Memo for File - Limited Source Justisfication Memo Redacted_Redacted.pdf

DEFENSE LOGISTICS AGENCY

DISTRIBUTION

430 MIFFLIN AVENUE SUITE 3102A

NEW CUMBERLAND, PENNSYLVANIA 17070-5007

MEMORANDUM FOR RECORD

SUBJECT: Sole Source for Option to Extend Services Solicitation /Contract #SP3300-19-P-1027

REFERENCE: FAR 11.105, DFARS/ PGI 211.105 or FAR 13.106(b)(1)(i)

1. Identification of the Agency and Contracting Activity DLA Distribution, DLA Distribution J7 BLDG 430 Mifflin Ave New Cumberland, PA 17070

2. Describe the contract action, to include the dollar value and the type of limited justification.

This is a three months Option to Extend Services Sole Source action on purchase order SP3300-19-P-1027 to X Cell Management Inc.(CAGE 5NT39). DLA Distribution Warner Robins, Georgia has a requirement for a Contractor to provide maintenance service, which shall include three types of service: Preventive Maintenance (PM) scheduled, on call unscheduled Remedial Maintenance (RM), and monthly Battery Maintenance on Government owned equipment located at DLA Distribution and DLA Aviation, Warner Robins, GA.

The extension will be for a period of performance of three (3) months beginning on 01 April 2020 through June 30, 2020.

3. Description of the Supplies/Services

The Contractor shall provide all equipment maintenance services as set forth in the Statement of Work (SOW). The Contractor shall provide all labor, equipment, tools, materials, replacement parts, transportation, transportation permits, and supervision necessary to perform the PM and RM on Government owned Material Handling Equipment (MHE) at DLA Distribution Warner Robins, GA. Detailed task specifications and requirements for contractor performance are provided in the SOW.

4. Justification Rationale for Use of Sole Source

The current contract expires on 31 March 2020. A follow-on Preventative Maintenance (PM) and Remedial Maintenance (RM) for MHE is being sought through the use of an enterprise contract. The procurement package for the long-term solution is nearing completion.

The procurement package has experienced delays relative to updates to current equipment listings, equipment metric data necessary to maximize competition, and incorporation of vendor feedback received in response to a Request for Information. The period of performance of the sole source option to extend services is only for the minimum amount of time to allow for the completion of the competitive procurement package being developed.

As a result, an award of a contract to X Cell Management enables seamless mission support by the incumbent contractor while the follow-on contract procurement package is being developed. Any other alternative would create unacceptable delays in performing these services for DLA and potentially compromise mission support. The disruption of services through a competitive procurement would create substantial costs to the Government.

Therefore, full and open competition is not feasible for the continuation contract.

5. Market Research and Interested Sources

An informal market analysis of prices was performed and revealed that the prices previously submitted by X Cell Management during the length of the expiring contract to be competitive with similar types of contracts and labor categories in the region. The market survey indicates the rates and prices for this period and corresponding extension are competitive. In addition, the continuation contract will be awarded at the expiring contract’s current prices. Therefore, the Contracting Officer determined the current pricing for the material handling equipment preventative and remedial maintenance to be fair and reasonable.

6. Determination

The expiring contract SP3300-19-P-1027 was solicited on a sole source basis and competition is anticipated for the follow-on contract as well as for the enterprise contract solution. The enterprise contract solution will be advertised on the Government Point of Entry, the Federal Business Opportunities website, where offerors can submit proposals.

Although the solicitation for the expiring contract received competitive proposals, award to another source for this extension of services would result in a substantial duplication of cost to the Government that is not expected to be recovered through competition in addition to creating unacceptable delays in fulfilling the agency’s requirements.

Therefore, X Cell Management is the Only One Responsible Source known that will satisfy Agency requirements for option to extend services.

7. Other Supporting Facts

N/A

8. Fair and Reasonable

Issuing a three months extension on contract SP3300-19-P-1027 to X Cell Management is the most advantageous method of fulfilling the Government’s need for uninterrupted MHE maintenance support, price and other factors considered. The proposed prices for all years remained steady since the award of the previous contract. There has been no substantive change in the requirement for this type of service. The resulting continuation contract will be awarded at the same amount as that of the expiring contract.

9. Certification, Review, and Approval

The following endorsements/approvals are to be provided for this justification.

Reviewed and Approved by Contracting Officer

Jennifer D. Fasting Contracting Officer

FASTING.JENNIFE

R.D.1516627375

Digitally signed by

FASTING.JENNIFER.D.1516627

Date: 2020.03.25 10:46:07 -04'00'