LSJ SP470322F0023_Redacted.pdf

DEFENSE LOGISTICS AGENCY

CONTRACTING SERVICES OFFICE

6090 STRATHMORE ROAD

RICHMOND, VIRGINIA 23237

CUI SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

CUI

Limited Source Justification

(1) Identification of the agency and contracting activity:

Requiring Activity: DLA Information Operations, Research & Development (J68) Contracting Activity: DLA Contracting Services Office – Richmond

(2) Nature and/or description of the action being approved:

The action being requested is approval for a Justification and Approval For Other Than Full And Open Competition in support of the Small Business Innovation Program (SBIP).

(3) Description of the supplies or services required to meet the agency’s needs (including the estimated value):

This requirement provides program operations support for DLA’s Small Business Innovation Research (SBIR) and Small Business Technology Transfer Research (STTR) programs. The support includes the requirement management, contracting pre-award package development, contract administration, financial reporting and program support for over 180 SBIR/STTR contracts concurrently for a project portfolio exceeding .

The SBIP program has been able to grow 30 times larger from (FY14) to (FY24) due to the program momentum created by having a cohesive team that understands program requirements, the financial management structure of the SBIP funding sources, as well as program specific contracting package and administration requirements. FY24 workload is anticipated to grow another in contracts from FY23.

The additional support is needed to continue to operate smoothly to avoid costly interruptions to our normal business and to preserve the capability to execute FY24-25 program funds and estimated total dollar value of for the option period 2.

(4) Authority and supporting rational and, if applicable, a demonstration of the proposed contractor's unique qualifications to provide the required supply or service:

The acquisition is conducted on a limited source basis pursuant to FAR 8.405-6(a)(1)(i)(B) - Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

Due to the specialized knowledge of the SBIP SBIR and STTR programs, the program’s unique processes, and established technical familiarity of the related research, DG Support Services is the only alternative for this option. The DG procedures and program compliance knowledge are critical to DLA

SP470322F0023

CUI

CUI SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

SBIP operations and the successful execution of the (FY24) program funds. DG has been the sole operator since DLA SBIP was established ten years ago. The DG processes, historical knowledge, critical program-related relationships with Office of the Under Secretary of Defense (OUSD), Research and Engineering (R&E) SBIR-STTR Program, DLA DCSO-Philadelphia, and DLA Information Operations R&D Finance involve a complex set of procedures that ensure program operations are legally and financially compliant.

DG developed SBIP processes and procedures to effectively manage program operations and policy compliance and has been the sole operator since DLA began participating in the SBIR, and STTR in 2012. The learning curve for SBIP program operations is steep and any switch in vendor will cause disruptions in program compliance and meeting financial objectives. Any alternative vendor other than DG would have a ramp up time of 6-9 months to be able to operate with some degree of proficiency.

This delay in proficiency would disrupt FY24-25 program jeopardizing existing contract administration, the obligation of over in program funding, as well as disruption in ongoing DLA R&D priorities.

(5) Determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 8.404(d):

The Contracting Officer determines the anticipated cost to the government will be fair and reasonable, and that the resulting order represents the best value to the Government, by comparing proposed prices to historical prices paid for the same or similar supplies/services.

(6) Description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted:

Market research was not conducted because there’s no benefit to the Government for additional time and effort.

(7) Other facts supporting the use of other than full and open competition:

None.

(8) Statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

DLA has and continues to exercise competition as often as possible and is required to conduct ongoing reviews to keep abreast of new technology, both in industry and in the Government, as a continuing effort within DLA. DLA uses a variety of vendors, manufacturers, and contracts to fulfill its requirements and will continue its practice of surveying the market to ensure full and open competition. However, due to the proprietary nature of the SBIP Support Services and the technical nature of the requirement, no other source has demonstrated the capacity necessary to satisfy the requirement at this time.