAS Page 1 Version 06/14/19

General Services Administration (GSA) Federal Systems Integration and Management Center (FEDSIM)

JUSTIFICATION AND APPROVAL

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION 47QFCA20R0033

The General Services Administration (GSA) makes this Justification and Approval (J&A) for Other Than Full and Open Competition orders pursuant to Federal Acquisition Regulation (FAR) 6.302.

1. Identification of Agency and Contracting Activity:

Agency:

General Services Administration (GSA) Federal Systems Integration and Management Center (FEDSIM)

Response (ASPR) Division of the Strategic National Stockpile (DSNS)

Contracting Activity:

GSA FEDSIM Contracting Office (QF0B) 1800 F Street, NW Washington, D.C. 20405

2. Nature and/or Description of Action Being Approved:

The client has the mission to deliver critical medical assets to the site of a national emergency (e.g., man-made disaster, flu outbreak, earthquake, etc.). The Government manages a national repository of antibiotics, chemical antidotes, antitoxins, life-support medications, and medical supplies that can be used to supplement state and local resources during a large-scale public health emergency.

The client requires a managed service provider in multiple locations throughout the United States to support this inventory. A managed service provider, also known as a Third-Party Logistics (3PL) vendor, provides logistics and overall management support of the client’s broad inventory housed at sites throughout the United States.

As a result of the Coronavirus Disease (COVID-19) pandemic, the Government currently has a need to extend storage requirements beyond the existing capacities of its existing contracts as the Government continues to meet the needs of the nation in response to the COVID-19 pandemic. As such, the Government plans to issue a sole-source contract due to the compelling urgency of the response to the COVID-19 pandemic.

The Government contemplates awarding a Firm-Fixed Price (FFP) contract to Integrated Quality Solutions.(IQS) at Urgent Location Y, with Contract Line Item Numbers (CLINs) for Surge Response on a Time-and-Materials (T&M) basis, and Other Direct

FEDSIM is a Client Support Center housed within GSA, FAS, AAS Page 2

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 Government has received approval to exceed a 12-month period of performance from the Head of Contracting Activity in light of the exceptional circumstances surrounding this requirement.

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 ship, store, and document specialized packing, storage, and shipping 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 in the vicinity of a current managed services location. The Government personnel in the area shall be able to commute between a current 3PL vendor facility and a proposed facility. The facility will be used to store medical equipment and medical related items. The site requirements at this location shall be for no more than 71,000 pallets (size). The facility would need to be able to store five pallet positions high (based on the pallet rack specifications identified below) and double-racking will be allowed for the entire inventory (although single-racking is preferred). The pallets may be of varying heights in accordance with the International Organization for Standardization (ISO). Pallet racks must accommodate 48” x 42” x 60” pallets and 48” x 40” x 60” pallets.

b. Temperature control is not required; however, warehouse mechanical air between 60

– 80 degrees Fahrenheit is preferred. Current Good Manufacturing Practice (cGMP) requirements will still be required for pest control, electronic management, sanitation, cleanliness, training, etc. once conditioning is complete. An emergency generator is required.

FEDSIM is a Client Support Center housed within GSA, FAS, AAS Page 3 c.

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

e. Due to time constraints, product storage and conditioning may happen at the same time.

Product storage may start the day of award.

The Government will manage transport of medical materials and other stock to and from the facility; the contractor will be required to stage, sort, 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.

The total estimated value of this procurement is not expected to exceed $28,800,000.

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 6.302-2, Unusual and Compelling Urgency

This sole-source contract will be awarded pursuant to the authority of 41 United States Code (U.S.C.) 3304(a)(2) as implemented by FAR 6.302-2.

5. A Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Requires Use of the Authority Cited:

IQS is currently a service provider for similar services under the client’s existing portfolio of managed service contracts supported by FEDSIM. This contractor has proven that they are able to provide the necessary services in these specific parts of the country, and the services being requested are an extension of those services. Additionally, IQS has established Standard Operating Procedures (SOPs) in place at existing facilities that they can leverage to assist in their ramp-up to product receipt and transmission throughout the country in support of the COVID-19 response, and provide a quick transition as a result.

As immediacy of execution and familiarity with the client’s business practices is imperative to successful ramp-up, the selected industry partner has unique qualifications to ensure that they can meet this new managed service requirement.

The nature of this acquisition to use the authority under FAR 6.302-2 arose in response to the Government’s requirements for increased capacity in its managed service portfolio in its response to COVID-19. In support of the Government’s response to this national emergency, the Government requires increased inventory management and logistical

FEDSIM is a Client Support Center housed within GSA, FAS, AAS Page 4 support of a 3PL vendor for its existing and future inventory. The Government has selected already-vetted strategic locations. The Government intends to issue a sole-source contract for a 12-month base period and two, six-month option periods to a 3PL vendor that has previously won competitive contracts supporting the client.

In response to the COVID-19 crisis, 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:

FEDSIM reached out to its existing industry partners presently supporting the Government through the client’s managed service 3PL contracts to determine their capability to increase storage capacity at existing sites, or potential to acquire additional storage to support the need. The Government took a survey of the pool of industry partners 1) to determine the capability in each existing location to provide increased capacity for new products, and 2) to analyze the strategic value of each location that had capacity and to determine which were the most valuable locations for the Government’s response to the COVID-19 pandemic.

As part of its efforts, the Government requested rough orders of magnitude (ROMs) from the pool of industry partners to figure out strategically what was the best plan of action given the resources it has to devote to this effort and how it can most effectively utilize those resources in response to this urgent requirement.

As this action is excepted by FAR Part 5.202(a)(2), the Contracting Officer did not publish a FedBizOpps “notice of intent” synopsis stating the Government’s plan to sole-source this acquisition. The market research tools used for identifying other potential sources are stated above.

Due to the urgency of the need for managed services in this strategically identified location, the Government needs the necessary trained staff to be up and running as quickly as possible. Given the rough budget received and the contractor’s familiarity and previously approved SOPs, the government’s need for the immediacy of full ramp-up necessitates a sole-source negotiation, and the government has high confidence in IQS’s ability to ramp up quickly and perform successfully.

7. A Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable:

Based on the data gathered, 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 was determined through market research in order to determine best value for the DSNS. Additionally, the Government strategically chose to engage with existing industry partners in its market research, because using existing partners would allow for reduced costs by reducing training and development of new SOPs, and allow for quicker

FEDSIM is a Client Support Center housed within GSA, FAS, AAS Page 5 ramp-up due to familiarity working with the client, products, and services required. 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 $28,800,000.

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

The Government’s Market Research was truncated by the urgency of this procurement.

While the locations throughout the country are pre-vetted and strategically selected by the Government, awarding a contract to an existing 3PL vendor in one of these locations will give the Government some insight into the market by virtue of comparing it to the existing competitive contracts previously awarded in those regional markets. This, along with what was stated in number six above, is the extent of the Market Research conducted due to the urgent nature of the requirements.

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

Any delay in award or performance may result in unacceptable risk to healthcare providers and susceptible populations to COVID-19. In an effort to protect the population of the United States as a whole during this pandemic, it is paramount that these services be provided as quickly as possible.

Because of the urgency surrounding this requirement and its immediate impact on the health of the country and its capacity to mitigate loss of life in response to COVID-19, the Government is entering into sole-source negotiations for these services.

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

Integrated Quality Solutions (IQS) 1105 Blake Rd.

Cordova, TN, 38018

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:

During the period of performance of these awards, FEDSIM will work with its client to incorporate this short-term spike in capacity and merge it (if necessary) into the portfolio

FEDSIM is a Client Support Center housed within GSA, FAS, AAS Page 6 of competitive contracts that will be up for re-compete in the next two years, thereby allowing FEDSIM to transition services out of these non-competitive sites and into newer, competed facilities, if necessary. 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, if the client deems this necessary.

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.

Nydia-Roman Albertorio Date Contracting Officer FEDSIM Acquisition, Civilian

Certification by Technical or Requirements Personnel:

In accordance with FAR 6.303-2(c), I hereby certify that the supporting data is accurate and complete.

Alan Schultz Date Project Manager FEDSIM Civilian Group

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.

Tom Howder Date Head of Contracting Activity

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ALAN SCHULTZ Digitally signed by ALAN SCHULTZ Date: 2020.04.10 11:21:30 -04'00'

THOMAS HOWDER

Digitally signed by THOMAS

HOWDER

Date: 2020.04.10 13:06:09 -04'00'