Limited_Source_Justification_-_Redacted.pdf

General Services Administration Federal Acquisition Services General Supplies and Services

Enterprise Supply Chain Solutions

Justification And Approval

Limited Source Justification For Federal Supply Schedule (FSS) Award (FAR 8.4056)

1. Contracting Agency and Activity. General Services Administration (GSA), Federal Acquisition Services (FAS), General Supplies and Services (GSS), Enterprise Supply Chain Solutions (ESCS) branch.

2. Nature and/or description of action being approved: ESCS plans to enter into a FSS Blanket Purchase Agreement (BPA) with Office Depot, Inc., on a limited source basis. This document sets forth the justification and approval for award of a limited source BPA as required by FAR 8.405‐6(a)(1)(i)(C). This Limited Source Justification is to allow the issuance of a BPA under the GSA Schedules, GS‐14F‐0040K, to Office Depot without competition in order to provide follow‐on office supplies to GSS ESCS for its customers at seven USMC ServMarts. This logical follow‐on BPA shall serve as a “bridge” pending resolution of bid protest B‐408850, filed with the Government Accountability Office on September 9, 2013 by Office Depot., Inc., and until such time as GSA can transition the USMC ServMarts to the new BPA holder. The period of performance for this “bridge” BPA shall be for three months, with one 3‐month option, and two 1‐month options. The estimated value of this proposed action is $9,876,369. The proposed Contractor is:

Office Depot, Inc.

6304 Woodside Ct. Ste 1 Columbia, MD 21046‐3216

3. Description of Supplies/Services:

The GSA through its FAS, ESCS, provides a wide range of supply‐chain services to government agencies. ESCS is enhancing its business model to provide better value to its customers and the taxpayer, while ensuring broad vendor participation. ESCS has developed several additional methods of supply. These include Direct Vendor Delivery, Expanded Direct Delivery‐Next Generation and Fourth Party Logistics. These programs contribute to shortened delivery times, competitive pricing, efficient operations and access to commercially readily available items. This requirement is to acquire office supplies and products via a BPA issued under GSA Schedule 75. This effort is a partnership between GSA

Limited Source Justification Solicitation QS0ARFQ130009 and the U.S. Marine Corps (USMC) that has continually resulted in more favorable pricing, a “just‐in‐time” inventory, increased breadth of products, and standard ordering, packaging documentation and billing for the USMC. The types of items that are available to GSA and USMC ServMarts include office products, office furniture/furnishing stocked in‐store for Marine Corps Bases (MCB), LeJeune, Quantico, Albany, 29 Palms, Barstow, New River and Kaneohe Bay.

4. Estimated Dollar Value: The estimated dollar value of the bridge BPA is $9,876,369 for the proposed 8‐month performance period. This estimate is developed using the average sales data for FY2010 – FY2012 (November ‐ June) and considering sequester and possible Government shutdown.

Base Period (November 15 – February 14): $2,798,310.00 Option 1 (February 15 – May 14): $4,352,493.00 Option2 (May 15 – June 14): $1,450,075.00 Option 3 (June 15 – July 14): $1,275,491.00

5. Statutory Authority: The proposed action may be awarded on a limited source basis under the authority of FAR 8.405‐6(a)(1)(i)(C), the new work is a logical follow‐on to an original Federal Supply Schedule order or BPA, and the order or BPA was placed in accordance with FSS procedures; the BPA was not issued under sole‐source or limited sources procedures.

6. Rationale Supporting Use of Authority in No. 5: This acquisition is being conducted under the authority of the Federal Supply Schedule in accordance with FAR 8.405‐6(a)(1)(i)(C), Limiting Sources. The circumstance for restricting competition for this acquisition is the fact that the new work is a logical follow‐ on effort to an original FSS BPA. Establishing a BPA with a new vendor would result in unacceptable delays as GSA would have to on‐board the new vendor which involves ensuring that the vendor has Electronic Data Interface (EDI) capability, testing their EDI connectivity (interfacing with GSA’s systems) as well as having T1 lines installed at each customer location. In addition to the IT and the EDI requirements for each of the seven locations, the new vendor has to lay in inventory, set up the storefronts, and hire staff for each of the seven USMC ServMarts which will pose unacceptable delays as well. Transitioning to a new vendor typically takes GSA 5‐6 months and having to transition to a new vendor for the 8‐month performance period, GSA will incur substantial duplication of costs. Office Depot, under the current BPA, has the IT and EDI capability already in place, the required inventory levels, established storefronts and the required staffing levels for each of the seven USMC ServMarts. The new vendor would have to be willing to invest a great deal of time and money without an opportunity for financial returns.

The current BPA was competitively solicited and issued under GSA Schedule GS‐ 14F‐0040K. This follow‐on requirement, for no more than an 8‐month period of performance which includes a 3‐month base period, with one 3‐month option and two 1‐month options, is necessary to ensure continuity and to avoid potential costs of disrupting operations. The incumbent, Office Depot, is currently performing at Government work sites in seven locations. Office Depot has installed equipment (IT/EDI connectivity), shelving, provided inventory for each of these locations and has an existing workforce already in place to perform the required services for the brief 8‐month period of ESCS’ requirements.

The period of performance for the current BPA, QSAA003‐01, expires November 14, 2013. The original period of performance for the BPA included a 12‐month base period, with four (4) one‐year option periods. Option periods 1‐4 have been exercised and the final option period expired on May 15, 2013. GSA exercised its option to extend the services under the BPA for an additional 6‐ month period which expires November 14, 2013. The re‐procurement for the replacement BPA was started prior to January 2012. After issuance of the new BPA to LC Industries, Office Depot filed a protest with the GAO.

It is anticipated that the protest of the BPA will be resolved or decided after the regulatory timeframe of 100 days, December 16, 2013. Since a lapse in appropriations is imminent and will have an unknown consequences on the time frame for GAO’s resolution of the protest an additional 45 days was built into the schedule. If the protest is denied and GSA’s BPA is upheld, ESCS has to transition the seven USMC ServMarts to the new vendor. Transitioning seven USMC ServMarts nation‐wide is a lengthy process, approximately 5‐6 months. Besides the 100 day protest period, ESCS requires at least 4‐5 months to onboard and transition to the new vendor, the new vendor has to have adequate time to execute subcontracting agreements with local small business, meet with major suppliers, initiate and setup their Electronic Data Interface (EDI) with GSA, build required reports, inventory reports, etc., establish EDI capability with subcontractors, hire in‐store staff for each of the 7 USMC locations, develop store implementation teams, purchase new equipment and inventory, if needed. The new vendor’s transition‐in timeline is a minimum of 75 days from receipt of the

BPA.

It is critical that ESCS provide office supplies and office furniture/furnishings to the seven USMC storefronts while the protest, transition and on boarding activities are being accomplished. Issuing this 8‐month BPA is the most logical, economical and advantageous method to provide the required products and services to the USMC ServMarts.

Supporting these requirements over the next 8 months would require immediate EDI connectivity, the specialized capability for rapid coordination to bring in the required inventory of products and hiring the staffing needed for each of the seven USMC ServMarts nation‐wide, including Hawaii. This expertise could not be acquired without an unacceptable interruption in ESCS’ ability to have the required inventory on the shelves in each USMC ServMart storefront for immediate purchasing. This severely compromise ESCS’ ability to meet its operational mission as required by its Memorandum of Agreement with the

USMC.

7. Determination By The Ordering Activity Contracting Officer That The Anticipated BPA Represents The Best Value Consistent With 8.404(d):

The Contracting Officer has determined that issuing the proposed “bridge” BPA to Office Depot represents the best overall value and will result in the lowest overall cost alternative, considering price and administrative costs, to meet the Government’s needs. GSA will continue to receive Office Depot’s FSSI pricing during the bridge period. It would not be cost effective to bring another Contractor for five months to perform the work under the bridge for such a large and critical program. The past performance of Office Depot has been outstanding, the firm has vast experience in this area, and Office Depot is the only company with the current capability and people in place to deliver products and services in the time available.

8. A Description Of The Market Research Conducted Among Schedule Holders and The Results, Or A Statement of The Reason Market Research Was Not Conducted:

GSA is relying on previous market research that was conducted for Request For Quotations (RFQ) number QS0A‐RFQ‐130001, as well as quotations submitted by prospective quoters for that RFQ. It has been determined that conducting a competitive acquisition for these interim services would result in an interruption of products and services that are critical to ESCS’ mission. As the incumbent, Office Depot has an existing workforce already in place and is the only contractor that can ensure the continued performance of the required services will happen without any delay. This action is required until the protest is resolved and the transition from Office Depot to the new Contractor for the 7 USMC ServMarts is completed.

9. Any Other Facts Supporting The Justification:

None

10. A Statement Of The Action, If Any, The Agency May Take To Remove or Overcome Any Barriers That Lead To The Restricted Consideration Before Any Subsequent Acquisition For The Supplies or Services Is Made:

This action is a one‐time bridge BPA which will ensure continued performance until the GAO protest is decided and the transition from the incumbent contractor to the new contractor is completed.

11. Technical/Requirements Personnel Certification:

I certify that the requirements for this acquisition, as depicted in the Statement of Work of this BPA and that the supporting data, which forms the basis for the justification, is accurate and complete.

Noreen Bania Date National Logistics Manager

GSA/FAS/GSS

12. Contracting Officer’s Certification:

In accordance with FAR 8.405‐6(d)(1), I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Deborah E Joeckel Date Contracting Officer

CONCUR:

Paul Sando Date Deputy Director

APPROVED:

Based on the aforementioned facts for the use of other than full and open competition, I hereby concur with the justification.

Lisa Grant Date Competition Advocate