Justification and Approval (J and A)_Redacted.pdf

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

Contracting Officer: Joshua L. Woodworth joshua.woodworth@dla.mil Name Email Address

Acquisition Specialist: Benjamin Bailey benjamin.bailey@dla.mil Name Email Address

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

This is a sole source action, that will utilize the procedures in FAR 6.302-1 and be awarded as a new firm-fixed price contract to Unarco Material Handling Inc. 701 E 16th Avenue, Springfield, TN 37172.

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

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

NEEDS:

This contract is required to cover the repair and re-certification of multiple damaged sections of a roof-supporting rack system in the Easter Distribution Center (EDC) of DLA Distribution Susquehanna PA (DDSP). The Scope of Work consists of removing and replacing damaged uprights with new rack components and/or additional bracing as well as re-certification of the entire rack system to the Original Engineering Manufacturer (OEM) design specifications. All materials and accessories furnished shall make the rack sections that are damaged complete and functional. Age of system, height of repairs, and the fact that it is a roof-supporting structure all combine to make this an extremely unique project. All 32 aisles of the DB High Bay system need repairs on the front and rear of the aisles. The rear uprights are not as extreme and can be repaired. The front of the aisles or badly damaged and anticipate full replacement. The repairs/replacement will need to take place in phases that coincide with the overall EDC Modernization project. Twelve of the aisles are empty of material and ready for repair now. The remainder will have to be done later as we work through phases of rewarehousing the material in locations.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

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

5. DEMONSTRATION OF CONTRACTOR'S UNIQUE QUALIFICATIONS OR

NATURE OF ACQUISITION THAT REQUIRES USE OF THE CITED AUTHORITY:

Unarco is uniquely suited to meet the requirements of this project. As the original manufacturer and installer of the rack system, their team already has available to them the detailed drawings, requirements, and calculations of the current system; this gives them the advantage of already starting with the Original Engineering Manufacturers design specifications and not using time and resources to verify them from scratch; reference Section 7 below. Despite being provided our drawings, other contractors would need to confirm Unarco’s calculations were accurate and sufficient for their current application before moving on to the focus of the effort, exhausting time and resources.

The high risk and responsibility of repairing a roof-supporting structure also lends itself to OEM responsibility, as many vendors will not assume the liability of such repairs on a system that is not theirs. The racking system supports the roof and is calculated for snow weight in addition to inventory weight in the locations. If a failure in design occurs, it would bring the roof and structure down. This would result in catastrophic damage to facility, inventory, and possible employee injury/death. Other vendors were solicited, but they declined due to the uniqueness of the system. See Part 8 for details.

Due to the current environment today in both goods and services, there is an urgency for these repairs that was unanticipated. It is the responsibility of DLA to repair this rack system as part of a separate contractual obligation. Due to manufacturing lead-times and labor shortages, it is very possible that traditional solicitation of this project would result in the government delay of the mentioned contract and thus heavy monetary penalties, upwards of per day for storage of the new cranes coming in for install. Could be additional costs for delay of personnel that have not been calculated.

6. SYNOPSIS ANNOUNCEMENT/POTENTIAL SOURCES:

No current racking suppliers in that DLA utilizes are willing to accept the roof certification aspect of this job without DLA accepting the responsibility. See Part 8 for list of vendors contacted. To handle this project with any other racking vendors would require DLA to use two contracts: one for the engineering study and one for the needed repairs. This would add 6 – 12 months to the process that already has an 8 to 9-month lead time due to ordering steel for fabrication. This contract is currently holding up the larger EDC contract and the additional time requirement would add excessive costs for delay on the modernization contract. The EDC Modernization contract has a schedule for upgrade of fire suppression system and installation of new automated storage crane system in the racks. The delay in the rack repair will delay the other requirements of the contract and effect downstream work. The entire building is being designed with the automate storage cranes and the goods to person stations in mind. If they are not operational the rest of the equipment will not work and will have significant impacts on the EDC distribution mission.

A synopsis of the contract action will be made in accordance with FAR 5.201(b)(1)(i).

7. DETERMINATION OF FAIR AND REASONABLE COST:

Due to the type of work required by this effort, procuring from the original design manufacturer (OEM) is inherently cheaper than sourcing to a new vendor; this is due to the amount of work required by a new vendor to understand the current system in question. In Unarco’s case, they are already aware of the current rack system setup and the loads that are expected of it. Any new vendor will need to begin this project by documenting the materials used in the system, build a current-state layout from extensive floor time, and then use this information to calculate the current design specifications for the system. By sourcing this effort to the OEM, Unarco starts at this point and can spend their time on the repair solution itself; this is an inherent savings to the government. Estimated additional cost to have another vendor come in and conduct a study would be approximately . The additional costs for risk and liability cannot be determined.

An IGCE for this work has been completed and it is similar to what the EDC Modernization prime contractor has evaluated with UNARCO. The General Services Administration Contractor-Awarded Labor Category database tool was used as market research to estimate the labor cost associated with this project. Trades specific to this effort were chosen and associated hours for each were applied based on experience from previous contracts. Material costs were pulled from historical projects of a similar nature that were deemed fair and reasonable by the Contracting Officer on previous contracts.

The Government will determine that the prices are fair and reasonable based on price analysis techniques to include comparison to the Government estimate.

8. DESCRIPTION OF MARKET RESEARCH:

The Government contacted the following racking companies and representatives for the DB High Bay assessment and repair. Each representative provided the feedback that they would not be willing to entertain repair work associated with the existing racking; citing liability concerns related to the configuration and original engineering dependencies. also brought in a rack engineer to evaluate the rack as part of their feedback. Below is a list of contractors who were contacted regarding this requirement:

Vendor POC Email Phone

In addition, the Government posted a Request for Information (RFI)/sources sought in accordance with DFARS PGI 206.302-1(d) to https://sam.gov, results under paragraph 9.

9. OTHER SUPPORTING FACTS:

IAW DFARS PGI 206.302-1 a Request for Information (RFI)/Source Sought Notice (SS), SP3300-22-SS-5006, was posted on https://sam.gov from 15 February 2022 through 02 March 2022. The RFI/SS requested interested parties provide a capabilities statement identifying the ability to repair and re-certify multiple damaged sections of a roof-supporting rack system as described in the Statement of Work, attached to the RFI/SS.

Unarco Material Handling, Inc. the OEM provided a response and interest by the RFI/SS closing date of 02 March 2022. No other sources provided an interest or capability statement identifying the ability to perform this work.

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

INTEREST IN THE ACQUISITION:

As described above only the OEM Unarco Material Handling, Inc has expressed in writing an interest in this acquisition.

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

BEFORE ANY SUBSEQUENT ACQUISITION FOR THE SUPPLIES/SERVICES IS

REQUIRED/MADE:

Due to the uniqueness of this requirement, it is not anticipated that subsequent acquisitions of this nature would be required. A big complication of the current effort is the fact the system is roof supporting. While this was common when the building was originally built, common practice has been to shift to more modular building design which allows the agency to react quickly as missions shift. The current roof-supporting rack system has lasted for the past three decades in a non-automated environment; in moving to an automated environment after these repairs, it is expected the system life will outlast the expected life of the building itself.

12. STATEMENT OF DELIVERY REQUIREMENTS:

Remediation to both the front and rear face of each of the thirty-two (32) aisles of the DB system is required, totaling sixty-four (64) unique locations. The Period of Performance for this effort is to begin no later than September 2022 due to requirements from the separate EDC Modernization effort. The first twelve aisles would need to be completed no later than November 2022 and the remaining aisles would be phased in conjunction with the EDC Modernization schedule.

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

THIS JUSTIFICATION:

The estimated cost for this effort based on the submitted IGCE is . Funding will be provided in Fiscal Year 2022 and will be SRM funds from Installation Management.

ENDORSEMENT

TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION (FAR 6.303-1(c) or FAR 8.405- 6(c)(2)(x)):

I certify that the facts, representations, and any supporting data 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 or FAR 8.405-6(c)(2)(ix)):

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

LEGAL REVIEW

The foregoing justification has been reviewed for legal sufficiency.

APPROVAL OF THE JUSTIFICATION: