Larta Inc. Sole Source JOFOC.pdf

(Rev. 02/22)

U.S. Department of Energy Office of Science - Consolidated Service Center (CSC)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN

COMPETITION FAR PART 8

I. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY

Requesting Agency: Office of Science, Small Business Innovation Research /Small Business Technology Transfer (SBIR/STTR) Program Office Contracting Agency: Office of Science, Consolidated Service Center, Office of Acquisition and Business Services

(CSC-OABS).

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED (Sole source, limited competition, etc.)

In support of the Department of Energy (DOE), Office of Science, CSC-OABS plans to contract by means other than full and open competition. This Justification for Other than Full and Open Competition (JOFOC) sets for the justification and approval for the use of one of the exceptions to full and open competition allowed by 41 U.S.C. 3304(a)(1) as promulgated by Federal Acquisition Regulation (FAR) Part 8.405-6(a)(i)(1)(C). The new acquisition will be awarded as a follow-on to the current contract, GS-10F-0107P/DE-DT0013031. Under this contract, services are provided to assist SBIR/STTR grant awardees successfully navigate the Commercialization Assistance Program (CAP). The period of performance for that contract ends September 30th, 2022. The contract will be awarded on a firm-fixed-price basis. The award will be made as a sole source to the incumbent, Larta, Inc. The anticipated period of performance is October 1, 2022, to December 31, 2023, including a one-year base period and three one-month option periods. The anticipated award date is August 22, 2022.

III. DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS (including estimated value with options)

The services required to meet the Program’s needs are Commercialization Assistance Services for Phase I and Phase II SBIR/STTR grant awardees. The CAP services that are eligible to be delivered to SBIR awardees are defined in the SBIR Funding Opportunity Announcement (FOA). Reimbursement is limited to services received that comply with 15 U.S.C. § 638(q); examples of acceptable services include assistance with:

• product sales

• intellectual property protections

• market research

• market validation

• development of certifications and regulatory plans

• development of manufacturing plans

This contract is to provide services to awardees in award cycles with grant start dates prior to September 30, 2022, with periods of performance that extend past October 1, 2022.

The estimated value of the services is $6,500 per Phase I awardee minus the value of services received prior to September 30, 2022, and $50,000 per Phase II awardee minus the value of services received prior to September 30, 2022. The total price of the contract is estimated at $3,800,000.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION (FAR and U.S.C. references)

41 U.S.C. 3304(a)(1), as promulgated by FAR 8.405-6(a)(i)(1)(C)

Office of Science - Consolidated Service Center (CSC)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN

COMPETITION FAR PART 8

V. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR THE NATURE OF THE

ACQUISITION REQUIRES USE OF THE AUTHORITY CITED

The existing CAP services provide statutorily required technical and business assistance services to Phase I and Phase II SBIR/STTR awardees. Awardees are grouped into cycles by fiscal year, phase (I or II), and release (1 or 2), e.g., FY 22, Phase 1, Release 1 is known as Cycle 53. There will be three cycles of awardees in the process of receiving technical and business assistance services through CAP at the time the current CAP contract ends.

The three in-progress cycles represent nearly 500 awardee teams receiving services from approximately 100 consultants. Requiring awardees to change CAP services contractors mid-cycle would have a significant negative impact on the SBIR awardees receiving the statutorily required CAP services. There is non-negligible time required from the awardees to bring consultants up-to-speed so that they can receive appropriate services. Requiring awardees to re-acclimate a new set of services providers would place an unnecessary and undue burden on the awardees to receive their statutorily required technical and business assistance services.

There are only $6,500 of services available to the 220 phase I awardees in question. The CAP services are available for only 7 months of the grants period of performance. The chaotic process disruptions and transition costs of changing 500 awardees from one set of 100 consultants to another set of 100 consultants midway in the CAP services delivery would far outweigh any potential benefits of moving to a new vendor to complete the cycles currently underway. (e.g., rolling it into the open competition contract). Lastly, and harder to predict, we are concerned that awardees would just skip the transition process of moving consultants and opt not to receive the CAP services – leaving the DOE SBIR-STTR Program in a position where we are not fulfilling the statutory requirements of delivering these services.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE, INCLUDING WHETHER A NOTICE WAS OR WILL BE PUBLICIZED AS REQUIRED BY

FAR SUBPART 5.2 AND, IF NOT, WHICH EXCEPTION UNDER FAR 5.202 APPLIES

A notice of this sole source action will be publicized as required by FAR Subpart 5.2.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE GOVERNMENT WILL

BE FAIR AND REASONABLE

The current contract is being delivered via a General Services Administration (GSA) Multiple Award Schedule (MAS). The prices on that award have already been deemed fair and reasonable. It is assumed that the incumbent will propose fixed prices that are extremely close in comparison to the work currently underway since they are simply taking those service periods to program maturity. Prices will be evaluated prior to award of the contract.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS

Market research for the completion of services already underway was not conducted. As described in Section V, Larta, Inc. is the only source that can take the services through completion without significant costs to the government and significant disruption to the contractor; however, market research was conducted and documented in the ongoing follow-on procurement.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN COMPETITION SUCH AS:

a. 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:

Office of Science - Consolidated Service Center (CSC)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN

COMPETITION FAR PART 8

A competitive follow-on acquisition strategy is currently underway for the next iteration of the required services; however, the rendering of CAP services under the umbrella of this justification have already been undertaken by the incumbent, Larta, Inc. Disruption of these services could potentially cause grant awardees to be hesitant when considering utilizing these services if they were participating in future SBIR/STTR funding opportunities.

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

N/A

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

N/A

X. A LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN THE ACQUISITION

Market research for the completion of services already underway was not conducted. As described in Section V, Larta, Inc. is the only source that can take the services through completion without significant costs to the government and significant disruption to the contractor; however, market research was conducted and documented in the ongoing follow-on procurement.

XI. 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:

For SBIR/STTR grant awardees in future cycles (those service periods beginning after 9/30/2022), a competitive procurement is already underway via the GSA MAS for Professional Services as a 100% small business set-aside.