N00244-18-C-0004_Final_Justification_and_Approval_AGV_-_Redacted.pdf

J&A Number: 18-230-0002

Source Selection Information – See FAR 2.101 and 3.104 1

JUSTIFICATION AND APPROVAL

FOR USE OF SOLE SOURCE

1. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY.

NAVSUP Fleet Logistics Center San Diego (FLCSD) Contracting Department, Code 200 3985 Cummings Road San Diego, CA 92136-4200

2. Description of the Action Being Approved.

Award of a commercial firm fixed price (FFP) service contract on a sole source basis to E&E Industries, located at 4931 Market Street, San Diego, CA 92102. The service will be performed on AMSCO AMSCAR Automated Guided Vehicles (AGVs) and the Module Interface Cart.

The AGV are electronically operated, robotic, wheeled devices that are individually programmable, they are mobile along a guidance system installed in the floor and have a dedicated elevator system for floor-to-floor movement. The AGVs are government-owned AMSCO AMSCAR Model 7000, manufactured by Control Engineering Company. The Storage Module Interface Carts are designed to be transported by the AGV when transporting supplies and are manufactured by Peterson, these are Machine Model# 7000-R Serial 663.

3. Description of Supplies/Services.

The Naval Medical Center San Diego (NMC-SD) requires an onsite maintenance and service for its AGV and Module Interface Cart to distribute supplies, medications, and other hospital materials. The service includes on-site maintenance of the 25 AGVs, 69 Large Module Interface Carts at the NMC-SD as necessary to ensure their ability to function efficiently and consistently for their intended purpose, 40 AGV guide path panels, floor zone and elevator control panels, warning lights, 76 Large Storage Module Interface Carts (LSMI), 30 battery chargers, Remote Destination Panel (RDP) and Master Monitor Panels, Floor Mass Detectors, two Video Monitors, 11surveillance cameras and the Vehicle System Manager (VSM). The scope of work includes on-site maintenance (preventive and corrective) and furnishing of all labor, equipment, materials and parts of AMSCO AMSCAR Automated Guided Vehicles (AGV), Module Interface Carts, hardware and software support for the Vehicle System Manager (VSM) to assure continued operation at their designed efficiency and capacity. All work performed will be in accordance with specifications provided by the Government in the performance work statement

(PWS).

This contract action will be funded with FY18 Operations Maintenance, Navy (O&MN) funding in the amount of $423,936.00 with a Period of Performance of 01 April 2018 to 31 March 2019.

4. Statutory Authority Permitting SOLE SOURCE.

DEPARTMENT OF THE NAVY

NAVSUP FLEET LOGISTICS CENTER SAN DIEGO

3985 CUMMINGS ROAD

SAN DIEGO CA 92136-4200

Source Selection Information – See FAR 2.101 and 3.104 2

The following are statutory authorities permitting sole source 41 USC 1901(e)(2) - a sole source acquisition under the authority of the test program for certain commercial items, as implemented by FAR 13.501(a), 10 U.S.C. 2304(c)(1), One source or limited sources and 6.302-1 Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

5. Rationale Justifying Use of Cited Statutory Authority.

The AMSCO AMSCAR AGV is a very specific legacy AGV that requires specialized knowledge and handling in maintenance and repair. This System, which was originally installed over 31 years ago, is complex, old, outdated and very hard to maintain. E&E Industries is the incumbent currently servicing the system for NMC-SD; they are uniquely qualified to provide these services based upon their unique knowledge and experience in maintaining and repairing all of the equipment discussed above. Their specialized capabilities and expertise in fixing these old systems is not common in the current marketplace as many companies have moved to fixing newer systems with more advanced technology. E&E Industries gained experience from working on this project for more than 10 years and their personnel are trained and have developed specialized expertise working with AGV and Module Interface Cart. In addition, E&E Industries’ employees are Certified Category 3 Non-cab and are Crane Safety trained for Government-owned overhead cranes.

This is unique certification and training that E&E Industries’ employees have maintained at all times in order to work on the project. Finally, the proximity of E&E Industries to NMC- SD (less than five miles) is an additional advantage to NMC-SD since all battery packs must be replaced daily using the crane lift in the AGV shop. Also, in case of unexpected equipment malfunction, failure or emergency, E&E industries can be relied upon for prompt service. This will provide a cost savings compared to a company located farther away. In addition, they can provide on-site referral or guidance compared to a company located a further distance away.

If maintenance is performed by any company other than E&E Industries, it will be costly to the Government; staff must be trained on the special certification and training required by the government and it will lead to unscheduled outages of the system and service interruptions.

Alternative solutions would require re-engineering, integration, testing, certification and evaluation of the proposed service before it could be made operational, and would result in substantial cost increases, delay, service interruption to NMC-SD that would not be recovered through competition.

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

Historical competition has shown that only E&E Industries and no other companies are able to work on this requirement and provide the required services for NMCSD. Market research shows that previously, the requirement was competed under contract N00244-08-C-0028 and N00244- 13-C-0026 and in both instances only E&E industries was able to submit its proposal and win the contract. In addition, market survey was conducted by publishing a sources sought notice (Number: N00244-18-Q-0057) on Federal Business Opportunity (FBO) on 06 February 2018 with a closing date of 14 February 2018 to determine the availability and capability of all qualified sources to perform the potential requirement described in the PWS. Potential offerors were asked to submit capability statements that could demonstrate their ability to provide the needs in the PWS. The Contract Specialist received no responses (calls, emails, faxes, or mail)

Source Selection Information – See FAR 2.101 and 3.104 3 at the announcement expiration due date and time. Only E&E Industries expressed an interest in this requirement

7. Determination of Fair and Reasonable Cost.

The Contracting Officer shall determine that the prices are fair and reasonable and will document such determination with a level of details commensurate with the complexity and circumstances of this order prior to making contract award.

8. Actions to Remove Barriers to Future Competition.

It is anticipated that this requirement will not exist after the completion of this contract. NMC- SD has developed and submitted technical data package and performance specification that will support competition for future acquisitions of a new AGV which will replace the current one.

The Army Corps of Engineers is presently working on this project and will have a new AGV on or before 31 March 2019. The new requested AGV will be contemporary, up-to-date and will encourage competition when requesting its maintenance.

9. Contracting Point of Contact The point of contact at Fleet Logistics Center San Diego, contracting office is:

Naima Yelda

DSN 526-7329

Commercial (619) 556-7329 E-mail at naima.yelda1@navy.mil mailto:naima.yelda1@navy.mil

Source Selection Information – See FAR 2.101 and 3.104 4

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 and Requirement Cognizance:

John Koppy John Koppy 619-556-5342 05 March 2018 Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Kevin Lyster Kevin Lyster 619-556-5315 06 March 2018 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.

To the extent that the J&A/LSJ value is between $150K and $650K, the Contracting Officer’s signature below also represents approval of the J&A/LSJ.

Alan Gonzales Alan Gonzales 619-532-8037 Signature Name (Printed) Phone No.

Date