Justification and Approval PPEs Follow-on IQS Site Y.pdf

FEDSIM is a Client Support Center housed within GSA, FAS, AAS Page 1

Version 01/26/2021

General Services Administration (GSA)

Federal Systems Integration and Management Center (FEDSIM)

JUSTIFICATION AND APPROVAL

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION 47QFCA22R0002 (Y)

INTERAGENCY AGREEMENT NUMBER 47QFCA18S0065

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)

Acting in support of:

Department of Health and Human Services (HHS)

Office of the Secretary (OS)

Office of the Assistant Secretary for Preparedness and 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 required multiple new

DSNS locations throughout the United States to manage the increase in Personal

Protective Equipment (PPE) inventory in response to the Coronavirus Disease (COVID-

19) pandemic. The Government utilized known Third-Party Logistics (3PL) vendors to provide logistical and overall management to extend the existing storage capability in order to meet the needs of ongoing pandemic response. As such, the Government plans to issue a follow-on sole source contract due to the compelling urgency of the response and the need for uninterrupted managed services for the PPE inventory.

The Government contemplates awarding a Firm-Fixed Price (FFP) Open Market contract to IQS at Urgent Location Y, 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 base year of 12 months, with four, twelve-month option periods. The Government has received approval

DocuSign Envelope ID: 1948A41C-4835-464F-B297-786508C3C804

FEDSIM is a Client Support Center housed within GSA, FAS, AAS Page 2 to exceed a 12-month period of performance for sole source actions 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:

Provide a clear and concise description of the product(s) and/or service(s) to be procured.

Description can include a brief introduction as to how the supplies/services relate to the mission of the organization being supported. This can be a bulleted list; however, sufficient detail must be provided in the bullets to understand the supplies/services.

The Government requires a 3PL vendor to provide logistics and overall management support for the Government (PPE) and medical supplies 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 ready for emergency 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 deployment of product and meet reporting requirements from the Executive Office of the President.

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). The contractor may be required to document specialized packing, storage, and handling 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 will be used to store medical equipment and medical related items without need for additional conditioning. The site requirements at this location shall be for no more than 70,000 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. Temperature control is not required; however, warehouse mechanical air between 60 – 80 degrees Fahrenheit is preferred. An emergency generator is required.

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

b. The contractor shall ensure that the Government staff has secure access to entry points to the facility and all security equipment shall be maintained for continual surveillance.

c. Surge requirements are in place at 200 pallets per hour with federal reporting requirements met via electronic data integration of the 3PL’s inventory management system with the DSNS system of record.

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 Government will 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 $66,255,348.

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 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 of these managed services under the client’s existing portfolio supported by FEDSIM. This contractor has proven their ability to provide the necessary operational and inventory control experience to manage the complexities of this requirement in this specific part of the country. Additionally, IQS has established

Standard Operating Procedures (SOPs) and staffing in place at the existing facility to assist in their management of product in support of the COVID-19 response. IQS has dedicated years refining processes and systems to bring efficiency in support of the client mission. The pool of extensively trained Surge employees is a critical factor in responding to emergencies in an accurate and compliant manner. Although the PPE sites do not have complex pharmaceutical (cold chain) requirements as seen on long-term contracts with vaccine storage, the conditioning of a new PPE site would cost on average $9M and require approximately four to six months to transition-in, if an offeror is able to secure a suitable space without waiting on construction. Continued use of existing facilities leverages the Government’s investment in conditioning, as well as minimizes the impact of contract transition to operations.

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 May 2020, the Government issued a sole-source contract for managed services for PPE with a period of performance of a 12-month base

FEDSIM is a Client Support Center housed within GSA, FAS, AAS Page 4 period and two, six-month option periods to this 3PL vendor that has previously won competitive contracts supporting the client. This period of performance was determined with the expectation that the emergency would be under control before the end of the last period. The Government continues responding to this national emergency with PPE deployments well into FY20 and FY21. In February 2021, the White House issued a

“Notice on the Continuation of the National Emergency Concerning the Coronavirus

Disease 2019 (COVID-19) Pandemic” extending Proclamation 9994.

HHS is supporting the National State of Emergency by supplying more PPE, nationally and internationally, to protect medical support personnel and the patients for whom they are caring. As a result, ASPR/DSNS must continue to have capacity to support this and other emergency response scenarios with timely deployment of PPE and other medical products that remain high in demand. Uninterrupted operations at this site are critical to emergency preparedness as new variants are being discovered and spikes in positive cases persist around the world.

This follow-on sole source contract is required to maintain the undergoing critical response for up to a total of five years.

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

Potential Sources as Practicable:

In May 2020, FEDSIM analyzed the market and determined that the existing industry partners was the most efficient and effective method to increase ambient storage for the incoming PPE inventory. The Government took a survey of potential PPE Support compared to increased surge and expansion at locations with cold chain requirements.

The selected sole source solution provided more affordable and expedient bulk product storage and deployments than the traditional acquisitions on behalf of ASPR/DSNS.

One sole source award was made to each of the three vendors currently supporting

CONUS sites for the urgent response to the pandemic.

Market research over the past year has confirmed a reported trend of limited space availability across the country. Prior acquisitions have identified the inability for industry to obtain suitable space to meet program requirements in multiple regions. The decision to sole source PPE contract for five years allows the market conditions to improve, provides continued support to this high-volume surge location and enables the

Government to manage growth of the stockpile more effectively. Due to amount of time and funding required to stand up new stockpile locations through competitive action, construction, and conditioning, a sole source strategy has the unique benefit of continued operations and minimal transition time and cost.

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 for Managed Service to the Government will be fair and reasonable, and the already conditioned sites will provide a return on investment. The expectation of reaching a fair and reasonable price was determined through market research and the compiled data from the most recent competitive awarded contracts for similar managed services. The amount

FEDSIM is a Client Support Center housed within GSA, FAS, AAS Page 5 of funding required for the total estimated period of performance of a base year of 12 months, with four, twelve-month option periods is not expected to exceed $66,255,348.

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

While the locations throughout the country are pre-vetted and strategically selected by the

Government, awarding this contract to the incumbent 3PL vendor will minimize the impact of market conditions observed throughout the FEDSIM portfolio of ASPR/DSNS contracts. Identification of limited availability of suitable warehouse space is compounded by supply chain issues across the nation. Along with what was stated in number six above, this is the extent of the Market Research conducted on behalf of the

PPE Support requirement. Increased demand for distribution centers and decreased availability of construction materials are not expected to improve while the demand for

PPE Support remains high due to the prevalence of COVID-19.

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 continue to be provided without any interruption. 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 new variants of COVID-19, the Government is seeking a follow-on sole source contract for these managed services. Adjustments by the client agency for readiness for future events could bring new competition opportunities related to this service.

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

Each of these companies have a current contract for one of the PPE sites and a follow on

FEDSIM is a Client Support Center housed within GSA, FAS, AAS Page 6 like this one will be awarded to each of them.

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 this award, FEDSIM will work with its client to sustain surge and manage this site as part of the ASPR/DSNS portfolio. FEDSIM is working closely with ASPR leadership to understand the long-term strategy and budget profile of DSNS to support a longer- term competitive solution, if deemed 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

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.

Christopher Bennethum Date

Head of the Contracting Activity (HCA)

DocuSign Envelope ID: 1948A41C-4835-464F-B297-786508C3C804

10/13/2021

10/18/2021