Justification for Other than Full and Open Competition.pdf

UNITED STATES MARINE CORPS

MARINE CORPS INSTALLATIONS PACIFIC

REGIONAL CONTRACTING OFFICE

MARINE CORPS BASE CAMP SMEDLEY D. BUTLER

POSTAL SERVICE CENTER 557, BOX 2000

FLEET POST OFFICE, ARMED FORCES PACIFIC 96379-2000

IN REPLY REFER TO:

J&A No. 23-SSBN-02

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Marine Corps Installations Pacific Command (MCIPAC) Regional Contracting Office.

2. Description of the Action Being Approved.

This procurement action is to award a contract on a sole source basis to the Army & Air Force Exchange Service (AAFES). This contract will be a one-time purchase of equipment totaling $876,875.48. The contract procurement will be executed September 2023.

3. Description of Supplies/Services.

The equipment (supplies) being procured includes (1) portable Air Conditioning equipment (total cost of equipment $780,541.68) and (2) portable Air Movers (total cost of equipment $49,550.80). The procurement will use FY23 Operations and Maintenance (O&M) funding.

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 3204(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

The equipment being purchased is in support of recovery efforts and quality of life support to personnel across the Camps located in Okinawa, Japan. The recovery efforts are in response to Typhoon Khanun. The equipment will quickly reduce mold build-up and expedite the facility drying/air movements allowing maintenance and repairs to be conducted. The equipment will be used in same situations if required and in response to new typhoons. Market research with local companies (off base) was conducted. The local retail activities and manufactures could not meet the voltage/frequency requirements, the use of step-down transformers was pursued, both the quantities of equipment and availability of equipment and transformers was reported as not being supportable from the local companies.

The BSO procurement team queried six local companies. The companies were (1) Makeman, (2) Yamada Denki, (3) AEON, (4) Kojima, (5) Edion, and (6) Monotaro. Makeman had 42 air movers and 42 step-down transformers to support the 120V/60Hz power specification provided by MCIPAC G-F, which the BSO ultimately purchased from them. Beyond the procurement of 42 air movers/transformers, Makeman did not have portable A/C units, dehumidifiers, and shop VACs that the company could sell to include step-down transformers. The remaining companies did not have the stock of items, or the transformers. The companies did state that if we ordered and paid, the companies would process the order and fill orders, contingent in the companies finding the transformers to sell with the products; no delivery times were provided as the companies stated that this was a special order and had no data to support this request.

REGIONAL CONTRACTING OFFICE

MARINE CORPS BASE CAMP SMEDLEY D. BUTLER

POSTAL SERVICE CENTER 557, BOX 2000

FLEET POST OFFICE, ARMED FORCES PACIFIC 96379-2000

The equipment can be purchased from companies in the United States. Market research was conducted with AAFES and six other companies in the United States, and, among other things, the government considered the price and delivery time. As discussed in greater detail below, the research findings determined that AFFES will provide equipment 45 days after procurement at a 40% lower cost than the companies in the United States. Moreover, the United States companies’ delivery times are 52% longer than AAFES. This led to the finding that the cost and availability of equipment from AAFES will support the recovery efforts in a cost effective and timely manner.

Market Research:

A. Received quote from AAFES 2 SEP 23 for the following items/QTYs:

a. Portable A/C units – QTY 1,592 (UP $490.29 EA) = $780,541.68

b. Air Movers – QTY 520 (UP $95.29 EA) = $49,550.80

c. The AAFES quoted products will deliver 30 to 45 days after the procurement order.

B. Market research on GSA advantage with Focus Camera, LLC (Portable A/C)

a. Portable A/C units – QTY 1,592 (UP $832.02 EA) = $1,324,575.84

b. The dates provided by the company from delivery to consolidation point is 10 days;

the transportation time used for containers from Tracy, CA to the port of Naha is 90 days.

C. Market research on GSA advantage with Divine Imaging, INC (Portable A/C)

a. Portable A/C units – QTY 1,592 (UP $841.86 EA) = $1,340,241.12

b. The dates provided by the company from delivery to consolidation point is 10 days;

D. Market research on GSA advantage with A&E Supply (Portable A/C)

a. Portable A/C units – QTY 1,592 (UP $884.35 EA) = $1,407,885.20

b. The dates provided by the company from delivery to consolidation point is 10 days;

E. Market research on GSA advantage with Blue Water Sales, LLC (Air movers)

a. Air Movers – QTY 520 (UP $103.49 EA) = $53,814.80

b. The dates provided by the company from delivery to consolidation point is 14 days;

F. Market research on GSA advantage with Hardware, INC (Air movers)

a. Air Movers – QTY 520 (UP $111.10 EA) = $57,772.00

REGIONAL CONTRACTING OFFICE

MARINE CORPS BASE CAMP SMEDLEY D. BUTLER

POSTAL SERVICE CENTER 557, BOX 2000

FLEET POST OFFICE, ARMED FORCES PACIFIC 96379-2000

b. The dates provided by the company from delivery to consolidation point is 10 days;

G. Market research on GSA advantage with DBISP, LLC (Air movers)

a. Air Movers – QTY 520 (UP $108.41 EA) = $56,373.20

b. The dates provided by the company from delivery to consolidation point is 30 days;

Comparison Chart:

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

Market research was conducted in accordance with FAR Part 10 (10.002 Procedures). The equipment requirements and specifications were defined by the MCIPAC G-F department. The requirements and specifications were used in contacting local (off-base) retail activities and manufactures. The BSO procurement team queried six local companies. The companies were (1) Makeman, (2) Yamada Denki, (3) AEON, (4) Kojima, (5) Edion, and (6) Monotaro. BSO Personnel were on-site at the company’s facilities to look at the products and met with sales personnel concerning the type, kind, quantities, power specifications and to ask for the company’s capability in selling the products.

The requirements and specifications were used in requesting AAFES availability, and in querying the GSA 4PL vendors located on Camp Foster and the Kadena Air Force base. Further, market research was conducted by querying the Governmentwide database of contracts and equipment catalogs. Research was conducted within the DOD National Stock Number (NSN) database to determine equipment availability utilizing the DOD stock inventory. The research and vendor contact efforts provided equipment costs and delivery timeframes, equipment availability to support the procurement requirements was undetermined from companies.

Portable A/C units AFFES Focus Camera LLC Divine Imaging, INC A&E Supply QTY Price EA Price EA Price EA Price EA

A/C 1592 $490.29 $832.02 $841.86 $884.35 Equipment TOTAL $780,541.68 $1,324,575.84 $1,340,241.12 $1,407,885.20 Delivery Time (notes) 30-45 to Okinawa 10 to port 90 to Okinawa 10 to port 90 to Okinawa 3 to port 90 to Okinawa Delivery Time (days) 45 100 100 93

Air Movers AFFES Blue Water Sales, LLC Hardware, INC. DBISP, LLC QTY Price EA Price EA Price EA Price EA

Air mover 520 $95.29 $103.49 $111.10 $108.41 Equipment TOTAL $49,550.80 $53,814.80 $57,772.00 $56,373.20 Delivery Time (notes) 30-45 to Okinawa 14 to port 90 to Okinawa 10 to port 90 to Okinawa 30 to port 90 to Okinawa Delivery Time (days) 45 104 100 120

REGIONAL CONTRACTING OFFICE

MARINE CORPS BASE CAMP SMEDLEY D. BUTLER

POSTAL SERVICE CENTER 557, BOX 2000

FLEET POST OFFICE, ARMED FORCES PACIFIC 96379-2000

7. Determination of Fair and Reasonable Cost. The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

As discussed in Paragraph 5, this requirement will help recovery from the most recent typhoon as well as future typhoons. As such, the MCIPAC RCO has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, MCIPAC RCO will assess whether competition for future requirements is feasible.

REGIONAL CONTRACTING OFFICE

MARINE CORPS BASE CAMP SMEDLEY D. BUTLER

POSTAL SERVICE CENTER 557, BOX 2000

FLEET POST OFFICE, ARMED FORCES PACIFIC 96379-2000

IN REPLY REFER TO:

J&A No. 23-SSBN-02

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Signature Name (Printed) Phone No. Date

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

Signature Name (Printed) Phone No. Date

COMPETITION ADVOCATE APPROVAL

Upon the basis of the above justification, I hereby approve, as Competition Advocate, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 3204(a)(1).

Maj Cesar Lopez Date