Manged Services Site Z Justification and Approval Redacted.pdf

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(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 12-month base period with one, one-year Option Period and two, six-month options.

3. A Description of Supplies/Services Required to Meet Agency’s Need:

The Government requires a 3PL vendor to provide logistics and overall management support for the Government 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 undamaged and ready for 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 movement of product, minimize damage, and update inventory records.

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, etc.). The contractor may be required to ship, store, and document specialized packing, storage, and shipping 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 shall be located in the vicinity of a current managed services location. The Government personnel in the area shall be able to commute between a current 3PL vendor facility and a proposed facility. The facility will be used to store medical equipment and medical related items. The site requirements at this location shall be for no more than 3,000 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.

b. Temperature control is not required; however, warehouse mechanical air between 60 – 80 degrees Fahrenheit is preferred. Current Good Manufacturing Practice (cGMP) requirements will still be required for pest control, electronic management, sanitation, cleanliness, training, etc. once conditioning is complete. An emergency generator is required.

c. Security requirements may be less restrictive than the current facilities. The

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Government may provide security staff for the facility. The contractor shall ensure that the security staff has convenient access to entry points to the facility as part of its response to security requirements

d. Surge requirements are still in place at 200 pallets per hour. Staff needs to be trained for this purpose.

e. Due to time constraints, product storage and conditioning may happen at the same time. However, conditioning of space must be complete 13-weeks after award of contract. Product storage may start the day of award. 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 contractor shall ensure that all Government products stored in the contractor-provided facilities remain viable based on the requirements provided. The Government will periodically 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.

4. 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 for similar services under the client’s existing portfolio of managed service contracts supported by FEDSIM. This contractor has proven that they are able to provide the necessary services in this specific part of the country, and the services being requested are an extension of those services. Additionally, IQS has established Standard Operating Procedures (SOPs) in place at existing facilities that they can leverage to assist in their ramp-up to product receipt and transmission throughout the country in support of the COVID-19 response, and provide a quick transition as a result.

As immediacy of execution and familiarity with the client’s business practices is imperative to successful ramp-up, the selected industry partner has unique qualifications to ensure that they can meet this new managed service requirement.

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 support of the Government’s response to this national emergency, the Government requires increased inventory management and logistical support of a 3PL vendor for its existing and future inventory. The Government has selected already-vetted strategic locations. The Government intends to issue a sole-source contract for a 12-month base period with one, one-year option period and two, six-month option periods to the 3PL vendor.

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In response to the COVID-19 crisis, FEDSIM will work with its client to assess the long-term need of this strategic increase and will work to include any longer-term requirements to increase the capacity of the managed services currently managed by FEDSIM into re-competes in the coming years, as existing contracts expire.

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 be provided as quickly as possible.

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

FEDSIM reached out to its existing industry partners presently supporting the Government through the client’s managed service 3PL contracts to determine their capability to increase storage capacity at existing sites, or potential to acquire additional storage to support the need. The Government took a survey of the pool of industry partners 1) to determine the capability in each existing location to provide increased capacity for new products, and 2) to analyze the strategic value of each location that had capacity and to determine which were the most valuable locations for the Government’s response to the COVID-19 pandemic.

As this action is excepted by FAR Part 5.202(a)(2), the Contracting Officer did not publish a SAM “notice of intent” synopsis stating the Government’s plan to sole source this acquisition. The market research tools used for identifying other potential sources are stated above.

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 to the Government will be fair and reasonable. This estimate is based on the current cost for the managed services and then calculated with continued annual escalation of three percent. The requirements have not changed, and the Bureau of Labor Statistics review confirms that the Consumer Price Index has continued to rise in Hawaii. Over the last 12 months, it has increased 1.6 percent as published in the most recent release on December 10, 2020. To account for the limited labor pool, the need to help alleviate retention concerns, as well as the on-call requirements that the staff have to support, the Government used an escalation rate of 3 percent within the IGCE which is 1.4 percent above the CPI for Hawaii. The higher escalation rate used in the IGCE should account for the additional labor costs that may arise during the life of the contract. The total amount of funding required for the total estimated period of performance of one base year, with one, one-year option period and two, six-month option periods is not expected to exceed $5,657,808

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Nydia Roman-Albertorio Date Contracting Officer FEDSIM Acquisition, Civilian Sector

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.

Pete Burr Date

Competition Advocate

27 Jan 2021

PETER BURR Digitally signed by PETER BURR Date: 2021.02.02 07:24:33 -05'00'